Effwa Infra in Focus After Bagging ₹35.54 Cr End-to-End ETP Contract from JSW Steel

Synopsis: Effwa Infra & Research Limited has announced the award of a ₹35.54 crore end-to-end Zero Liquid Discharge based Effluent Treatment Plant contract from JSW Steel Coated Products Limited, Dhar, covering design, supply, supervision, commissioning, and a three-year operations and maintenance arrangement post commissioning.

An NSE SME-listed environmental engineering company came into focus on April 1, 2026, after disclosing a contract win from a unit of the JSW Steel group for a Zero Liquid Discharge effluent treatment plant; its largest disclosed single-client engagement in recent quarters. The award from JSW Steel Coated Products Limited’s Dhar facility covers an end-to-end scope and extends beyond project completion into a three-year O&M arrangement, providing Effwa with recurring post-execution revenue from the same asset.

With a market capitalization of Rs. 419.54 crore, the shares of Effwa Infra & Research Limited closed today at Rs. 184.10 per share, up 10.37 percent from its previous close of 166.80. It is trading at a P/E of 15.15.

Order Update

The contract scope covers design, engineering, supply, supervision of installation, commissioning, and a three-year O&M of a ZLD-based Effluent Treatment Plant at JSW Steel Coated Products’ Dhar facility. 

The financial structure breaks into two components: the supply and services portion is valued at Rs. 31.93 crore, and the O&M leg adds Rs. 3.60 crore over three years post-commissioning, bringing the total to Rs. 35.54 crore. Execution of the project itself is targeted within 10 to 12 months from the effective date.

Order Scale and Working Capital Implications

At Rs. 35.54 crore, this contract represents approximately 19 percent of Effwa’s FY25 standalone revenue of Rs. 185 crore. For an SME, that concentration in a single project is material for forward revenue visibility. The O&M component (Rs. 3.60 crore spread over three years) is smaller in absolute terms but carries lower execution risk and provides a steady annuity-style revenue stream after the capital phase concludes.

The more pointed concern is working capital. Effwa’s debtor days stood at 232 in FY25, up sharply from 168 in FY24, and working capital days have moved from 95 to 141 over the same period. The company’s FY25 operating cash flow was negative at Rs. 31 crore despite strong profitability precisely because receivables are consuming cash. JSW Steel Coated Products is a private sector client with stronger payment discipline expectations than PSU counterparts, which is a marginal positive.

Business Overview

Incorporated in 2014, Effwa Infra & Research Limited is an environmental engineering and project management company specialising in end-to-end effluent and sewage treatment, with ZLD systems as its core offering. The company serves power, mining, steel, and oil and gas sectors, with project execution capability ranging from 3 MLD to 135 MLD.

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