🔍 At a Glance
Enviro Infra is one of those rare EPC players that doesn’t just build sewage and water projects — it also sticks around to run them. Now flush with profits, it’s diving headfirst into solar energy. But between the glowing CRISIL upgrades and some shady cyber fraud, the ₹4,000 Cr company is serving up a mix of 🚰 and ⚡.
1. 🧩 Introduction with Hook
Who knew cleaning poop water could be so profitable?
- Enviro Infra: WWTP + WSSP specialist for government projects
- FY25 Revenue: ₹1,066 Cr, Profit: ₹177 Cr, ROE: 27.4% 🔥
- Recent moves into solar power EPC and asset ownership
- But wait — ₹11.15 Cr cyber fraud and ₹8.4 Cr GST penalty also in the mix 🕵️♂️
This isn’t just a pipeline story anymore.
2. 🏢 Business Model – WTF Do They Even Do?
🚰 Core biz:
- Water Treatment (WWTP) — municipal contracts
- Sewage Treatment — EPC + O&M (sweet margins)
- Water Supply Schemes (WSSP) — turnkey government projects
⚡ New Biz:
- Renewable Energy Projects
- Owns/acquiring 100+ MW solar capacity (Odisha + Maharashtra)
- Holding company: EIE Renewables (100% subsidiary)
- Bids under VGF and O&M model
🤝 Client Base: Primarily Government Agencies (State Utilities, Urban Dev. authorities)
🧠 Sarkari EPC + Recurring O&M + Renewable Pivot = A very “2025” combo.
3. 💰 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 124 | 224 | 338 | 729 | 1,066 |
| Net Profit (₹ Cr) | 9 | 35 | 55 | 106 | 177 |
| ROE (%) | 35% | 35% | 27% | ||
| OPM (%) | 12% | 22% | 24% | 23% | 25% |
🧠 Profits compounding at 102% CAGR (5Y). Naya India cleaning up in every sense.
4. 📉 Valuation – Is It Cheap, Meh, or Crack?
- P/E: 23.1x (fair for high growth infra player)
- P/B: 4.1x (a bit rich, but growth makes up for it)
- Dividend Yield: 0.00% 🙃 (no love for shareholders yet)
- Fair Value Range: ₹255–₹280
🧮 Based on FY26E EPS ₹12 and P/E range of 21–23x
No dividend. All growth. And some margin of error thanks to the GST dept.
5. 🍿 What’s Cooking – News, Triggers, Drama
🔥 June 2025: Secured ₹306 Cr EPC orders for sewage treatment w/ 15-year O&M
⚡ Solar push: Bought 69 MW capacity for ₹115 Cr, operational status achieved
😱 Cyber Fraud: ₹11.15 Cr stolen, top brass forgoing salaries till recovered
🚨 GST Shortfall Notice: ₹8.4 Cr demand for 2018–2024
📈 CRISIL Upgrade (Jun 2025): Upgraded to A/Stable citing “strong revenue momentum”
🎯 Between water, sun, and scams — there’s never a dull quarter here.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Total Assets | ₹1,498 Cr |
| Borrowings | ₹234 Cr |
| Reserves | ₹819 Cr |
| Equity | ₹176 Cr |
| D/E Ratio | 0.28 |
| Fixed Assets | ₹70 Cr |
| Other Assets | ₹1,419 Cr 😲 |
🧠 Balance sheet expanding, but a lot of it is tied in long-term receivables — typical of government EPC.
7. 💸 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | Capex + Inv. | FCF (Est.) |
|---|---|---|---|
| FY23 | ₹101 Cr | ₹-141 Cr | Negative |
| FY24 | ₹-68 Cr | ₹-139 Cr | Deep red |
| FY25 | ₹-47 Cr | ₹-263 Cr | 😱 Hemorrhage mode |
💰 Heavy capex phase due to solar project acquisitions. Cash flow to return once those turn operational.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 31.7% |
| ROE | 27.4% |
| OPM | 25% |
| Working Capital Days | 139 |
| CCC | 7 days |
| EPS | ₹10.04 |
🔥 Stellar ROCE/ROE combo, but WC inflation from 78 → 139 days is a red flag 🚩
9. 💵 P&L Breakdown – Show Me the Money
- Revenue CAGR (3Y): 68%
- Profit CAGR (3Y): 72%
- Net Profit jumped from ₹106 Cr → ₹177 Cr YoY
- Margins steady at ~25% — best in water infra sector
⚠️ But Jun’25 quarter saw OPM drop to 22% from 25% — early solar teething issues?
10. 🤼 Peer Comparison – Who Else in the Game?
| Company | P/E | ROCE | ROE | OPM | CMP |
|---|---|---|---|---|---|
| Va Tech Wabag | 30.8x | 20.1% | 14.9% | 12.8% | ₹1,464 |
| ION Exchange | 38.3x | 22.1% | 18.7% | 10.7% | ₹544 |
| Enviro Infra | 23.1x | 31.7% | 27.4% | 25.1% | ₹232 |
🧠 Valuation gap + higher margins = rerating potential.
11. 🧮 Miscellaneous – Shareholding, Promoters
- Promoters: 70.09% (solid, no pledges)
- FII: 0.65%
- DII: 3.68%
- Public: 25.6%
- Shareholders: Over 2.43 lakh 🚀
🧠 Heavy retail participation already — but no institutional anchor yet.
12. 🧑⚖️ EduInvesting Verdict™
Enviro Infra went from being a contractor in the shadows to a capital-efficient star in water infra — and now a contender in solar too.
✅ 100%+ profit growth over 5 years
✅ High ROE, high ROCE, high OPM
⚠️ Rising working capital + cyber/GST risk + cash burn phase
FV Range: ₹255–₹280
This isn’t your average EPC stock — it’s the clean-tech hybrid EPC 2.0. A solar-powered, sewage-cleaning, cyber-scandal-surviving beast.
Let’s just hope they don’t expand into crypto mining next.
✍️ Written by Prashant | 📅 July 6, 2025
Tags: Enviro Infra, Water Infra, Solar EPC, Renewable Energy, Wastewater, Smallcap, CRISIL Upgrade, Cyber Fraud, GST Dues
