Felix Industries Ltd Q2 FY26 – How to Turn Waste into Wealth (and Still Keep Your Hands Clean)
1. At a Glance
If “zero waste” had a face in Indian midcaps, it would probably look like Felix Industries Ltd — calm on the surface, but quietly recycling everything in sight, including investor doubts. With a market cap of ₹267 crore and a stock price of ₹155, Felix operates in the underrated, unglamorous world of environmental engineering, but it’s starting to look like the nerd everyone ignored in school who now owns a green hydrogen startup.
In Q2 FY26, the company reported sales of ₹17.38 crore and a PAT of ₹5.33 crore, translating to a quarterly profit jump of 1,445% — yes, you read that right. That’s not a typo; that’s redemption. The company’s EBITDA margin at 44.3% would make even FMCG veterans blink twice. Annualized, the EPS sits near ₹11, giving a P/E of 17x, bang in line with the industry median. Meanwhile, ROE at 11.7% and ROCE at 14.3% show this isn’t just a recycling story — it’s a rerating one.
But wait, the best part? A 32% promoter pledge — because even green companies like a little red flag to keep things spicy.
2. Introduction – From Dirty Water to Clean Profits
Felix Industries is the corporate equivalent of that student who topped both science and moral studies — serious about engineering and preaching sustainability like a monk with a balance sheet. Incorporated in 2012, it has made a quiet name in water treatment, solid waste management, hydrocarbon recycling, and green hydrogen — basically, all the ways to fix the mess humanity creates daily.
While the rest of the market fights over fintech and AI, Felix is out here turning toxic effluents into usable water and plastic waste into fuel — a kind of industrial alchemy that earns both revenue and ESG brownie points. With operations in India and Oman, it’s not just cleaning local drains — it’s exporting clean-tech karma globally.
The business thrives on contracts ranging from EPC and BOOT to PPP models, giving it annuity income plus one-time project revenues. Think of it as an environmental contractor with a recurring Netflix subscription plan. And as the government’s Namami Gange and Green Hydrogen Mission gain steam, Felix seems perfectly positioned to profit from both dirty rivers and clean energy.
But here’s the kicker: while Q2 showed 117% YoY revenue growth, the promoters have been slowly offloading shares (down from 73% in FY22 to ~50.8% now). Coincidence? Maybe. Or maybe they’re diversifying into karma.
3. Business Model – WTF Do They Even Do?
In simple terms, Felix Industries takes garbage, wastewater, and industrial sludge — and somehow makes it sound like cutting-edge science. The company’s slogan might as well be: “We clean your mess and send you the bill.”
Water & Wastewater Treatment: They handle everything from industrial effluent (ETP) to sewage (STP) and even Zero Liquid Discharge systems (ZLD) — which means not a single drop of contaminated water escapes. Basically, they do what your local municipality promised but never delivered.
Solid Waste Management: From hazardous waste to municipal garbage, Felix uses fancy words like pyrolysis and torrefaction to make it sound like black magic. End products? Biochar, bio-oil, and syngas — sounds like chemistry, but it’s really just money.
Hydrocarbon Recycling: Think of all that waste oil from factories. Felix turns it into usable diesel and industrial fuel. It’s the literal definition of “burning trash for cash.”
Green Hydrogen: This is the company’s newest flex — producing clean hydrogen using renewable energy and zero-TDS water. If executed well, this segment could make Felix the Tesla of Indian waste management — minus the memes and litigation.
And yes, they don’t just build — they own and operate some of their projects under BOOT/PPP models. Translation: long-term contracts, steady cash flow, and a reason for CFOs to smile.
4. Financials Overview
Metric
Q2 FY26
Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue (₹ Cr)
17.38
8.01
20.62
117%
-15.7%
EBITDA (₹ Cr)
7.70
0.54
5.58
>1000%
38.0%
PAT (₹ Cr)
5.33
0.31
3.56
1,445%
49.7%
EPS (₹)
2.78
0.23
2.68
1,108%
3.7%
Commentary: The only thing growing faster than Felix’s profits is India’s pollution. The company’s YoY profit explosion (1445%) feels like watching a startup turn unicorn overnight — except here, it’s sewage and sludge funding the glow-up. Even with a minor QoQ dip in revenue (post a blowout Q1), margins expanded dramatically.
With OPM of 44%, Felix is earning more from wastewater than some FMCG companies earn from selling happiness. Annualized EPS now stands at ₹11.1, meaning this ₹155 stock trades at a modest P/E of ~14x forward, cheaper than its cleaner peers.
5. Valuation Discussion – The “Fair” Value Range
Let’s get mathematical before the sarcasm runs wild.
Current EPS (TTM): ₹10.8
Industry P/E (median): ~17x
EV/EBITDA: 10.6x
ROCE: 14.3%
P/E Method: Fair Value = EPS × P/E Range (15x–20x) = ₹10.8 × (15–20) = ₹162 – ₹216
EV/EBITDA Method: EV/EBITDA range (9–12x) → Fair EV = EBITDA × multiple Given EBITDA (₹25 Cr approx), Fair EV = ₹225–₹300 Cr → Equity Value roughly ₹160–₹210 per share.
🧾 Educational Fair Value Range: ₹150 – ₹210 per share. (Disclaimer: This range is for educational analysis, not a buy/sell recommendation. Waste management is risky — and so are markets.)
6. What’s Cooking – News, Triggers, and Drama
Felix has been on a contract-winning spree like a politician before elections. In 2025 alone, it bagged:
