Order Book Or Contract Wins
Expected: CurrentHIGH confidence
What: Order Book: ₹450 crore
“In our order book, as of today, it stands at over INR 450 crores, complemented by a healthy pipeline of more than INR 2,600 crores.”
Effwa Infra & Research Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +23.2%AverageRe-Entry
In , Effwa Infra & Research Ltd (Construction - Civil/Turnkey) is outperforming Nifty 500 with +23.2% relative strength. Fundamentals: Average.
Effwa Infra & Research Ltd Key Facts
- PE Ratio
- 20.5x
- Market Cap
- ₹588 Cr
- PAT Growth YoY
- +20%
- Revenue Growth YoY
- +32%
- OPM
- 16.0%
- RS vs Nifty 500
- +23.2%
Strong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💪Debt reduced 63% YoY — balance sheet strengthening
🌐FII stake decreased 2.0% this quarter
🏛️DII accumulation — stake up 2.5%
💰Trading 81% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
CurrentHIGH
2. New Product Or Brand Launch
FY27HIGH
3. Geographical Expansion
H1 FY26MEDIUM
Key Risks
1. Currency appreciation impacts profitability on overseas projects
LOW2. Need for qualified engineers for sophisticated ZLD and O&M systems
MEDIUMSector-Specific Signals
Order Book₹450 Cr-10%
Bid Pipeline₹2,600 Cr+44%
Bid Success Rate20-25%
Export Revenue Share31%+20.14%
Key Numbers
PAT Growth YoY
+20%
Stable
Revenue YoY
+32%
Stable
Operating Margin
16.0%
-200 bps YoY
PE Ratio
20.5
Current Price
₹254
Fundamental Score
57/100
Average
3Y PAT CAGR
+80%
Market Cap
588 Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Effwa Infra & Research Ltd's Earnings Accelerating?
Based on Q2 FY26 earnings • Updated Apr 18, 2026
New Product Or Brand Launch
Expected: FY27HIGH confidence
What: ZMD Launch: FY27
Impact: High Margin
“By '27, we are planning to do... Naturally, we will encash it.”
Geographical Expansion
Expected: H1 FY26MEDIUM confidence
What: Export Revenue %: 31%
“Our International business continued to gain traction with exports contributing 31% of revenues in H1.”
Operating Leverage Inflection
Expected: H1 FY26MEDIUM confidence
What: EBITDA Margin: 17.1%
Impact: 510 bps expansion
“That is mainly because of dilution of certain fixed cost... plus we are also taking more number of projects.”
EBITDA growth of 111.3%
HIGH confidence
What: EBITDA growth of 111.3%
“Our EBITDA during the period stood at INR 15.42 crores, marking a 111.30% year-on-year increase percentage.”
What Are the Key Risks for Effwa Infra & Research Ltd?
Earnings deceleration risks from management commentary
Currency appreciation impacts profitability on overseas projects
LOWTrigger: Increase in the dollar rate affects net economics.
Management view: Management views this as a positive impact on profitability currently.
Monitor: fx
Need for qualified engineers for sophisticated ZLD and O&M systems
MEDIUMTrigger: Sophisticated systems require qualified electrical and mechanical engineers rather than just manpower.
Management view: Focusing on quality manpower and training.
Monitor: labor
What Is Effwa Infra & Research Ltd's Management Saying?
Key quotes from recent conference calls
“And coming to the next year definitely we are looking for more than 50% growth in next couple of years on year-on-year basis. [Previous Revenue Growth guidance]”
“See right now we are functioning at around 15%, 16% EBITDA. So further couple of percentage over a period of two, three years. [Previous EBITDA Margin guidance]”
“By '27, we are planning to do... Naturally, we will encash it [ZMD margins]. [Initiative: Zero Material Discharge (ZMD) Patent]”
“3% to 4%, sir, on the top line... in the coming couple of years. Then we may increase. [Initiative: O&M Integration]”
What Did Effwa Infra & Research Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹90.21 crore
YoY +48.2%
Why: Growth was supported by steady progress in execution across key industrial ZLD and effluent recycling projects.
Revenue growth was driven by execution in the core ZLD segment.
EBITDA
₹15.42 crore
YoY +111.3%Margin 17.1%
Why: Improvement was driven by disciplined project planning, value engineering initiatives, and a controlled cost structure.
Margins expanded significantly due to operational efficiencies and cost control.
PAT
₹10.14 crore
YoY +112.9%
Why: Profitability was supported by a capitalized execution approach and prudent working capital management.
PAT growth outpaced revenue growth due to margin expansion.
Other Highlights
• Exports contributed 31% of revenues in H1 FY26.
• Order book stands at over ₹450 crores as of November 2025.
• Secured a ₹150 crore EPC project from Hutni Projekt for SAIL.
What Sector Metrics Matter for Effwa Infra & Research Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book
₹450 Cr
YoY -10%
Why: Order book fell from ₹500 Cr to ₹450 Cr due to execution of projects, but pipeline increased.
Bid Pipeline
₹2,600 Cr
YoY +44%
Why: Increased from ₹1,800 Cr to ₹2,600 Cr as the company bids for larger projects.
Bid Success Rate
20-25%
Export Revenue Share
31%
YoY +20.14%
Why: Increased traction in the African region.
ZLD Revenue Share
90.6%
YoY +5.24%
Why: Strong demand from highly regulated and water-intensive industries.
O&M Revenue Share
1.13%
YoY +0.79%
Why: Scaling as a stable, recurring revenue stream.
Trade Receivables
₹95 Cr
Why: Comprises 30% retention and 70% regular receivables within 90 days.
Retention as % of Receivables
30%
Why: Standard industry practice for EPC contracts.
Avg Execution Timeline
12-18 months
O&M EBITDA Margin
30-35%
Why: Higher margin profile compared to EPC projects.
What Is Effwa Infra & Research Ltd's Management Guidance?
Forward-looking targets from management for FY26-FY27
Revenue Growth Target
40%
OPM Guidance
17–18%
Revenue Outlook
40%+
Margin Outlook
Improvement of around 1% per year.
Management Tone: BULLISH
Guidance Changes
LOWERED
Revenue Growth: 50%+ → 40%+
How Fast Is Effwa Infra & Research Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +32% | +30% | Stable |
| PAT (Net Profit) | +20% | +80% | Stable |
| OPM | 16.0% | -200 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Construction - Civil/Turnkey Stocks Beating Nifty 500
Frequently Asked Questions: Effwa Infra & Research Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Effwa Infra & Research Ltd's latest quarterly results?
Effwa Infra & Research Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +20.0% (stable)
- Revenue Growth YoY: +31.5%
- Operating Margin: 16.0% (volatile)
Is Effwa Infra & Research Ltd's profit growing or declining?
Effwa Infra & Research Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +20.0% (latest quarter)
- PAT Growth QoQ: +80.0% (sequential)
- 3-Year PAT CAGR: +79.7%
- Trend: Stable — consistent growth pattern
What is Effwa Infra & Research Ltd's revenue growth trend?
Effwa Infra & Research Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +31.5%
- Revenue Growth QoQ: +81.1% (sequential)
- 3-Year Revenue CAGR: +30.1%
How is Effwa Infra & Research Ltd's operating margin trending?
Effwa Infra & Research Ltd's operating margin is volatile.
- Current OPM: 16.0%
- OPM Change YoY: -2.0% basis points
- OPM Change QoQ: -1.0% basis points
What is Effwa Infra & Research Ltd's 3-year profit and revenue CAGR?
Effwa Infra & Research Ltd's long-term compounding rates
- 3-Year Profit CAGR: +79.7%
- 3-Year Revenue CAGR: +30.1%
Is Effwa Infra & Research Ltd's growth accelerating or decelerating?
Effwa Infra & Research Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: -80.0% bps
- Sequential Acceleration: +83.3% bps
Is Effwa Infra & Research Ltd overvalued or undervalued?
Effwa Infra & Research Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 20.5x
- Price-to-Book: 4.8x
What is Effwa Infra & Research Ltd's current PE ratio?
Effwa Infra & Research Ltd's current PE ratio is 20.5x.
- Current PE: 20.5x
- Market Cap: 588 Cr
How does Effwa Infra & Research Ltd's valuation compare to its history?
Effwa Infra & Research Ltd's current PE is 20.5x.
- Current PE: 20.5x
- Valuation Assessment: Significantly Undervalued
What is Effwa Infra & Research Ltd's price-to-book ratio?
Effwa Infra & Research Ltd's price-to-book ratio is 4.8x.
- Price-to-Book (P/B): 4.8x
- Book Value per Share: ₹53
- Current Price: ₹254
Is Effwa Infra & Research Ltd a fundamentally strong company?
Effwa Infra & Research Ltd is rated Average with a fundamental score of 57.33/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +31.5% (10% weight)
- PAT Growth YoY: +20.0% (10% weight)
- PAT Growth QoQ: +80.0% (10% weight)
- Margins stable (10% weight)
Is Effwa Infra & Research Ltd debt free?
Effwa Infra & Research Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹38 Cr
What is Effwa Infra & Research Ltd's return on equity (ROE) and ROCE?
Effwa Infra & Research Ltd's return ratios over recent years
- FY2024: ROCE 44.0%
- FY2025: ROCE 34.0%
- FY2026: ROCE 29.0%
Is Effwa Infra & Research Ltd's cash flow positive?
Effwa Infra & Research Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹29 Cr
- Free Cash Flow (FCF): ₹9 Cr
- CFO/PAT Ratio: 100% (strong cash conversion)
What is Effwa Infra & Research Ltd's dividend yield?
Effwa Infra & Research Ltd currently does not pay a significant dividend (yield 0.00%).
- Dividend Yield: 0.00%
- Current Price: ₹254
Who holds Effwa Infra & Research Ltd shares — promoters, FII, DII?
Effwa Infra & Research Ltd's shareholding pattern (Mar 2026)
- Promoters: 73.0%
- FII (Foreign): 0.1%
- DII (Domestic): 4.2%
- Public: 22.6%
Is promoter holding increasing or decreasing in Effwa Infra & Research Ltd?
Effwa Infra & Research Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 73.0% (Mar 2026)
- Previous Quarter: 73.0% (Dec 2025)
- Change: 0.00% (stable)
How long has Effwa Infra & Research Ltd been outperforming Nifty 500?
Effwa Infra & Research Ltd has been outperforming Nifty 500 for 3 consecutive weeks, indicating early-stage outperformance.
Is Effwa Infra & Research Ltd a new momentum entry or an established outperformer?
Effwa Infra & Research Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Effwa Infra & Research Ltd?
Effwa Infra & Research Ltd has 5 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — Recent win of ₹150 crore from Hutni Projekt for SAIL.
- New Product Or Brand Launch — Proprietary technology for zero material discharge is in advanced filing stages.
- Geographical Expansion — African region remains an important growth lever with multiple projects under evaluation.
- Operating Leverage Inflection — Dilution of fixed costs as the top line increases.
What are the key risks in Effwa Infra & Research Ltd?
Effwa Infra & Research Ltd has 2 key risks worth monitoring
- [LOW] Currency appreciation impacts profitability on overseas projects — Increase in the dollar rate affects net economics.
- [MEDIUM] Need for qualified engineers for sophisticated ZLD and O&M systems — Sophisticated systems require qualified electrical and mechanical engineers rather than just manpower.
What did Effwa Infra & Research Ltd's management say in the latest earnings call?
In Q2 FY26, Effwa Infra & Research Ltd's management highlighted
- "And coming to the next year definitely we are looking for more than 50% growth in next couple of years on year-on-year basis. [Previous Revenue Growt..."
- "See right now we are functioning at around 15%, 16% EBITDA. So further couple of percentage over a period of two, three years. [Previous EBITDA Margi..."
- "By '27, we are planning to do... Naturally, we will encash it [ZMD margins]. [Initiative: Zero Material Discharge (ZMD) Patent]"
What is Effwa Infra & Research Ltd's management guidance for growth?
Effwa Infra & Research Ltd's management has provided the following forward guidance for FY26-FY27
- Revenue growth target: 40%
- OPM guidance: 17–18%
- Management tone: bullish
- Milestone: [LOWERED] Revenue Growth: 50%+ → 40%+
What sector-specific metrics matter most for Effwa Infra & Research Ltd?
Effwa Infra & Research Ltd's most important sub-sector-specific KPIs from the latest concall
- Order Book: ₹450 Cr (YoY -10%) — Order book fell from ₹500 Cr to ₹450 Cr due to execution of projects, but pipeline increased.
- Bid Pipeline: ₹2,600 Cr (YoY +44%) — Increased from ₹1,800 Cr to ₹2,600 Cr as the company bids for larger projects.
- Bid Success Rate: 20-25%
- Export Revenue Share: 31% (YoY +20.14%) — Increased traction in the African region.
- ZLD Revenue Share: 90.6% (YoY +5.24%) — Strong demand from highly regulated and water-intensive industries.
- O&M Revenue Share: 1.13% (YoY +0.79%) — Scaling as a stable, recurring revenue stream.
Is Effwa Infra & Research Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Effwa Infra & Research Ltd may be worth studying
- Earnings growing at +20.0% YoY
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹29 Cr
What is the investment thesis for Effwa Infra & Research Ltd?
Effwa Infra & Research Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +31.5% YoY
- Appears significantly undervalued
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Key risk: Currency appreciation impacts profitability on overseas projects
What is the future outlook for Effwa Infra & Research Ltd?
Effwa Infra & Research Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Undervalued
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Currency appreciation impacts profitability on overseas projects
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.