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Healthy 2Q; revenue/Adj. EBITDA/PAT up 19%/17%/20% YoY

Result highlights: 2QFY26

* Revenue/Adj. EBITDA/PAT rose 19%/17%/20% YoY – beating our estimates by 2-14%, largely driven by forex gains.

* EBITDA margin adjusted to forex gain stood high at 14.4% while it was 10.7% on a reported basis.

* The company treats forex gains/losses as part of its core operations; hence, analyzing adjusted margins is more meaningful.

Result highlights: 1HFY26

* Revenue/Adj. EBITDA/PAT surged 18%/17%/20% YoY – broadly in line with the guided trajectory.

* Adj. EBITDA margin stood at 13.8%, within the guided range of 13-15%.

Balance sheet analysis

* Net cash at 1H-end was INR5.6b (INR6.7b excluding HAM projects).

* Due to the nature of business and business cyclicality, working capital is elevated in 1H and typically eases out in 2H.

* The company remains focused on improving margins, tightening working capital, strengthening cash flows and return ratios, and maintaining a net cash profile.

Segment analysis: 2QFY26

* EPC revenue (83% mix) led the growth with a 22% YoY increase, whereas O&M revenue grew by 6% YoY.

* India revenue grew ~8% YoY (49% mix), while RoW markets rose a strong 25% YoY, sustaining healthy margins.

* Municipal revenue contributed 79% of revenue, while Industrial contributed 21% of the mix.

* In 1H, EPC revenue grew 18% YoY, and O&M revenue grew 14% YoY.

Order book analysis: 1HFY26

* Order intake for 1H was INR35b; the company is the preferred bidder in projects worth INR30b.

* Closing order book stood at INR160b (4.6x book-to-bill on TTM basis).

* Secured new orders in the Future Energy Solutions vertical, including UPW/ETP/ZLD system solutions for RenewSys Solar’s Hyderabad cell facility and a compressed bio-gas BOT project in Uttar Pradesh with a 15- year concession.

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