Effwa Infra & Research Ltd – H1FY26: ₹90 Cr Revenue, ₹10 Cr PAT, 113% YoY Profit Jump – From Wastewater to Wow!
1. At a Glance
Effwa Infra & Research Ltd, the “pollution doctor” of India’s industrial backyard, is on a mission to clean what others mess up — and it’s doing it profitably. With a market cap of ₹568 crore and a current price of ₹245, this environmental engineering player has turned “waste” into wealth. The company clocked ₹90.2 crore in revenue for H1FY26, up 48% YoY, and ₹10.1 crore in PAT, up a mind-blowing 113% YoY. Return on equity? A sharp 30.4%. Return on capital employed? An elite 33.9% — the kind that makes even chartered accountants grin.
Zero Liquid Discharge (ZLD) — that’s their mantra. While your local factory dumps effluents, Effwa turns them into clean water, invoices, and cash flow. It’s the kind of business that would make both Greta Thunberg and Rakesh Jhunjhunwala proud — if only it didn’t have 232 debtor days!
The company’s order book stands tall at ₹450 crore, with a pipeline of ₹2,600 crore. When your next water glass tastes cleaner, just know someone at Effwa got paid for that.
2. Introduction
Effwa Infra & Research Ltd (EIRL) may not make fancy gadgets or viral apps, but it deals with something far more essential — water, waste, and the fine art of keeping industrial guilt under compliance limits. Incorporated in 2014, this Pune-based company has built its brand around engineering, procurement, and construction (EPC) projects for environmental pollution control. Basically, Effwa is what happens when an environmentalist meets an engineer and decides to send invoices to PSUs.
This is not your regular “pipe and pump” story. The company builds complex Zero Liquid Discharge (ZLD) systems for industrial clients — meaning it recycles every drop of wastewater till there’s nothing left to discharge. In a country where water crises and factory pollution headlines often coexist, Effwa’s timing couldn’t be better.
And the results show it. With sales growing 24% CAGR and profits surging 47% CAGR, Effwa is part scientist, part contractor, and full-time execution machine. Their client list reads like a PSU hall of fame — SAIL, IOCL, NTPC, Reliance, ONGC, Tata Steel — if these giants sneeze, Effwa gets a contract to clean the tissue.
But before you think it’s all clean money — hold that thought. High receivables, working capital stretching to 141 days, and negligible dividends tell us this eco-warrior sometimes drowns in its own invoices.
Still, in a dirty world, someone has to get their hands clean — and charge ₹90 crore for it.
3. Business Model – WTF Do They Even Do?
Effwa Infra doesn’t sell bottled water or sewage pipes. It sells turnkey environmental engineering — a blend of consulting, design, procurement, and construction services focused on effluent, sewage, and water treatment systems. In other words: it builds industrial “washing machines” for toxic water.
The core business buckets:
Effluent Treatment & Recycling – Fancy jargon for “cleaning factory wastewater until even fish approve.”
Zero Liquid Discharge (ZLD) – Ensuring not a single drop of water leaves the plant untreated. This is where the company prints money — accounting for 90.5% of its revenue.
Sewage & Water Treatment – Treating what cities flush out, and turning it back to usable water.
Operation & Maintenance (O&M) – The recurring revenue stream where Effwa gets paid to babysit the plants it built.
The client mix is heavily skewed toward PSUs (57%), followed by private industrial clients (42%). Geographically, 69% of business comes from India, while 31% comes from exports, mainly in Africa.
Their recent big win? A ₹150 crore EPC contract from Hutni Projekt (Czech Republic) for SAIL’s Rourkela and IISCO projects. Project tenure: 18 months. Expected revenue impact: visible from March 2026. This is Effwa’s “make or break” benchmark project for future ZLD bids.
They’ve also bagged an $4.29 million project in Ivory Coast for a 16.5 MLD water treatment plant, and earlier, a $1.5 million one in Tanzania. Because pollution is universal, but Effwa invoices in dollars too.
4. Financials Overview (Half-Yearly Data)
Figures in ₹ Crores
Source table
Metric
Sep’25 (Latest)
Mar’25 (Prev Half)
Sep’24 (YoY)
YoY %
QoQ %
Revenue
90.2
124
61
48.2%
-27.3%
EBITDA
15.4
23
7
120%
-33.0%
PAT
10.1
15
5
113%
-33.3%
EPS (₹)
4.38
6.63
2.06
113%
-34%
Data Type: Half-Yearly Results Annualised EPS: ₹4.38 × 2 = ₹8.76 Implied P/E: ₹245 ÷ 8.76 = 27.9x (vs. reported 22.3x, adjusted for rounding & period lag)
Effwa’s latest half-year shows the company doubled its profit year-on-year while maintaining a strong 17% operating margin. QoQ decline is
