EMS Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript EMS Ltd filed with BSE on 03 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
EMS Limited reported a sharp fall in Q4 and FY'26 revenue, with management attributing the shortfall to delayed government permissions, election-related work stoppages in West Bengal, a bitumen supply issue, a new government payment portal (SPARSH), and heavy rainfall damage in Uttarakhand. Standalone Q4 revenue was Rs 84 crore against consolidated revenue of Rs 120 crore, and FY'26 standalone and consolidated revenue fell about 36-37% versus the prior year. Management fielded repeated analyst questions about prior guidance not being met, including on fund-raising, pledge reduction, and revenue recovery timelines, and outlined plans and order book details for FY'27.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Standalone revenue: Rs. 84 crores (Q4 FY26)
p. 3
“FY '26 Quarter 4 has the total revenue is the 84 as a standalone of EMS Limited and consolidated revenue is 120.”
H. K. Kansal, page 3 of the filed PDF · View the filing
Consolidated revenue: Rs. 120 crores (Q4 FY26)
p. 3
“FY '26 Quarter 4 has the total revenue is the 84 as a standalone of EMS Limited and consolidated revenue is 120.”
H. K. Kansal, page 3 of the filed PDF · View the filing
Standalone revenue: Rs. 608 crores (FY26)
p. 3
“FY '26 as a whole year, the standalone revenue is Rs. 608 crores and consolidated is Rs. 732 crores.”
H. K. Kansal, page 3 of the filed PDF · View the filing
Consolidated revenue: Rs. 732 crores (FY26)
p. 3
“FY '26 as a whole year, the standalone revenue is Rs. 608 crores and consolidated is Rs. 732 crores.”
H. K. Kansal, page 3 of the filed PDF · View the filing
Revenue fall vs prior year: 36%-37% (FY26)
p. 3
“This is again about 36%-37% fall from the last year due to the major contribution comes from the Q4 revenue.”
H. K. Kansal, page 3 of the filed PDF · View the filing
Inventory increase (work in progress): Rs. 100 crores (FY26)
p. 3
“our inventory has increased about Rs. 100 crores because the works which are having some milestones couldn't be completed up to that extent and the inventory got generated”
H. K. Kansal, page 3 of the filed PDF · View the filing
Order book (unexecuted work): Rs. 1,837 crores (as on 31st March 2026)
p. 6
“the order book is as on 31st March 2026, the order book stood at Rs. 1,837 crores of unexecuted work.”
Ashish Tomar, page 6 of the filed PDF · View the filing
New orders received: Rs. 209 crores (FY27 (post March 2026))
p. 6
“we have received orders of about Rs. 209 crores from UP Jal Nigam in Varanasi.”
Ashish Tomar, page 6 of the filed PDF · View the filing
Current tax (Q4): Rs. 4.30 crores (Q4 FY26, consolidated)
p. 6
“So, in that also, against the revenue of Rs. 120 crores, the tax is about Rs. 4.30 crores for current tax.”
Ashish Tomar, page 6 of the filed PDF · View the filing
West Bengal project size: Rs. 780 crores
p. 3
“we are having a big project of around Rs. 780 crores in West Bengal which mainly have the STPs and the sewer laying works.”
H. K. Kansal, page 3 of the filed PDF · View the filing
Uttarakhand work pending billing: Rs. 50-odd crores
p. 9
“somewhere around Rs. 50-odd crores of work is lying finished, waiting to be billed in Dehradun”
H. K. Kansal, page 9 of the filed PDF · View the filing
EBITDA margin achieved: 21% (FY26)
p. 10
“So, 21% EBITDA we have already achieved in 25-26.”
H. K. Kansal, page 10 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue — Rs. 1,000-odd crores · FY27
stated conditionally by Ashish Tomar
p. 6
“we should be able to target a revenue of about one third of that, somewhere about Rs. 1,000-odd crores.”
Ashish Tomar, page 6 of the filed PDF · View the filing
PAT margin — 15% · coming quarters
stated conditionally by H. K. Kansal
p. 5
“Once the whole inventory is clear and every unbilled bill is done, then margin will again come to 16%-17% or minimum 15% in coming quarters.”
H. K. Kansal, page 5 of the filed PDF · View the filing
EBITDA margin — about 25% · FY27
stated as an aspiration by H. K. Kansal
p. 10
“We will try to rectify it and raise it to about 25%.”
H. K. Kansal, page 10 of the filed PDF · View the filing
Revenue CAGR — 20%-25% · long run to FY30
stated as an aspiration by Ashish Tomar
p. 11
“in the long run, if the figures till 2030 or further are to be given a guidance, so I think we can hope to achieve somewhere around 20%-25% growth over the long run.”
Ashish Tomar, page 11 of the filed PDF · View the filing
Order wins — in excess of about Rs. 1,500 crores · this year
stated as an aspiration by Ashish Tomar
p. 6
“we are hopeful of securing work in excess of about Rs. 1,500 crores this year.”
Ashish Tomar, page 6 of the filed PDF · View the filing
Pledge of shares — zero · by the end of next year
stated firmly by Ashish Tomar
p. 8
“If you will check the latest filings by the company, the pledge numbers have been reducing relatively steadily, and by the end of next year, it will be zero.”
Ashish Tomar, page 8 of the filed PDF · View the filing
Fund raising
stated conditionally by Ashish Tomar
p. 8
“In case we secure a large hand project in which capital is required to be pumped in by the company, then we might go for that.”
Ashish Tomar, page 8 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management clarified the Q4 consolidated current tax was about Rs 4.30 crore against Rs 120 crore revenue, roughly 7%, not 60% as the analyst suggested.
Answered by Ashish Tomar
Asked by Atul Kumar: What is the effective tax rate in Q4 and why is it high?
p. 6
“That comes out to be around 7%. Yes.”
Ashish Tomar, page 6 of the filed PDF · View the filing
Management said it was only a Board permission taken as a precaution, not an action, and reiterated no current plan to raise funds for regular EPC projects.
Answered by Ashish Tomar
Asked by Azhar: Why did the company pass a Rs 300 crore fund-raising resolution shortly after saying there was no balance sheet stress?
p. 8
“We just had it passed in the Board so that in case any eventuality arise, we do not have to go back to the Board.”
Ashish Tomar, page 8 of the filed PDF · View the filing
Management targeted PAT margin of about 15% and EBITDA margin of about 25% for FY27.
Answered by H. K. Kansal
Asked by Ajay: What margin levels does management expect for FY27?
p. 10
“So, what we are targeting is upwards of profit after tax of 15%.”
H. K. Kansal, page 10 of the filed PDF · View the filing
Management said the historical CAGR pattern has been about 20% over long cycles despite occasional weak years, and expects to return to that trajectory.
Answered by H. K. Kansal
Asked by Atul Kumar: What long-term revenue CAGR should investors expect looking to FY30?
p. 12
“if you see the 12-year graph or two graphs of six years from 2013 to 2019 and from 2019 to 2025, it is flat 20% growth in terms of CAGR.”
H. K. Kansal, page 12 of the filed PDF · View the filing
Management said there is no plan to diversify from the government or water sector given the large untapped market opportunity.
Answered by H. K. Kansal
Asked by Atul Kumar: Are there plans to diversify client base or business area away from government projects?
p. 13
“We are just 1% of the work we are able to do as far as pan-India scope is concerned. So, we are not going to diverge from the government sector as of now.”
H. K. Kansal, page 13 of the filed PDF · View the filing
Risks flagged
Delayed government permissions for project execution
p. 2
“Several of our projects were delayed because required government permissions were not granted in time”
Ashish Tomar, page 2 of the filed PDF · View the filing
Government cash flow constraints delaying payments to contractors
p. 2
“a prolonged cash flow constraint on the government side has delayed payments to contractors, including us”
Ashish Tomar, page 2 of the filed PDF · View the filing
Work stoppage due to state elections
p. 3
“in election, the ruling party doesn't want the roads are dug and the public may go against the government's verdict”
H. K. Kansal, page 3 of the filed PDF · View the filing
Bitumen supply disruption
p. 4
“Some issue of bitumen supply was also seen after this West Asia disturbance in Uttarakhand also where we have done the restoration of work of roads up to the subgrade level”
H. K. Kansal, page 4 of the filed PDF · View the filing
New government payment portal causing payment delays
p. 4
“payments are still not normal because Central government has to put the share and the state government has to put the prorata share”
H. K. Kansal, page 4 of the filed PDF · View the filing
Heavy rainfall damage to infrastructure delaying work
p. 4
“there were certain issues which were related to the heavy rainfall particularly in Uttarakhand area where the property, the transmission lines got damaged and restoration work had to be done first”
H. K. Kansal, page 4 of the filed PDF · View the filing
Dependence on timely government funding release
p. 7
“all the work that we carry out is dependent upon funding being released by the government on a timely manner”
Ashish Tomar, page 7 of the filed PDF · View the filing
Labor disengagement when subcontractor payments are delayed
p. 13
“once the subcontractor is not paid, and labor leaves the site, you just visualize it, labor leaves the site”
H. K. Kansal, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.