Enviro Infra Q1 FY27: revenue +49% YoY, adjusted PAT dips as margins compress

Enviro Infra Engineers' consolidated revenue for Q1 FY27 came in at Rs 359.18 Cr, up 49.1% YoY from Rs 240.92 Cr, comfortably clearing the Rs 252-290 Cr Street/preview range for the quarter (Univest). Sequentially revenue fell 16.0% from Q4 FY26's Rs 427.31 Cr - a seasonal step-down typical for EPC/water-infrastructure billing, which is back-half and year-end weighted, not a demand issue. Consolidated PAT was Rs 45.21 Cr, up 6.4% YoY on a reported basis, but the comparison is distorted by a Rs 4.95 Cr exceptional loss booked in the year-ago quarter; adjusting for that one-off (and this quarter's negligible Rs 0.99 lakh exceptional recovery), PAT actually declined about 4.7% YoY. QoQ, PAT was down 16.7%, tracking the revenue decline. The adjusted profit decline sits on the margin bridge below EBITDA. Operating economics held up well - EBITDA margin (EBITDA/revenue) was about 22.7% this quarter, near the top of management's revised 21-22% FY27 guidance band, though down sharply from roughly 30% a year ago as the EPC-only base gets diluted by newer, lower-margin businesses. The gap between resilient EBITDA and weaker net profit was driven by finance costs, which more than doubled YoY to Rs 14.46 Cr (from Rs 7.05 Cr), depreciation which nearly tripled to Rs 8.71 Cr (from Rs 3.25 Cr), and a fresh Rs 5.39 Cr minority-interest carve-out - all consequences of first-time consolidation of Suyog Urja Limited (51% stake, effective April 28, 2026) and PRA Bihar BESS Private Limited (49% stake, effective April 21, 2026). Consolidated NPM came in at 12.38%, essentially flat QoQ (12.37%) but down from 17.05% a year ago, and below management's guided FY27 PAT-margin band of 13.5-14%. Standalone results were smaller in scale (revenue Rs 245.83 Cr, PAT Rs 35.75 Cr, EPS Rs 2.04) versus consolidated (EPS Rs 2.27), the roughly Rs 113 Cr revenue gap and Rs 9.5 Cr PAT gap reflecting the newly consolidated renewables/BESS subsidiaries and JV interests. By segment, EPC construction remains the core at Rs 353.62 Cr revenue versus a still-small Rs 5.56 Cr from the Sale of Renewable Energy segment, consistent with the Suyog Urja integration being a Q1 watch item flagged pre-result. New EPC order wins during the quarter totaled over Rs 513 Cr (Rs 256.92 Cr sewage treatment, Rs 126.78 Cr, and Rs 130.14 Cr project orders) - the Namami Gange-linked inflow flagged as a pre-result watch item materialized. Two new wholly-owned SPVs (Varanasi DDU Nagar STP, Varanasi Lohta STP) were incorporated June 16, 2026. Auditors flagged an Emphasis of Matter at Suyog Urja: a Rs 1,861 lakh customer advance against Rs 923.14 lakh of recognized WIP, though management notes a post-quarter settlement MoM resolves the terms with no material recoverability concern. No separate management press release was available for this filing to cross-check against the numbers. With Q1 revenue at roughly 18% of the Rs 2,000 Cr FY27 target, execution pace on the Rs 6,814 Cr order book (Rs 4,800 Cr current execution book) needs to build through the year, consistent with the historically back-half-loaded pattern (Q1 FY26 was also about 21% of FY26's full-year revenue). The key swing factor into Q2 is whether finance costs and minority-interest drag stabilize as the Suyog Urja/BESS integration settles, which will determine whether the FY27 PAT-margin guidance of 13.5-14% is achievable from a Q1 base of 12.38%.