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, up48% YoY, and ₹10.1 crore in PAT, up a mind-blowing113% YoY. Return on equity? A sharp30.4%. Return on capital employed? An elite33.9%— 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 aroundengineering, 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 growing24% CAGRand profits surging47% 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 to141 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 sellsturnkey 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 for90.5% 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, while31% 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 Coastfor 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
| 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 ResultsAnnualised EPS:₹4.38 × 2 = ₹8.76Implied 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 normal for EPC players — think project phasing, not performance drop. When your clients are PSUs, cash flow timing can make even solid results look like a roller coaster.
5. Valuation Discussion – Fair Value Range Only
Let’s run through three valuation lenses (purely educational):
(a) P/E Method
- Current EPS (TTM): ₹11.0
- Industry P/E: 21.7
- Fair P/E Band: 18x – 26x
- Fair Value Range:₹198 – ₹286
(b) EV/EBITDA Method
- EV: ₹550 Cr
- EBITDA (TTM): ₹38 Cr
- EV/EBITDA: 14.4xIf industry average is 12–16x, Effwa sits comfortably mid-range.
(c) Simplified DCF (Educational)
Assuming profit growth of 25% for next 3 years, then tapering to 10%, discount rate 12% → intrinsic range between ₹210–₹270.
✅Fair Value Range (for learning purposes only): ₹200–₹280Disclaimer: This fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
If drama had a ticker symbol, Effwa would trend. In the last 12 months:
- Nov 2025:Bagged ₹150 crore ZLD EPC contract from Hutni Projekt FM (for SAIL). Tenure: 18 months.
- Jan 2025:Won $4.29 million Ivory Coast water project via Afcons Infrastructure.
- Oct 2024:Announced $1.5 million water project in Tanzania — yes, they export clean water systems now.
- Mar 2025:CRISIL upgraded its rating fromBBB- to BBB (Stable)— a quiet mic drop for a smallcap.
- Aug 2025:Increased borrowing limit from ₹200 Cr to ₹350 Cr, because you can’t build treatment plants on moral capital.
Pipeline of ₹2,600 Cr, order book of ₹450 Cr — it’s like having Netflix subscriptions for engineers. Expect more international collaborations, especially in Africa and Southeast Asia, where Effwa is
