Enviro Infra Engineers Targets Fourfold Revenue Growth In Water Business By FY30

Enviro Infra Engineers, a prominent player in the water and wastewater treatment sector, is confident of at least a four-fold jump in revenue from its core business by FY30, according to its Managing Director (MD) Manish Jain.

“A growth of 35 to 40% CAGR is possible. For FY2030, we can grow at least 4x from the water and wastewater treatment business. For the next three years, we could be somewhere in the range of 2.5x to 3x of the current earnings,” he said during a conversation with NDTV Profit on Monday. 

The company is targeting an Ebitda margin of 22% to 24% in FY26 from the water and wastewater treatment business. 

According to Jain, the company is also expecting double-digit Ebitda margins from its newly launched renewable energy segment. It has already acquired two solar power assets: a 40 MW project in Odisha, of which 24 MW is operational and generating Rs 16 crore annually, and a 29 MW project in Maharashtra under Maharashtra State Electricity Distribution Company Ltd. (MSEDCL).

“For these two projects, we are estimating Ebitda margins in the range of 18% to 20% and we expect IRR (internal rate of return) in the range of around 13.5% to 14%,” he said.

Despite the firm's entire order book being sourced from state and central government bodies, Jain expressed confidence in future financial stability. "The cash flow will not be an issue going forward," he said.

Over the next three years, the company’s order book will continue to mostly comprise government projects.

“There may be a slight shift from the government, but predominantly it will be a government sector. However, we look forward to the B2B segment as well, so various refineries or thermal power plants, which are coming up. We further look forward to some overseas opportunities as well,” the top executive noted.

Jain expects the market environment to stabilise as more projects come online.

“There is a level playing field at which we are operating, so at that level we can say there are 10 to 12 players,” he underscored.

Shares of Enviro Infra Engineers closed 0.86% lower at Rs 242.8 apiece on the NSE, while the benchmark Nifty50 settled 0.13% higher at 24,773.15.