Sattva Engineering stock jumps 6% after receiving ₹48 Cr order for odour control measures

Synopsis: Sattva Engineering’s shares saw a jump of 6% based on the company’s Rs 47.85 crore order win from the CMWSSB for the contract of odour control measures at 46 sewage pumping stations. The 12-month execution and 5-year operation and maintenance will enhance revenue visibility and drive the company’s growth.

The shares of this company, which is a Chennai-based Engineering, Procurement, and Construction (EPC) company specialising in water & wastewater management, industrial, and residential construction, had its shares in momentum after bagging an order worth Rs 48 crore from the Chennai Metropolitan Water Supply and Sewerage Board.

With the market cap of Rs 102.80 crore, the shares of Sattva Engineering Construction Ltd have gained about 6% and reached a high at Rs 58.85, compared to their previous day’s closing price of Rs 55.50. The shares are trading at a PE of 8.88, whereas its industry PE is at 18.4.

About the order

Sattva Engineering Construction Limited has bagged a contract worth Rs 47.85 crores from the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) to provide odour control measures to 46 sewage pumping stations and has turned out to be a fruitful addition to their environmental infrastructural orders.

It has a construction period of 12 months, followed by an operation and maintenance (O&M) period of 5 years. This helps in spreading revenues from construction and O&M. It is estimated that the project will have a construction component of about Rs 40.49 crore, along with an O&M expense of Rs 7.35 crore.

Strategically, the deal improves Sattva’s play in the area of “urban sanitation and environmental solutions”, which is experiencing increasing government outlay. The contract is both domestic and at arm’s length and free of related-party transactions, thereby lowering the risks of executing and governing the contract while also increasing its credibility with government clients.

Financials and more

The revenue from operations for the company stood at Rs 50.65 crores in H1 FY26 compared to H1 FY25 revenue of Rs 24.68 crores, up by about 105 per cent YoY. Similarly, the net profit stood at Rs 4.5 crore in H1 FY26, up compared to the Rs 1.89 crore in H1 FY25.

The company’s client list is a robust mix of government entities, PSUs, and major private companies, thus establishing its credibility for implementation. Government water bodies and municipal engagements indicate its strength in the area of public infrastructure and the ability to execute in the urban utility space. Working with major corporates like Siemens, WABAG, BGR Energy Systems, Allied Blenders, and Varun Beverages indicate its ability to execute projects in the industrial and energy sectors. This mix of customers helps to minimise the risk of dependence and makes it a preferred implementation partner.

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