Antony Waste Handling Cell Ltd (NSE: AWHCL) Q3 2026 Earnings Call dated Feb. 02, 2026
Corporate Participants:
Jose Jacob Kallarakal — Chairman and Managing Director
N.G. Subramanian — Group Chief Financial Officer
Mahendra Ananthula — Group President, Operation Business Development and Diversification
Analysts:
Unidentified Participant
Ronak Shah — Analyst
Amit Agicha — Analyst
Neerav Dalal — Analyst
Siddharth Bhattacharya — Analyst
Rohan Mehta — Analyst
Presentation:
operator
Ladies and gentlemen. Good day and welcome to Anthony Waste Handling Cell Limited Q3FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchtone phone.
Please note that this conference is being recorded. I now hand the conference over to Mr. Joseph Jacob, chairman and Managing Director from Antony Waste Handling Cell Ltd. Thank you and over to you Sir.
Jose Jacob Kallarakal — Chairman and Managing Director
Good afternoon everyone and thank you for joining us for our Q3FY26 earning conference call. With me I have Mr. Mahendra Anantula, our Group President, Operation Business development and diversification Mr. Subramaniam, our group CFO and SGA, our investor relation advisor. Our investor presentation for Q3FY26 is now available on the Stock Exchange and on our company website. Before turning to the Company’s performance, I would like to brief touch upon a few Encouraging Development from The Union Budget 202627 the budget places a strong emphasis on strengthening municipal finances through market based funding mechanism including a 100 crore incentive for single tranche municipal bond issuance along with continued support under the AMRU scheme for small and mid sized cities.
Several cities including Surat, Indore, Ahmedabad, Vadodara, Ghaziabad and Timprichin Chavad increasingly tapping municipal and green bonds, these initiatives are expected to improve the financial health of urban local bodies, accelerate investment in urban infrastructure and create a more enabling environment for long term sanitation and waste management projects, an area where the company remains well positioned to partner with municipalities. In addition, the proposed Partial Credit Guarantee framework for private developers represents a positive structural reform for the urban infrastructure ecosystem.
The proposed Infrastructure Risk Guarantee Fund is expected to enhance lender confidence and particularly during the development and construction phases of multiple linked projects such as solid waste management, where revenue visibility typically strengthens over time by mitigating early stage risk and lowering the cost of capital.
This framework can help attract long term private investments into essential urban services, improving project viability and affordability while reinforcing the overall financing framework for sustainable urban infrastructure. During the quarter and the nine month period the company delivered a steady performance driven by strong execution across.
operator
Ladies and gentlemen, the line for the management got disconnected. Please stay connected while I reconnect them. Sam. Ladies and gentlemen, thank you for patiently waiting. We have the line for management reconnected over to you sir.
Jose Jacob Kallarakal — Chairman and Managing Director
During the quarter and the nine month period, the company delivered a steady performance driven by strong execution across its integrated municipal solid waste management operations. Operating revenue for the quarter reached 240 crores reflecting a 9% year on year growth supported by higher volume across project sites and contractual tariff link escalation, enhanced asset utilization and effective on ground execution further reinforce the scalability of our operating model and disciplined management of long tenure contracts positioning the company well to meet India’s evolving urban waste management needs. Sustainability from a segmented standpoint the collection and transportation segment recorded steady growth with receivable increasing 7% year on year to 175 crores.
The processing segment continued to perform well delivering a healthy 12% year on year growth with revenues reaching 66 crores. This balanced performance across both vertical highlights the strength of our integrated waste management approach where consistent operational execution is complemented by target investment in processing infrastructure supporting sustainable returns. Furthermore, our recent Project WIN further strengthened our leadership position in India urban waste management space. The award of two large collection and transportation contract by BMC significantly expand our presence in Mumbai, increasing operational coverage from two to seven wards through a consortium led by our wholly owned subsidiary aga Enviro Infrastructure Private Limited with a 51% stake, these contracts carry a combined revenue potential of approximately rupees 1330 crores over a seven year tenure, enhancing long term revenue visibility and providing annuity like cash flow while offering operating leverage through fleet optimization and route rationalization.
In addition, our subsidiary Antony Lara Enviro Solutions Private Limited secured a 10 year debut concession from Tanim Municipal Corporation to set up and operate a 600 to 800 tons per day municipal solid waste pre processing and stabilization facility backed by a fully reimbursable capital outlay of 67 crores, the project meaningfully expand our processing capabilities and strengthen our focus on RDS generation, landfill, landfill diversion and compliant legacy waste remediation in line with sustainability and circular economy objectives. Additionally, I would like to highlight that the company successfully completed the merger of Ag Enviro Infrastructure Projects Private Limited with Anthony Ways handling Cell Limited effective 12-31-2025 following NCLT approval.
This consolidation streamlines operations, enhance organizational efficiency, optimizes cash flow and strengthens the balance sheet enabling more effective capital allocations toward growth and creating long term shareholder value. Looking ahead, our focus remains on expanding processing infrastructure, improving operational efficiency and and strengthening our presence across high growth urban waste management projects. Backed by a strong operational and financial foundation, we are well positioned to serve the evolving needs of urban India. As the nation accelerates its shift towards sustainability and circular economy policies, we are fully prepared to deliver solutions that are practical, scalable and outcome oriented creating a long term value for all our stakeholders.
Thank you. I now turning to the operational aspect. Let me get Mahindra in. Mahindra, over to you. Thank you.
Mahendra Ananthula — Group President, Operation Business Development and Diversification
Thank you, Jules. I would like to provide an update on the operational performance of Antoni Waste Handling Cell Ltd. During quarter third of FY26. Our operations demonstrated strong resilience and consistent execution across all business segments. Our collection and transportation operations handled approximately 0.53 million tonnes of waste while our processing facilities managed around 0.88 million tonnes of municipal solid waste reflecting.
operator
Ladies and gentlemen, the line for management got disconnected. Please stay on the line while I reconnect them. Sam. Ladies and gentlemen, thank you for patiently waiting. We have the line for management reconnected. Over to you, sir.
Mahendra Ananthula — Group President, Operation Business Development and Diversification
Overall total tonnage for the quarter reached approximately 1.42 million tonnes marking a solid 19% increase compared to the same period last year. For the nine month period, cumulative tonnage stood at approximately 4.01 million tonnes representing about 12% year on year growth. Underscoring the scalability and efficiency of our operations. Our waste to energy plant at PCMC generated over 2 million green units in the quarter and more than 68 million units during the nine month ending December 25th. While quarter three generation was lower due to extended shutdown to carry out certain technical modifications. The plant is now fully operational and we expect normalized operations during quarter four of FY26.
The waste to energy operations have helped avoid about 1,215 tons of CO2 equivalent emissions in quarter three and 6,994 tons in nine months ending December 25, contributing meaningfully to India’s renewable energy targets and further reducing our carbon footprint. The waste to energy facilities consistent performance also serves as a benchmark for the upcoming project in Andhra Pradesh, reinforcing our leadership in sustainable energy from waste. Taking a moment to update on the two Andhra projects at Karappa and Kanool. Both projects are identical in plant configuration, each with a processing capacity of 750 tonnes per day and a gross power generation capacity of 15 megawatts.
Total project capex is expected to be around INR 600 to 650 crores with debt equity ratio of around 75:25. The EBITDA margin would be similar to our PCMC side which is upwards of 40%. The concession agreements and power purchase agreements have been executed for both projects and the land is expected to be transferred within the next four to six weeks. The planned construction period is 24 months and the projects are expected to commence revenue generation from FY29 onwards. For the next 20 years, our construction, demolition waste recycling facility maintained industry leading efficiency with a 96% recycling rate, highlighting our ability to convert waste into valuable resources and reinforcing our commitment to circular economy principles across all facilities.
These consistent operational standards reflect our focus on building scalable, sustainable and sustainable infrastructure solutions. We also continued to advance our resource recovery initiatives during the quarter. In quarter three of FY26 the company sold about 37,840 tons of Refuse Derived Fuel and about 4,359 tons of compost while cumulative sales for the nine month period reached about 1 33,661 tonnes of RDS and about 14,217 tonnes of compost, demonstrating the scale, consistency and the impact of our waste to resource efforts. In the area of esg, we made significant progress in advancing our sustainability agenda over the nine month period.
Scope one and scope two emissions were about 19,900 tons and 2,650 tonnes of carbon dioxide equivalent respectively while avoided emissions reached around 7,000 tons, highlighting our focus on efficient resource utilization and carbon footprint reduction. Additionally, our on ground workforce grew to 10,951 employees reflecting our ongoing commitment to nurturing a skilled and dedicated team that drives operational excellence across all our operations. Moving forward, our priority will be to integrate sustainability more deeply across our operations, improve efficiency in waste recovery and advance process optimization through technology and innovation. With a proven track record of disciplined execution and a focus on technology driven solutions, we are confident in our ability to surpass evolving environmental standards, set new industry benchmarks and responsible waste management and creating enduring value for all of our stakeholders.
Thank you and now I hand over the call to NG for financial highlights.
N.G. Subramanian — Group Chief Financial Officer
Thank you Mahendra. Good afternoon everyone. Let me take you through the consolidated financial performance of Q3 and nine months ending December 25. In Q3FY26, our total operating revenue witnessed a growth of 9% reaching up to 240 crores compared to the same period last year. And for the nine month period our total operating revenue stood at 696 crores marking a steady growth of 12%. The Q3 revenue was softer than our expectation primarily due to lower power sales.
operator
Ladies and gentlemen, the line for management got disconnected. Please stay on the line while I reconnect them. Thank you for patiently holding. We have the line for the management reconnected. Over to you sir.
N.G. Subramanian — Group Chief Financial Officer
Thank you. Welcome back and I’m sorry for the disconnect. Just go back as in Q3 their operating revenue grew by 9% to 240 crores and for the nine month rate stood at 696 crores. The revenue was softer in Q3 primarily due to lower power sales. In Q3 FY26 the revenue mix remained largely consistent with the prior year with cnt contributing to 65% of our revenue processing being 24% and contracts and other making of the balance 11%. This compares with Q3FY25 where the contributions were 65%, 23% and 12% respectively. The stability and diversification of our revenue streams provide the company with strategic flexibility and foundation for sustained long term growth.
For the quarter the company reported an EBITDA of 50 crores with margins at 18.4%. The operating margins were impacted by higher employee cost, a normal occurrence in Q3 due to the annual appraisal and the incentive cycle along with incremental manual additions to support significant volume increases at select CNT sites. Anthony Wage Handling Cell has long prioritized a pro employee approach with 95% of its workforce already compliant under the minimum wages categories for the wage Code and the management staff basic pay averaging 40% allowing seamless adjustment to meet the 50% threshold with minimal impact on graduating and no change to cap provident front contributions.
For the remaining workmen, 88% faced no wage code effect while the 12% see only slight incremental adjustments offset by esic contributions effective January 2026 that utilized prior mediclim cost. The Company has appointed experts to assess its correctness and this matter will be resolved in Q4. For the nine month period our EBITDA was 169 crores with margin standing at 21.4%. As per our stated guidance, depreciation costs have risen by 21% year on year. This is post capitalization of new project vehicles with 335 vehicles being added at new NMMC project and few incremental deployment at TCMC and NAGPUR sites.
The profit after tax for the quarter was 15 crores and for the nine month period our pad was 55 crores. As of December 2025 the group’s gross debt stands at approximately 425 crores with cash and bank balance of around 75 crores resulting in a net debt of approximately 350 crores. This indicates a net debt to equity of 0.4x. The group’s weighted average cost of debt is approximately 9.1%. We know that the day sales outstanding remain elevated at approximately 114115 days during the period which continues to be a key area of focus for us. Encouragingly, subsequent collections efforts have yielded positive results and bringing the DSO down to around 96 days.
We remain committed to further optimizing our collection processes to sustain this improvement. Looking ahead over the next two years, our recent project wins coupled with steady execution at existing operations position us strongly for sustained growth. Key additions include the Adkoli project, the two BMC CMT contracts and the two Andhra Pradesh Waste to Energy projects. These align seamlessly with the government’s ambitious Dump site remediation accelerator program launched in November 25 targeting Lakshya 0 dump sites by October 2026 through remediation by high impact legacy sites. This robust platform supports our revenue growth target of 20% CAGR. Moreover, as higher value processing contracts gain traction and rising demand for scientific based remediation and circular economy solutions we anticipate an improved margin profile of around 22 to 23% going forward as well.
This concludes our remarks and we open the floor for the Q and A. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ronak Shah from Aquarius Securities Private Limited. Please go ahead.
Ronak Shah
Yeah. Thanks for the opportunity, sir. So sir, my first question is regarding the approval in terms of the escalation. So now what is the status of the committees which are likely to give the escalation approval and how you are seeing that will translate into the incremental level is for next two to three. Audience.
Mahendra Ananthula
The escalation for the Noida and Nagpur projects have already been obtained. We have also received most of the monies thereof. The same goes for the PCMC Waste to Energy project where the tipping fee.
operator
Sir, go ahead. Ladies and gentlemen, the line for the management got disconnected. Please stay on the line while I reconnect them. It. Ladies and gentlemen, thank you for patiently waiting. We have the line for the management reconnected over to you sir.
Mahendra Ananthula
Yeah, sorry for the call getting disconnected. So what I was saying is that in the two CNT sites Nagpur and Noida had long pending escalation issues. Both have been resolved. The client has already paid us most of the money and we expect the same to get to receive over the years. On the PCMC WTE front where the tipping fee also is subjected to escalation post COD that also is approved by the client and we have already received the payment. So from now on we are getting payment based on the escalated tipping fees. So all this has helped us in maintaining our cash flow. Thank you.
Ronak Shah
So sir, pcmc t based on our understanding around 500 for rupees per ton which has got increased to by around 5 to 6% or is there anything different?
Mahendra Ananthula
Yeah, so the number. So the 5 you are right about 505 being the tipping fees the with escalation and so on our current tipping fee is about 656 rupees per ton which will get escalated every year. So but you are right, I mean because there was a cascading effect of three to four years cumulatively so that’s why the first escalation was at a higher rate. But going forward anything between 3 to 5% is a fair assumption.
Ronak Shah
So sir based on this our understanding that is PPMC waste to energy project which usually clocking around 40 to 50 odd crores of annualized revenue is likely to inch up by around 5 to 6 odd percentage in next 2 to 3 audience.
N.G. Subramanian
Yeah, that is a fair assumption because that would be normalized increase in the revenue from WT mainly driven by higher tipping feed led by escalation.
Ronak Shah
Noted sir, noted. And sir my second question is regarding the new TNC Tanya municipal corporation project. So what can be the estimated annualized revenue from these projects and how it differs in terms of the margin profile from the current projects.
Mahendra Ananthula
So the Thane project, I mean the construction, the construction capex is fully paid by the client. So we expect the entire project to be completed in six to eight months and realize the revenue in. I mean by let’s say December of 2026 and then the. And then thereafter the O and M will start for 10 years.
Ronak Shah
What can be the quantum?
Mahendra Ananthula
The Quantum is about. One second let me just calculate it’s about 18 to 20 crores per annum.
Ronak Shah
Got it. Thank you.
operator
Thank you. The next question is from the line of Amit Agicha from HG Hawa and company. Please go ahead.
Amit Agicha
Yeah, good afternoon sir. And thank you for the opportunity. So how intense is the pricing competition in new multiple tenders? And like what differentiates Anthony versus peers in many large integrated contracts competition.
Mahendra Ananthula
So when we, I mean because it’s all segmental, I mean if it are talking about the waste to energy projects, I mean we are witnessing two to three players at the most project because the clients also are very keen to attract only companies with experience. So that’s why there are only less than Max 3 to 4 companies. In the case of Andhra there were only two bits. One was ours and the second was another competitor. So the competition intensity is not so much in waste to energy projects. It’s of course a different thing in collection and transportation contracts.
Wherein we as we explained earlier as well that lot of these, these kind of projects also attract regional players. So if we are bidding in Mumbai, I mean there would be about four or five players. If we are bidding in Uttar Pradesh, they will again be four or five players. But those players will not be common because again there are only two or three national level collision and transportation players.
Amit Agicha
Second question is connected to the debt like what is the targeted net debt to equity and can the blended cost of borrowing move below 9% which is reported?
operator
Ladies and gentlemen, the line for management got disconnected. Please stay on the line while I reconnect them. Sam sa. Ladies and gentlemen, please stay on the line while I reconnect the management. Sa. It. Ladies and gentlemen, thank you for patiently waiting. We have the line for the management reconnected over to you sir.
N.G. Subramanian
Thank you guys. Mr. Hawa, if you can just repeat your last question please.
Amit Agicha
Yes. What is the targeted net to debt equity and the company is planning and can the planet cost of interest move below the 9% which is reported.
N.G. Subramanian
So currently we are around 0.4 x 2 on the net debt to equity. With the planned capital expansion that both Atkoli and the AP project we would in the next couple of years be around 1 to 1.2x our equity. And that is something that is manageable given the balance sheet strength. That’s one. And. What is the interest rate? And the interest blended interest rate would be around 9.1 to 9.5 for us over the next couple of years. Our target is to bring it below 9 gradually.
Amit Agicha
Also like can you just put some color on like the tire recycling projects which was there.
N.G. Subramanian
I mean there’s no fresh update on that.
Amit Agicha
Okay, and so last question like about the construction and debris, like what was the proportion of revenue that and what is the margin over there?
N.G. Subramanian
The concern is demolition Project has been not been significant in Q3 mainly because post monsoon the activity has just now started taking traction. So these are not material numbers when we reported the Q3 numbers, but it’s EBITDA neutral for now.
Amit Agicha
Okay, thank you. Thank you for answering the questions. All the best.
operator
Thank you. Participants who wish to ask question, you may press star and one at this time. The next question is from the line of Nirav Dalal from MIB Securities India. Please go ahead.
Neerav Dalal
So hello, thank you for the opportunity. I had a couple of questions. One is that you said that the revenues was slightly lower because of the PCNC electricity revenues were slightly lower. So if you could just let us know what would be the normalized number for there.
Mahendra Ananthula
So the WTE plan when it normally operates we would have generated close to 9.25 million units. That’s assuming 85% PLF. So that would be the kind of generation that we have done translates to approximately around 13 to 14 odd crore of quarterly revenue.
Neerav Dalal
Correct. So this quarter it would have been.
Mahendra Ananthula
It’s been very long.
Neerav Dalal
Yeah.
Mahendra Ananthula
The plan was shut down for more than 82 days. Part of it was in the previous quarter and the bulk of it was in Q3. The plan has been operational since December 18 onwards.
Neerav Dalal
Got that. And the other thing in terms of the PNC order that we won, the CAPEX would be funded by the by the client. Right. So that would be part of our project revenues or how would that be shown?
Mahendra Ananthula
It won’t be part of a project revenue. This would be similar to the bridge financing that we don’t need, build the plant, transfer the assets. So it will be a lump sum revenue that will get as reimbursement of expenses incurred. It will not be part of the project revenue.
Neerav Dalal
Okay. So that will be booked as and when the the project will be up for.
Mahendra Ananthula
Okay, so it’s a milestone based payment. So we will as and when the design, the construction, the equipment procurement and the handover happens. 90% of the CapEx reimbursed in a time bound manner. The balance 10% of the capex will be reimbursed one year after the commencement of operation.
Neerav Dalal
So when do we expect the commissioning of this project?
Mahendra Ananthula
By December 26th the plan should be commissioned.
Neerav Dalal
Okay. So at the moment we would not be booking any revenues from this, Any percentage of completion revenues out of this.
Mahendra Ananthula
So we will book the revenue as and when we raise the bill and the same gets acknowledged by the client.
Neerav Dalal
But it’s not there as part of the current quarter or the nine Months.
Mahendra Ananthula
No, that’s not part of the current.
Neerav Dalal
Okay, okay. And just lastly in terms of the, the WTE projects that we are, we are looking at, what are the other opportunities across the country, any at the moment that you bid for or there is any expectation of any.
Mahendra Ananthula
I mean as we speak there is one light tender in the eastern part of the country and few more on the drawing board stage. We are expecting a few more tenders in south India, especially Tamil Nadu in the next two quarters after the elections in Tamil Nadu.
Neerav Dalal
Okay. Okay. And the size will be similar say for the eastern. Would it be similar to Hyderabad to Andhra or would be different.
Mahendra Ananthula
The site is by and by similar. Yeah.
Neerav Dalal
Okay. Okay. And lastly now that the BMC elections are done and we have the new party coming in, the elections being completed. So do you see any positive negatives in the next six to 12 months out of this?
Mahendra Ananthula
So collection and transportation contracts are already bid up, bid out and they already have been awarded. So with the new standing committee and other general body coming in, we expect decision making to be faster and execution.
Neerav Dalal
So faster in terms of bidding out or .
Mahendra Ananthula
They already have an awarded. Right So..
Neerav Dalal
Yeah, that’s what.
Mahendra Ananthula
The execution, the execution will be smoother in terms of decision making.
Neerav Dalal
Okay. Okay. And any changes in terms of payments and stuff?
Mahendra Ananthula
No, we don’t expect any changes to happen.
Neerav Dalal
No, no. Positive or negative?
Mahendra Ananthula
No, I think the same as they had tended out as we have agreed in our proposal.
Neerav Dalal
Okay. So as such there is not much difference except for the execution might improve. Then what it is.
Mahendra Ananthula
Execution might improve and of course financially, I mean you know we will get revenue getting recorded from.
Jose Jacob Kallarakal
There won’t be any administrative delays. Happen. With the teams being in place and the HODS will be much more empowered. So the, the delays that we have seen in the last three years should not.
Neerav Dalal
Okay. So we expect explanations to be to happen faster and recovery is to be faster.
Jose Jacob Kallarakal
Yes.
Neerav Dalal
Okay. Thank you.
operator
Thank you. The next question is from the line of Siddharth Bhattacharya from Odham Investments and Infrastructure. Please go ahead.
Siddharth Bhattacharya
Hi, I’m audible.
Jose Jacob Kallarakal
Yeah.
Siddharth Bhattacharya
So couple of questions from my end just to understand things in perspective over here. So. So basically you know two segments which is CNG as well as processing. Just wanted to understand the extent of fixed costs that are built up over here because when I look at your quarter on quarter, I mean y o y quartering numbers there’s versus 25. So just wanted to understand, you know what could the swings be likely from here on if you could Help me understand that perspective.
Jose Jacob Kallarakal
So in the collection and transportation business, close to 61 to 64% of our revenue is labor and fuel. So the operating leverage is mainly very limited in that aspect. To that extent, the fixed cost is not more than 18% for us, which is vehicle related costs and thereabouts, the maintenance and the AMCs that we pay in case of processing, I mean the fixed cost is much higher. That would be in the range of close to 45 to 50%. Given the fact that these are heavy machineries and equipment and hiring cost that needs to be ascertained and given for a duration of the contract.
Siddharth Bhattacharya
Okay. So effectively, if volumes increase in our CNT division as well as processing levels, that kicks in in the substitution cost. Is that the right way to look at this?
Jose Jacob Kallarakal
In CNG business, when the tonnage increases, there has to be proportion increase in facilities that needs to be buffed up. If the facilities are adequate, we just have to incur variable cost to manage the extra waste. So that is EBITDA positive. In case of waste processing, any increase in tonnage has a stepped up impact on the EBITDA because you have to ensure a certain processing facility and any significant change only then has a impact on my pursuing ebitda.
Siddharth Bhattacharya
Okay, and within the collection and transportation, what operate? So what is the efficiency operating at.
Jose Jacob Kallarakal
During the first phase of our collection and transportation? The efficiency normally is around 80 to 90%. Over the project life, it goes down to 80% and then we kind of augment it with hiring additional vehicles during the project life.
Siddharth Bhattacharya
Okay. And for our processing you said we are at 85% today and how high it can go to.
Jose Jacob Kallarakal
W e can at the most press the pedal up to 100. But these are high efficiencies. There are always downtimes that happen and these are mission critical activities. So we normally would be comfortable with a 90, 95% max throughput systems in the system. Otherwise we have to enhance the capture to kind of take in additional waste.
Siddharth Bhattacharya
Correct, Correct. And in terms of the volume context, sir, could you help me understand if there’s some variation in various quarters that will go through.
Jose Jacob Kallarakal
Normally we have seen the tonnages increase during the wet season, which is from June till maybe end of October, because it’s also the festival season. So if you’re looking at 100% of the volumes being in a calendar year, I would say 55% of the tonnage would come in during the wet season and the balance would be the dry season. There is some seasonality in our business.
Siddharth Bhattacharya
Got It So if I’m looking now at consolidated growth effectively it will come in from some volume additions for our CNT as well as processing, plus the new sites that we sort of get contracts for over the next few years. Right. Is that the way to look at this?
Jose Jacob Kallarakal
That’s the right way of looking at it.
Siddharth Bhattacharya
Okay, thank you. Thank you so much.
operator
Thank you. The next question is from the line of him, Keshe Katter from Green Portfolio Management Services. Please go ahead.
Unidentified Participant
Hello sir. Thank you for taking my question. So just wanted to get like a clear picture on the revenue side because in the last three years our revenue has grown at a CAGR of 13% while the management has continued to, you know, give a guidance of long term growth of 20% that has not materialized so far. So when can we expect the incremental revenue to pick up from all the projects that the company is doing?
Jose Jacob Kallarakal
So I mean, mainly because of elected members not being part of the municipal machinery, there has been significant delay in new project wins and allocations happening. Now that bulk of the elections have happened, we see growth kicking in. The two AP projects, the Adkoli projects and MCGM contracts that we bagged kind of ensures that we will be able to work in that trajectory and achieve the 20% CAGRADE route.
Unidentified Participant
Okay, and and regarding the ROC also, that has also like remained around 12% only. So do you expect the ROC also to improve going forward.
Jose Jacob Kallarakal
In the kind of project that we have, the CAPEX up front over a period of time? You see ROC and ROIC kind of improve gradually.
Unidentified Participant
Okay, and regarding the Andra plants, so as you said before that you expect both the plants to set commercial operations in the quarter 29. So will the both plants get operationalized simultaneously?
Mahendra Ananthula
Yeah, that’s right. Because both the projects were awarded simultaneously are moving parallel. Maybe there will be a lag of. One or one month purely because of the land handover date, but both of them will get commissioned almost simultaneously with maximum lag of maybe one or two months.
Unidentified Participant
Okay, and are there any other like waste to energy plants that we are targeting?
Mahendra Ananthula
As I just mentioned, we are. I mean there is one live tender in eastern part of the country and there are a few more tenders which the municipalities are making in Tamil Nadu which should come out after the election, after the state elections in me.
Unidentified Participant
Okay, thank you so much.
operator
Thank you. Anyone who wishes to ask a question, you may press star and 1. The next question is from the line of Shivam Parak from Value Wise Wealth Management. Please go ahead.
Unidentified Participant
Yeah, good afternoon sir. Thanks for the opportunity. So I have two questions. First question was I needed an update on the dividend strategy post the merger. And second question was more of a clarification clarificatory part. So I needed clarification on the order one for collection and transportation. So 1330 crore order was over a seven year period. So is that Anthony’s revenue potential over the seven year period or the combined revenue potential of all the three players in the joint venture? Thanks.
Jose Jacob Kallarakal
On the dividend part. I think with the merger getting completed we are in a much better position to on the cash flows front to start initiating this process. So the board is evaluating that part on the revenue potential the project. Yes, the entire revenues of the spv. So the thousand odd crores that we have mentioned is of the revenue potential of the SPV.
Unidentified Participant
Okay, so all the three players combined.
Jose Jacob Kallarakal
Yes.
Unidentified Participant
Okay. So 51% joint venture. So out of the 1330 crore 51% would be the revenue coming for Anthony. Right.
Jose Jacob Kallarakal
So it’s a consolidation. Since Anthony wants the majority of the company as part of the consolidation the entire hundred percent of the revenue and the expenses and the debt will be on books and a proportionate profit will be taken out as minority interest.
Unidentified Participant
Okay sir, got it. And sir, like again on the dividend front, like so could we expect in financial year 27 for the revenue for the dividend to come up for shareholders?
Jose Jacob Kallarakal
We would. The board would be taking a call on that and we’ll keep you updated on that thing.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from the line of Ronak Shah from Icarus Securities Private Limited. Please go ahead.
Ronak Shah
Thanks for the follow up, sir. Sir, my question is regarding your aspiration for the 20% growth with the 22 to 23% EBITDA margin. So considering the Andhra project which are going to have some contract revenue as well. So optically, is it possible that your reported EBITDA margin for next one and a half to two odd years will marginally look on a lower side?
N.G. Subramanian
Yeah. So this will be similar to the phase that we were one when the construction of the PCMC was going on. So your EBITDA margin would be lower in that sense because of the index impact. So we will be reporting the core EBITDA margin and the reported EBITDA margin separately as we have done in the past.
Ronak Shah
Got it, sir. And sir, can you clarify on a green unit generation quantification? Because in the second quarter’s presentation there are 66 million plus units generated into the first half heading into the current presentation it has dropped down to 44 odd million.
Mahendra Ananthula
Yeah. Because in the quarter three, I mean you know we had, we had a shutdown of 82 days because we were undertaking some, some technical modifications. So that’s why the drop in PLs in quarter three.
Ronak Shah
Okay. Because the cumulative number is altogether different in second quarter’s presentation and third quarter’s presentation. That’s why I’m asking.
Mahendra Ananthula
We will check on that and maybe we’ll revert.
Ronak Shah
Thank you. Thank you sir.
operator
Thank you. Participants who wish to ask question you may press star and one at this time. The next question is from the line of Nitesh Kavantkar, an individual investor. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity. I just have one feedback before I ask my question. There was like five, five times occasion where the call got disconnected. Maybe next call. Can you please ensure, you know there’s proper connectivity because it, it’s quite disturbing, you know, such a big company and then this frequent disconnection of call. Okay, coming to my question. Where do you see, how do you see the revenues growing up for the next year? That’s my first question.
N.G. Subramanian
The revenue growth for the next year based on the Adkohli and maybe incremental Capex should be in the range of 15 to 18% for us. That’s based purely on the contract that we have already executed, signed and the run rate that we are seeing on a consistent basis.
Unidentified Participant
Okay. That means this year we will end up roughly about thousand crores. So next year we should be ending roughly 1200 crores. Am I right?
N.G. Subramanian
That’s a target that we have set internally. I mean the timing of that same base is based on the Capex rollout and the timely completion of the projects.
Unidentified Participant
Okay. And I understand we’ve been iterating that the EBITDA margin would inch up slowly 22, 23%. So will that still remain intact?
N.G. Subramanian
Yes. So if you look at the 9 months number we are around 21 odd percent. So we try to keep that EBITDA as a threshold between 22 to 23%.
Unidentified Participant
Okay. And again when do you see a massive growth, you know for the company? I understand we target to achieve 20 to 25%. Like you know and it’s going to be lumpy. But. But in with this going on, right. We are just about 1400 crore company. So. So what are your plans? Actually to make the company big.
N.G. Subramanian
Growth for us is based on couple of factors. One is bankable projects that is awarded by the municipality sector. That is one of the main drivers for the growth of Anthony. So if you look at Anthony, from 1997 onwards till 2010 we were around a 300 crore turnover entity. From 2020 onwards from a 400 odd crore, we have now come on to a 900 odd crore company. Now the traction in the municipal solid waste is significantly better today than what it was a decade back. So we feel enthused that we can continue the growth rate consistently and given the balance sheet we should be able to target this 2025% CAGROMLY.
You also need to understand that the counterparty over here is the municipalities which are it’s slightly tough pay masters. So we are pretty cautious and also measured in our growth and the selection of clients. So that is something that we need to watch out for. Having said that, the board is also cognizant of the fact of moving significantly away from the municipality only business. So we are looking at non municipal businesses like getting into quick to clean business which is a more B2C kind of an area. We are looking at EPR market, we are looking at electricity boards as a client when it comes to waste to energy businesses.
So we are trying to increase our canvas a bit and also ensure that we are true to our core operating strength.
Unidentified Participant
Okay, just one suggestion from my end. Okay. Because when I was young, right I wanted to do a startup where I pay someone like B2C and and collect the garbage and in turn recycle it. Now I am basically from Bangalore and Bangalore everywhere people dump garbage, okay. And there’s no responsible responsibility from anyone, you know, to, to actually wait for the garbage collectors to collect. So can we do something very niche here because everywhere they dump garbage. Can we do a new initiative where we pay and then collect and recycle so that we, we get away from this, you know, contacts from just municipality municipalities.
Mahendra Ananthula
See, in municipalities or municipal waste there are two segments of waste. One is the dry waste which is the recyclable which has got value. And that’s already a reasonably organized sector managed by the informal sector, you know. So the ragtakers and the aggregators that you see, I mean they are the people who actually make sure and they have their value chain and activity chain already defined for the wet waste which is lying on the road and so on that has got no commercial value, right? So there is a responsibility of the collection and transportation contractor to collect it and take it to the processing site or landfill as municipality may direct them to.
Unidentified Participant
Yeah, because, because the reason, right. I worked even in Chennai for three years. I see there also they dump in that OMR road And they burn the garbage everywhere. Because I think there’s a huge potential for the business. Maybe there’s a lot of value unlocking needs to happen.
Mahendra Ananthula
See, that kind of thing cannot continue for long. I mean, you know, as you have also seen repeatedly 2016 rules and now the new 2026 rules and so on, the there is a shift to much more stringent regulatory and governance practices. So those days probably are behind us. And municipalities have no option but to engage professional organizations to manage their waste management services.
Unidentified Participant
Okay, thanks. Thanks a lot for the opportunity. All the best.
operator
Thank you. The next question is from the line of Rohan Mehta from Nexus Capital. Please go ahead.
Rohan Mehta
Yeah, thank you for the opportunity, sir. Am I audible?
Jose Jacob Kallarakal
Yes, yes.
Rohan Mehta
So I have two questions. Firstly, if you could be very helpful if you could share the contribution from the, the construction demolition segment in this quarter and the nine month period and how do you see it, you know, how, how much do you see the contribution at for the full year and going forward for FY27? And you know, just in general your view on the construction demolition segment, are we bidding for new CND projects currently or how are you looking at that basically segment going forward?
Mahendra Ananthula
As of now, I mean the contribution of CND business is 5%. We expect this to at least double in the near in the next financial year.
Rohan Mehta
So it will be broadly 5% in the quarter and overall for the year. Broadly well past that range.
Mahendra Ananthula
That’s right. Yeah. Yeah.
Rohan Mehta
Thank you.
Mahendra Ananthula
There are policy changes which the client is doing now. So because of which we expect the revenues to grow sharply in the next few quarters.
Rohan Mehta
Fair enough, fair enough. Secondly, just wanted, if you could provide any update on you know, recent bids or contracts that we are participating in in general, apart from cnd. I mean what kind of projects are we sort of looking at or prioritizing say processing projects, you know, or you know, collection and transportation projects? Just wanted to get your overall view on that.
Mahendra Ananthula
So we are focusing on both processing as well as the collection and transportation with special focus on processing because that’s what we want to increase the share of processing business in our company. But having said this, we also are extremely careful and choosy about selecting the right project, the right city and the project and the project configuration. Because what we have realized is that there is no point in winning a project only to make losses in that. So we are careful. And in terms of projects, as we mentioned, that we have already successfully concluded two waste to energy projects in Andhra Pradesh, one Thane Municipal Corporation pre processing project, the two Mumbai CNT contracts.
There are few tenders which are in the anvil and the next few quarters we should be able to get a few more projects.
Rohan Mehta
Sure, sure. Absolutely. No. Thank you. Thank you so much for that. Wishing you all the best. That’s it. From my side.
operator
Thank you. A reminder to all the participants who wish to ask a question, you may press star and one at that. this time to ask a question. Please press star and one now. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to Mr. Joseph Jacob for the closing comments.
Jose Jacob Kallarakal
Before we conclude, I will take a moment to express my heartfelt appreciation to our entire team for their unwavering commitment and exceptional contributions. Your dedication and hard work have been instrumental in driving our success and sustaining our growth momentum. As we look forward, our focus remains firmly on delivering consistent performance, enhancing shareholder value and strengthening our leadership in sustainable waste management. We will continue to invest in innovation, technology and operational excellence to further consolidate our position in the industry. I am truly excited about the journey ahead as we continue to build a cleaner, greener and more sustainable future for our communities and stakeholders.
Thank you once again for your continued trust and support and I wish everyone a very pleasant evening.
operator
We have the last question from Shivam Parak from Value Wise Wealth Management. Please go ahead.
Unidentified Participant
Thank you so much for the follow up post. The commercialization of 200 waste to energy projects in financial year 29. What could be the revenue targeting for the company?
Jose Jacob Kallarakal
So was the AP project’s commercial operation. We expect close to around 90 to 140 crores of annual revenue to start in the first couple of years and that will scale up to around 130 to 140 odd crores going forward. So this will be over and about the thousand one crore of revenue that we have in the system.
Unidentified Participant
Got it. Thank you so much.
operator
Thank you on behalf of Anthony Waste Handling Cell Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines.