Eiffil Water Infra Private Limited

Eiffil Water Infra Ltd: business model and FY26 performance One thing to know up front: the company was a partnership firm (Eiffil Construction) until it became a private limited company on 27 Nov 2024. That makes FY26 its first full year as a company. The "FY25" comparison covers only about 4 months, so year-on-year growth figures are not meaningful. Business model Eiffil is a civil and infrastructure EPC contractor based in Ahmedabad, focused on water infrastructure. It does project work mainly for government authorities, and also takes subcontracts from other contractors. A few features define how it operates: It owns very little equipment. Fixed assets are only about ₹9 crore against about ₹700 crore of revenue. Subcontracting is its biggest cost, at about 41% of revenue. It also hires machinery (₹23 crore) rather than owning it. It wins large tenders through joint ventures with partners. It holds stakes of 24% to 51% in four JVs, including a new one with Eagle Infra India in March 2026. Its bank guarantees for these JVs are backed by about ₹82 crore of fixed deposits pledged to the banks. The business ties up a lot of cash. Government clients hold back retention money, revenue is often booked before billing, and receivables are large. This keeps the company dependent on bank borrowing. New subsidiary. It bought 70% of Powertrac Solwin Pvt Ltd in December 2025. Powertrac has no revenue yet and a small loss. Corporate steps during the year. It converted to a public company in October 2025. It raised ₹49 crore by issuing shares to selected investors at ₹300 per share. The AGM is also seeking approval to secure borrowings of up to ₹500 crore. FY26 financials (standalone) Metric FY26 (₹ crore) Comment Revenue from operations 697.4 ₹110.1 cr (16%) is unbilled revenue, not yet invoiced EBITDA (excl. other income) ~84.9 ~12.2% margin Finance costs 13.8 Up sharply as borrowing grew PAT 54.2 7.8% margin; EPS ₹22.61 ROE / ROCE 29.7% / 20.4% Per the company's ratio note Net worth 232.3 Up from 132.9, helped by the share issue Total borrowings 208.5 Debt/equity 0.90, up from 0.52 Trade receivables 300.8 About 157 days of revenue Retention money held by clients 171.4 Split across current and non-current assets Operating cash flow (159.2) Negative; covered by ₹159 cr of new short-term debt and the share issue Consolidated results are nearly the same: revenue of ₹700.5 crore and PAT of ₹54.2 crore. My read: profitability is healthy for an EPC contractor, but the reported profit is not turning into cash. Receivables, retention money and unbilled revenue together exceed ₹580 crore, and operating cash flow was negative by ₹159 crore. Growth is being funded with short-term borrowing. Governance points worth noting Internal controls: the auditor gave a qualified opinion on internal financial controls and identified three material weaknesses. The Board's report, however, says no material weakness was found. Statutory compliance: cost records were not maintained. The required board committees and independent directors were also still pending at year-end. Bank reconciliations: the stock, receivables and payables figures reported to banks differed significantly from the company's books. The auditor attributes this to timing and reconciliation differences. Tax dues: about ₹1.3 crore of GST that was not in dispute remained unpaid past its due date. Several older income-tax and GST matters are under appeal. Related parties: there are related-party purchases and sales with Anvaya Construction, a firm linked to the directors.