Enviro Infra: ₹6,720 cr order book, 6% profit growth

Enviro Infra Engineers Limited (NSE: EIEL) grew Q1 FY27 revenue 49% to ₹359 crore. Net profit grew only 6.5% to ₹45.2 crore. The stock is near ₹204, down 26% from its high of ₹276. What happened EBITDA rose 17.9% to ₹75.7 crore overall at a 21.1% margin, down from 26.7% a year ago. PAT margin fell to 12.4% from 17%. The order book stands at ₹6,720 crore: water and wastewater ₹3,694 crore, renewables ₹2,908 crore, and operations and maintenance ₹1,117 crore. Management guides ₹2,000 crore of full year revenue for FY27. Why it matters India is spending heavily on Jal Jeevan Mission, sewage treatment and effluent control. Enviro Infra designs, builds and operates these plants. Each plant completed converts to an O&M contract, earning annuity income for years. My view VA Tech Wabag is 30 years old with a global order book. EIEL is a recent IPO still building its track record. The comparison is apt in direction, but it sets a high bar. Now the numbers. Revenue grew 49% on a low base. EBITDA margin fell 558 basis points. Renewables are now half the order book, and solar and wind margins of 15% to 18% are below water at 21% to 22%. More renewables in the mix means a lower blended margin overall. The long term story is clean. Water scarcity, regulation and Jal Jeevan spending make this structural. But at about 19 times earnings on shrinking margins, some of that is in the price. What I am watching Q2 FY27 results in November, EBITDA margin recovering above 21%, and new order wins. On the chart, ₹135 is the 52-week low and ₹276 is the key level to reclaim. My stance: Accumulate near ₹175. Long term story intact. Near term margins under pressure. Disclosure: I do not hold a position in Enviro Infra Engineers Limited at the time of writing. This is not investment advice.