Effwa Infra jumps after securing ₹44 Cr JSW JFE Electrical Steel order for Zero Liquid Discharge project 

Synopsis: An SME-listed environmental engineering company has secured an end-to-end Zero Liquid Discharge contract worth ₹44.30 crore, including a three-year operations and maintenance component, from JSW JFE Electrical Steel. The order is the second sizable win disclosed within a month, adding to a stated order book of ₹750 crore even as debtor days remain a persistent balance sheet concern.

An environmental engineering company specializing in industrial effluent treatment came into focus after announcing a fresh contract win, its second major order disclosed within a month. The press release, issued alongside a Regulation 30 filing, details an end-to-end Zero Liquid Discharge project that spans design, supply, installation, and three years of post-commissioning operations. The stock has more than doubled off its 52-week low as order wins have piled up through the current fiscal year.

Effwa Infra & Research Limited last traded at Rs. 391.05 per share, up 1.80 percent from its previous closing price of Rs. 384.15 apiece, with a market capitalization of Rs. 905.17 crore. It is trading at a P/E of 31.07.

Order Update

Effwa Infra & Research has secured a contract from JSW JFE Electrical Steel for the manufacture, supply, and supervision of a Zero Liquid Discharge based Effluent Treatment Plant. The scope covers design, engineering, supply, supervision of installation, commissioning, and three years of operations and maintenance following commissioning. The supply and services component is valued at Rs. 37.30 crore, with the operations and maintenance component adding Rs. 7 crore over three years, taking the total contract value to Rs. 44.30 crore, excluding an 18 percent GST that applies on top.

Execution of the core project is expected to take twelve to fifteen months from the effective date, with the O&M period running separately once commissioning is complete. The order carries no related-party relationship and no promoter or promoter group interest in the awarding entity. Including GST, the total contract works out to approximately Rs. 52.3 crore, though revenue recognition for accounting purposes will follow the pre-tax value as work is executed and billed over the project timeline.

Back-to-Back Order Wins 

This is the second sizable contract Effwa has disclosed within roughly a month. On June 3, the company announced a Rs. 57.94 crore Zero Liquid Discharge project win from NMDC Steel, with an eleven-month execution timeline. Combined, the two orders add close to Rs. 102 crore to a business that reported FY26 revenue of Rs. 253.3 crore, and management had already flagged an order book of Rs. 750 crore at its May investor call, before either of these two wins was added. For a company operating in a niche where it claims to be executing India’s largest-capacity ZLD project, repeat wins from large steel producers such as JSW and NMDC suggest the client base is broadening beyond any single anchor account, though both wins are concentrated in the steel sector, which carries its own cyclicality.

Balance Sheet and Cash Flow Checks 

Effwa’s FY26 numbers show real operating improvement. Revenue grew from Rs. 185 crore in FY25 to Rs. 253 crore in FY26, and net profit rose to roughly Rs. 28.6 crore, with return on capital employed at 29 percent and return on equity at 26 percent for the year. Operating cash flow conversion improved sharply too, recovering to 93 percent of operating profit in FY26 after turning negative in FY25 when cash from operations fell to minus Rs. 31 crore against a working capital build-up.

Debtor days remain elevated at 185, though this is actually an improvement from the 232 days recorded in FY25, and Screener’s automated checklist continues to flag the debtor position as a watch item given the company’s exposure to large industrial clients that tend to pay on extended terms. Promoter holding has stayed flat at 73.03 percent through the past several quarters, and the shareholder count has declined slightly from 2,596 to 2,367 over the same period, a mild contraction rather than a red flag on its own. Institutional holding, by contrast, has ticked up modestly, with DII stakes rising from 3.50 percent to 4.22 percent year-on-year.

Valuation 

At a P/E of 31.07, the stock trades at a meaningful premium to peers, some comparisons putting the gap at over 80 percent above the peer median, which reflects the market pricing in continued order momentum rather than current earnings alone. CRISIL has updated its credit rating on the company as recently as January 2026, and that assessment is a useful cross-check for retail investors relying primarily on equity research, since rating agencies typically weigh liquidity and debt coverage more conservatively than the growth-focused narrative in press releases.

With two large orders landing inside a month and management scheduled to meet analysts again this quarter, the near-term stock reaction will likely hinge on whether execution timelines and cash collections keep pace with the order intake, rather than on the headline contract values themselves.

Business Overview 

Effwa describes itself as currently executing the largest-capacity Zero Liquid Discharge project under execution in India, and the company has built a track record across effluent and sewage treatment, solid waste management, incineration, and water body restoration for clients in power, mining, steel, and oil and gas. Incorporated in Thane in 2014 and listed on the NSE SME platform, the company holds ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certification and has handled projects ranging from 3 MLD to 135 MLD in capacity. For FY26, Effwa reported revenue of Rs. 253.3 crore against Rs. 185 crore in FY25, with net profit of Rs. 28.6 crore, continuing a run of profit growth that has averaged 66.4 percent annually over the past five years.

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