EMS Limited (EMSLIMITED) Financial Results — Revenue ₹732 Cr

Investor Takeaways

Revenue declined to ₹84 crores in Q4 FY26 standalone due to ₹100 crore inventory buildup from delayed government permissions and payment issues.

FY26 consolidated revenue stands at ₹732 crores with PAT margin at 15%, but normalization to 15-17% margins is expected only after inventory clearance.

Order book of ₹1,837 crores includes ₹209 crores from UP Jal Nigam, targeting ₹1,000 crores revenue from new work in FY27.

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹732 Cr	N/A
Net Profit	₹6 Cr	N/A
EBITDA	N/A	N/A
EPS	N/A	N/A
OPM	15%	N/A

What Changed

The filing reveals that ₹100 crore of inventory buildup, caused by external delays in government permissions and payment cycles, directly suppressed Q4 FY26 standalone revenue to ₹84 crores. Management explicitly states that revenue could have reached ₹250 crores in Q4 absent these delays, indicating the revenue shortfall is not operational but externally induced. PAT margin held at 15% for the quarter, but normalization to 15-17% is contingent on inventory clearance and resumed project execution. The order book of ₹1,837 crores, including ₹209 crores from UP Jal Nigam, signals pipeline strength, with a target of ₹1,000 crores revenue from new work in FY27. Effective tax rate was 7% in Q4, and margins are expected to improve only after resolving external bottlenecks, not due to internal efficiency gains.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
EMS Limited	9.59	N/A	N/A	1,802.81
VA Tech Wabag Limited	34.36	N/A	N/A	8,636.73
ION Exchange (India) Limited	26.31	N/A	N/A	5,722.20
Enviro Infra Engineers Limited	16.30	N/A	N/A	3,392.99

EMS Limited trades at a significant discount to peers on P/E (9.59 vs. 16.30–34.36), reflecting market skepticism about near-term revenue recovery despite a robust order book.

Risks & Concerns

Revenue recovery is entirely dependent on resolution of external delays (government permissions/payments), which are outside management’s control.

PAT margin improvement is conditional on inventory clearance and project resumption, with no guarantee of timely resolution.

No specific timeline provided for clearing inventory or achieving projected ₹250 crore Q4 revenue.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	245.29	50.59	28.98
Q2FY25	233.47	49.65	29.35
Q1FY25	206.28	37.16	24.37
Q4FY24	245.26	47.38	27.57

The sharp decline from Q3FY25’s ₹245.29 crore revenue to Q4FY26’s ₹84 crore standalone revenue (though FY26 consolidated is ₹732 crore) underscores the impact of external factors on quarterly performance, contrasting with sequential growth in prior quarters.

CRITICAL: Quarterly trend data provided is for FY25 quarters (Q3FY25 to Q4FY24), not FY26. The filing’s Q4 FY26 standalone revenue of ₹84 crores is not part of the quarterly trend table, which covers FY25 periods. The trend shows sequential revenue growth in FY25, but the current filing’s Q4 FY26 figure is a separate, much lower standalone number due to inventory issues. No quarterly trend data for FY26 is provided in the context.

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