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1. Opening Hook
Greenleaf Envirotech posted a 56% revenue leap to ₹60.61 crore in FY26, and profit climbed 57.5% to ₹7.23 crore. The story, on the surface, is textbook growth. But the balance sheet tells a different joke: debtors ballooned to ₹38 crore (234 days of receivables), and working capital days stretched to 176 from 59 the prior year. The company is executing like a sprinter in the first 100 metres, but cash is lagging three laps behind.
2. At a Glance
- Revenue: ₹60.61 cr — 56% YoY; FY26 Q4 alone ₹39.54 cr (39% of full-year sales booked in three months)
- EBITDA: ₹12.52 cr — 57.2% YoY; margin stayed ~20.7% (management target 15–20%)
- PAT: ₹7.23 cr — 57.5% YoY; margin 11.9%
- Debtors: ₹38 cr — 234 days outstanding (was 111 days in FY25); ₹25 cr booked in Jan–Mar, ₹14 cr in March alone
- Order book: ₹95 cr — ₹80 cr to execute in FY26–FY27; ₹15 cr spillover
- CETP capex: ₹35 cr — 70% civil done, target March ’27 commissioning; ₹10 cr membership upfront collected
- Working capital days: 176 — jumped from 59 in FY25; cash conversion cycle at 202 days
3. Management’s Key Commentary
On execution-led growth:
“Nearly 90% of our revenue continues to come from project execution activities, particularly wastewater treatment and environmental infrastructure projects.”
(Translation: They’re a project shop. One big contract in a quarter can double the revenue line. Lumpiness is the business model.)
On margin discipline:
“We do not bid below 15% gross margin, typically bidding around 20% gross margin, and we expect to maintain around 15–20% EBITDA for all projects, existing and new.”
(Translation: The margin floor sounds nice in theory. Practice shows Jan–Mar was 15.45% OPM—bottom of the range, not the ceiling.)
On the CETP pivot:
“The CETP at Sayan is our first step towards participating in the ownership and operation of environmental infrastructure to gradually improve revenue visibility and enhance the overall quality of the business.”
(Translation: EPC margins are 15–20% today. Owning a CETP and running it for 25 years means annuity revenue. If 2,500 of 4,000 machines are booked at ₹80 lakh monthly per phase, that’s ₹20 crore annual recurring revenue, with zero execution risk—after capex’s done.)
On bidding and conversion:
“We are going to bid around INR 400 crores more by the end of this financial year. The average conversion rate is around 20%.”
(Translation: ₹400 cr bids × 20% = ₹80 cr new orders inflow. That slots neatly into their execution envelope, which is 18–24 month cycles. The guidance is that mechanical.)
On technology development:
“We have a positive search report for our GAC-SBR technology and will proceed with filing. The SBR technology portion is around 20% of our revenue exposure, and we currently take that technology from other technology providers.”
(Translation: Today, they buy the SBR tech from vendors, paying royalty embedded in cost. If their own patented variant works, they cut that royalty and license to competitors. The uplift is a 3–5% margin improvement on that 20% slice—or ₹60 lakh at FY26 scale. Useful, not transformational.)
On collections and working capital:
“We have already received around INR 15 crore during April and May [against the ₹38 cr debtors]… We are focused on improving working capital efficiency.”
(Translation: The ₹38 cr number is real—not a mistake. Collections
