1. Economic and Industry
Environment
FY2026 unfolded against a
backdrop of resilient Indian
growth amid a moderating global
expansion. India consolidated its
position as the fastest-growing
major economy, while domestic
infrastructure investment, water-
security policy, and renewed
government focus on rural
and urban water management
combined to create a deeply
favourable operating environment
for Our Company. This section
sets out the macro and sectoral
context within which Denta
Water and Infra Solutions Limited
delivered its FY2026 performance
1.1 Global Economic Environment
The global economy demonstrated
considerable resilience through
2025, with real GDP growth revised
upward to an estimated 3.4% for the
year , marginally stronger than the
3.3% projected in the IMFs January
2026 World Economic Outlook
Update. This performance was
underpinned by a powerful surge in
artificial intelligence (Al)-related
investment concentrated in
North America and Asia, broadly
accommodative financial
conditions, and sustained
demand across emerging
markets. Global headline inflation
continued its gradual descent,
easing to 4.1% in 2025, aided
by declining energy commodity
prices and a stabilisation of the
supply-side pressures that had
characterised the preceding
two years. Global trade volumes
expanded briskly by 5.1% in 2025,
driven primarily by technology-
related exports, particularly
semiconductors and AI-related
hardware, benefiting Asian
economies as the principal
exporters in these categories
However, the eruption of a
military conflict in the Middle
East at the end of February 2026
materially altered the near-term
global outlook. The IMFs April
2026 World Economic Outlook,
published under the stark
subtitle Global Economy in the
Shadow of War, revised global
growth for 2026 to 3.1%, down
from a pre-conflict baseline
of 3.4%. The disruption of oil
and gas shipments through the
Strait of Hormuz, which in 2024
accounted for approximately one-
fifth of global liquid petroleum
consumption, triggered an
abrupt reversal in commodity
prices. Where the January 2026
WEO had anticipated energy
commodity prices to decline by
approximately 7% in 2026, the
April update projects them to
rise by 19%, with oil averaging
US$82 per barrel, a 21.4% year-
on-year increase. Natural gas
prices are expected to be even
more severely affected, given the
technical complexity of restarting
supply and comparatively
limited reserve buffers. Food
prices are also projected to rise,
compounded by disruption to
fertiliser exports from the Gulf
region and elevated transport
costs.
The conflicts inflationary
consequences are significant.
Global consumer price inflation,
which had been projected to
decline toward 3.8% for 2026
in January, is now forecast
to remain elevated at 4.4%, a
0.6 percentage-point upward
revision. The disinflation
trajectory that had characterised
2024 and 2025 has been
interrupted. In the United States,
core personal consumption
expenditure (PCE) inflation was
already running at 3.1% as of
January 2026, and the pass-
through of tariffs, assessed to
fall largely on US importers and
consumers, is expected to delay a
return to the 2% target until 2027.
Across advanced economies,
the tariff-related price pressures
and energy cost shock are jointly
complicating the final mile of
monetary normalisation, with
central banks now balancing
growth risks against renewed
inflationary impulses.
The IMF identifies global risks
as firmly tilted to the downside.
Under an adverse scenario
involving a more prolonged
conflict, global growth could slow
to 2.3% in 2026, approaching
levels last seen during the Global
Financial Crisis and the COVID-19
pandemic. On the upside, a
faster-than-expected adoption
of Al-driven productivity gains
could lift global growth by up to
0.3 percentage points, whilst a
de-escalation of hostilities would
restore both commodity prices
and the growth trajectory to pre-
conflict projections.
1.2 Indian Economic
Environment
India retained its position as the
fastest-growing major economy
during FY2025-26, demonstrating
resilience amid a complex global
backdrop marked by elevated US
tariffs, volatile capital flows, and
the escalation of the West Asia
conflict in late February 2026.
According to the second advance
estimates of GDP released on
27 February 2026 under the new
base year 2022-23 series, real
GDP growth accelerated to 7.6
per cent in 2025-26 from 7.1 per
cent a year ago, driven by strong
domestic demand with private
final consumption expenditure
maintaining momentum and
investment activity remaining
robust. Gross Value Added (GVA)
growth at 7.7 per cent was higher
than GDP growth for FY26, while
nominal GDP is estimated to have
grown by 8.6 per cent. Quarterly
growth remained healthy at 7.8
per cent in Q3:2025-26, despite
some moderation in net exports
owing to the weak global trading
environment and higher US
tariffs.
Inflation was the standout
achievement of the year.
Consumer Price Index (CPI)
inflation averaged around 2 per
cent for FY26, a near-decade
low, supported by easing
food prices, healthy kharif
and rabi crop production, and
adequate buffer stocks. The
benign price environment
enabled an accommodative
policy stance through most of
the year. However, at its April
2026 meeting, the Reserve
Bank of Indias Monetary Policy
Committee left the repo rate
unchanged at 5.25 per cent,
citing heightened uncertainty
for both the inflation and growth
outlook resulting from the West
Asia conflict and the closure
of the Strait of Hormuz, which
led to a sharp rise in crude oil
prices and broader energy supply
disruptions. The RBI now projects
GDP growth to moderate to 6.9
per cent in FY27, with headline
retail inflation averaging 4.6 per
cent.
Industrial activity maintained
firm momentum. High-frequency
indicators of fuel consumption,
trade and logistics signalled that
economic activity was gaining
pace in February 2026, with
E-way bills continuing to grow
at double-digit rates, supported
by GST rate rationalisation and
strengthening GST revenue,
reflecting sustained demand.
Of particular relevance to the
Companys operating ecosystem,
infrastructure and construction-
goods output continued to
be underpinned by sustained
government capex spending. At
the same time, cement and steel
production maintained healthy
growth, collectively reinforcing
the demand environment for civil
construction and the execution of
water infrastructure projects.
The policy environment in FY26
was decisively supportive of
the Companys core operating
segments, water management,
groundwater recharge, lift
irrigation, and rural and urban
water-supply infrastructure.
Union Budget 2026-27, presented
on 1 February 2026 under the
theme Action over Ambivalence,
Reform over Rhetoric and People
over Populism", continued the
multi-year shift in fiscal strategy
toward capex-led growth. As per
the Union Budget documents
reviewed in the RBI Bulletin,
central government capital
outlay is budgeted to grow 6.3
per cent in FY27 (BE) over FY26
(RE), with major infrastructure
(transport, communication,
energy and irrigation) clocking
a CAGR of 29.3 per cent during
2020-21 to 2026-27 (BE), well
above the broader capital outlay
CAGR of 20.0 per cent over
the same period. Crucially, the
allocation for the Jal Jeevan
Mission has increased by nearly
300 per cent in 2026-27 (BE),
after contracting in the previous
two years. - a development
that materially expands the
addressable opportunity for
water-infrastructure EPC players
such as the Company.
Looking ahead, while external
risks have sharpened the FY27
outlook, Indias macroeconomic
buffers, a comfortable
forex cover, a credible fiscal
consolidation path, and the
demonstrated resilience of
domestic demand, remain intact.
RBI Governor noted that Indias
macroeconomic fundamentals
are on a stronger footing than
in previous crisis episodes
and relative to many other
economies, providing greater
resilience to withstand shocks.
With sustained government
capex in water, irrigation and rura
infrastructure, most notably the
substantial step-up in Jal Jeevan
Mission outlays, the Company
believes the demand backdrop
for its order book and execution
pipeline through FY27 remains
constructive.
1.3 Global Water and
Wastewater Treatment
Market
The global water sector is at
an inflexion point. On the one
hand, structural pressures on
freshwater resources have
intensified to the point that the
United Nations now describes
the world as having entered
an era ofRs.water bankruptcy.
On the other side, the global
response, investment in
treatment infrastructure, reuse
technology, and sustainable
water management, represents
one of the largest and most
durable infrastructure spending
cycles of the coming decade.
For technically specialised water
EPC contractors, the market
opportunity is structural rather
than cyclical.
1.3.1 A worsening global water deficit
Demand-supply imbalance in
global freshwater is no longer
a future risk; it is a measured
present reality. Renewable
freshwater availability per person
has declined by approximately
7% over the past decade, with
Northern Africa, Southern Asia
and Western Asia recording the
lowest per-capita freshwater
resources globally. Northern
Africa alone saw freshwater
withdrawals rise by 16% over
ten years, against a backdrop of
already stressed river basins and
aquifers. Agriculture continues
to dominate freshwater
withdrawals, accounting for
approximately 72% of global
freshwater withdrawals, with
industrial uses at 15% and
domestic at 13%.
In its January 2026 flagship
assessment, the UN concluded
that the term water crisisRs.was
no longer adequate; persistent
overwithdrawal of surface and
groundwater has degraded
natural water systems to the
point where, in many cases,
restoration is either impossible
or prohibitively costly. Close to
75% of the worlds population
now lives in countries classified
as water-insecureRs.or critically
water-insecure.
1.3.2 A market scaling to nearly
US$714 billion
The investment response is
large and accelerating. The
global water and wastewater
treatment market was valued
at US$372.39 billion in 2025 and
is projected to reach US$713.96
billion by 2034, growing at a
compound annual growth rate
of 7.50% over the 2026-to-2034
forecast period. The Services
segment, encompassing
designing, installation, operations
and maintenance, accounted
for approximately 66.12% of
the market in 2025, supported
by sustained investment in
upgrading existing treatment
facilities and constructing new
ones.
Regionally, North America led the
market with a 38.20% share in
2025, valued at US$142.25 billion.
Asia Pacific followed closely at
37.60%, with a 2025 valuation of
US$140.12 billion and projected
to reach US$152.29 billion in
2026. Within Asia Pacific, India
is identified as a structural
growth market, projected to
reach US$23.30 billion by 2026,
supported by strong government
initiatives addressing rapid urban
growth, industrial expansion
and water-scarcity-driven
modernisation of municipal
and industrial wastewater
systems. China, by comparison,
is projected at US$99.80 billion
in 2026.
1.4 Indian Water and
Wastewater Sector
Indias water sector sits at the
intersection of two powerful
currents: a structural and
worsening demand-supply
imbalance on one side, and
the largest committed water-
infrastructure investment cycle in
the countrys history on the other.
With approximately 18% of the
worlds population but only 4% of
the worlds freshwater resources,
India is among the most water-
stressed major economies. . The
sector has now decisively moved
beyond expanding sanitation
infrastructure to managing
wastewater as a strategic water
resource.
1.4.1 Market Sizing and Trajectory
The Indian water and wastewater
treatment market is poised for
substantial growth. According
to Crisil Intelligence, total
sector revenues are projected
to expand 1.6 to 1.7 times, from
3,946 billion across FY2020 to
FY2024 to 6,310 to 6,510 billion
across FY2025 to FY2029. The
wastewater treatment segment
alone is projected to grow from
1,934 billion (FY2020-FY2024) to
3,030 to 3,130 billion (FY2025-
FY2029), expanding at a similar
1.5 to 1.6 times multiple. Within
the FY2025 estimated market
of 490 to 510 billion, operating
expenditure (Opex) accounts
for 75% to 76% of activity, while
capital expenditure (Capex)
accounts for 24% to 25%,
underscoring that the sectors
economic centre is shifting from
build-out to long-term operations
and maintenance.
Within the wastewater segment,
the West region accounts for
35% to 36% of the FY2024
market, followed by the North
(23% to 24%), South (22% to
23%), and the combined Central
and East regions ( 18% to 21%).
The top five states in installed
wastewater treatment capacity
are Maharashtra, Gujarat, Uttar
Pradesh, Delhi and Karnataka,
three of which align directly with
Our Companys stated medium-
term geographic expansion
priority.
The industrial sub-segment
is following a parallel growth
trajectory. Indias industrial water
and wastewater infrastructure
market is projected to grow
from US$2.87 billion in 2024
to US$4.65 billion by 2030,
expanding at a CAGR of 8.3% .
Demand is being driven by water-
intensive sectors, such as food
and beverage, microelectronics,
chemicals, pharmaceuticals,
textiles, and metallurgy,
where Zero Liquid Discharge
compliance is migrating from a
regulatory burden to a balance-
sheet imperative, as freshwater
scarcity, ratherthan effluent
norms alone, increasingly
determines water budgets.
1.4.2 Infrastructure: Progress and
Persistent Gaps
Public investment in urban water
and sanitation infrastructure
has been substantial. Over the
past decade, India has invested
approximately US$30 billion
through national programmes,
most notably the Atal Mission
for Rejuvenation and Urban
Transformation (AMRUT), to
address infrastructure gaps in
a focused cohort of 100 large
cities. As a result, 40 cities
now have sufficient water-
treatment capacity, over half
of the 100 cities have high
percentages of piped household
water-supply connections,
and cities report nearly 100%
compliance with water-quality
standards at the treatment
plant . Sewage Treatment
Plant (STP) infrastructure has
scaled commensurately: total
operational STP capacity rose
from 20,120 MLD across 601
plants in FY2015 to 42,012 MLD
across 1,951 plants in FY2024, an
8.0% CAGR over nine years.
Yet the gap between installed
capacity and actual treatment
remains wide. The Central
Pollution Control Boards most
recent assessment found that
against urban wastewater
generation of approximately
72,368 MLD, installed STP
capacity stood at 31,841 MLD,
of which only 26,869 MLD was
operational, and only 27.3% of
generated sewage was being
treated. The remaining 72%
of generated wastewater is
discharged largely untreated into
rivers, lakes and groundwater,
with material consequences for
surface and groundwater quality.
World Bank/ADB diagnostics
across the 100 large cities reveal
that water-supply coverage
averages 85%. In contrast,
sewerage coverage averages only
67%, and that daily water-supply
hours, water-loss rates and
metering rates vary significantly
across cities, with the top
performers demonstrating near-
24^7 service, low non-revenue
water, and universal metering. In
contrast, lagging cities continue
to face persistent challenges,
including poor coverage and
high water-loss rates. The
infrastructure-quality bar is
rising, and the modernisation
opportunity it creates for
specialist EPC contractors
remains substantial.
1.4.3 The Systemic Shift: From
Building Assets to Unlocking
Resource Value
Indias wastewater sector is at
an inflexion point, with the policy
and operational focus shifting
from expanding sanitation
infrastructure to managing
wastewater as a strategic water
resource. Urban India generates
over 52,000 MLD of wastewater.
At the same time, effective
utilisation levels remain at
approximately half this capacity,
exposing a persistent gap
between infrastructure creation
and operational performance,
and elevating wastewater
management to one of the most
critical components of the
countrys water-security agenda.
Three trends are driving this
systemic shift in 2025-2026:
- Institutionalisation of
reuse. Treated wastewater
is now being supplied
for non-potable uses
through formal contractual
arrangements rather than
informal arrangements. The
Brihanmumbai Municipal
Corporation supplies treated
water from the Colaba STP
for horticulture and cricket-
ground maintenance; Delhis
State Government policy
approvals in November 2025
have enabled the diversion
of treated wastewater
toward environmental and
recharge applications;
and Maharashtras Sewage
Treatment and Reuse Policy
2025, approved in October
2025, mandates sewage
treatment and reuse across
424 Urban Local Bodies,
with priority allocation
to thermal power plants,
industries and agriculture.
- Performance-linked
governance. The Jal Hi
Amrit(JHA)scheme is
incentivising Urban Local
Bodies to operate STPs
efficiently and meet
prescribed environmental
standards. Approximately
860 STPs had been enrolled
underJHA as of August
2025, marking a clear shift
towards accountable,
outcomes-based
wastewater governance.
- From EPC contracting to
long-term O&M. Sector
discourse is increasingly
emphasising blended
finance, municipal bonds
and green/blue financing
instruments to support
capital-intensive reuse and
resource-recovery projects.
There is a gradual shift away
from pure EPC contracting
towards long-term O&M and
performance-linked models,
reflecting the recognition
that the sustainability
of wastewater systems
depends on professionalised
operations, data-driven
compliance and credible
cost-recovery mechanisms.
Programme delivery has scaled
materially. As of December
2025, 1,067 STPs with a
combined designed capacity of
approximately 40,000 MLD and
1,082 faecal sludge treatment
plants ( 59,000 KLD designed)
are operational under SBM-
Urban; under SBM-Grameen,
approximately 180,000
decentralised wastewater
treatment systems and over
42,000 waste stabilisation
ponds have been constructed.
. Approved AMRUT 2.0 projects
include 11,393 MLD of additional
water-treatment capacity, 17.8
million new tap connections,
6,649 MLD of sewage-treatment
capacity and 6.5 million sewer
connections - alongside scaling
reuse from a current 6,535 MLD to
meet AMRUT 2.0 targets of 20%
of municipal water demand and
40% of industrial water demand
from recycled wastewater.
1.4.4 Reuse and Circularity
Treated wastewater reuse
is emerging as the most
significant medium-term
opportunity within the sector.
Governance has matured beyond
infrastructure provision into
circular-economy design, with
the Bureau of Indian Standards
and the Central Public Health
and Environmental Engineering
Organisation(CPHEEO) updating
norms for treated-sewage quality
at the point of use, including
parameters for dissolved
phosphorus, nitrogen and faecal
coliform across applications
such as horticulture, golf-course
irrigation and irrigation of non-
edible crops.
State-level policy momentum
is reinforcing this trajectory.
Beyond Maharashtras mandate,
Rajasthan amended its Sewerage
and Wastewater Policy in August
2025 to focus on structured
sewerage systems, infrastructure
upgrades and integration of
modern treatment technologies;
the Lucknow Municipal
Corporation approved its Faecal
Sludge, Septage and Wastewater
Management Regulations in
September 2025; and Bengaluru,
Delhi and other cities have
begun mandating onsite STPs
and dual-piping systems for new
construction.
municipal / mausrriai
1.4.5 Implications for Denta
Across all four assessment
lenses, market sizing,
infrastructure progress, the
systemic shift toward resource
value, and the reuse-and-
circularity opportunity, the Indian
sector is moving in directions
that align directly with the
capabilities Our Company has
spent nearly a decade building.
Specialist groundwater recharge
using treated wastewater, Our
Companys deepest moat, sits at
the intersection of every defining
sector trend: it is the highest-
value reuse application, it is the
technology most in demand under
AMRUT 2.0 and the Atal Bhujal
Yojana, and it requires precisely
thetechnical pre-qualification
credentials that we have
established through projects
such as KC Valley.
The market we are addressing is
large, growing at 1.6 to 1.7 times
over five years, structurally
underpenetrated (with only 27.3%
of wastewater treated), and
shifting toward long-term O&M,
the precise contracting model
Our Company already executes
through DBOT structures
with five-year operating tails.
The sectors evolution from
infrastructure build-out to
resource recovery, performance-
linked governance, and circular
reuse is, in effect, the operational
template Our Company has been
working to since its incorporation
in 2016. The opportunity is large,
durable, and well-matched to our
capabilities.
"Indias wastewater sector is moving from a narrow focus
on treatment-capacity creation toward outcomes such as
reuse, energy recovery, operational efficiency and long-term
sustainability. The era of building assets is giving way to one of
unlocking resource value."
2. Company Snapshot
Denta Water and Infra Solutions
Limited, Water Revitalising
Experts, is a specialist civil
engineering, procurement and
construction (EPC) Company
focused on water management
infrastructure, with deep
expertise in groundwater
recharging using recycled water.
Established in November 2016,
Our Company has, over nearly a
decade, built a reputation as one
of the few Indian companies with
end-to-end capability across the
entire lifecycle of complex water
infrastructure projects - design,
installation, commissioning,
operations and maintenance.
Our Company was successfully
listed on the BSE and NSE
Mainboard on 29th January
2025, mobilising 2,205.00
Million through its Initial Public
Offering. The listing marked a
transformative milestone in Our
Companys evolution and provided
the capital base from which
we have scaled our operations
through FY2026.
Metric |
FY2026 (Audited) |
FY2025 (Audited) |
YoY Movement |
Revenue from Operations (Rs.Million) |
2,503.79 |
2,032.85 |
+23.17% |
EBITDA (Rs.Million) |
834.87 |
724.33 |
+15.26% |
EBITDA Margin (%) |
33.34% |
35.63% |
-229 bps |
Profit AfterTax (Rs.Million) |
609.00 |
528.85 |
+15.16% |
PAT Margin (%) |
24.32% |
26.02% |
-170 bps |
Earnings Per Share - Basic () |
22.81 |
25.83 |
-11.69% |
Outstanding Order Book (Rs.Million) |
7,277.76 |
6,143.79 |
+18.46% |
2.2 Vision, Mission and Values |
Mission Our Companys mission is to design, build, commission
and maintain water |
Core Values - Technical Excellence: We apply advanced
engineering expertise, in-house design |
- Sustainability First: every project is designed with
long-term environmental health in |
- Integrity and Commitment: we uphold transparency, ethical
practices, and an unwavering commitment to delivering on promises made to clients,
communities and |
- Selective Discipline: We bid only for projects where we
believe we hold a genuine |
3. Strategic Review
FY2026 was, in many respects,
a year of capacity-building
and execution scale-up for
Our Company. Following the
transformative Initial Public
Offering in January 2025, the
year focused on translating the
strengthened balance sheet into
accelerated project execution,
geographic diversification of our
pipeline, and continued discipline
in selective bidding.
3.1 FY2026: Capacity-Building
and Execution Acceleration
If FY2025 was the year of going
public and securing the capital
base, FY2026 was the year of
putting that capital to work. We
deployed our IPO proceeds into
the working capital and inventory
; required to scale execution,
materially accelerated the pace
of project delivery, and continued
to strengthen the order book
with high-quality, technically
demanding wins.
Three strategic imperatives
shaped the year:
- Execution acceleration:
Converting the FY2025
deferred billings, which
arose from procurement
and material-receipt timing,
into recognised revenue and
restoring the historical pace
of project delivery.
- Order book scale-up:
Sustaining bidding
momentum to grow
the order book in line
with our medium-term
growth objectives, while
, maintaining margin
discipline through selective
participation.
- Geographicdiversification:
Translating stated intent
into on-ground presence in
target water-deficit states
(Maharashtra, Madhya
Pradesh, Gujarat, Uttar
Pradesh and Haryana),
leveraging our specialist
groundwater recharge
capability.
3.2 Strategic Pillars
3.2.1 Pillar 1 - Specialisation Premium
in Groundwater Recharge
Our deepest moat is technical:
we are among the few Indian
companies with end-to-end
expertise in design, installation,
commissioning, operations and
maintenance of groundwater
recharge projects using recycled
water. The KC Valley project,
which has helped Bengaluru
attain global recognition as the
second-largest city in terms of
treated wastewater capacity,
remains a flagship reference for
this capability. Our specialisation
translates directly into higher
technical eligibility scores in
tender pre-qualification and
into the 70%-75 % win ratio Our
Company has maintained.
3.2.2 Pillar 2 - Asset-Light, Debt-Light
Operating Model
Our Company operates a
deliberately asset-light model,
outsourcing equipment
requirements and associated
costs to tender bids, focusing on
development management and
joint ventures, and minimising
upfront capital expenditure.
As of 31st March 2026, Our
Company had a Debt-to-Equity
ratio of 0.03, and we entered
FY2027 with a virtually debt-free
balance sheet. This financial
agility lets us absorb the
working-capital cycles of EPC
contracting and bid aggressively
for new opportunities without the
constraints of leverage-driven
requirements.
3.2.3 Pillar 3 - Selective Bidding
Discipline
We have consistently chosen
technical fit, executional
risk and margin profile over
scale-at-any-price. In FY2026,
this translated into selective
participation in centrally and
state-sponsored tenders, with
the Sandur Town Water Supply
project in Karnataka, estimated
at approximately 8,500
Million, among the marquee
opportunities under active
pursuit at year-end. Selectivity
has been a defining feature of
our above 33% EBITDA margin
trajectory and remains central to
FY2027 and beyond.
3.2.4 Pillar 4 - Geographic
Diversification
Approximately 80% to 85% of our
project portfolio has historically
been concentrated in Karnataka.
Geographic diversification is a
stated medium-term priority,
and FY2026 saw the foundation
work for entry into Maharashtra,
Madhya Pradesh, Gujarat, Uttar
Pradesh and Haryana - states
identified within the Atal
Bhujal Yojana for groundwater
management focus. Replicating
our proven Karnataka execution
model in new geographies
reduces revenue risk and opens a
substantially larger addressable
opportunity.
3.2.5 Pillar 5 - Selective
Diversification into Adjacent
Infrastructure
While water management
remains our undisputed core,
we have selectively built
capabilities in roads and railways,
contributing approximately
3%-4% of the total order book.
These engagements complement
our primary focus, leverage
our existing project execution
capabilities and government
client relationships, and provide a
measured route into the broader
Indian infrastructure opportunity
set without diluting margin
discipline.
3.3 FY2026 Strategic Highlights
Key strategic milestones during
the year include the following:
- Order book grew from
6,143.79 Million as on 31st
March 2025 to 7,277.76
Million as on 31st March
2026 - an increase of
approximately 19% -
providing strong revenue
visibility into FY2027.
- Successfully won fresh
orders worth 1,062.90
Million in December 2025
from the Karnataka Urban
Infrastructure Development
and Finance Corporation
Limited (KUIDFC), funded
under the Swachh Bharat
Mission and AMRUT 2.0
schemes - a meaningful
diversification within
Karnataka into urban
sewerage and sewage
treatment.
- Materialised a substantial
portion of the Q4 FY2025
deferred billings during Q1
and Q2 FY2026, restoring
revenue cadence and
demonstrating the tactical
role IPO-funded inventory
played in execution
acceleration.
- Maintained EBITDA margin
above 33% in FY2026 - a
level consistent with our
specialised, high-margin
business model.
- Continued active pursuit
of the Sandur Town
Water Supply project
- a transformational
opportunity at
approximately 8,500
Million - through technical
pre-qualification and bid
preparation processes.
3.4 Strategic Outlook
Our Company delivered full-
year FY2026 revenue growth of
23.17% over FY2025, supported
by the strong trajectory and
the deferred-billing realisation
already achieved. For FY2027,
management expects revenue
growth of approximately 20% to
25% as the order book moves
into peak execution, followed
by a sustainable 15% growth
trajectory thereafter as the
base expands. These targets
are subject to the cautionary
statement at the end of this
MD&A.
4. Business Vertical
Performance
Our Company operates five
engineering verticals: Water
Management, Irrigation, Railways,
Roads and Infrastructure.
Water Management remains the
dominant business, accounting
for approximately 73% of the
order book as of 31st March
2026. Below, we review each
vertical by business description,
FY2026 performance,
operational highlights, and
outlook.
S. No. |
Project Vertical |
No. of |
Outstanding |
Share (%) |
1 |
Water Management |
20 |
5329.35 |
73.23% |
2 |
Irrigation |
4 |
1593.81 |
21.90% |
3 |
Railways |
2 |
193.35 |
2.66% |
4 |
Roads |
10 |
95.62 |
1.31% |
5 |
Infrastructure |
2 |
65.62 |
0.90% |
Year-end Order Book |
38 |
7277.76 |
100.00% |
4.1 Water Management
4.1.1 Business Description
Water Management is the cornerstone of Our Companys business and the
vertical in which we hold our deepest technical specialisation. The vertical
encompasses three core service offerings:
- Groundwater recharge using recycled (treated wastewater) and fresh
water - the pioneering capability that has positioned Our Company as
one of the few Indian players with end-to-end expertise in this domain.
- Drinking water supply schemes - typically multi-village schemes
funded under the Jal Jeevan Mission, AMRUT 2.0 and similar
Government programmes, encompassing intake works, treatment
plants, transmission mains, distribution networks, and household tap
connections.
- Wastewater management
and reuse - including
sewage treatment plants
and the recharging of
treated wastewater into
depleted aquifers under
the Design-Build-Operate-
Transfer (DBOT) model,
typically with a five-year
operations and maintenance
tail.
The clientele for this vertical
is predominantly Government,
including State Government
departments, urban local
bodies, the Karnataka Urban
Infrastructure Development
and Finance Corporation, the
Bangalore Water Supply and
Sewerage Board, and similar
public sector entities. The
DBOT model provides a steady,
predictable revenue stream
representing approximately 7%
to 8% of contract value over the
post-completion maintenance
period.
4.1.2 Performance Commentary
Water Management delivered
a strong year of execution. For
FY2026, this vertical contributed
the most to Our Companys
revenue from operations,
2503.79 Million. Full-year FY2026
revenue from this vertical stands
at 470.94 Million, representing
approximately 23.17% growth
over FY2025.
Outstanding order book in Water
Management stood at 5,329.35
Million as on 31st March 2026,
spread across 20 active projects.
This represents 73.23% of the
total order book and is in addition
to the Irrigation segment, which
is functionally adjacent. The order
book provides revenue visibility
well into FY2027 and FY2028,
before considering bids currently
in the pipeline.
4.1.3 Operational Highlights
Marquee projects under
execution during FY2026 include:
- Kerehalli Drinking Water
Project, Koppal District
- a multi-village drinking
water supply scheme under
the Jal Jeevan Mission,
with a contract value of
2,350.00 Million. The
project encompasses lifting
water from the Tungabhadra
River, installation of water
treatment plants, and laying
approximately 388.605
km of pipeline network.
Substantial progress has
been recorded during
FY2026, with pipeline laying
advancing materially.
- KC Valley Project - Phase
II, Chikkaballapura District
- the next phase of the
landmark groundwater
recharge initiative using
treated wastewater,
executed through a joint
venture with a 48% share
of the 4,462.30 Million
contract value. Pumphouse
construction and pipeline
laying have advanced
significantly during the year,
with the project on track for
the contracted completion
timeline.
- Chikkabenakal Drinking
Water Project, Gangavathi
Taluk - a sub-contracted
Jal Jeevan Mission
project with a Company
share of 1,065.10 Million,
delivering drinking water
to Chikkabenekal and 61
other habitations. Pipeline
procurement is complete,
and significant pipeline-
laying has been completed.
- Kuknuru and Yelburga
Water Supply Scheme
under AMRUT 2.0 - an
urban water supply project
executed through a joint
venture with a Company
share of 2,011.80 Million
out of a total contract
value of 2,052.80 Million.
Detailed designs have been
submitted, and the project
is in the early stages of
implementation.
- Doddakavalande
Rehabilitation of Multi-
Village Scheme, Nanjangud
Taluk - a Jal Jeevan Mission
project with an in-progress
execution profile.
- Swachh Bharat Mission
(Urban) and AMRUT
2.0 Sewerage Projects
- Karnataka - a basket
of four projects worth
approximately 1,062.90
Million awarded by KUIDFC
in December 2025, focused
on sewage treatment
plant construction and
sewerage system upgrades
in Tumakuru, Belagavi and
other urban local bodies.
4.1.4 Outlook
Water Management remains the
strategic priority. We expect to
continue scaling this vertical
through FY2027 on the back
of (i) substantial existing order
book, (ii) new wins through
ongoing bidding under the Jal
Jeevan Mission, AMRUT 2.0, the
Atal Bhujal Yojana and Swachh
Bharat Mission, and (iii) initial
entry into target water-deficit
states beyond Karnataka. The
Sandur Town Water Supply
project pipeline opportunity, at
approximately 8,500 Million,
would represent a step-change
for the vertical if converted.
4.2 Irrigation
Irrigation engagements consist
principally of Lift Irrigation
Schemes (LIS), where water is
pumped from a source - typically
a river or reservoir - to recharge
tanks, replenish aquifers, and
provide water for agricultural
use in drought-prone or rain-
shadow regions. These projects
are technically adjacent to
Our Companys groundwater-
recharge core and leverage the
same engineering and execution
capabilities. Clients are primarily
State Government Minor
Irrigation Departments and water
resources departments.
Outstanding order book in the
Irrigation vertical stood at
1,593.81 Million as on 31st March
2026, spread across four active
projects. This represents 21.90%
of the total order book and
reflects the relatively long ticket
size of LIS engagements.
Notable executed projects in this
vertical reference work include
the Byrapura and Hiremagaluru
Lift Irrigation Scheme, completed
in August 2022, and the Karagada
LIS Project, completed in June
2021. Active engagement during
FY2026 is progressing through
the design, mobilisation, and
construction phases, in line with
the agreed milestones.
Lift Irrigation remains a
meaningful segment given the
cyclical and persistent water-
deficit challenges in the semi-
arid regions of South and Central
India. We expect selective
participation in this segment,
with bids tied to projects where
our specific capabilities in
pumping, pipeline and recharge
engineering provide genuine
differentiation.
4.3 Railways
Our Company has selectively
undertaken construction works
in the railways sector, primarily
under the Amrit Bharat Station
Scheme and similar railway
modernisation programmes.
Engagements include station
upgradation, civil works,
platform extensions and ancillary
infrastructure. Railways remain
an incidental and complementary
vertical rather than a core focus.
The outstanding order book in the
railways stood at 193.35 Million
as on 31st March 2026, across two
projects, representing 2.66% of
the total order book. The vertical
is in measured execution mode
through FY2026.
During FY2024, Our Company
was awarded two railway projects
under the Amrit Bharat Station
Scheme. These projects continue
to be executed alongside
subsequent additions, with
revenue contributions aligned
with milestone-based billing.
Our Companys approach to
Railways is one of selective
participation. We will pursue
projects where our civil
engineering and project
management capabilities are
well-suited and where margin
discipline can be maintained. Still,
we do not anticipate Railways
becoming a strategic core for the
foreseeable future.
4.4 Roads
Our engagement in roads has
been limited and incidental,
comprising small ticket
works under the Public Works
Department and similar agencies
in Karnataka. The vertical
leverages Our Companys civil
engineering and earthworks
capabilities and supports
balanced participation in
the broader infrastructure
opportunity set.
Outstanding order book in Roads
stood at 95.62 Million as on 31st
March 2026, across ten projects,
representing 1.31% of the total
order book. Roads is the smallest
segment in our portfolio.
Active road projects include
district-level works in Karnataka,
executed in line with contract
milestones.
As with Railways, we will pursue
road opportunities selectively
where they align with our civil
engineering capabilities and
? provide acceptable margins.
We do not see Roads becoming
a strategic priority and do not
anticipate material expansion in
this verticals share of the overall
order book.
4.5 Infrastructure
Infrastructure has been
introduced as a distinct
reporting vertical in Q4 FY2026,
reflecting Our Companys
measured diversification
beyond its core water and
irrigation engagements. The
vertical comprises adjacent civil
works, including stormwater
drains, warehouses, tank
improvement schemes and allied
structures, that draw on the
same engineering, design and
execution capabilities deployed in
our water infrastructure portfolio.
Outstanding order book in
Infrastructure stood at 65.62
Million as on 31st March 2026,
across two projects, representing
0.90% of the total order book.
Infrastructure is the newest
vertical in our portfolio.
Active projects are in the early
stages of execution and are being
delivered in line with contract
milestones.
We will pursue infrastructure
opportunities selectively where
they align with our existing civil
engineering capabilities and
provide acceptable margins.
While the vertical adds a layer
of diversification to the overall
order book, we do not anticipate
it becoming a strategic priority or
accounting for a material share of
the order book in the near term.
5. Financial Performance
Our Company delivered a strong
year of growth in FY2026, with
revenue up 23%, EBITDA up
over 15%, and PAT up over 15%
year-on-year. Operating margins
moderated during the year, with
EBITDA margin at 33.34% versus
35.63% in FY2025, primarily
reflecting elevated material
costs in Q4FY2026 even as
execution volumes accelerated.
The audited five-year history,
full-year FY2026 results, and the
narrative around the underlying
drivers are presented in the
sections that follow.
5.1 Five-Year Financial Summary
5.2 Revenue Performance
Revenue from operations for FY2026 stood at 2,503.79 Million,
representing
a growth of 23.17% over 2,032.85 Million in FY2025. This strong year-on-year
performance was driven by accelerated project execution across the water
management portfolio, improved billing realisation, and the materialisation
of a substantial portion of the Q4 FY2025 deferred billings into recognised
revenue. Quarterly revenue progression through FY2026 was as follows:
Quarter |
Revenue |
FY2023 |
FY2024 |
Q1 FY2026 |
672.78 |
+35.95% |
Strong start, driven by deferred- |
Q2 FY2026 |
742.69 |
+53.80% |
Highest quarterly revenue, |
Q3 FY2026 |
535.20 |
+4.22% |
Moderation due to project-timing |
Q4 FY2026 |
553.12 |
+2.14% |
Subdued quarter with revenue |
5.3 Profitability
Margin performance through
FY2026 reflected Our Companys
longstanding premium margin
profile, even as operating
margins moderated from FY2025
highs due to elevated input costs
in Q4 FY2026.
EBITDA: EBITDA for FY2026
stood at 834.87 Million, growing
15.26% over 724.32 Million in
FY2025. EBITDA margin for
FY2026 was 33.34% versus
35.63% in FY2025, a moderation
of 229 bps, primarily attributable
to elevated material costs in
Q4 FY2026, even as full-year
execution volumes accelerated.
- Disciplined cost
management, with input
procurement substantially
completed in advance of
execution peaks using IPO
proceeds
- A favourable project mix
weighted toward technically
complex water management
projects
- Operating leverage as
execution volumes scaled
across the existing project
portfolio
- Continued zero-debt
operating model, eliminating
finance-cost drag on
operating earnings
Profit After Tax: Profit After
Tax for FY2026 stood at 609.00
Million, up 15.15% from 528.85
Million in FY2025. PAT margin
for FY2026 was 24.33% versus
26.02% in FY2025, reflectingthe
EBITDA-margin moderation noted
above and a stable effective tax
rate.
Earnings Per Share: Basic
Earnings Per Share for FY2026
stood at 22.81, on the post-
IPO expanded equity base of
2,67,00,000 shares. The reported
EPS declined from 25.83
in FY2025, a largely optical
reduction, as FY2025 EPS was
computed on a weighted-average
share count that reflected only
approximately two months
of the post-IPO expanded
base (IPO listed on 29 January
2025), whereas FY2026 EPS is
computed on the full post-IPO
base of 2,67,00,000 shares for the
entire twelve months.
5.4 Capital Structure and
Liquidity
Our Company has maintained
a debt-light capital structure
consistent with its asset-light
operating model. Borrowings,
where present, have historically
been confined to non-fund-based
facilities such as bank guarantees
and letters of credit required for
tendering and contract execution,
rather than fund-based
borrowings supporting working
capital.
The January 2025 IPO mobilised
2,205 Million, which has been
deployed in line with the issues
disclosed objectives. As of 30th
September 2025, 1,883.30 Million
had been deployed, and 321.70
Million was held in interest-
bearing fixed deposits awaiting
deployment. The Monitoring
Agency reported no deviations
from the disclosed objects.
Liquidity remained healthy
through the year. As of 31st March
2026, cash and bank balances
stood at 913.71 Million, providing
comfortable headroom against
execution and contractual
requirements.
5.5 Key Financial Ratios
Ratio |
FY2024 |
FY2025 |
FY2026 |
Return on Equity (%) |
36.81% |
12.94% |
14% |
Return on Capital Employed (%) |
47.60% |
16.40% |
10.20% |
Net Profit Margin (%) |
25.34% |
26.02% |
24.32% |
Current Ratio (times) |
3.16 |
20.28 |
15.89 |
Debt-to-Equity Ratio (times) |
0.01 |
0.00 |
0.03 |
Net Capital Turnover Ratio (times) |
2.03 |
0.54 |
0.71 |
Inventory Turnover Ratio (times) |
18.35 |
4.38 |
0.71 |
Interest Coverage Ratio (times) |
161.52 |
200.32 |
94.87 |
The decline in ROE and ROCE
from FY202A to FY2025 reflects
two specific factors. First, the
equity base expanded materially
following the IPO, with FY2025
full-year results reflecting
a partial-year impact of the
enlarged equity base. Second,
FY2025 saw a measured revenue
decline due to Q4 FY2025
billing-cycle adjustments, which
compressed the numerator.
As the IPO-funded inventory
converts to revenue and
recognised PAT through FY2026
and FY2027, both return ratios
are expected to recover from the
FY2025 low base.
The Current Ratio rose materially
in FY2025, reflecting a post-IPO
build-up of cash and inventory
against a relatively stable base
of current liabilities. The Net
Capital Turnover and Inventory
Turnover Ratios reflect the same
underlying dynamic: strategic
post-IPO procurement that
supports execution in FY2026
and FY2027. Both ratios are
expected to normalise as
inventory is converted into
revenue.
6. Project Execution and
Operations
Operational excellence is the
foundation of Our Companys
premium margin profile. Three
consecutive years of EBITDA
margins above 33%, sustained
client relationships across
multiple State Government
departments, and a 70%- 75%
historical tender win ratio all
reflect the strength of our
operational capability. This
section reviews the order book
composition that underpins
forward visibility, the in-house
engineering and execution
capability that delivers it,
and the operational metrics
that demonstrate consistent
performance.
6.1 Order Book - The
Foundation of Forward
Visibility
As of 31st March 2026, Our
Companys outstanding order
book stood at 7,277.76 Million,
providing strong revenue visibility
over the next two to three years.
The order book has grown
materially through FY2026,
from 6,143.79 Million as on 31st
March 2025 to 7,277.76 Million
as on 31st March 2026, driven
by a combination of selective
new wins and disciplined billing
realisation.
Particulars |
Order Book on |
Order Book on |
Movement |
Water Management |
5,872.56 |
5,329.35 |
Decline of 9% reflecting active execution; part of |
Irrigation |
1,593.81 |
New reporting line from FY2026, reflecting |
|
Railways |
247.22 |
193.35 |
Active execution; no new additions in the year |
Roads |
24.01 |
95.62 |
New wins added across district-level works in |
Infrastructure |
- |
65.62 |
New reporting vertical |
Total |
6,143.79 |
7,277.76 |
+18.46% increase |
The order book is heavily concentrated in Government clients, primarily
the Government of Karnataka, the Karnataka
Urban Infrastructure Development and Finance Corporation Limited, the Bangalore Water
Supply and Sewerage Board,
the Minor Irrigation Department, divisions of Indian Railways, and various urban local
bodies. As detailed in Section 7
(Risk Management), this concentration is mitigated by the fact that no single client
accounts for more than 30% of the
portfolio and by the granularity of multiple individual contracting authorities.
6.2 Geographic Distribution
Approximately 80% to 85% of our active project portfolio remains
concentrated in Karnataka, where Our Company
has built deep institutional knowledge, strong client relationships, and a proven track
record across multiple districts.
During FY2026, geographic diversification efforts continued to advance from intent toward
active bidding in the
targeted water-deficient states.
State |
Status as at FY2026 End |
Strategic Position |
Karnataka |
Core operational geography; 80-85% of |
Continue scaling existing relationships and deepening |
Maharashtra |
Active pre-qualification and bidding |
Targeted under Atal Bhujal Yojana - entry expected |
Madhya Pradesh |
Active pre-qualification and bidding |
Targeted under Atal Bhujal Yojana - rural recharge |
Gujarat |
Pre-qualification stage |
Targeted for water-stressed districts under JJM and Atal |
Uttar Pradesh |
Initial market evaluation |
Targeted under the Atal Bhujal Yojana for groundwater |
Haryana |
Initial market evaluation |
Targeted under the Atal Bhujal Yojana for over-exploited |
6.3 In-House Design and Engineering Capability
Our Company maintains an in-house design and engineering team that
provides a material competitive advantage in
technical pre-qualification and project execution. The teams capabilities span:
- Feasibility studies and conceptual engineering for groundwater recharge
and lift irrigation schemes
- Hydraulic modelling fortransmission and distribution networks
- Structural engineering for pumphouses, treatment plants, intake
structures and storage reservoirs
- Detailed mechanical and electrical engineering for pumping systems, treatment processes
and instrumentation
- Bid engineering and cost
estimation, contributing
directly to the historical 70-
75% tender win ratio
This in-house capability allows
Our Company to participate
confidently in technically
demanding tenders, to maintain
control over engineering
quality during execution, and
to optimise designs for cost
efficiency without compromising
performance. This combination
supports the premium margin
profile.
6.4 The DBOT Model and
Operations & Maintenance
Many of Our Companys water
infrastructure contracts are
structured on a Design-Build-
Operate-Transfer (DBOT) basis,
with a five-year operations and
maintenance period following
project commissioning. The O&M
component typically accounts for
7% to 8% of the contract value,
providing a steady, predictable
revenue stream that extends well
beyond the construction phase.
Beyond the financial profile,
the DBOT model also creates
a deeper engagement with
the asset, supports sustained
performance of the recharge
or supply scheme, and builds
institutional knowledge that
strengthens future bidding.
6.5 Bidding Pipeline
Our Companys bidding
pipeline at the close of FY2026
remains substantial. Material
opportunities in active pursuit
include:
- Sandur Town Water
Supply, Sanitary and
Treated Water Reuse
Project - a transformational
opportunity in Karnataka
with an estimated contract
value of 8,500 Million,
currently in technical
clearance and tender
preparation stages.
- Karnataka Mineral
Rehabilitation Exploration
Fund (KMREF) projects
- multiple components in
advanced clearance and
tendering stages, leveraging
Our Companys experience in
groundwater recharge.
- Jal Jeevan Mission projects
in target expansion states
- active pre-qualification
submissions in Maharashtra,
Madhya Pradesh and Gujarat
for drinking water supply
and groundwater recharge
schemes.
- AMRUT 2.0 sewage
treatment and water
supply projects - multiple
urban water supply and
wastewater management
opportunities in Karnataka
and adjacent states.
- Atal Bhujal Yojana
groundwater management
projects - specialist
groundwater recharge
tenders in priority
assessment units across the
five target states.
Conversion of the bidding
pipeline into the order book is
subject to tender outcomes and
the historical 70-75% win ratio.
We continue to apply selective
bidding discipline, prioritising
projects with attractive margins,
balanced risk profiles, and
execution timelines that align
with our capacity.
6.6 Operational Track Record
Operational consistency is
reflected in the cumulative track
record. As of 31st March 2026,
Our Company had successfully
delivered 40 projects (including
groundwater recharge initiatives),
with reference projects spanning
nearly a decade of complex
execution. Marquee delivered
projects include the Byrapura
and Hiremagaluru Lift Irrigation
Scheme, the Karagada Lift
Irrigation Project, the KC Valley
Phase I project, and numerous
smaller-ticket drinking water and
irrigation engagements.
During FY2026, Our Company
advanced several flagship
projects to advanced stages
of execution, with ongoing
physical progress in pumphouse
construction, pipeline laying,
treatment plant installation,
and commissioning. Consistent
on-time delivery, supported by
in-house engineering capabilities
and a stable workforce, is
a defining feature of our
operational reputation.
7 Risk Management and
Internal Controls
Our Company operates in an
environment characterised by
both structural opportunities,
driven by sustained Government
investment in water
infrastructure, and several
risks characteristic of the
EPC contracting business in
India. The Board, through the
Risk Management Committee
and the Audit Committee,
oversees a structured risk
management framework that
identifies, assesses, monitors
and mitigates these risks. This
section provides an overview of
the principal risk categories, the
specific exposures relevant to
Our Company, and the mitigation
measures in place.
7.1 Strategic and Business
Risks
Client Concentration Risk: Our
Company derives most of its
revenue from contracts awarded
by Government bodies, urban
local bodies, and public sector
undertakings, primarily within
the State of Karnataka. This
concentration exposes Our
Company to the budgetary cycles,
policy priorities, and payment
practices of public-sector clients.
Mitigation: We actively engage
with multiple State Government
departments, urban local bodies,
and public sector undertakings
to broaden our client base.
No single client accounts for
more than 30% of the project
portfolio. Strategic geographic
diversification into Maharashtra,
Madhya Pradesh, Gujarat,
Uttar Pradesh and Haryana
further reduces single-State
dependency.
Geographic Concentration Risk:
Approximately 80%-85% of Our
Companys project portfolio
is concentrated in Karnataka.
This exposes Our Company to
local policy changes, funding
bottlenecks, or socio-political
disruptions in a single State.
Mitigation: Geographic
diversification is a stated
medium-term priority. During
FY2026, we advanced from intent
to active pre-qualification and
bidding in target water-deficient
states. Within Karnataka itself,
we have diversified across
multiple districts and project
types, mitigating concentration
at the sub-State level.
Project Execution Risk: EPC
projects are exposed to cost
overruns, sub-contractor failures,
resource bottlenecks, weather-
related disruptions, and delays
in obtaining statutory approvals.
Such issues can affect project
timelines, profitability, and
working capital cycles.
Mitigation: In-house design and
engineering capability allows
close control over technical
specifications and execution
methodologies. Established
sub-contractor relationships,
milestone-based billing,
structured project review
cadence, and stable workforce
all support consistent on-time
delivery. Selective bidding
discipline avoids projects with
structurally elevated execution
risk.
Competitive Intensity: The Indian
EPC and water infrastructure
market is fragmented and
characterised by intense price
competition. Aggressive bidding
by larger or regional players could
pressure margins and tender win
ratios.
Mitigation: Our Companys
specialisation in groundwater
recharge - an area in which we are
among the few Indian companies
with end-to-end expertise -
provides a meaningful technical
moat. The historical 70%-to-75
% win ratio reflects technical
pre-qualification strength rather
than price leadership. Selective
participation, prioritising margin
and risk profile over scale, has
been a long-standing discipline.
7.2 Financial and Liquidity
Risks
Working Capital and Cash Flow
Risk: EPC contracting in India,
particularly with Government
clients, is structurally
working-capital intensive.
Revenue recognition is tied to
project milestones and client
certifications, with timing
differences between physical
execution, billing, and collection.
A mismatch between these
flows can pressurise liquidity,
particularly during periods of
accelerated execution or pre-
execution material procurement.
Mitigation: The IPO proceeds of
2,205 million raised in January
2025 provide a substantial
liquidity buffer to support
working capital throughout the
execution cycle. Our Company
maintains a debt-light balance
sheet with healthy cash and bank
balances. Active management
of the certification cycle,
structured client engagement,
and progressive billing of unbilled
revenue are operational priorities
through FY2026 and FY2027 to
bring the working capital cycle
progressively closer to the
Companys medium-term target
levels.
Input Cost Volatility:
Construction inputs - primarily
steel, cement, mild steel
and ductile iron pipes, HDPE
pipes, and electromechanical
equipment - are subject to
commodity price volatility that
can materially affect project
margins, particularly on fixed-
price contracts.
Mitigation: We pursue strategic
procurement at attractive price
points, supported by IPO-funded
inventory build-up. Bid pricing
incorporates appropriate
contingency for input cost
variability. Many Government
contracts also include price-
variation clauses that pass
through a portion of movements
in input costs.
Funding and Financial Covenant
Risk: Our Company maintains
modest non-fund-based facilities
- primarily bank guarantees and
letters of credit - to support
tender bidding and contract
execution. These facilities are
subject to covenants that require
ongoing compliance.
Mitigation: The debt-light
operating model materially limits
exposure to financial covenants.
Existing facilities are managed
within prudent limits. The CARE
BBB Stable/A3+ rating, reaffirmed
in April 2026, provides ongoing
access to banking facilities on
competitive terms.
7.3 Regulatory and Compliance
Risks
Regulatory and Environmental
Compliance: Water infrastructure
projects are subject to
environmental clearances,
water resource policies, and
public procurement regulations.
Changes in any of these could
affect project approvals,
timelines, or profitability.
Mitigation: We maintain
dedicated capabilities for
compliance and regulatory
engagement. Strong
relationships with statutory
authorities support timely
clearances. The Internal Audit
and the Audit Committee
periodically review the
compliance posture.
Statutory and Listing
Compliance: As a listed Company,
Our Company is subject to
the SEBI Listing Obligations
and Disclosure Requirements
Regulations, the Companies Act
2013, and other applicable laws.
Mitigation: A structured
corporate governance framework
is in place, supported by
the Audit, Nomination and
Remuneration, Stakeholder
Relations, and CSR Committees.
The Company Secretary and
Compliance Officer monitor
ongoing compliance. Internal
Auditors and Statutory Auditors
provide independent assurance.
7.4 Operational Risks
Talent Retention: EPC operations
rely on retaining experienced
engineers, project managers,
and skilled technicians. Loss
of key personnel ordifficulty in
attracting talent could disrupt
execution timelines.
Mitigation: Our Company
maintains a notably low employee
attrition rate of approximately
3%-4%, supported by competitive
remuneration, ongoing training,
a stable work environment, and
a culture that values engineering
excellence. The in-house design
and engineering team serves
as the institutional memory for
complex project execution and is
actively nurtured.
Joint Venture Risk: Our Company
executes some flagship projects
through joint ventures - for
instance, the KC Valley Phase II
project, where we hold a 48%
share, and the Kuknuru and
Yelburga AMRUT 2.0 project.
Joint ventures expose Our
Company to the risk of partner
performance.
Mitigation: Joint venture
partners are selected based on
track record, technical capability
and financial standing. Roles,
responsibilities, and risk-
sharing are clearly defined in
JV agreements. An active joint
project management cadence
ensures alignment on execution.
7.5 Internal Controls and Audit
Our Company has in place a
documented internal controls
framework commensurate
with the size and nature of
its operations. Financial
controls cover authorisation
matrices, segregation of duties,
expenditure approval limits,
vendor management, and
fraud prevention. Operational
controls cover project planning,
execution monitoring, milestone
certification, and billing.
The Statutory Auditors provide
Independent assurance, M/s
Maheshwari & Co., Chartered
Accountants. Internal Audit
is conducted by S P M L
& Associates, Chartered
Accountants, with quarterly
reports presented to the
Audit Committee. Cost Audit
is conducted by Girish G R &
Associates, Cost Accountants,
and Secretarial Audit by R N
Bhat & Associates, Company
Secretaries.
During FY2026, the internal
controls framework operated
effectively. Audit Committee
reviews of internal controls
did not identify any material
weaknesses requiring
remediation. The framework will
continue to be strengthened
progressively as Our Company
scales operations and enters new
geographies.
8. Human Capital
People are the foundation of Our
Companys project execution
capability. The technical
complexity of groundwater
recharge engineering, the
discipline required to deliver
multi-year projects on schedule,
and the institutional knowledge
that supports our 70%-to-75%
historical tender win ratio all
rest on a stable, motivated
and continuously developing
workforce. This section reviews
the workforce profile, talent
management practices, and
learning and development
initiatives that together
constitute Our Companys human
capital framework.
8.1 Workforce Profile
As of 31st March 2026, Our
Company employed 79 permanent
staff across engineering, project
management, procurement,
quality control, finance, and
corporate functions. The
workforce profile spans:
- Civil engineers and design
engineers responsible for
project conceptualisation,
hydraulic modelling,
structural design, and
detailed engineering
- Project managers and site
engineers responsible for
execution oversight, sub-
contractor management,
and milestone delivery
- Procurement specialists
responsible for vendor
selection, material
sourcing, and supply chain
management
- Quality and safety
professionals responsible
for adherence to
specifications, statutory
compliance, and worksite
safety
- Finance and corporate
professionals responsible
for accounting, treasury,
regulatory compliance,
investor relations, and
corporate governance
Particulars |
FY2025 |
FY2026 |
Total Permanent Headcount |
83 |
79 |
Engineering & Project Execution Staff (estimated) |
70 |
59 |
Corporate, Finance and Compliance Staff (estimated) |
13 |
20 |
Employee Attrition Rate (%) |
3-4% |
3-4% |
Average Years of Experience (Senior Engineers) |
15+ years |
15+ Years |
8.2 Learning and Development
Our Company invests in
continuous learning across the
workforce. Key elements of
the learning and development
framework include:
- Technical training - on
emerging engineering
practices in groundwater
recharge, water treatment,
hydraulic modelling, and
structural engineering for
water infrastructure
- Project management
training - on milestone
planning, sub-contractor
management, risk
identification, and quality
assurance
- Safety training - on
construction site safety,
hazard identification, and
emergency preparedness,
in line with the Occupational
Workplace Health Safety
Policy, effective from
September 2023
- Compliance training - on
Code of Conduct, anti-
bribery and corruption,
prevention of sexual
harassment, and applicable
industry regulations
- Leadership development
- for senior engineers
and project managers
transitioning into broader
leadership roles as Our
Company scales
Training is delivered through
a combination of in-house
sessions, external courses,
on-the-job mentoring under
senior engineers, and exposure
to live project execution. The
continuous learning approach
ensures that the workforce
remains current with evolving
engineering practices and
statutory requirements.
8.3 Workplace Health, Safety
and Wellbeing
Our Company has adopted
a structured Occupational
Workplace Health Safety Policy,
effective from 1st September
2023, that applies to employees,
associates, contractors
and consultants. The policy
framework covers:
- Preventive action -
designed to avoid injuries
and illness related to
workplace conditions, with
regular site safety audits,
mandatory safety training,
and provision of personal
protective equipment
- Emergency management
- structured plans to deal
with sudden catastrophes
occurring due to human
error or natural events such
as fire, flood, earthquake or
explosion
During FY2026, no material
safety incidents were reported.
Continuous reinforcement of
safety culture remains a priority
as project volumes scale.
8.4 Diversity and Workplace
Culture
Our Company is committed
to maintaining an inclusive
workplace that values diversity
and operates on merit-based
principles. Hiring.evaluation,
compensation and promotion
practices are based on
competence and performance.
The workforce includes
women in engineering, project
management and corporate roles,
and Our Company continues to
encourage greater participation
of women in technical functions
traditionally under-represented in
the EPC sector.
The workplace culture
emphasises respect,
transparency, technical
rigour, and accountability. The
Prevention of Sexual Harassment
Policy is in place, supported by an
Internal Complaints Committee.
During FY2026, no complaints
were received underthe POSH
framework.
9. Sustainability and ESG
Sustainability is not a separate
workstream at Our Company
- it is the very nature of our
business. Every project we
deliver materially advances
Indias water security, supports
communities through reliable
access to clean water, and
contributes to environmental
stewardship through groundwater
recharge and wastewater
reuse. This section reviews the
environmental impact embedded
in our core operations, the social
outcomes delivered through our
projects and CSR initiatives, and
the governance framework that
underpins responsible business
conduct.
9.1 Environmental Impact -
Embedded in Core Business
Our Companys core business
directly addresses some of Indias
most pressing environmental
challenges. The environmental
impact of our work spans three
principal channels:
9.1.1 Groundwater Recharge
Groundwater is Indias most
stressed natural resource.
Through our pioneering work
on groundwater recharge
using treated wastewater
- most prominently in the
KC Valley project, which has
helped Bengaluru achieve
global recognition as the
second-largest city in terms of
treated wastewater capacity
- Our Company has laid water-
management infrastructure
to pump secondary treated
sewage water to replenish
dried lakes in districts such
as Kolar, Chikkaballapura and
Ramanagara. This work supports
the Governments broader policy
goal of increasing wastewater
reuse from its current level of 0%
to 25% by 2026, 35% by 2035, and
50% by 2050.
9.1.2 Drinking Water Supply
Our drinking water supply
projects under the Jal Jeevan
Mission and AMRUT 2.0 deliver
clean, reliable potable water to
thousands of households across
rural and urban Karnataka.
The Kerehalli project alone
serves a target population of
approximately 304,013 across 108
habitations. The Chikkabenekal
project serves approximately
101,799 people across 76
habitations. The Kuknuru
and Yelburga project serves
approximately 67,614 people
across two urban areas.
9.1.3 Lift Irrigation and Agricultural
Water Security
Our lift irrigation schemes
support agricultural productivity
in semi-arid regions, stabilising
rural incomes and contributing
to food security. By delivering
reliable irrigation water to
drought-prone areas, these
projects materially improve farm-
level economic outcomes for
thousands of farmers.
9.2 Alignment with United Nations Sustainable Development Goals
Our Companys business activities align directly with several of the
United
Nations Sustainable Development Goals:
UN SDG |
Dentas Contribution |
SDG 6 - Clean Water and |
Direct alignment. Drinking water supply, sewage |
SDG 11 - Sustainable |
Urban water supply and sanitation |
SDG 12 - Responsible |
Wastewater reuse and circular water economy, |
SDG 13 - Climate Action |
Climate adaptation through water security |
SDG 4 - Quality |
CSR initiatives supporting the refurbishment of |
SDG 9 - Industry, |
Specialist water infrastructure capability |
9.3 Corporate Social Responsibility
Our Companys CSR initiatives have focused on rural education
infrastructure
in Karnataka, contributing to community development in geographies where
we operate. CSR programmes during recent years have included:
- Refurbishment of the Government Pre-Graduation College (High
School Division) in Santhebachahalli, K.R. Pete Taluk, Mandya
District (FY2022-23) - comprehensive renovation including classroom
repair, sanitation upgrades, drinking water facilities, smart classroom
equipment, and electrical and lighting improvements.
- High School Infrastructure Renovation Programme (FY2023-24) - a
broader rural school infrastructure initiative led under the leadership
of the Chairman, including
structural reinforcement,
classroom enhancements,
sanitation improvements,
and energy-efficient lighting
upgrades.
CSR spend during FY2026
was 18.39 million, primarily
directed toward education
infrastructure and water-
related social outcomes. As Our
Company scales operations and
statutory CSR thresholds become
applicable, we expect to formalise
the CSR programme further with
measurable outcome metrics,
broader thematic coverage,
and structured monitoring of
community impact.
Corporate Social Responsibility
(CSR) Initiatives in Education and
Water Sustainability
Denta Water & Infra Solutions
Limited under its CSR Initiative
It is desirable that Corporate
Social Responsibility (CSR)
funds of corporate companies
are utilized for improving the
pre-school and school education
system. Denta Water & Infra
Solutions Limited has been
working as a supplement to
the efforts of society and the
Government.
On 24 June 2025, the company
organized the inauguration
ceremony for the renovation of
the high school buildings and the
construction of new buildings at
the Government Pre-University
College in Santebachahalli,
Mandya District, in the presence
of prominent members of society.
Along with creating awareness
among students and local
residents about the importance
of education, the company has
renovated the approximately
70-year-old school building. The
work included:
- Construction of four new
classrooms covering
approximately 383.50 square
metres.
- Reconstruction of the roofs of
three deteriorated classrooms.
- Flooring of school classrooms.
- Repair of windows and walls.
- Construction of separate toilet
facilities for boys and girls.
- Installation of a borewell and
pump system for providing
clean drinking water.
Through these initiatives,
educational and basic
infrastructure facilities have been
provided for approximately 10,000
students.
There is still a need to give
greater attention to education
in rural areas. The company
has stated that, in the coming
days, it plans to install weather-
resistant metal roofs for the
eleven classrooms constructed in
1953 and undertake programmes
in accordance with the National
Education Policy (NEP) 2020.
9.4 Governance
Sound corporate governance
underpins Our Companys
operations and stakeholder
trust. The governance framework
complies with the provisions
of the Companies Act 2013,
the SEBI (Listing Obligations
and Disclosure Requirements)
Regulations 2015, and other
applicable laws.
9.4.1 Board Composition
The Board comprises a balanced
mix of executive and non-
executive members, including
independent directors who
bring diverse perspectives and
experience. The Board includes:
- Mr. C. Mruthyunjaya Swamy
- Chairman and Executive
Director, with nearly four
decades of experience in the
public water sector
- Mr. Manish Jayasheel
Shetty - Managing Director,
with over a decade in
civil engineering and
infrastructure development
- Mr. Sujit T R - Whole-Time
Director and Chief Financial
Officer, founding director of
Our Company
- Mrs. Hema H M - Executive
Director and Promoter, with
strong leadership and CSR
expertise
- Brigadier G Kumaraswamy
(Retd.) - Independent
Director, with 30+ years in
the Indian Army Corps of
Engineers
- Mr. R. Narendra Babu -
Independent Director, with
35 years of experience in the
Government of Karnataka,
including extensive water
resources experience
- Mr. G T Suresh -
Independent Director,
former senior engineer
with the Government of
Karnataka
- Mr. Pradeep N - Independent
Director, Chartered
Accountant
- Ms. Sujata Gaonkar serves
as Company Secretary and
Compliance Officer.
9.4.2 Board Committees
The Board has constituted
the following Committees in
compliance with regulatory
requirements: Audit
Committee, Nomination and
Remuneration Committee,
Stakeholders Relationship
Committee, Corporate Social
Responsibility Committee, and
Risk Management Committee.
Each Committee has clearly
defined terms of reference,
regular meeting cadence, and
independent oversight where
required.
9.4.3 Statutory and Internal Audit
Independent assurance is
provided by M/s Maheshwari
& Co., Chartered Accountants
(Statutory Auditors); S P M
L & Associates, Chartered
Accountants (Internal Auditors);
Girish G R & Associates, Cost
Accountants (Cost Auditors);
and R N Bhat & Associates,
Company Secretaries (Secretarial
Auditors).
9.4.4 Code of Conduct and
Compliance
Our Company has adopted
policies, including the Code of
Conduct, the Code on Insider
Trading, the Whistleblower
Policy, the Prevention of Sexual
Harassment Policy, and the
Related Party Transaction
Policy, all of which are reviewed
periodically by the Board.
Statutory compliance, including
SEBI LODR requirements, is
monitored through structured
compliance reporting to the Audit
Committee and the Board.
10. Strategic Outlook and
Cautionary Statement
10.1 Looking Ahead - Strategic
Priorities
As Our Company exits FY2026
and enters FY2027, the strategic
agenda is anchored in five
priorities. Each priority builds on
the operational foundation laid
in FY2026 and translates into
specific actions and targets, with
management visibility to support
them.
10.1.1 Scale Execution to Convert
Order Book
With an outstanding order book
of 7,277.76 Million as on 31st
March 2026, and with continued
bidding momentum, the
immediate priority is execution.
Managements expectation
for FY2027 revenue growth of
approximately 20% to 25% as
the order book moves into peak
execution. Beyond FY2027, a
sustainable growth trajectory of
approximately 15% per annum is
anticipated as the revenue base
expands.
10.1.2 Sustain Margin Discipline
EBITDA margins above 33%
have been a defining feature of
Our Company through FY2024,
FY2025 and FY2026. Sustaining
this profile requires continued
selective bidding, disciplined cost
management, and a continued
mix toward technically demanding
water infrastructure projects. As
volumes scale, we also expect
operating leverage benefitsto
support margin stability.
10.1.3 Geographic Diversification
Translating the FY2026 progress
on geographic diversification
into actual project wins in
Maharashtra, Madhya Pradesh,
Gujarat, Uttar Pradesh and
Haryana is a strategic priority for
FY2027 and beyond. Initial wins
in any of the target States would
meaningfully de-risk the revenue
concentration profile and unlock
a substantially larger addressable
market for the medium term.
10.1.4 Working Capital Cycle
Normalisation
Reducing the working capital
cycle through accelerated
client certification, progressive
billing of unbilled revenue, and
continued normalisation of
the post-IPO inventory build-
up is an active operational
priority. Management expects
the working capital cycle to
progressively normalise through
FY2027 as the inventory build-up
converts to revenue and as the
certification cycle for ongoing
projects matures.
10.1.5 Selective Adjacency Expansion
Maintaining selective
participation in Roads and
Railways, while keeping the
strategic focus on Water
Management and Irrigation,
allows Our Company to
participate in the broader Indian
infrastructure opportunity
without diluting margin discipline.
We will continue to evaluate
adjacency opportunities -
including emerging segments
such as solar pumping, smart
water metering, and water
network digitalisation - based on
technical fit and margin profile.
10.2 Forward-Looking Targets
Specific forward-looking
targets, subject to the
cautionary statement below
and to subsequent business and
external developments, include:
Metric |
FY2027 Target |
Beyond FY2027 |
Revenue Growth (YoY) |
Approximately 30% |
15% sustainable trajectory |
EBITDA Margin |
Above 35% |
Sustained 35%+ |
PAT Margin |
Above 25% |
Sustained 25%+ |
Geographic Coverage |
Initial wins in 1-2 target States |
Multi-State diversified portfolio |
Order Book to Sales Ratio |
Maintain above 2x |
Maintain above 2x |
10.3 Cautionary Statement
This document contains
forward-looking statements
that reflect the Companys
current expectations, beliefs,
assumptions, and estimates
regarding future business
performance and economic
conditions. These statements
are inherently subject to risks
and uncertainties, many of
which are beyond the Companys
control. Actual results may differ
materially from those projected
due to a range of factors,
including but not limited to global
commodity price fluctuations,
regulatory changes, climatic
conditions, input cost pressures,
and changes in consumer
behaviour or government policy.
The Company undertakes no
obligation to publicly revise or
update any forward-looking
statements, whether due
to new information, future
developments, or otherwise.
These statements should be read
with the financial and operating
performance data and risk
factors outlined in this Annual
Report.
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(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
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