Effwa Infra & Research Limited (Effwa or the Company) is an integrated player in the water and wastewater management space, offering design, engineering, procurement and construction (EPC) execution and long-term operation & maintenance (O&M) services, with particular expertise in Zero Liquid Discharge systems, advanced membrane-based treatment technologies and energy recovery from wastewater processes. The Companys client base spans blue-chip public sector undertakings and private sector groups across steel, oil & gas, metals and mining, with a track record of executing large, technically complex projects on a pan-India basis and, on a selective basis, internationally.
The Company was listed on the NSE Emerge (SME) platform on July 12, 2024. FY2025-26 was the Companys second full year as a listed entity, during which it continued to scale its order book, strengthen its balance sheet and deepen its presence with marquee public and private sector clients, while maintaining an asset-light, capital-efficient operating model.
The Companys promoters, Dr. Varsha Subhash Kamal (Chairperson and Managing Director) and Mr. Subhash Ramavatar Kamal (Whole-time Director), bring over 30 years of domain experience each in environmental science and engineering, and continue to lead project bidding, execution and strategic direction, supported by a qualified senior management team including the Chief Financial Officer and other key managerial personnel.
Indias water and wastewater management sector continues to gain strategic importance amid tightening environmental compliance norms, rapid industrialisation and growing water stress across key manufacturing corridors. Increasingly stringent Zero Liquid Discharge (ZLD) mandates for water-intensive sectors such as steel, textiles, chemicals, refining and metals, together with rising emphasis on water reuse and recycling, continue to expand the addressable opportunity for integrated water treatment solution providers. Industry estimates place the Indian wastewater treatment market at approximately USD 9.7 billion by 2030, growing at a CAGR in excess of 12%, while the global ZLD market is estimated to reach approximately USD 20.3 billion by 2032, growing at a CAGR of approximately 10.9%.
Demand is further supported by public sector capital expenditure in steel, oil & gas and metals, by private sector capacity expansion in similar water-intensive industries, and by an emerging opportunity in high-purity water treatment for data centres. Regulatory tightening by pollution control boards, coupled with rising cost and scarcity of fresh water, is expected to sustain the shift of industrial customers toward advanced membrane-based treatment, energy recovery and recycling solutions over the medium term.
The Companys revenue continues to be driven predominantly by EPC execution of ZLD-based effluent treatment systems, which contributed approximately 92% of FY2025-26 revenue, with the balance contributed by effluent treatment with recycling (approximately 5%) and Operation & Maintenance services (approximately 3%). Management continues to prioritise growth in the O&M portfolio, which offers a recurring, annuity-like revenue stream, and expects this segments contribution to gradually rise to 3-5% over the next two to three years.
The financial performance discussed below is based on the Companys audited results for FY2025-26 & FY2024-25. These figures should be read together with, and are subject to reconciliation against, the Companys audited standalone financial statements for FY2025-26 forming part of this Annual Report.
| Particulars | FY2025-26 | FY2024-25 | YoY Growth |
| Revenue from Operations | 25,329.4 | 18,511.9 | +36.8% |
| EBITDA | 4,210.5 | 3,002.0 | +40.3% |
| EBITDA Margin (%) | 16.6% | 16.2% | +40 bps |
| Profit After Tax | 2,861.8 | 2,012.0 | +42.3% |
| PAT Margin (%) | 11.3% | 10.9% | +40 bps |
| Earnings Per Share (Basic, \u20b9) | 12.36 | 9.28 | - |
Revenue grew 36.8% year-on-year to ?25,329.4 lakhs in FY2025-26, extending the Companys growth trajectory from 11,509.6 lakhs in FY2022-23 and 14,515.9 lakhs in FY2023-24. EBITDA margin expanded to 16.6% from 16.2%, reflecting continued operating leverage, tighter project-level cost control and value-engineering initiatives, even as the Company absorbed input cost inflation and execution disruptions during the year. PAT grew 42.3% to ?2,861.8 lakhs, with PAT margin improving to 11.3%. The Board has recommended a dividend of 10% for FY2025-26, the Companys first dividend since listing, compared to no dividend recommended for FY2024-25.
| Particulars | FY2025-26 | FY2024-25 | YoY Growth |
| Net Worth | 12,350.0 | 9,488.2 | +30.1% |
| Total Assets | 19,808.8 | 14,975.7 | +32.3% |
| Cash and Bank Balances | 4,328.5 | 2,606.1 | +66.1% |
| Trade Receivables | 12,871.1 | 11,759.6 | +9.4% |
| Total Debt | 3,800.0 | 2,970.2 | +27.9% |
Net worth grew 30.1% to ?12,350.0 lakhs, aided by internal accruals. Total debt remains modest relative to the balance sheet, with the Companys total banking limits of ?235 crores (comprising fund-based and non-fund-based facilities) providing headroom to execute revenue of approximately 450 crores without recourse to additional equity or debt funding, on managements current assessment. Trade receivables grew more slowly than revenue, aided by improved collection discipline; outstanding retention money stood at approximately 28-30 crores as at year end, and management continues to work with lenders to substitute retention hold-backs with bank guarantees to accelerate cash recovery.
| Particulars | FY2025-26 |
| Net cash from operating activities | 2,942.6 |
| Net cash used in investing activities | (2,001.6) |
| Net cash from financing activities | 500.2 |
| Net increase in cash and cash equivalents | 1,441.2 |
Operating cash flow turned positive at 2,942.6 lakhs in FY2025-26, a significant improvement from a net operating cash outflow in FY2024-25, reflecting tighter working capital management despite the higher revenue base. Cash used in investing activities primarily relates to capital work-in-progress of 1,976.6 lakhs toward the Companys new approximately 10,000 sq. ft. office premises in Thane (total investment of approximately 19.8 crores), possession of which is expected by December 2027 and which is intended to support planned workforce expansion.
In accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the following table sets out key financial ratios for FY2025-26 as compared to FY2024-25, together with explanations where the variance is significant.
| Ratio | FY 2025-26 | FY 2024-25 | Explanation for Variance |
| Current Ratio (x) | 2.92 | 2.88 | Broadly stable; reflects continued strong liquidity position. |
| Debt-Equity Ratio (x) | 0.31 | 0.31 | Unchanged; growth continues to be funded largely through internal accruals. |
| Operating (EBITDA) Margin (%) | 16.6% | 16.2% | Marginal improvement from operating leverage and cost control; not a significant (>25%) variance. |
| Net Profit Margin (%) | 11.3% | 10.9% | Marginal improvement in line with EBITDA margin expansion; not a significant variance. |
| Return on Equity (%) | 26.4%* | 24.5%* | Improvement driven by higher profitability; moderated by the higher equity base following the FY2024-25 IPO. |
As of May 2026, the Companys order book stood at approximately ?750 crores across five to six project sites, and management expects this to rise to approximately ?1,000 crores over the following five to six months as pending orders are formally documented. The Companys bid pipeline exceeds ?2,600 crores. Key ongoing projects include the ?313 crore order from JSW Steel and the HUTNI project, with execution timelines of 12 to 36 months; approximately 25-30% of the JSW order value is expected to be executed in FY2026-27, with the balance extending into FY2027-28.
Management has guided to revenue growth of 35-40% on a CAGR basis over the next three to four years, implying FY2026-27 revenue of approximately ?350 crores or more, subject to timely order-book conversion and execution. The Company expects to complete the ongoing SAIL RSP project during the current financial year and to see a meaningful revenue contribution from the JSW Steel order.
The Company is developing a proprietary Zero Material Discharge technology, representing an advancement beyond conventional ZLD systems by eliminating hazardous waste disposal requirements. The global patent approval (providing 15 years of protection) is targeted around July 2027, ahead of an anticipated commercial launch. Management expects the additional capex premium associated with ZMD installations to be recovered within 2 to 3 years and expects the technology to be margin-accretive over time.
The Company is evaluating entry into high-purity water treatment for data centres, leveraging its ability to scale systems from approximately 1 lakh litres to 1 crore litres of capacity. Management views this as a supplementary rather than a transformative opportunity at the current stage, with the first order yet to be secured, and notes the presence of established players such as WABAG and Thermax as prospective competitors in this segment.
The Company continues to selectively pursue opportunities in African and European markets, building on its execution track record in Tanzania and Ivory Coast (through Afcons Infrastructure). Separately, the Company is targeting migration from the NSE Emerge (SME) platform to the main board around July 2027, on completion of the mandatory three-year listing tenure.
The Companys permanent employee strength increased to approximately 145 as of March 31, 2026 from 133 as of March 31, 2025, with engineers constituting approximately 75% of the workforce. Management plans further hiring growth of 10-15% in FY2026-27, supported by the Companys new office premises in Thane, to support the scale-up in execution capacity required to service a growing order book. Industrial relations remained cordial throughout the year, with no material disruptions reported.
The Company has an internal control framework commensurate with the size, scale and complexity of its operations, encompassing project-level cost monitoring and value-engineering reviews, treasury and working-capital controls, and oversight by the Audit Committee of the Board on financial risks, statutory compliance and related party matters. The Statutory Auditors and the Audit Committee periodically review the adequacy and effectiveness of these controls, and management believes the internal control systems are adequate for the nature and scale of the Companys business.
? Execution risk on large, multi-year contracts (12-36 month tenure), including exposure to geopolitical disruptions and labour-supply constraints that have, on occasion, delayed equipment dispatches.
? Timeline risk on the anticipated ZMD patent grant given the extended, multi-jurisdictional filing process.
? Input cost volatility in metals, electrical components, fuel and civil materials, partly mitigated through escalation clauses in customer contracts.
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