Concord Enviro Systems Q2 FY26 results: net profit down 74.0% to ₹4.49 crore, revenue down 22.9%

How did Concord Enviro Systems perform in Q2 FY26?

Consolidated revenue for Q2 FY26 was ₹124.84 crore, down ₹37.05 crore or 22.9% from ₹161.89 crore in Q2 FY25. It rose ₹22.45 crore or 21.9% from ₹102.39 crore in Q1 FY26. EBITDA was ₹7.66 crore, down ₹19.22 crore or 71.5% from ₹26.88 crore a year earlier, compared with a loss of ₹0.89 crore in the previous quarter. The EBITDA margin was 6.1%, down 10.5 percentage points from 16.6% and up 7.0 percentage points from negative 0.9%.

Profit before tax was ₹5.01 crore, against ₹19.75 crore in Q2 FY25 and ₹6.11 crore in Q1 FY26. The company reported a net profit of ₹4.49 crore, down ₹12.81 crore or 74.0% from ₹17.30 crore in the year-ago quarter but up ₹0.37 crore or 9.0% from ₹4.12 crore in Q1 FY26. Basic EPS was ₹2.17, compared with ₹9.51 in Q2 FY25 and ₹1.99 in Q1 FY26. On a standalone basis, revenue was ₹13.68 crore and PAT was ₹1.02 crore.

What changed in Concord Enviro Systems' costs and profit?

Total expenses declined ₹18.06 crore or 12.6% to ₹125.74 crore from ₹143.80 crore in Q2 FY25, but revenue fell at a faster rate. Cost of materials fell ₹2.98 crore or 4.6% to ₹61.41 crore, employee cost rose ₹5.50 crore or 27.3% to ₹25.61 crore, finance costs fell ₹0.09 crore or 1.8% to ₹4.85 crore, depreciation fell ₹0.13 crore or 3.4% to ₹3.71 crore, and other expenses fell ₹1.84 crore or 5.8% to ₹29.73 crore. There was no exceptional item in either period.

Other income rose ₹4.26 crore or 258.2% to ₹5.91 crore from ₹1.65 crore in Q2 FY25. Tax moved from ₹1.94 crore to a tax credit of ₹0.47 crore, a difference of ₹2.41 crore. The company said Q2 FY25 was exceptionally strong because it included significant billing from the Mexico project. It also said an Africa project faced approval delays, which temporarily deferred execution and revenue recognition, while higher Q2 FY25 revenue allowed better absorption of fixed costs.

How did the first half of FY26 go?

For H1 FY26, consolidated revenue was ₹227.24 crore, down ₹37.38 crore or 14.1% from ₹264.62 crore in H1 FY25. Total income was ₹248.2 crore, down ₹19.39 crore or 7.2% from ₹267.59 crore. Profit before tax fell ₹4.36 crore or 28.2% to ₹11.12 crore from ₹15.48 crore.

PAT for the first half was ₹8.61 crore, down ₹4.32 crore or 33.4% from ₹12.93 crore, while basic EPS fell ₹2.94 or 41.4% to ₹4.16 from ₹7.10. Management said the Africa project delay was affecting revenue recognition, while the higher revenue base in H1 FY25 had provided better fixed-cost absorption.

What do the balance sheet and cash flow show?

As of 30 September 2025, total assets were ₹915.54 crore, compared with ₹848.71 crore at 31 March 2025. Total equity was ₹549.79 crore against ₹533.67 crore, borrowings were ₹163.16 crore against ₹130.75 crore, and cash was ₹35.74 crore against ₹25.19 crore. Inventories were ₹201.33 crore, compared with ₹172.67 crore, trade receivables ₹179.31 crore against ₹173.93 crore, and trade payables ₹145.70 crore against ₹136.76 crore.

H1 FY26 operating cash flow was negative ₹40.60 crore, compared with negative ₹2.51 crore in H1 FY25. Investing cash flow was positive ₹30.64 crore against negative ₹16.23 crore, financing cash flow was positive ₹20.56 crore against positive ₹3.60 crore, and capital expenditure was ₹7.96 crore compared with ₹12.29 crore.

How has Concord Enviro Systems done over the last 5 quarters?

Revenue over the last five quarters reached its highest level in Q4 FY25 at ₹206.99 crore and its lowest in Q1 FY26 at ₹102.39 crore. It recovered to ₹124.84 crore in Q2 FY26, up 21.9% from the preceding quarter but below the ₹161.89 crore recorded in Q2 FY25. The latest direction was therefore higher sequentially and lower year on year.

PAT peaked at ₹47.13 crore in Q4 FY25 and bottomed at a loss of ₹8.56 crore in Q3 FY25. It recovered to ₹4.12 crore in Q1 FY26 and ₹4.49 crore in Q2 FY26, although the latest figure remained below ₹17.30 crore in Q2 FY25. EBITDA margin peaked at 28.5% in Q4 FY25 and bottomed at negative 0.9% in Q1 FY26, before recovering to 6.1% in Q2 FY26.

What else did the company announce?

On 7 November 2025, the board approved the un-audited standalone and consolidated financial results for the quarter and half year ended 30 September 2025, along with the statutory auditors’ limited review reports. It also approved the termination of the Concord Enviro Employee Stock Option Plan 2022, following prior intimations and shareholder approval at the 26th Annual General Meeting. The same-day investor presentation reported an order book of ₹5,354 million. The available same-day filings did not mention a dividend or a fund raise.

What did Concord Enviro Systems' management say?

Management said the FY26 revenue growth guidance was lowered to 12-15% from 18-20% because of the Africa project delay, while the FY26 EBITDA margin guidance was trimmed to 15-16% from 16-17%. The company maintained long-term growth and EBITDA margin targets of approximately 20% and 18-20%, respectively, and guided to an effective tax rate of 12-14%. Management said project execution would normalise in the coming quarters and contribute to growth thereafter.

Management identified execution risk if local approvals for the Africa project were delayed further, quarterly revenue volatility from 10-12-month export order cycles, CBG margin dependence on scale and multi-project execution, and forex exposure on remaining legacy positions. The earnings call transcript excerpt did not record any analyst questions, so there was no specific analyst concern to report from the available material.

How did Concord Enviro Systems shares react?

The filing appeared after market hours. From the price when it appeared, the stock fell 2.1% after 5 minutes, 1.6% after 15 minutes and 2.2% after 30 minutes. On the reaction day, it closed 6.6% below the previous close of ₹454.00. By the next day's close, the stock was down 5.8% from that pre-results close, and by the fifth session it was down 7.7%.

The Waste Management industry's median stock move was negative 0.3% on the reaction day, negative 1.6% by the next session and negative 4.1% by the fifth session. Concord Enviro Systems therefore underperformed the industry median by 6.2 percentage points on the reaction day, 4.2 percentage points by the next session and 3.6 percentage points by the fifth session. Earlier reaction-day moves were negative 2.8% on 8 August 2025, negative 7.3% on 24 May 2025 and positive 5.4% on 17 January 2025.

How did other Waste Management companies do?

Seven other Waste Management companies were compared for the quarter. Their median revenue growth was 12.0%. One peer grew revenue more slowly than Concord Enviro Systems, while six grew faster. Of the four peers for which profit was compared, two reported higher profit.