Banka Bioloo Ltd Management Discussions

Industry Overview

Indias Water and Wastewater Treatment (WWT) Sector

Market Size & Growth Projections

The domestic market for water and wastewater treatment technology stood at approximately USD 3.27 billion in 2026, on track to reach USD 5.17 billion by 2031 – a compound annual growth rate of roughly 9.6% over that period.

Key Growth Drivers:

• Groundwater Pollution: Poor sanitation and indiscriminate disposal of untreated sewage and faecal waste contaminate groundwater sources, reducing the availability of safe freshwater and intensifying water scarcity

• Freshwater Scarcity: Per-capita freshwater availability has slipped below internationally recognised water-stress thresholds, making scarcity, not just compliance, a primary driver of capital spending

• The Sewage Treatment Gap: India generates an estimated 72,368 MLD of sewage daily, yet existing infrastructure treats only around 37% of it - leaving nearly two- thirds untreated and exposing the scale of opportunity for decentralised treatment players.

• ESG and Reuse Pressure: Rising sustainability commitments from corporate India continue to push demand for water-recycling and reuse infrastructure, independent of regulatory mandates.

Market Composition

By Equipment Type	By End-User Industry
\u2022 Treatment Equipment: -90% of market value (2025) - covers suspended-solids removal, biological treatment, and disinfection systems.	\u2022 Municipal: -58% share (2025), anchored by AMRUT 2.0 funding and Swachh Bharat Mission treatment mandates.
\u2022 Process Control & Automation: The fastest-growing segment, forecast at over 11% CAQR through 2031, driven by SCADA-linked monitoring and real-time compliance dashboards.	\u2022 Healthcare: The fastest-growing end-user category, at close to 11% CAGR, driven by tightening antibiotic-residue discharge limits.

Government Initiatives Driving the Sector

• Jal Jeevan Mission: Rural tap water coverage has climbed from roughly 17% in 2019 to more than 81% as of early 2026 - over 12.5 crore new household connections in under seven years. The mission has been extended through December 2028 under an expanded outlay, with renewed focus on functional, sustained water delivery rather than connection counts alone.

• AMRUT 2.0: Continues to fund urban water and sewerage upgrades, with growing emphasis this year on tertiary treatment capacity that enables industrial reuse of treated water - directly relevant to the water-recycling infrastructure built by Banka WaSH and Megaliter Varunaa.

• Swachh Bharat Mission (Urban) 2.0: Running through October 2026, the mission continues to drive sewage treatment plant tenders, several now backed by viability-gap funding that favours established, full-lifecycle operators over single-project EPC contractors.

A Market Shifting Toward Service-Led Operators

Several structural shifts are reshaping demand in ways that play to Banka BioLoos strengths:

• Zero-Liquid-Discharge Norms: Stricter rules for red category industries are pushing smaller manufacturers toward shared, modular treatment facilities rather than standalone

plants.

• The Build and Maintain Shift: Municipalities and corporates are increasingly outsourcing long-term O&M rather than retaining it in-house - the same model underpinning Banka WaSHs service contracts and Megaliter Varunaas subscription-based UrbanSaaS offering.

• ESG-Linked Capital: Municipal green bonds and sustainability-linked financing are increasingly tied to wastewater-recycling performance, rewarding operators who can demonstrate measurable reuse outcomes.

Taken together, these trends point to a market growing not just in size, but in structure - moving away from one-time infrastructure sales and toward long-term, service-based relationships. That shift sits at the centre of how Banka Bio has chosen to build its business.

Performance Trajectory

FY 2025-26 marked a turnaround for Banka Bio. Total Revenue grew for the fifth consecutive year to Rs.58.4 crore, while EBITDA swung from a loss of Rs.2.5 crore in FY25 to a positive Rs.6.5 crore, and PAT returned to profitability from loss of Rs.8.9 crore to positive Rs. 0.4 crore. The recovery was driven by sustained cost discipline and stronger execution across Banka WaSHs geographic expansion and steady Railways annuity revenue.

The order book strengthened to Rs.107 crore unexecuted (Rs.70 crore executable within twelve months), supporting revenue visibility into FY27. Leverage, which had risen through FY25, eased in FY26 as the equity base widened following Megaliter Varunaas Rs.15 crore seed round, which also strengthened the Companys cash position.

Consistency in Revenue

Over the past six fiscal years, the revenue trajectory has embodied the core theme of consistency that compounds. Rather than relying on transient market spikes, the organization has cultivated a deliberate, steady ascent that builds upon itself year after year.

Revenue Growth:
Rs. 54.5 crore in FY 2024-25 to Rs.58.4 crore in FY 2025-26	While consistent revenue growth provided a stable foundation, FY 2025-26 marked a pivotal transition where strategic execution and operational leverage compounded into a significant profitability turnaround. The focus shifted from mere top-line expansion to extracting higher quality earnings from every rupee generated.
EBITDA Margin:
(4.7%) in FY 2024-25 to 11.1% in FY 2025-26	FY 2024-25 absorbed extended project cycles and under-recovery of fixed costs on delayed sites. FY 2025-26 reflects a full year of cost discipline, a lower materials-to-revenue ratio, and a higher weighting of long-term O&M and subscription revenue in the mix: revenue that carries a steadier margin than one-time installation work.
PAT Margin:
(16.3%) in FY 2024-25 to 0.7% in FY 2025-26	Follows the operating turnaround, with the larger part of the improvement reflecting the non-recurrence of the exceptional provision recognised in FY 2024-25. Finance costs were broadly stable year on year.

Revenue Visibility

As at March 31, 2026, the unexecuted order book stood at approximately Rs. 107 crore, of which approximately Rs.70 crore is expected to be executed within the next twelve months. Banka WaSH accounts for approximately Rs.56 crore, with the balance in Banka RAIL, where revenue is largely generated through multi-year operation and maintenance contracts.

Value Creation Model

Turning Purpose into Progress: Our End-to-End Value Architecture

INPUTS	ACTIVITIES	OUTPUTS	OUTCOMES	Long Term Impact
What We Start With	Converting Inputs into Deliverables	What Gets Delivered	What Stakeholders Receive	Where the Model Points
People	Design and R&D	25,000+	Communities	Social Equity
750+ employees across engineering, field ops, R & D, project management, and client service	Bio-sanitation and MBR treatment development; FY26 push into IoT- based asset digitisation	Railway bio-toilets maintained daily across 7 zones	Safe sanitation access; reduced waterborne disease; protection for women and girls; Millions of people served over the years	Sanitation access where centralised infrastructure wont reach: women, school children, remote and urban poor communities
Technology	Turnkey Delivery	5000+	Clients	Environmental Health
DRDO-certified bio-digesters, MBR treatment systems, Megaliter UrbanSaaS platform, O & M framework (digitising FY26)	Design to installation across Railways, urban towers, municipal and industrial sites	Bioloos installed across 26 states over the last decade	Compliant, no-capex infrastructure; O & M off their books; improved ESG credentials	Treating water before ecosystem re-entry, recovering biosolids, shifting cities toward circular water use
Capital	Long-Term O&M	Rs.107 Cr	Employees	Scalable Growth
NSE-listed equity, government funding (AMRUT 2.0, SBM-U 2.0, JJM), Megaliters Rs.15 cr seed round, client advances	Multi-year contracts across plants, delivering compliance and uptime without in-house client expertise	Unexecuted order book; Rs.70cr executable within 12 months	Safe conditions, upskilling, meaningful employment across rail, WaSH, and field roles	Expanding via subscriptions, blended finance, digitised O&M, without proportional capital or headcount risk
Partnerships	UrbanSaaS (Megaliter Varunaa)	Geographic expansion	Shareholders	Trusted Platform
Indian Railways (7 zones), developers (Brigade, Reliance, RMZ), impact investors, NGOs, municipalities across 26 states	Zero-upfront subscription model; Megaliter funds and holds assets, Banka builds and runs them; 8 projects live	Into Bengaluru and Mumbai in FY26	EBITDA/PAT profitability in FY26; annuity-weighted revenue; Rs.107cr order book visibility	The operator cities, developers, and railways choose for infrastructure built to last
Governance	Digital Monitoring	Pilot completed in Nigeria	Environment
DRDO/ISO certifications, CPCB compliance, ESG board oversight, NSE-compliant reporting	Real-time tracking, IoT dashboards, CPCB reporting; full digitisation targeted by FY28	45,000+monthly visits recorded	Wastewater recycled; sludge diverted from rivers/land; reduced pollution across geographies
		Megaliter Varunaa
		3.5+ billion litres treated annually; Rs.15 crore seed round closed

Clients and Partnerships

At Banka Bio, a client relationship doesnt end when a plant is handed over or a toilet system is installed. In a business where multi-year O&M contracts, UrbanSaaS subscriptions, and Indian Railways maintenance runs define the revenue model, the quality of every relationship we hold directly shapes the quality of everything we deliver. Our clients are not just buyers of infrastructure, they are long-term partners in building sanitation systems that actually work, year after year.

Technology and Research Partners

Two of our most foundational institutional relationships sit at the technology level rather than the client level. Our partnership with DRDO (Defence Research and Development Organisation) underpins the bio-digester certification that gives our railway and community toilet systems their credibility and regulatory standing. Our collaboration with ISRO reflects a broader recognition of the scalability and performance of our sanitation technology at an institutional level. Both partnerships predate many of our commercial client relationships and continue to anchor the technical foundation of everything we build.

Government and Public Sector

Our deepest and longest-standing institutional client relationship is with Indian Railways, where we maintain 25,000+ bio-toilet systems daily across 7 railway zones. Beyond Railways, we work across central and state government programmes - including the Swachh Bharat Mission, Jal Jeevan Mission, and AMRUT - supporting municipalities and public bodies in building treatment capacity that meets regulatory standards. Our government client base spans Indian Railways, GAIL, ONGC, APIIC, NTPC, BHEL, Penna Cement, Government of Telangana, Government of Andhra Pradesh, and TSIIC.

Real Estate and Commercial Developers

The fastest-growing part of our client base in FY26. We expanded significantly into urban real estate, adding new projects with Brigade, Reliance, and RMZ in Bengaluru and Mumbai - alongside continued momentum in Hyderabad with established relationships including My Home Group, Hiranandani Upscale, Shriram Properties, KMV Group, Kalpataru, Aparna, and Aditya Birla Group. These developers choose us for compliant, ESG-ready wastewater solutions, often under a zero-CapEx UrbanSaaS model that removes the need for upfront STP investment.

Commercial and Retail

We have expanded our footprint into large-format commercial and retail assets, where high footfall volumes and regulatory compliance requirements make professionally managed wastewater treatment a necessity rather than an option. Our work with Nexus Malls and Lulu Mall marks the beginning of what we expect to be agrowing segment within the WaSH vertical.

Industrial and Corporate

We help industries - plantations, food and beverage, energy, hospitality, and healthcare - manage on-site wastewater and sanitation in compliance with CPCB and zero-liquid-discharge requirements. Many of these relationships have lasted over a decade. Our corporate client base includes Amara Raja, Dalmia Bharat Group, ITC, Havells, Tata Group, L&T, Shapoorji Pallonji, Club Mahindra, Holiday Inn, Manipal Hospitals, IKEA, Raymond, and GAIL.

CSR and Development Partners

A meaningful portion of our work reaches communities that cannot pay market rates - through corporate CSR programmes, NGO partnerships, and government-funded sanitation drives. These relationships extend our reach to schools, anganwadis, rural communities, and urban slums. We have partnered with WaterEquity (USA-based impact fund), UNICEF, WaterAid, Plan India, HDFC Bank, and Tata Trusts on community-focused sanitation and water initiatives.

Our Value Proposition
Reliable execution	Across geographies and project types, whether a remote plantation in Assam or a high-rise residential tower in Bengaluru
Flexible engagement models	Long-term O&M, subscription-based UrbanSaaS, CSR, or public-private partnership structures
Regulatory and ESG readiness built in	CPCB reporting, lifecycle monitoring, and sustainability documentation are standard, not add-ons
ISO 9001, ISO 14001, and ISO 45001 certified	Operations, alongside an Integrated Management System, providing clients with independent third-party assurance of our standards
Human-centred design	That accounts for local context, user behaviour, climate conditions, and cost efficiency

Risk and Mitigation Measures

We manage a diverse range of financial, operational, regulatory, and technological risks across our businesses, with regular senior management review and corrective action as required.

	Risk	Mitigation Measures
Credit Risk	Clients, particularly in government and large-project categories, may delay payments or default on obligations, creating receivables pressure on working capital.	Monitor client creditworthiness before entering contracts, apply an expected credit loss model for provisioning, and in FY26 intensified focus on receivables collection cycles, particularly in government contracts
Market Risk	Commodity price fluctuation, for construction materials, membranes, and mechanical components, and foreign exchange exposure on imported equipment represent ongoing market risks.	Manage foreign payments in advance and address material cost variability through procurement planning and vendor diversity
Execution and Delivery Risk	Delays in project timelines or cost overruns, particularly as expansion continues into new geographies such as Bengaluru and Mumbai, represent a material operational risk.	Strengthened project management frameworks, milestone-based tracking, and site-level oversight.
Regulatory and Compliance Risk	The evolving landscape of environmental norms, CPCB discharge standards, and SEBI listing requirements requires continuous attention.	Stay ahead of regulatory change through active engagement with relevant authorities and by designing systems to exceed current standards; ISO and DRDO certifications reflect this commitment
Technology and Digitisation Risk	Commitment to digitising the O&M asset base over the next two years carries execution risk: implementation delays or integration challenges could affect service quality in the near term.	Managed through a phased, pilot-led approach with defined milestones before any portfoliowide rollout.
Concentration Risk	A meaningful portion of revenue continues to derive from Indian Railways. If railway spending on sanitation maintenance were curtailed or contracts not renewed, near-term revenue could be materially affected.	The Banka WaSH vertical with Rs.56 crore in unexecuted orders and expansion into new cities is the primary vehicle for reducing this dependence over time.

Internal Control and Systems

Banka BioLoo recognizes the importance of maintaining strong internal controls that ensure accurate financial reporting, safeguard company assets, and foster efficient operations. The Company has established comprehensive internal controls over financial reporting and operational processes, aligned with industry standards.

The internal control system encompasses:

Financial Reporting	Operational Controls	Technology Integration	Internal Audit
A robust framework to ensure the accuracy and completeness of financial records, as well as compliance with accounting principles. This is supported by regular internal and external audits to ensure transparency and reliability in reporting.	Processes to monitor the company\u2019s operations and ensure compliance with all regulatory standards, minimizing the risk of fraud and mismanagement.	We utilize advanced ERP systems and monitoring dashboards, which allow for real-time tracking of operational performance and risk mitigation. This integration enhances decision-making and allows us to respond swiftly to any irregularities.	Our internal auditors conduct regular reviews of the company\u2019s operations and financials, ensuring that our internal controls are effective and suggesting improvements where necessary. The Audit Committee reviews the findings of these audits and ensures that corrective actions are implemented promptly.

Sustainability at Banka Bio

Sustainability by Design

At Banka Bio, sustainability is not a separate initiative — it is embedded in the core of our business model. As a provider of sanitation infrastructure, our work directly advances public health, environmental protection, and dignified living conditions for communities across India. Every bio-toilet installed, every WaSH facility delivered, and every railway coach fitted with our systems contributes measurably to the nations environmental and social progress.

Environmental Stewardship

Waste Treatment Technology:

Our proprietary bio-digester technology treats human waste at the source, converting it into water and biogas through anaerobic bacterial decomposition, eliminating the need for waste transportation and reducing environmental contamination.

Water Conservation:

Our sanitation systems are engineered to minimize water usage, supporting water- stressed regions across India.

Emission Reduction:

By decentralizing waste treatment, we reduce the carbon footprint associated with conventional sewage transport and treatment infrastructure.

CPCB Compliance:

We continue to align our discharge standards with Central Pollution Control Board (CPCB) norms, exceeding regulatory requirements as part of our longterm environmental commitment.

Social Impact

Public Health:

Improved sanitation directly reduces the incidence of waterborne diseases, particularly benefiting underserved and rural communities.

Dignity and Inclusion:

Our WaSH interventions prioritize safe, accessible sanitation for women, children, and marginalized groups, supporting the national Swachh Bharat Mission.

Railway Passenger Welfare:

Through Banka RAIL, we continue to improve the hygiene and travel experience of millions of Indian Railways passengers daily.

Community Engagement:

We work closely with local governments and institutions to ensure our solutions are context-appropriate and community-driven.

Governance

Board Composition

• Total Directors: 8

• Independent Directors: 4

• Female Directors: 2

• Executive Directors: 4 (including Chair, CEO, and MD roles)

• Quarterly Board and Committee meetings held as per statutory requirements

Ethical Business Practices:

We maintain transparent client engagement, fair vendor practices, and robust internal risk-management systems, as detailed in the Risks and Mitigation Measures section of this report.

Technology-Led Sustainability :

Our FY26 digitisation initiative for the O&M asset base will enhance monitoring, reduce inefficiencies, and improve long-term service quality across our installed base.

ISO and DRDO Certifications:

Our systems meet stringent quality and technical standards, reflecting our commitment to reliability and safety.

SDG Contributions

Relevant SDG	Goal
Good Health and Well-Being	Ensure healthy lives and promote well-being for all at all ages
4 Quality Education	Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5 Gender Equality	Achieve gender equality and empower all women and girls
6 Clean Water and Sanitation	Ensure availability and sustainable management of water and sanitation for all
7 Affordable and Clean Energy	Ensure access to affordable, reliable, sustainable and modern energy for all
8 Decent Work and Economic Growth	Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
9 Industry, Innovation and Infrastructure	Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
10 Reduced Inequalities	Reduce inequality within and among countries
11 Sustainable Cities and Communities	Make cities and human settlements inclusive, safe, resilient and sustainable
12 Responsible Consumption and Production	Ensure sustainable consumption and production patterns
13 Climate Action	Take urgent action to combat climate change and its impacts
17 Partnerships for the Goals	Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development