Thank you, boss. Good afternoon, everyone.

Thank you for joining us for our Q4 FY '26 earnings conference call. I'm joined today by our investor relations advisors, SGA.

Our investor presentation for Q4 FY '26 is now available on the stock exchanges and on the company's website. Before I turn to our performance, I want to step back and acknowledge the singular significance of FY '26, a year that marks 25 years of Antony Waste's journey in transforming India's waste management landscape.

What began as a modest vision a quarter century ago has evolved into a scaled, purpose-driven platform serving millions of citizens, enabling cleaner cities, and contributing measurably to India's sustainable future. That transformation was not built in a boardroom.

It was built by the trust of our customers, the partnership of our clients, and the relentless commitment of over 10,000 employees, vendors, and support staff across the country. To each one of them, I extend my deepest gratitude.

In recognition of this milestone, the Board has recommended a maiden dividend of ₹0.5 per equity share, that is 10% of the face value of ₹5. This reflects our confidence in our financial position and our commitment to rewarding shareholders while preserving the capital needed to fund our next phase of growth.

Across FY '26, we made deliberate, high-quality additions to our platform that meaningfully expand our long-term earnings power. We entered the EPR business and monetized nearly 20% of our allotted EPR credits in the first year of PCMC WTE operations, a strong initial proof point.

We secured two waste-to-energy projects in Andhra Pradesh, two new collection and transportation contracts in Mumbai, and a preprocessing solid waste facility in Thane. Our strategic partnership with Japan's JFE Engineering for WTE development in Andhra Pradesh further deepens our technology edge, and the successful merger of AG Enviro Infra Projects into the company has strengthened our operational integration and long-term capability base.

FY '26 was a year of broad-based volumes growth across our platform. The C&T volumes grew approximately 9% year-on-year to 2.12 million tons, while processing volumes expanded approximately 19% to 3.6 million tons, driven by new project additions, contract renewals, and the continued scaling of our biomining and RDF operations.

Total MSW managed for the year rose by 15% to 5.69 million tons. In Q4, the momentum was particularly strong in processing.

Volumes rose by 32% to 1.15 million tons, reflecting improved utilization at our biomining and MRF facilities. Total quarterly MSW handled grew 23% to 1.67 million tons.

Our PCMC—that's Pimpri-Chinchwad Municipal Corporation's—waste-to-energy facility delivered 69.3 million units of green power in FY '26 and helped avoid approximately 10,000 tons of carbon dioxide emissions during the year—equivalent emissions during the year. This consistent performance validates our technology and execution capacity in WTE projects.

During the year, the company had approximately 90 days of planned and reparative shutdown, which reflected in a lower PLF of 56%. Post the maintenance period, our plant has been operating at approximately 86% PLF consistently.

Our construction and demolition recycling facility continued to lead the sector with a 96% recycling rate. Annual RDF sales reached a record 177,000 tons, up 20% year-on-year, further diversifying our non-municipal solid waste revenue base.

FY '26 operating revenue reached 920 crores, which is up 9%, while Q4 operating revenue came in at 254 crores, up 14%. Growth was underpinned by higher volumes, contractual tariff escalations, and consistent execution across our project portfolio.

A milestone worth highlighting, our core operational revenue, including project revenue, crossed 1,000 crore for the first time, a meaningful threshold that reflects the scale we have built over the last 25 years. From a broader operational perspective, the C&T revenue is up—for the entire year is up by 11% to 646 crore, processing revenue is up by 5% at 274 crore.

The Q4 performance was equally solid: C&T at 160 crore, up 14%, and processing at 94 crore, which is up by 15% year-on-year. EBITDA margins held at around 22% for both Q4 and for full year, in line with our stated guidance, reflecting disciplined cost management even as we invest in scale.

Our profitability for the fourth quarter stood at 37 crore, and for the full year, the reported profit after taxes was 92 crores. It is important to note that both Q4 FY '25—that's last year—and for FY '25, the full year of last, included one-time income of 24 crores.

Adjusted for this exceptional item, the Q4 PAT is up by approximately 67% year-on-year, and for the full year, PAT is risen by 20%, demonstrating strong underlying earnings momentum. On the balance sheet front, as of March 2026, the group's gross debt stands at approximately 426 crores, cash and bank balances is around 123 crores, resulting in a net debt of approximately 302 crores.

Our net debt to equity stands at 0.3x, and the weighted average cost of debt is around 9.9%. The DSOs for the quarter was around 108 days.

Our order book as of March 2026 stands at an all-time high of 18,000 crores, providing exceptional revenue visibility, underpinning our confident, sustained compounding growth ahead. Before we open for Q&A, I want to flag a significant development in Q1 FY '27.

The Honorable Supreme Court dismissed the Bhiwandi Nizampur City Municipal Corporation's special leave petition in the long-standing Bhiwandi arbitration matter, thereby directing the corporation to disburse a settlement amount of 15 crore within 3 months, with an interest of 9% on any delay. This favorable ruling reinforces our track record of contractual compliances and gives us added confidence the resolution of remaining arbitration matters.

Looking ahead, we remain focused on driving sustainable growth through disciplined execution, operational excellence, and continued innovation. Supported by a record order book, a growing project portfolio, and expanding opportunities across the waste management value chain, we are well positioned to capitalize on the sector's long-term potential.

We remain confident of delivering delivering 15% to 20% revenue CAGR over the next 5 years, backed by a record 18,000 crore order book, two large-scale WTE projects in Andhra Pradesh, an expanding EPR platform, and India's secular tailwind in urban waste infrastructure, all while deepening our sustainability impact and creating long-term value for all our stakeholders. We will now open the floor for questions.

Thank you.

Thanks for the opportunity, and very solid set of numbers. My first question is regarding the top-line performance.

When we are guiding 15-odd percent top-line CAGR expectation, I feel based on the contractual term, you will see a significant bump in FY '28-'29 with the new waste-to-energy plants coming in. From the working capital perspective and the debt component perspective, how you are seeing that aspect?

Secondly, considering the current macro environment, wherein the fuel cost is rising up very rapidly, on top of that, in certain states, the minimum wage hikes are there. I consider that we apply for the escalation and all, but considering the near-term pressure, how we are going to see our operating profitability, wherein we are having a long-term aspiration of 20% to 22% EBITDA margin?

These are my first questions.

Thanks, Ronak. On the ability to raise debt and working capital for upcoming projects, our net debt to equity today is just 0.3x.

That gives us enough firepower to borrow more for upcoming projects, which have assured revenue stream lines and also are backed by long-term contracts. Both the WTE projects come with a firm commitment from JFE, our technology vendor, and comes at a fixed-term cost contract for us.

Thereby the cost overrun element has been captured well, and the time overrun is also well within the nature of the business in this case. Financially, I think we are in a much sweeter spot today than what we were in 2000, during the pre-COVID times.

Our ratings are strong. We have an A- rating at the key downstream subsidiary level, we are BBB+ at the listed entity level.

Those gives us added strength. Our cost of borrowing today is sub-10%.

Going forward, we will be able to leverage more for prospective projects. That should take care of our requirement.

Coming back to your second point on the rising fuel cost, additive cost, and labor cost, all my projects, 100% of my revenue has escalation built into the system. If minimum wage changes, as has been changed in the Labor Code that we have seen recently, it just had an implication of just 5.2 crore for my entire books as compared to other large infra companies.

We have been well cushioned in that front. Our escalations are time-bound.

Though there is a delay in realization, but the same is accepted and acknowledged by the clients. There might be a delay in realizing the cash flows, but the debt is acknowledged, the liability is acknowledged by the clients as per the tender conditions and is contractual.

That comes to us in due course of time. That kind of helps us maintain this margin profile of 20% to 22% for us.

That's something I'm asking for. In near term, are we sensing any margin pressure on reported basis?

Though I do consider that on a roll-over basis, you will get the approvals and have a one-off impact on that.

We don't expect a timing mismatch significantly because these are set projects and set tenders. The reason for a delay in the past was in the absence of standing committees and elected members.

That led to a significant delay in recognizing the escalations. Now, most of the municipal corporations have elected members.

This is a procedural aspect of the project life. If you were to look at the books pre-2000, pre-COVID times, the escalation was recognized every quarter or every half-yearly as and when it was due.

Now that has been rectified. We don't expect significant delays on recognition going forward.

Understood. My second follow-up on your waste-to-energy plant.

What is the status of the escalations, what we have sought for? Secondly, are there any updates on the waste-to-energy at your Mumbai operations?

The waste-to-energy project which is ongoing, which is the waste-to-energy at Pimpri-Chinchwad, the escalation has already been computed, and we already got an escalation due for FY '25, FY '26. The next round of escalation is due from March 2026 onwards, for which we have already submitted the documents, and that will be approved in the upcoming meeting of the client.

That is coming to us every quarter. That is not an issue on the WTE front.

On the Mumbai waste-to-energy part, I think this matter is being taken very seriously at the Bombay High Court, which has been looking at a long-term sustainable solution. I believe the client, the corporation here would be coming back with a proposal of setting up a WTE in the near future.

Understood.

Understood. That's it from my side.

Thank you.

Hi, thank you for the opportunity. My question is, sir, when we look at the volumes, the volumes have increased significantly, but the revenue increase is not equivalent to that.

Can you help explain the difference? Hi.

If you look at the volumes jump, that's mainly coming from the CIDCO biomining project, which is a fixed-term contract. The entire revenue jump is not commensurate to the volumes jump, as the growth in revenue was mainly because of the CIDCO biomining.

If you look at the non-CIDCO biomining revenues on, that has been up by around 8%, which is what the underlying revenue growth is.

Just a follow-up on that question. How much proportion would be of your entire volumes from the CIDCO biomining?

That would be close to 22% in the last quarter.

Okay. Okay.

All right. The other question is, this monetization of EPR credit that you have done, how much is the value for that from the sale of those EPR credits?

We recognized close to 2.2 crore of the EPR credits that was eligible for us earned in FY '25. That's the amount.

It's not a significant amount today, but once the pattern is set and we are able to quantify that, that will add close to 10% of our PCMC WTE's revenue.

10% of PCMC WTE revenue?

Yes.

Okay. Last question is, your long-term debt has reduced by a good amount.

Can you help us what helped us reduce this debt? Is it the cash flow that we generated from the business or some other reasons?

Yeah.

Normally the paydown comes from our operations only. If you look at the cash flow from operations before working capital, we earned around 220-odd crore.

We used part of it to repay our debt during the year. The total financing impact was 93 crores.

We have a very aggressive policy in paying down these debts so that we can then have a healthy cash cushion for future upcoming projects. All right.

All right. Thank you so much, and wish you all the best for your future endeavors.

Thank you.

Am I audible?

Yeah.

Yeah. Thank you for giving me this opportunity.

I have two questions. My first question is, could you share the contribution of the C&T business for the quarter as well as the full year?

Also, what kind of contribution do you expect for this segment in FY '27? My second question is, currently, a large portion of our revenue comes from municipal corporations.

Are there any plans to diversify the revenue mix over the coming years? If yes, what areas or segments are you focusing on?

All right. Going for the C&T revenue for FY '26 was up 11% at 646 crores, and for processing, it's up 5% at 274 crores.

For Q4, the C&T was 160, processing was 94. Going forward, the non-municipal revenue streams for us is strongly skewed towards RDF sales, compost, getting into recyclables, and EPR.

That's the revenue streams that we are seeing. We also have a new business line called the Click to Clean, which is part of the Antony Recycling, which is more into the B2B segment, which is into small-scale pest control, recyclables, and deep-housekeeping clients, and has currently got clients like PNGadgil, Asian Paints, your Sula Wines, Beam of the world.

That is another small revenue stream that we are looking at. These are our attempts to improve our non-MSW stream.

Going forward, revenue from sale of power to discoms from the AP projects will also add into this bucket.

Okay. Okay.

Thank you, sir. Understood.

Wish you all the best for your future endeavors.

Thanks, Arjun.

Yeah.

Hello.

Hi, Neerav.

Hi. Couple of questions from my end.

The 18,000 crores of order book that you mentioned, could you give us a split in terms of the three segments? That is number one.

The second thing related to that would be what would be the capex requirements for achieving that 18,000 crores of revenue?

All right. So, 18,000 crore revenue split would be broadly 60% would be processing, the balance 40% would be C&T businesses for us.

That's the revenue split at that end. The incremental capex would be the capex related to my processing contracts largely.

That's around 750-odd crores of capex that I would need to invest to achieve this growth. Because bulk of the C&T operations, excluding the BMC's two contracts, have already been funded and the revenues is already coming in.

The incremental capex is mainly for the new projects, which is the Atkoli processing, the two WTE projects at AP, and the BMC two C&T contracts.

Got that. Largely 750 crores plus a couple of C&Ts in Mumbai.

Yeah. Okay.

In terms of the C&T projects in Mumbai, what would be the size of those projects?

I think it's a 1,000 crore revenue stream spread over 10 years. That's a 1,000 crore is what we look to achieve per year.

That would be the annual run rate for the BMC contracts.

Got that. The third question is regarding the deferred tax asset that has been created this year.

Would you get an explanation in terms of how it was created and is there any milestone related to this or how should we look at the tax rate going forward?

Actually, the two things happened which kind of led to this number. The ₹19 crore of tax reversal that you see is mainly because of ₹8 crore of tax on undistributed profit, which has to be written back due to the merger of AG Enviro into Antony Waste.

That's a one-time line item. The second would be the ₹8.3 crore of excess tax provision that we have created at our Section 80-IA Antony Lara SPV, which is a which enjoys MAT and there was incremental capex that was done.

There is a ₹3 crore of excess tax provision being written back. Those were the line items that led to us to the deferred tax thing coming in.

Then

going ahead, then what would be the approximate—

I think 25% is our stated assumption of effective tax rate for the group companies.

Thank you.

Hello. Hi, sir.

Thank you for this opportunity. Sir, if we look at company's performance over the last 5 years, both revenue and EBITDA have grown steadily, while the PAT has remained relatively flat.

Could you help us understand the key reasons behind it and how can the PAT growth be going forward?

One of the key factors why the translation of the growth in EBITDA has not translation into the growth in PAT is interest and depreciation. Because over the last 3 years, our WTE plants have kicked in, the three large C&T contracts also kicked in.

Those were the reasons why the interest and depreciation were slightly larger than in the previous 6 years of operation. Going forward, if status quo were to be maintained, then the translation to EBITDA higher PAT is definitely on the till, but with the two WTE projects that we have envisaged of AP will start contributing to revenue post FY '29.

That will kick in post 2029. The difference is mainly because of higher interest and depreciation for assets that were built, capitalized, and now revenue generating.

Sir. Sir, lastly, can you provide any update, any recent bids or tenders that the company has participated in?

We have bid for three collection and transportation contracts in the northern part of the country, and there is one waste-to-energy project that we're looking at in the southern part of the country. That's the projects in pipeline for us.

The bidding stage, that is.

Sir. Sir, that answers my question.

Thank you, sir.

Good afternoon, sir. Sir, I had two questions.

First one was, we have seen our employee expenses and other expenses increase by around 19% and 17% respectively during FY '26. Could you help us understand the key reasons behind the increase?

Second was during some decline in EBITDA margins this year. Could you share some light on the factors what impacted our EBITDA margins and how should we think going forward about our EBITDA margins?

Hi, Prashant. The 19% and 20% increases in labor and other expenses, a, the head count has increased at the labor count and also because of normal wage inflation that has occurred over our system and the minimum wage changes that's happened.

That has led to a significant increase in the wage bill a bit on a year-on-year basis. Other expenses also includes a major chunk of RDF transportation cost and hiring expenses, which have increased over the last two quarters, because of higher transportation is volume-driven.

We sold around 177,000 tons of RDF. That has resulted in higher transportation cost, and that sits in the other expenses line item.

On the EBITDA front, I think there were two key factors which has kind of led to a slight softness on a year-on-year basis. One is the volumes at the construction and demolition waste sector is just picking up.

The monsoon in Mumbai had a longer stay. It ended up only post November.

The volumes was a drag on the numbers because the cost factor is different in the construction, demolition waste entity. Also, we incurred certain additional vehicles being deployed at Nagpur, Noida, and in PCMC because of higher tonnage, which has reflected in slightly higher cost and hiring costs, which has led to a softer EBITDA because of these three factors.

Understood, sir. That was helpful.

That's all from my side. Thank you.

Thanks for the follow-up. Sir, my question is regarding our C&D business.

What was the quantum of revenue we have recognized in FY '26, and how we are seeing the scale-up of that? Secondly, it's been long when we are aspiring for our scrappage or the recycling business, what is the status of that?

Yeah. On the construction and demolition, I think it contributed to around ₹9 crores of our revenue this year.

It's been lower than what we had anticipated. We expect an uptick in the current year, which from February onwards, the volumes have jumped.

We're averaging around 480 to 520 tons per day as compared to 280 to 300 tons in the previous 8 months. That has been a significant uptick at that end.

In the auto tyre recycling and the scrapping businesses, I think the kind of volumes that we are looking at, the institution demand has not kind of captured our expectation. I think it's a more of a wait-and-watch for us till the time the industry stabilizes before we invest incremental capital into a revenue-generating board.

Understood. That's it from my side.

Thank you.

Thank you again for the opportunity. In terms of the C&D, what has changed, which has led to the doubling of the volumes?

Is this the volume that we should look at, or we will see incremental volume increase over this? That is the first question.

The second question is in terms of the 750 crores of capex that we will do for the Andhra projects. I assume that we will be booking those under contract revenues over the next 2 years.

Is my assumption right or there will be any changes

in it? Neerav.

I think your assumption is right. The total capex of 650 to 700-odd crores will be captured to the contract revenue, contract costing mode there.

That's the pattern that we'll follow over the next 2, 2.5 years. That's how it will move on.

What has happened on the construction and demolition waste has been a very strong policy change at the BMC wherein they have made it mandatory that for all the developers to route their waste through this professional or authorized collection and distribution of the C&D processing units. That push has really changed the way the processing volumes have improved, and that is going to stay for long.

This was to be done almost a year back, but because of lack of available elected members, procedural delays, the volumes was not up to the mark. Now things are in place, there are rules and regulations around disposal of construction, demolition waste.

That is translating into higher volumes, and that is what we can see today.

It would not be wrong to assume that in the current year, we would be doing about 18 to 20 crores on the C&D business?

That's a very fair assumption, and that the underlying volumes today definitely provide us comfort on that front.

Correct. Just in terms of the 700 crores that will be booked on the contract revenue side, it will be fair to assume that it will be largely back-ended.

I guess FY '28 and first half of FY '29 if there is any delay in the commissioning. That would be the right assumption?

Yeah. It's normally spread between 40-60 kind of a ratio in year one and year two.

That should be the address.

That should be the way to track it. In the current year, we've also booked about 160 crores of contract revenues.

What should be our assumption on this number in the coming year?

I think we are in the first quarter. Maybe by second quarter onwards, there will be a slight uptick in the numbers because post-monsoon is where we'll see a lot of action happening at the ground level.

When we talk about the entire 40-60 spread for year one and year two, we're talking about calendar years here because we have 24 months of construction period. Maybe a part of that will come in the current financial year.

A large chunk of it can fall into the next financial year and thereafter.

No. Right.

The 160 crores that we've booked in the current year, FY '26, none of that would be for the new projects, right?

No, none of that is for the new project.

Correct. I just wanted to understand, would we see a similar quantum in the coming years on an annual basis, or this number should frankly come down?

The entire amount is not sitting as project costing. There's also a decent amount of revenue from sale of MRF compost and revenue from mechanical sweeping, which sits in part of this bulk number.

I would say around not more than 25% would be contract revenue, and that you are right that will not be present in the current financial year. But 70% of that will continue in the current financial year because they belong to different revenue heads,

different projects. Okay.

Got that. Thank you.

Sure.

Yes. I just had two questions.

I just wanted to know the 18,000 crore of order book that we have, what is the execution timeline for that?

Most of the contracts are either 7 years old or they are 20 years old. I would say 40% of the revenue will be executed in the next 5 to 7 years' period of time because they are C&T operations.

The balance will be spread over the period of time for the next 15 years.

Understood. Just a clarification, you mentioned that will book 700 crore of revenue on contract revenue side in FY '27.

Did I hear that correctly?

That's the total capex that we need to spend over 2 years. So, 750, you have to split it into two buckets: 40% maybe in FY '27-'28, part of it, and balance 60% FY '28-'29.

Understood. Thank you.

Yeah. Before we conclude, I want to take a moment to express my heartfelt appreciation to my entire team for the unwavering commitment and exceptional contributions.

The hard work has been instrumental in achieving our success and sustaining our growth, and also celebrating our 25 years of work in this tough working environment. As we look ahead, we remain focused on executing our growth strategy, and I'm truly excited about the journey ahead as we continue to build a cleaner, greener, and more sustainable future for our communities and stakeholders.

Thank you once again for your continued trust and support, and I wish everyone a very pleasant evening. Thank you, guys.