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India’s water crisis isn’t a future problem. It’s happening now. Only 30% of urban wastewater is treated, and the rest flows untreated into rivers and groundwater. That’s where Enviro Infra Engineers comes in. From building sewage treatment plants to operating water supply schemes, the company is solving a problem that’s urgent, policy-backed, and severely underpenetrated.
The stock is up after winning ₹306 crore worth of new projects in Chhattisgarh. While the company didn’t reveal specifics due to confidentiality clauses, it disclosed the development voluntarily; indicating the orders were significant enough to warrant investor attention. The market agreed: shares jumped over 11% in early trade.
What looks like a routine EPC contract is actually a signal of deeper momentum. This comes on the back of a strong FY25, new renewable assets, and an expanding order book.
By the numbers:
- Market capitalisation: ₹4,323 crore
- FY25 revenue: ₹1,066 crore
- FY25 net profit: ₹177 crore
- Promoter holding: 70.09%
Enviro Infra makes money through EPC (engineering, procurement, and construction) of water treatment infrastructure, essentially designing and building plants and pipelines for state clients. It also operates many of these systems under long-term maintenance contracts (O&M), which provide recurring revenue. In FY25, EPC brought in 87% of revenue, HAM (hybrid annuity model) 10%, and O&M around 3%.
The company is active across 10 states, with Madhya Pradesh, Rajasthan, and Uttar Pradesh as key regions. Projects range from STPs (sewage treatment plants) and CETPs (common effluent plants for industrial waste) to piped water supply systems. These are executed under flagship schemes like AMRUT and Namami Gange.
The execution track record has been strong. In Bareilly, Enviro Infra completed a 63 MLD sewage plant seven months ahead of schedule; important when milestone-linked payments and penalties are involved. Timely delivery also boosts eligibility for future bids.
Financially, the company is in a growth phase. Revenue rose 46% in FY25. Net profit jumped 66%. Margins are strong: EBITDA margin is 25.1%, and PAT margin is 16.3%. ROCE and ROE stand at 31.7% and 27.4%, both higher than most peers. Net worth has grown to nearly ₹1,000 crore, while the debt-to-equity ratio remains low at 0.2.
In parallel, Enviro Infra has started moving into renewables. Its subsidiary, EIE Renewables, recently acquired solar assets in Odisha and Maharashtra and picked up a 49% stake in Soltrix. The goal: integrate green energy into core water infra projects—think solar-powered STPs or waste-to-energy installations using CBG (compressed biogas) plants.
Execution discipline remains key. The company uses in-house design and site-level construction to keep project control high and fixed costs low. This is different from capital-heavy infra players with centralised manufacturing plants.
That said, there are some pressure points. Working capital days have stretched from 96 to 139. Cash flow from operations was negative in FY25 at -₹47 crore. Receivables have piled up mostly from state bodies and Enviro has disclosed an ₹8.4 crore GST shortfall (2018–2024), currently under resolution.
But the broader story is intact. India’s water infra capex is expected to grow steadily under urban missions like AMRUT 2.0, Jal Jeevan Mission, and National Mission for Clean Ganga. Wastewater reuse, mandatory zero liquid discharge (ZLD) norms, and growing industrial demand are long-term drivers. The government’s FY26 budget has earmarked over ₹80,000 crore for water-related infrastructure.
Enviro Infra is playing in a segment with limited competition, high regulatory push, and deep funding visibility. And it executes without overextending.
The bottom line:
India is entering a decade where water will be treated like oil—scarce, strategic, and heavily invested. With rising demand for treatment capacity, stricter compliance norms, and growing urban pressure, water infrastructure is no longer a side segment. It’s central to India’s development priorities.
Enviro Infra sits right at the intersection of policy tailwinds and on-ground execution. It’s not chasing size, it’s building depth. And in sectors like this, that’s what compounds.
FAQs
What does Enviro Infra Engineers do?
Enviro Infra builds and operates water and wastewater treatment plants, as well as water supply systems for public sector projects across India.
Why did Enviro Infra shares rise recently?
The stock surged after the company secured ₹306.3 crore worth of new EPC and O&M projects in Chhattisgarh, announced via a voluntary disclosure.
Is Enviro Infra a government contractor?
Yes, most of its business comes from government-led infrastructure programs such as AMRUT, Namami Gange, and state urban development projects.
How much is Enviro Infra’s current order book?
As of March 2025, the company’s EPC and HAM order book stood at ₹1,185.5 crore, along with ₹806.6 crore in long-term O&M contracts.
What was Enviro Infra’s revenue and profit in FY25?
Enviro Infra reported ₹1,066 crore in total revenue and ₹177 crore in net profit for the financial year ending March 2025.
Is Enviro Infra investing in renewable energy?
Yes, the company has launched a subsidiary, EIE Renewables, and acquired solar assets to integrate clean energy into infrastructure projects.
What are the risks for Enviro Infra investors?
Risks include rising working capital days, negative operating cash flows, delayed payments from government bodies, and tax-related disputes.
What is the promoter holding in Enviro Infra?
As of March 2025, promoters held 70.09% of the company’s equity, indicating strong promoter control and alignment with shareholders.
Where does Enviro Infra operate in India?
The company operates in 10 states, with major revenues coming from Madhya Pradesh, Rajasthan, and Uttar Pradesh.
What is Enviro Infra’s growth outlook?
With strong order visibility, policy tailwinds, and a shift into renewables, Enviro Infra is positioned for steady growth in urban water infrastructure.
