SFC Environmental Technologies Limited
What they do: Environmental technology operations, including waste treatment activities. The supplied information does not give a detailed breakdown of products, services or revenue by activity.
By IPO Milega Research · Published
SFC Environmental Technologies reported FY2026 revenue of ₹8,036.29 million and net profit of ₹1,602.13 million.
- GMP (unofficial)
- N/A
- Grey market premium
- Opens
- 27 Oct
- In 4 days
- Min. investment
- N/A
- One lot
GMP is an unofficial grey market indication.
- Price band
- ₹313-330
- Lot size
- N/A
- Min. investment
- N/A
- Issue size
- Approx 675.68 Crores
- Open27 Oct 2026
- Close29 Oct 2026
- Allotment30 Oct 2026
- Listing3 Nov 2026
Overview
Grey market data isn't available for this issue, so the gains estimate uses fundamentals only and ignores listing-day sentiment.
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹150 Cr
- Fresh issue
- To selling shareholders
- ₹518 Cr
- Offer for sale
- Prepayment of all or a portion of certain outstanding borrowings availed by Company and wholly owned Subsidiary, namely Vasudha Waste Treatment Pvt.Ltd.₹42.23 Cr7%
- Funding working capital requirements₹74.92 Cr12%
- General Corporate PurposesNot stated
- Offer for sale: goes to selling shareholders₹518 Cr82%
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials7.0
- Performance7.0
- Flexibility7.0
- Timing5.0
- Risk3.0
Revenue grew 15.16% and net profit 5.40% in FY2026, with a 19.94% net margin, 22.08% return on equity and a substantial order book supporting measured upside. Negative operating cash flow, long receivable cycles, customer concentration and project execution risks limit the fundamental gains potential.
Strengths4
- C-Tech SBR had 728 commissioned installations and a reported share of over 80% of India’s SBR market.
- Company technologies facilitated 17,511.11 MLD of treatment.
- At August 31, 2026, the order book was ₹6,410.31 million in WWT, ₹4,545.41 million in SWT and ₹5,610.72 million in WRR, totalling ₹16,566.44 million.
- Two Goa solid-waste facilities had capacity of up to 425 TPD, with ₹5,017.00 million of CBG plant orders secured.
Concerns5
- The top 10 customers generated 79.20% of June 2026 quarter revenue; WWT and SWT contributed 88.22%, with heavy reliance on government projects and limited long-term contracts.
- Operating cash flows were negative ₹213.42 million in the June 2026 quarter and ₹258.02 million in Fiscal 2026; receivables rose to ₹3,119.43 million, including ₹110.46 million with significant credit risk or credit impairment.
- The company had ₹2,531.02 million of consolidated borrowings, restrictive covenants, foreign-exchange exposure of ₹226.47 million and material subsidiary debt; delayed collections or debt obligations could strain liquidity.
- Suppliers are concentrated, imports formed 64.24% of stock-in-trade purchases in the June 2026 quarter, and production faces disruption, cost, safety, treatment-failure and environmental risks.
- Tender dependence, technology displacement, uneven capacity utilisation and potential order-book delays, modifications or cancellations could reduce revenue, profitability and returns.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum14,8501 lots, 45 shares
- Retail Maximum1,93,05013 lots, 585 shares
- S-HNI Minimum2,07,90014 lots, 630 shares
- S-HNI Maximum9,94,95067 lots, 3015 shares
- B-HNI Minimum10,09,80068 lots, 3060 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 45 | 14,850 |
| Retail Maximum | 13 | 585 | 1,93,050 |
| S-HNI Minimum | 14 | 630 | 2,07,900 |
| S-HNI Maximum | 67 | 3015 | 9,94,950 |
| B-HNI Minimum | 68 | 3060 | 10,09,800 |
Timing
5.0/10The offer is supported by three book-running lead managers and is structured as a mainboard issue of approximately ₹675.68 crore. These factors indicate an established issuance process, while the available context does not point to a specific market catalyst or favorable sector-cycle signal. Overall, timing is balanced rather than clearly favorable or unfavorable.
- Time to market
- The company has operated since 2005 and has completed the transition to a public limited company, supporting readiness to access public markets. The information does not indicate that an immediate market window provides a particular strategic advantage.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 5.0
- Listing on
- BSE, NSE
Key milestones
- 27 Oct 2026IPO Opens
- 29 Oct 2026IPO Closes
- 30 Oct 2026Basis of Allotment
- 3 Nov 2026Listing Date
Financials
7.0/10- Revenue
- ₹821 Cr
- +13.0%
- Profit after tax
- ₹160 Cr
- +5.4%
- Net margin
- 19.5%
- -1.4 pts
- Assets
- ₹1,323 Cr
- +32.4%
- Return on equity
- 22.08%
- Debt to equity
- 0.24
- Current ratio
- 2.50x
- Revenue CAGR
- 10.55%
- ROCE
- 0.72%
- Return on net worth
- 0.19%
- NAV per share (₹)
- 86.23
- Price to book
- 3.83
Financial performance trend
Amount ₹ in croresSFC Environmental Technologies reported FY2026 revenue of ₹8,036.29 million and net profit of ₹1,602.13 million. Revenue and profit have grown over the three years, while the FY2026 net margin eased. Equity is substantial relative to borrowings, though borrowings rose sharply in FY2026 and operating cash flow was negative.
FY2026 borrowings were ₹195.64 Cr, comprising current and non-current borrowings. The company plans to use ₹42.23 Cr of IPO proceeds to prepay some borrowings. Borrowings increased materially during FY2026, so debt merits monitoring, although the stated repayment would reduce them.
Fresh issue goes to the company. OFS goes to the selling shareholders.
Selling shareholders are referred to, but their identities and whether they are promoters or other investors are not specified.
The company is raising ₹150 Cr through a fresh issue for working capital, partial repayment of borrowings and general corporate purposes. Existing shareholders are also selling shares through an OFS and receive those proceeds; their reasons for selling are not specified.
Risk
3.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks5
- Market risks4
- Operational risks5
- Regulatory risks4
High customer and government-project concentration, negative operating cash flows, rising receivables, supplier dependence, operating exposure and pending environmental and commercial litigation create substantial financial and execution risks.
How the company offsets these
Subsidiaries have responded to pollution notices; SFC Umwelttechnik GmbH filed a defence in the Portugal suit; respondents denied the former employee’s allegations; disclosed GST and EPF dues and interest were paid; some insured losses were reimbursed.
Financial risks5
- Negative operating cash flows and high, rising trade receivables create collection and liquidity risk.
- Consolidated borrowings of ₹2,531.02 million, restrictive covenants, VWTPL debt and foreign-exchange exposure may affect financial flexibility.
- The order book is unaudited and may be delayed, modified or cancelled, affecting revenue and cash flows.
- Insurance may not cover losses fully or reimburse claims promptly; dividends and use of Fresh Issue proceeds are uncertain.
- Pending tax claims include ₹32.14 million for the company, ₹0.24 million for subsidiaries, ₹17.01 million for directors and ₹16.98 million for promoters.
Market risks4
- High customer concentration and reliance on government-funded projects expose revenue to changes in customer demand, procurement and public spending.
- SWT contracts depend on competitive tenders; only two of five bids since April 1, 2022 were awarded.
- Technologies may be disrupted or displaced, while competition, economic conditions and foreign-investment restrictions may affect business prospects.
- Limited long-term contracts and dependence on credit ratings may affect order continuity and contract access.
Operational risks5
- Concentrated suppliers and reliance on imported stock-in-trade expose projects to supply interruptions, shipping disruption and price changes.
- Variable or high capacity utilisation, treatment failures, utility disruptions and project delays may impair operations and returns.
- Hazardous or infectious waste handling carries injury, pollution, litigation and uninsured-loss risks.
- Key-person dependence, absence of a succession policy, contract labour, IT disruption, cyberattacks and technical-knowledge leakage pose execution risks.
- Acquisitions may not deliver expected benefits, and the WRR segment has no operating track record.
Regulatory risks4
- Subsidiaries face pending pollution notices and an FIR concerning alleged effluent discharge, waste disposal, spills, hazardous-waste compliance and effluent limits; further enforcement or tighter rules could increase costs.
- The Portugal subsidiary faces a €5.60 million claim concerning alleged technical deficiencies; former managing directors claim approximately €0.65 million in aggregate, including interest through March 30, 2026.
- The former employee has threatened criminal action and sought ₹25.86 million; a separate criminal case involving an independent director in her former role is pending.
- Sanctions, anti-corruption, competition-law, statutory-payment and other regulatory compliance failures could result in penalties, restrictions or reputational harm.
Performance
7.0/10The company provides wastewater treatment, recycling and reuse, and solid-waste treatment solutions, earning revenue from technology and project execution across these segments. It has strong reported SBR market presence and a sizeable order book. Revenue and profit grew in FY2026, while negative operating cash flow, long receivable cycles, customer concentration and seasonal execution temper the assessment.
- Historical growth
- Revenue from operations rose 15.16% to ₹8,036.29 million in FY2026. Total income increased 12.97% to ₹8,212.73 million, and profit after tax grew 5.40% to ₹1,602.13 million. For the three months ended June 30, 2026, income increased 93.83% year on year to ₹1,379.00 million, with profit after tax of ₹14.84 million versus a loss of ₹2.81 million., FY2026 revenue growth was 15.16%; PAT growth was 5.40%.
- Market comparison
- The company reports over 80% of India’s SBR market and 728 commissioned C-Tech SBR installations, indicating a strong position in that technology segment. No named peer comparisons or peer financial benchmarks are provided. Its broader performance should be weighed against customer concentration, import and supplier dependence, and a 242-day cash conversion cycle.
- Future potential
- The order book supports potential revenue visibility, particularly in WRR, where the August 31, 2026 order book was ₹5,610.72 million, equivalent to 3,948.43% of FY2026 segment revenue. Realisation depends on timely execution, customer payments and working-capital availability. India’s infrastructure and urbanisation trends may support sector demand, while project delays, cancellations and funding costs remain risks.
- Operational consistency
- The reported FY2024-FY2026 period shows a growing business, but seasonality and customer concentration limit revenue stability. Negative operating cash flow in FY2026 and in the June 2026 quarter, a 242-day cash conversion cycle, and dependence on a few suppliers add execution and liquidity risk.
- Experience
- Management team experience and individual credentials are not specified in the supplied company information.
- Track record
- The company has built a substantial installed base and order book across its treatment businesses. Execution and cash conversion remain concerns: operating cash flow was negative ₹258.02 million in FY2026, alongside a ₹1,736.36 million increase in trade receivables.
Key achievements
- 01C-Tech SBR had 728 commissioned installations and a reported share of over 80% of India’s SBR market.
- 02Company technologies facilitated 17,511.11 MLD of treatment.
- 03At August 31, 2026, the order book was ₹6,410.31 million in WWT, ₹4,545.41 million in SWT and ₹5,610.72 million in WRR, totalling ₹16,566.44 million.
- 04Two Goa solid-waste facilities had capacity of up to 425 TPD, with ₹5,017.00 million of CBG plant orders secured.
Flexibility
7.0/10Its offerings serve wastewater treatment, wastewater recycling and reuse, municipal solid waste and biogas markets. It operates across 23 states and five union territories, and has added technologies and partnerships for tertiary treatment and compressed biogas. Government-linked projects and customer concentration create some exposure to procurement cycles and a limited customer base.
Fiscal 2026 net debt was ₹388.16 million against net worth of ₹8,041.73 million, with PAT of ₹1,602.13 million. The business is working-capital intensive: its Fiscal 2026 cash conversion cycle was 242 days and net working capital requirements rose to ₹3,643.15 million. The fresh issue allocates ₹749.17 million to working capital and up to ₹422.28 million to debt prepayment.
Modular C-Tech systems, automated controls and growing in-house component manufacturing support project-specific adaptation and capacity expansion. Operations still depend on customer approvals, site readiness, funding and supply availability, while project delivery and receivables can extend cash cycles.
The company shows good adaptability through established wastewater treatment capabilities, expansion into water reuse and biogas, and a broad project footprint. Working-capital intensity, customer concentration and long project cycles temper its flexibility.
- Product diversification
- The portfolio spans proprietary C-Tech wastewater treatment, UF, CCRO and MBR reuse solutions, OREX solid waste processing, biogas and compressed biogas projects, and electrical and automation systems. Revenue remains weighted toward wastewater treatment, while WRR is newly established.
- Future adaptability
- Potential is supported by growth in tertiary treatment and CBG markets, a combined order book of ₹15,700.65 million as at June 30, 2026, and technology and manufacturing expansion. Delivery depends on execution of large projects, working-capital availability, customer and government procurement, and supplier continuity.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.