EMS Limited’s ₹183.8 Cr Fatehpur Sewage Project Win | Sewage Infrastructure Growth

This update on EMS Limited highlights some promising developments, especially with their recent L-1 order award worth ₹183.81 crore for the Fatehpur Sewerage & Sewage Treatment Scheme. The project spans 24 months, with revenue expected to be evenly split across FY26 and FY27, providing the company with clear revenue visibility and growth potential.

Key Takeaways:

• Order Award & Revenue Impact: The new order bolsters EMS's order book by ₹183.8 crore and is expected to generate approximately ₹92 crore in FY26 and an similar amount in FY27, reinforcing their revenue outlook.

• EBITDA Potential: Assuming an 11% margin, the project could contribute roughly ₹20 crore over two years, which is meaningful for EBITDA growth.

• Sector Growth Drivers: The broader sewage infrastructure market in India is on a growth trajectory, with an expected CAGR of around 8.4% up to 2026. Wastewater treatment plant sector is also expanding at a notable CAGR of 10.6%, underpinning long-term sector tailwinds.

• Government Budget & Infrastructure Spend: Notably, the rural sanitation budget in Uttar Pradesh and power project pipelines in the Fatehpur region indicate a favorable environment for EMS's growth prospects.

• Longer-term Considerations: The focus should be on project execution to avoid working capital issues, potential for future repeat orders, and evaluating the company's cash flow management. A consistent track record could lead to valuation re-rating towards 15–18× EV/EBITDA.

Overall Outlook:

EMS appears well-positioned to leverage sector tailwinds, and the new order provides promising near-term revenue clarity and earnings contribution. However, execution excellence and cash flow management will be key to realizing its full potential.