Enviro Infra Engineers Limited (NSE: EIEL) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Sanjay Jain — Executive Chairman of the Board, Whole Time Director
Manish Jain — Managing Director, Executive Director
Analysts:
Sandip Sabharwal — Analyst
Aniket Jain — Analyst
Unidentified Participant
Manish Gupta — Analyst
Aashish Upganlawar — Analyst
Swaminathan — Analyst
Presentation:
Operator
It’s Ladies and gentlemen, good day and welcome to NVIRO Infra Engineers Ltd. Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. 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 date of this call. These statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Sanjay Jain, chairman and whole time Director. Thank you and over to you sir.
Sanjay Jain — Executive Chairman of the Board, Whole Time Director
Thank you. Ashree Good afternoon everyone. A very warm welcome to enviro Einstein Genius Limited Q1 F26 earning conference call. I sincerely thank you for joining us today. We are joined on this call by Mr. Manish Jain, our Managing Director along with the Investor Relations team from AT Factor pr. The results presentation has already been shared and I trust you have had the opportunity to review it as we begin the new financial year. I am proud to share that Enviro Intra Engineer has maintained its position as one of India’s leading player in water and waste treatment, delivering high quality technologically advanced solution across country. Our focus remains firmly on creating, recycling and reusing water, ensuring sustainable resource management for industries and cities alike.
In Q1 F26 we secured fresh orders worth approximately 1178 crore, a strong endorsement of our technical expertise and ability to execute large, complex and sustainability project. Key among these was our foray into the zero liquid discharge segment with a 395 crore CETP project in Maharashtra deploying advanced ultra filtration reverse osmosis and MVR mechanical vapor recompression technology to achieve near total reuse of treated wastewater. We also expanded our geographical footprint adding new projects in high growth market such as Maharashtra and Odisha.
These include tertiary treatment plants, advanced ultra filtration system and long term O and M contracts all designed to deliver lasting values and environmental benefits. While wastewater remains our primary focus, this quarter also saw strategic step into the renewable energy sector by securing two solar assets, one in Maharashtra and the other one in Orissa. This diversification complements our sustainability led approach and open source. An additional avenue for clean energy integration in our projects. Our total execution order book stands at around 2051 crore spreads across 21 active projects backed by healthy O and m portfolio around 946 crore. That provides steady long term revenue visibility. With that I would now like to hand over to our managing director Mr. Manish to take you through the financial and operational highlights of the quarter. Mr. Manish
Manish Jain — Managing Director, Executive Director
Thank you Sanjay sir and good afternoon to everyone on the call. I shall now take you through our Financial performance for first quarter of FY26 in Q1 FY26 Revenue from operation stood at rupees 241 crores reflecting a year on year growth of 17.4% driven primarily by the execution of our key water and wastewater treatment projects. EBITDA for the quarter came in at rupees 64 crore compared to rupees 51 crore in Q1FY25 up 25.2% year on year with stable margins of 26.7%. Profit after tax grew by 41.8% year on year to 42 crores with a tight margin of 17%.
Operationally it has been a transformative quarter with the order wins which enforce our technical capabilities in delivering complex wastewater treatment, tertiary treatment infrastructure and ZLD space aligning with companies goal for sustainable urban water management. Globally, over 80% of the wastewater is discharged in water. Scarcity is set to affect more than half of world’s population by 2030. This makes our expertise in recycling and reuse not just relevant but urgent. The wastewater reuse market already valued at $22 billion is growing rapidly and environment for engineer is at the forefront in India combining scale, advanced technology and execution excellence.
Finally, I want to express the cyber fraud incident which happened in the company amounting to rupees 11.15 crore deducted during the quarter until 1st of July. Of this rupees 2.5 crore has been recovered approx. 0.6 crore is line sweets in different accounts in which the funds got transferred. Port has issued orders to bank to release the amount seized in different accounts. To EIEL account sir has already been filed in NCRP National Crime National Cyber Crime Reporting portal. So investigations are underway. Rupees 4.95 crore has been charged under exceptional item in Q1 as a measure of accountability and to avoid any financial losses to the company. Our chairman Sanjay sir and I have voluntarily forgone our remuneration till the losses fully recovered. We are working closely with the authorities and have further extended the internal controls to prevent reoccurrence. This concludes my remarks. We can now open the floor for questions.
Questions and Answers:
Operator
Thank you sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue you may press star and two 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 Sandeep Sabarwal From Ask Sandeep sabharwal.com Please go ahead sir.
Sandip Sabharwal
So as I understand most of your contracts seem to be coming from the state government. Let me know how much percentage of contracts are from the state government and what is typically your receivable cycle.
Manish Jain
Our all of the projects I will say are from the state governments only because all the state governments in the state government bodies remain to be the owning agencies. It can be a centrally sponsored scheme or centrally funded scheme in totality. So it will all be the state state government who owns these assets. Our receivable receivable cycle working capital cycle is generally in the range of around 90 days.
So in FY25 March FY25 we have been able to maintain our working capital cycle at a typical level of around 90 days which covers inventory, unbuilt revenue, receivables, trade receivables and on the other side the trade cables. So the net impact of this, the networking capital cycle is 90 days. It’s been observed lately by many of the companies which we are tracking on the like some companies which are doing Jalgi projects and all those other projects where money had to come from the state government because.
Sandip Sabharwal
Because of these various income distribution schemes the common finances are stressed and we’ve also I have historically seen last many like two, three decades. Typically companies which rely largely on statement projects get into a receivable issue at some stage or the other. What strategies are you taking to protect yourself against this?
Manish Jain
Basically first of all I’ll clarify on the JGM aspect. In the last financial year and starting from March 2024 there was some issue with respect to the release of funds from the center. There was an intended timeline of completion of JGM scheme by March 24. Not completed the general election timelines. So these were announced. So because the code of conduct was in place, the timeline and validity of the scheme that was not enhanced, it kept pending. So the funds could not be released even in July budget on the timelines were not increased. This has been done in the full year budget in February 2025.
So there has been an issue with respect to the release of funds. Rather I will say the state governments were funding but there was a slowdown or delay in release of funds from the center. So this JGM scheme in itself is a centrally funded scheme in which a part of fund is from the center and a part of fund from the state. So now if we look into the entire water and wastewater treatment sector in India, basically this sector is a government driven sector. There are various types of government funded or sponsored schemes like jjm, amrubstu, Namami, Gandhi.
So there is a different set of central funding which is involved in all these projects. The funds used to move smoothly. There has been just one year in the it was last financial year wherein there have been a delay. Now if we look into the order book of environments engineers as on 1st of April 2025 so we had an outstanding order book position of 175 crore from digging and with execution of another 6465 crore from JGM. So our net order book from JGM remains at around 110 crore. We are not bidding for any of the projects. Further in JGM we are fairly concentrating under Amru or Namami Gange multilateral agencies. Projects or combination teaching plans wherein the land bank is directly available with the government bodies or the Industrial Development corporation and they are having their own funds available for executing the projects. Out of the 2,100 crore order of order book which I think you had, how much of it is centrally or multilaterally funded and how much is purely by the state government. There is not even a single project which is only the state government funded. All the projects are central driven projects wherein some central funding is involved. If it is Namami gang it is 100% central funding. If it is AMRUT it is 25% center along with 75% share from state and ULB combined or JGM which is 50% from both. And if I am talking about CETP so it is Industrial development corporations so they are having their own funds. So we do have a clear visibility of funds in across the entire order book which the company has.
Sandip Sabharwal
All right, thank you. Thank you.
Operator
Participants, if you wish to ask a question you may press Star and one on your touchstone telephone. The next question is from the line of Mr. Aniket Jain from yes, securities. Please go ahead.
Aniket Jain
Good afternoon sir. I have two questions. Number one would be do you plan to get into desalination or do you have to take note your three qualifications even did for the desalination projects. That would be number one last. Number two after this.
Manish Jain
Okay. Basically if I talk about desalination, desalination in itself is RO process to the ZD project in Maharashtra which we have backed. So definitely we are entering into this particular segment, will be entering into some joint ventures right now for bidding and entering into desalination projects as well. And we will. We do have the technical capabilities available for the execution. So once we do have the experiences with us in the desalination sector and the RO sector then we will be in a position to bid on our.
Aniket Jain
Understood sir. And the second one would be since you have won your first ZLD project. So I just wanted to understand what is the margin differential between ZLD and usual STP or WTP projects? Are ZD much more margin accretive than the usual projects?
Manish Jain
I mean basically if you see the way the complexity of any of the project. Project will increase. So definitely the margin profile is expected to improve. So bad LD project in itself is highly technically competitive project. So the margins in it will be equivalent to the margins that we project for any of the common F1 treatment plant projects. So it will be in the range of somewhere around 30%.
Aniket Jain
That’s pretty high. So do you expect to are there more ZD orders or tenders in the market and can we expect more zealty orders this year or probably next year?
Manish Jain
There are clear cut guidelines from NGT to go for ZLD plants only across all the industrial areas. So one day or the other all the industrial areas will have to switch over to ZL2 Technologies itself. So this opens up a very, very big market in India for this particular sector. So that the water treated water which is permeated so that is reused in the industries again. So this is going to gain momentum in future.
Aniket Jain
Understood Sir, Sorry, just. I have one more. So your order book of 2551 crores. So what is the tentative time frame to execute this orders? This, this backlog and how much of this will be repeated this year?
Manish Jain
Let me break into two parts. First of all there was an order book of 1185 crore which we carried from the last financial year as on 1st of April which was available to us. So basically that order book that time that there was a timeline of 24 months for its execution. So when we are carrying it from the past. So I will say for this particular order book the timeline is almost, almost this financial year. So around 80 85% of this order book will convert into revenues. The fresh order which we have read 1178 crore in the current quarter or 10 in four months. So the timeline for execution is 24 months.
Aniket Jain
Okay, so probably we’ll reach for 1400 or 1500 crores of this year.
Manish Jain
Definitely. If you see in the first quarter our revenues have been 240 crores. So this revenue has got transpired from that order book of 1185 crores. Q2 will also be almost similar once Q3 and Q4 when the execution for the new projects will also start. So there will be a sharp increase in the top line. This we expect from Q3 and onwards.
Aniket Jain
Understood sir. Thank you so much for answering my questions and all the best.
Manish Jain
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Mr. Dinesh Kulikarni from Fensight Group. Please go ahead.
Unidentified Participant
Hello sir. Am I audible?
Manish Jain
Yeah.
Unidentified Participant
Thank you for giving me the opportunity. You know, good set of numbers as well. So I just want to understand how do you think the outlook is for the next two, three years? Because we have been seeing, witnessing you know, some slowdown across some certain sections in the space and which is getting reflected in the stock price of various companies, you know, including us. So what’s your outlook here for the next two, three years? Do you think there are enough projects that we can bid for and win? Yeah, if you could, you know, elaborate something on that.
Manish Jain
First of all, let me give you update on the financial numbers. If you could just recall my speech wherein I confirmed you the numbers for the first quarter. So we have been, we have had a splendid quarter wherein the top line has increased by 17%, EBITDA by 25% and then Fed by 42%. So this in itself says that the performance of the company is good enough going forward. There are number of opportunities which are getting opened up.
We are increasing our geographical presence. We are entering into reuse zlda space. There are a number of projects which are coming up in this sector. So the slowdown in at least this water and wastewater treatment market in India that is not happening. Rather there is a sudden jump in the number of projects. We have 1178 crore is the order book which we have won. There are number of projects for which we have submitted our bids where again we are L1 we’ll be getting orders. We are bidding for the projects on a continuous basis. The projects are coming up.
So definitely it shows a lot of traction is there in this particular segment and it will continue. Since reuse of water and this wet led in the industrial segment, this is also gaining momentum.
Unidentified Participant
Okay, it sounds great. So do you think is it still possible for us to maintain at least say 30, 40% revenue growth for the next two, three years with the kind of global just shared?
Manish Jain
Yeah, definitely. We look forward to having this 35 to 40% CAGR growth for at least next five years. So we understand till 2030? Definitely. We, we have that vision and we can look forward to this type of growth.
Unidentified Participant
And what about EBITDA margin?
Unidentified Participant
And capex, what you want to say about that? Like can we have similar levels of margins or higher margins and whether CapEx, you know, will it cool off or do you think it will sustain at current levels?
Manish Jain
First of all, I will see when I was asked repeatedly if the margins EBITDA margins to the level of around 22 to 24% which we used to grow project time and again, these are sustainable. Basically even after the IPO and three quarter results are already there, similar type of margins are coming repeatedly. We want to ensure that these margins are quite possible and we will continue to sustain these type of margins.
Our guidance on the margin front and EBITDA margins will always remain to be in the range of 22 to 24%. However, we have been in a position to have still better margins against this guidance. What we are giving.
Unidentified Participant
Okay, and about CapEx, like what kind of a CAPEX you expect for this year and next year in absolute number
Manish Jain
Basically for the execution side, if I say so, our texture checks, these are not bloated at all. So we are moving on our satellite model. We do have that appetite of going ahead for some of the hemp projects. So we limit our hemp projects to an extent that our debt to equity ratio doesn’t get bloated to means there should not be an extreme. We’ll keep it at a level of somewhere around 1.
Unidentified Participant
Okay, that really sounds great. So thank you very much and all the best.
Manish Jain
Thank you.
Operator
Thank you. Participants, if you wish to ask a question, you may press Star and one on your touchstone telephone. The next question is from the line of Mr. Manish Gupta from Equinox Investment Advisors. Please go ahead.
Manish Gupta
Hello sir. Am I audible?
Operator
Yes sir. Please go ahead
Manish Gupta
Sir. Thank you for taking my question. Sir, in the first quarter we have like received 1100 crores of orders. So for the rest of the year, how much order inflow would you reasonably expect?
Sanjay Jain
For this financial year we have given an order guidance in the range of 2500 crores. So around 1200 crore is the order book which we have got. So there is a balance of around 1300 crore which we are expecting. We do expect that we will be in a position to outdo this number as well. So at least for the timing I will say another 1,300 crore is the order book what we are looking for as soon as possible.
Manish Gupta
So while government remains our largest or let’s say even the only customer that we have, is there any relevance of our products in the private sector? Any chance that the company can de risk or diversify into private sector?
Manish Jain
Basically the sector in itself because it is more of a social sector. So it will drive maximum minimum traction from the government itself. But there are some opportunities which are definitely available in the B2B segment. Like there can be some water treatment opportunities coming up from the thermal power plants which are being set up or the refineries through maybe IOCL or btcl. So wherein the company can find it in its interest. So we will always be open to entering into that segment as well as in the opportunity.
Manish Gupta
All right sir. And so my last question would be that what do you feel are the main challenges in front of the company in the next few years? Is it high competitive intensity when you are bidding for tenders or is it the slow payment from government organizations or any other factor that you would want to highlight?
Manish Jain
I would say Last financial year FY25 as such, if I see from the cash flow point of view was a bit challenging and those who were mainly in the JGM they were having some task times but we were having a product mix in the some jgm Namami, Zande, Amrot, multilateral ctps would that way we were fairly comfortable. Our cash flow cycles were also very smooth and we could move on and we could achieve a decent growth in the company.
So as such if I see forward, so if I say the worst is over and that we our order book in JJM is also now that is too small and all other sectors, all other missions, the funds are sufficiently available and funds are being released on time. So as such we don’t foresee such type of challenges. Now if we see to the level of work which is coming up. So I can say competition is always there, but the demand supply gap in itself sees that the decent profitability that can be easily ensured in the good projects are always available for us to continue bidding and bagging the new projects. So that way I don’t foresee that there are any challenges which we foresee at all. And so finally, could you throw some.
Manish Gupta
Color on the cybercrime fraud that has happened is it? What was the nature of the fraud and other details. If you could share
Manish Jain
Maximum I have covered in my seat basically a person impersonated as being Manishan and put my DP on his mobile and instructed team for some funds to be transferred. So it has been an unfortunate incident which has happened in the company. So the main part to mitigate for we have taken up the basic mitigation measles around 2.5 crore has come back into the company. Another point six crore is what we look for. Maybe another one month’s time or so it should come back and investigations are already underway. And just to mitigate any financial losses to the company myself and Sanjay Ji we have taken a hit on our own and we are solving our salaries.
There was a next part of the requirement to strengthen the process of the sops that we have done so that this process of cybercrime does not impact the company in future at all.
Manish Gupta
All right, thank you very much and all the best for the recovery as well as the future. Thank you.
Manish Jain
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Mr. Dhananjay from Sunidi securities. Please go ahead sir.
Unidentified Participant
Yeah, thanks for the opportunity. Just wanted to know this solar project we have acquired so have we done the financial project and how long it will take to complete this project and are we bringing some equity partner as well for this project?
Sanjay Jain
First of all we have procured two solar assets. One of the asset is a 40 megawatt solar asset in Odisha Bolandir area. It is an asset of FL infra wherein PTC was lender. So PTT has gone for the substitution and we have purchased this in reverse option some ptc. The agreements are underway right now. It is expected to be executed within this month. The term loan financial closure is also underway and we expect that the buyer by the time this agreement is complete. So the term loan sanction will also be there from the bank. So another one month time or so we can expect disclosure and then we can move on. With the completion of project 24 megawatt is already installed for which PCOD is already. There on the set project and there is a revenue generation in terms of the power which is getting generated from the project. The second one, it is a 29 megawatt solar power project in Maharashtra. So this particular project is from MSC DCL in which there is an SFA state financial assistance of 3.2 karod per megawatt. We are just on the verge of finalizing and the process is ongoing for tying up the term loan from the banks. So we do expect that another one month to one and a half month time all this will be in place and we will be moving forward for the execution of the project just after the monsoon is over.
Unidentified Participant
Okay, so the ep, what will be the EPC value, remaining value for both the project and have we included these order in our order book?
Sanjay Jain
These orders are directly pertaining to our subsidy EIA Renewables. So these orders are not basically part of enviro directly. So that 1178 for does not include these projects.
Unidentified Participant
Okay. And we are not going to execute on our own or we will have some third party. I mean because we are in water sector. And so how, how we are going to execute this project,
Sanjay Jain
We are building up our capacities. Basically we have found a subsidy in the name of EIMA Renewables. So these two projects are subsidiaries of EIA Renewables itself. So basically EIA Renewable will act as the parent company. So these projects we are building up the execution capacities for executing renewable projects in that particular company. So EAE Renewables will take up the EPC of Jason.
Unidentified Participant
And we also have this annuity revenue coming this quarter, about six and a half crore. And last year it was about 1200 crores. What is this annuity revenue?
Sanjay Jain
Basically we have one of the projected barely for which the COD was achieved last year. So the annuities, it is almost one year now. So the annuities are coming every quarter. So it is that portion of the annuity which is coming on a particular basis.
Unidentified Participant
Okay. How long it will come, this annuity income?
Sanjay Jain
It will continue to come for another 15 years.
Unidentified Participant
Okay. Okay. And lastly on ONM order book which is about 950 crore. So I mean most of the project you must have 10, 10 years or 15 years kind of O and M. So how do you see O and M revenue going ahead in terms of overall? Like last year you did 30 crore. Is it going to go up let’s say 15.
Unidentified Participant
300 crore in next two, three years.
Sanjay Jain
Yeah, definitely. These order, this OM order books. So for any project it is ranging between five to 15 years. So at an average we can take it to be somewhere around 10 years. So the ONM revenue is going to shoot up with some of the projects which we are under the execution phase right now, which will into commissioning and once the commissioning is done so it will go into operation and maintenance rate. So we foresee that from FY27 the ONM revenue should increase to somewhere around 70, 75.
Unidentified Participant
Okay. And what is the EBITDA margin you are getting in this? O? Much higher compared to our existing margin, right?
Sanjay Jain
Yeah. O and M margins are in the range of 30 to 35%.
Unidentified Participant
Okay. Okay. That is all from my side. Thank you.
Sanjay Jain
Thank you.
Operator
Thank you. Participants, you are requested to restrict your questions to two. If you have any follow up questions, we request you to rejoin the queue. The next question is from the line of Mr. Ashish from InvestQ PMS. Please go ahead sir.
Aashish Upganlawar
Yes, thank you for this. So I’m attending your call for the first time. Just wanted to check, I mean our return ratios and our margin, both are excellent. Given the kind of business that we are into, what is the kind of niche that we operate in? Because in project business typically we haven’t seen such kind of numbers on the margins and returns basically. So could you explain, I mean how does this, I mean is there less competition or we do something which is different where we make such margins?
Manish Jain
Basically the it depends the way any of the project is carried forward. So basically we are doing entire project in house. We have our own execution teams in house along with our in house design teams wherein we find our prudence in providing the most viable solutions as well as we are having the in house capabilities which prevent any subletting of our margins. Strengthens our capacity to execute the projects well ahead of time and keeping the quality of execution in control. So these all combined are making us to earn the margins of what we are attaining right now. If you could give a broader picture of how the.
Aashish Upganlawar
Ordering activity is likely to be. I mean what’s the feeler that you are getting? Because I think you have been missed the initial commentary but I think you’ve been guiding for a very high growth in terms of revenue growth and that is a function of good ordering that would be happening from that you’re expecting basically. So how are you looking at the overall product picture for the next three, four years in terms of ordering activity under the various schemes of the government?
Manish Jain
If you talk about one of the key schemes of the government which is AMRUD 2 mission, the total budgetary outlay of AMRO2 mission is approximately 3 lakh out of which around 30,000 crore has been spent till FY25. So balance left is around 2.7 lakh crore and the estimated timeline right now is 2029. So if we just look into this one scheme itself. So it leaves a lot of room for everybody and a lot of work is available for all the players in this particular segment to work on.
So our revenue guidance of 35 to 40% that shows a clear visibility at least for next four to five years on a continuous basis. Since the number of projects are humongous and we are entering into review segments LD Advanced treatment technologies. So we do expect that the margin profile that we have continued till now so we can continue with the same margin profile and we can have that revenue visibility of 35 to 40% similar type of margins which we are having right now and with good cash flows.
Aashish Upganlawar
Lastly sir, are the is the receivable cycle which is pretty good, is it likely to remain the same?
Manish Jain
We don’t see any challenges regarding the kind of payment terms that you get right now from your customers, the state utility. Basically there is no doubt that this will be maintained even in the challenging year like FY25. We have been able to maintain our cash flows currently and we had been OCF pretext positive. So even if it’s in a tough year wherein there were some issues with the release of funds in jgm. So that says that we are on a right path and our cash flow that will remain and will continue to be prudent enough in the government, central government or state government, they are releasing their part of the funds. The funds are basically paid on some loans are being arranged for the project. So these are all deposit divers. These are not moving through budgetary allocations. So that way the funds are clearly available in the projects have to move and to be completed well on time.
Aashish Upganlawar
Okay. Okay. Thank you so much.
Operator
Thank you. The next question is from the line of Mr. Manish Gupta from Equinox Investment Advisors. Please go ahead.
Manish Gupta
Sir, what would be the current debt as on 30 June
Manish Jain
The current debt is somewhere in the range of 0.2 debt. This is what it is debt to equity. And if I say total debt is 222 crores. So as on as of this 31st March 2025 it was 234 crores. So it has gone slightly down.
Manish Gupta
And to a previous participants query you were mentioning about hand projects aspiring to do hand projects. So in this regard what is the internal guideline of the company regarding the IRR expectations from hand project and how do you see in coming years hand project contributing what percentage of the total revenue mix? If you could share something on that
Manish Jain
Since hand projects involve the financial closers and a part of funds that is to be deployed by the company as a sponsor. So we always want to have a right mix between EPC and hemp projects. So we always try to maintain that at a level of 75 to 25% for EPC to end. So our basic thought process is that our debt to equity ratio that should remain comfortable. Right now it is at point two. Maybe if we add on some hemp projects so it may get some means, it can get somewhat increased but not to a level that we will look forward to not crossing it more than one at any point of time. Or we will take a right decision if it happens so in future.
Manish Gupta
And finally sir, any.
Operator
I’m sorry to interrupt. Could you please rejoin the queue? We do have. Thank you so much. The next question is from the line of Mr. Rohan from Elvers Capital. Please go ahead.
Unidentified Participant
Good afternoon and thanks for the opportunity. Sir, I just wanted to know. We have acquired one asset under substitution from btc. So what is the technology in this asset being.
Unidentified Participant
Used because this must be older projects. And is the generation happening? Are we doing IPP here or on the epc? If you can throw some light on this. Both the solar projects.
Manish Jain
Basically these are solar power projects. These are ITP projects. And first of all the Odisha project, IT is a 40 megawatt solar power project in which 24 megawatt is already installed. We have to install balance Solar Power Plant of 16 megawatt. The generation is already happening and the revenues are already there. So there is a threshold level of minimum units that we have to generate. And then definitely we can go to a peak level as well. 40 million units is what is getting generated per year right now we have to reach a threshold of 58 immediately and then we have to move up to a level of 75mu.
This project is through safety. So we are getting our revenues from SEIKI and the power purchase agreement is signed at Rupees 4.1. This is project number one. In project number two, this project is basically from MSC DCL. So in this it is a state financial assistance of 3.2 crore per megawatt after the execution of the project. So it is more of an etc wherein almost funds are getting released on the execution of the project. Then for 25 years the power is being sold at a rate of 0.88 rupees per unit. 25.
Unidentified Participant
So you mentioned about 3.2 crores per megawatt of an state financial assistance. That should suffice the entire project funding requirement. Then is there a need of separate town loan for this or to raise separate debt? And if basically you will be repaying it to the state department, how it is, how it that, how is that going to work?
Manish Jain
Basically there can be two ways of looking into the project. One is if there is epc we don’t require any funds and then the generation or the IRR can happen only during the O and M phase. The second part can be yes, we can go ahead with some project finance wherein we do have some margins during the execution of the project wherein we look forward to an EBITDA margin maintenance of that level and then an IRR while this ONM phase is on. So I think the second part is prudent enough. And that is why we are entering into a small town loan or project finance from the bankers.
Unidentified Participant
Okay, but then the assistance which you are getting from the bank.
Unidentified Participant
State how in what form it is being given. It’s a debt or is date coming as an equity partner how it is?
Manish Jain
No, no, no. It is directly just like an execution. A milestone is getting achieved and that fund is going to be released.
Unidentified Participant
Okay, okay, okay.
Manish Jain
So the project, ultimately the project will be kept just like an asset. And it will be parked in one of the company. This asset will be parked and then definitely that irr. So it will move just like an ipv. But there is that financial modeling has been done like that. This fit is given 3.2 crore during the execution. And then there is an operation maintenance of 100. So that financial modeling was required to be done according to that. That’s all.
Unidentified Participant
Okay. Thank you.
Operator
Thank you. Participants, you are requested to restrict two questions per participant. If you have any follow up questions, we request you to rejoin the queue. The next question is from the line of Mr. Swaminathan, an individual investor. Please go ahead.
Swaminathan
Very good afternoon, sir.
Sanjay Jain
Good afternoon. Hello.
Swaminathan
Sir, my question is, you know, as an investor we are very happy with your quarterly performance in terms of revenue as well as the EBITDA margin. But you know, as an investor, I somehow feel that earning per share has little bit dropped down compared to quarter one of financial year 25, sir. So can you little bit explain on that part, sir?
Manish Jain
Swaminathan, if I’m not wrong, the earning per share has not dropped. It has marginally increased. And we are here in this segment from a long time and will be there for a long, long time and with a very good growth rate in the sector. So I will request that you continue with the performance of company will be good and definitely that will get dried in form of the good pricing and valuation of the company in future.
Swaminathan
Sure, sir. Answer final. One more question. Sir. It’s not a question. And you know, it’s a worrisome point from my side. On the one hand the company is doing the performance, operational performance excellent in terms of, you know, attrition. And in terms of the project that we are taking and including is that ld. But on the other side some administrative issues are happening like fraud and the litigation against. A recent litigation against Karnataka Drainage that makes, you know, little bit worrisome. As an investor. So how we are going to handle such. Because there are. We are going to have more and more opportunity in future in terms of our, you know, order book growth. So how we are going to handle this, this part effectively in future. Sir,
Manish Jain
Let me explain these two parts separately. First of all, arbitrations in any of the contract it may happen. It happens because of the understanding which both we as a contractor and then the government department wherein they have their own thought process and we do have our own thought process. So if there is any point where there is a disconnect then we have to go for a process which is clearly outlined in the agreement itself.
We are continuing to execute the project for the same state government on a continuous basis. These arbitrations means it is a type of dispute which cannot directly handle. So these are basically points wherein one has to enter into it and if we are right so we’ll get our part of the dues or if they are right so that will get subsided. So basically entering into an arbitration doesn’t say that we are in a red zone at all. This is one what we can understand the second part is that the fraud which has happened in the company, the company existing for the past 33 years, this is the single incident I can see which has happened.
And for this cyber fraud not to happen or any such type of event which should not happen in the company at all, you are taking utmost care in future so that the systems are well in place and any such type of threat if ever that can be avoided.
Swaminathan
Thank you Manisha. All the best for the coming quarter sir.
Manish Jain
Thank you.
Operator
Thank you. The next question is from the line of Mr. Nikhil, an individual investor. Please go ahead.
Unidentified Participant
Yeah, hi. Am I audible?
Operator
Yes sir.
Unidentified Participant
Yeah, yeah. So sorry. If I understand correctly that JD1 issue was with respect to government updating the system because in the system probably there was completion to be done by 24 and it got extended for some reason. And that is why there is a delay in funds and it is not due to some fund issue with the.
Unidentified Participant
The central government. Because I just want to understanding from your end, is it more structural slowdown or it will get improved in the coming or you have already seen signs of bottoming out in release of the funds and the things will be much better from here on.
Manish Jain
Basically what I know from my side and as my understanding is there is no issue at least with respect to the availability of funds at the center. Same would have been the other schemes would have not have moved. We are executing the project under namami gange and amrub2 as well. So there the position is eased out and the projects are moving smoothly and funds are also being released on time. As far as this JJM is concerned, basically we are not inclined to enter further for these projects. These are more of the pipeline schemes. We are more towards implementation of the plants and entering for the advanced wastewater and wastewater treatment technologies. So this is what we can say at one point of time we add these projects in jj.
We are executing these projects now we are more aligned towards that AMBUT or multilateral alliances projects and we are moving more towards the reuse of ZL day schemes and with advanced wastewater treatment technologies. So what we can say is yes, the worst is over the GGM wherein the funds could not get aligned on time. Right now the position is quite eased out. We are working in the state of empty and we are not facing at least any challenges. From the month of March the payment cycle has eased out to a considerable extent.
Unidentified Participant
Okay, because why I was asking is center it in your other projects also. Right? Because in all the project it is central driven. So even though we are not in the dirty on much, but it should not impact the receivers with respect to our other projects, which I understand is not the case. Like you explained.
Manish Jain
You can see basically what happened in PASS was that if any of the project is a centrally funded or sponsored scheme, so that gave the confidence that the project will move smoothly and the liquidity can be ensured. So JGM last year, what has happened is a one of time in last 10 years. So we can just say that the worst is over and we don’t foresee any such type of incidents happening in future.
Unidentified Participant
Got it. Great sir, all the best and thank you for giving me the opportunity and.
Manish Jain
Thank you.
Operator
The next question is from the line of Mr. Vinit Rajavad, an individual investor. Please go ahead, sir.
Unidentified Participant
Hello. Good afternoon, sir.
Manish Jain
Good afternoon
Unidentified Participant
Sir. I wanted to know that when you have told that you are expecting a 35 to 40% CAGR with the diversification of the business like into solar and ham projects which you’re expecting your EPS will also be like in the growth range of 30 to 40%. Sir,
Manish Jain
First of all, let me clarify that the growth what we are expecting which is this 35 to 40% CAGR growth, it is basically we are projecting from the water and wastewater treatment sector alone. So.
Unidentified Participant
Okay.
Manish Jain
The growth from the renewable sector that will further get on which will get added to the growth that which we initiate from the water in wastewater treatment sector. Okay, sir, thank you and best of luck for the coming quarters.
Unidentified Participant
Okay, thank you.
Operator
Ladies and gentlemen. That was the last question from this session. I would now like to hand the conference over to Sanjay sir for closing comments.
Sanjay Jain
I thank the entire team of Environment Engineers limited for their inspiring efforts, hard work and dedication which drives the company forward to various market conditions. Also I appreciate all of you for participating in our conference call. Please do get in touch with our investor relationship team for any further questions. Thank you everyone.
Operator
Thank you sir. On behalf of Enviro Infra Engineers Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.