Concord Enviro Systems surges after reporting turnaround in Q4 FY26

Revenue from operations rose 65.40% quarter-on-quarter (QoQ) to Rs 206.04 crore in Q4 FY26. However, on a year-on-year (YoY) basis, revenue marginally declined 0.45% from the corresponding quarter last year.

Despite the turnaround in profitability, consolidated net profit declined 69.97% YoY compared with Rs 47.13 crore in Q4 FY25.

Profit before tax (PBT) fell 65.78% YoY to Rs 17.78 crore in Q4 FY26, while EBITDA dropped 67.70% to Rs 18.50 crore. EBITDA margin contracted sharply to 9% from 27.7% in the year-ago period.

The company stated that the results include an exceptional item related to the impact of Labour Codes. A provision of Rs 5.17 crore recognised in the quarter ended 31 December 2025 was reversed during the current quarter following a restructuring of the salary framework.

As of 31 March 2026, the total contract value (TCV) and annual contract value (ACV) of the order book stood at Rs 828 crore and Rs 536 crore, respectively.

Commenting on the results, the leadership team of Concord Enviro Systems, said, “the year under review was marked by significant external challenges. While all facilities remained unaffected and employees remained safe, supply chain disruptions impacted operational momentum, leading to a shortfall in Q4 targets and an overall revenue decline of 6%.

The management said the company also made deliberate investments in strengthening human capital to expand its products and solutions into new applications, which led to higher overheads but is expected to support sustainable long-term growth. It added that the year reflected resilience and strategic alignment, with a strengthened organisational focus to regain lost ground and accelerate growth, with meaningful progress already visible. The company further said its technology capabilities continue to differentiate it, enabling expansion into new sectors such as solar, while reinforcing its leadership in core industries including pharmaceuticals, chemicals, steel, automotive, and textiles in wastewater solutions.

The management expressed confidence in recovery and said it looks forward to achieving stronger growth in the coming periods.”

Concord Enviro Systems (CESL) is a global provider of water and wastewater treatment and reuse solutions, including zero liquid discharge (ZLD) technology. CESL has in-house capabilities to develop solutions across the entire value chain, including designing, manufacturing, installation and commissioning, operation and maintenance (O&M), and digitalization solutions, including the Internet of Things (IoT).

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