Synopsis:- Shares surged up to 15% after securing L1 status for two projects worth ~₹213.8 crore, boosting order visibility. With an order book of ~₹2,200 crore and pipeline of ~₹4,000 crore, management targets ~₹1,000 crore inflows and ~20% win rate, indicating growth ahead.
The shares of the prominent sewerage solutions provider gained up to 15 percent in today’s trading session after the company bagged significant L1 status for two sewer infrastructure projects.
With a market capitalisation of Rs 2,177.09 crore, the shares of EMS Ltd were trading at Rs 392.05 per share, increasing around 13 percent as compared to the previous closing price of Rs 346.15 apiece.
Significant Order
The shares of EMS Ltd have seen bullish movement after securing L1 status from UP Jal Nigam (Urban), Varanasi, for two sewer infrastructure projects with a combined order value of about ₹213.8 crore (excluding GST). The contracts involve surveying, design, supply, and construction works, with execution timelines of 24 and 18 months, strengthening EMS’s order book and reinforcing its presence in urban infrastructure development.
The financial performance shows a notable decline, as revenue fell 18% from Rs 245 crore in Q3FY25 to Rs 200 crore in Q3FY26. Moreover, profitability weakened sharply, with net profit dropping 63% from Rs 51 crore to Rs 19 crore, indicating margin pressure and reduced operational efficiency during the period.
Financial & other Highlights
Over the past year, operating performance has weakened notably. Operating profit declined from Rs 71 crore in Dec 2024 to Rs 31 crore in Dec 2025, reflecting a sharp contraction in earnings. Similarly, OPM dropped significantly from 29% to 15%, indicating rising cost pressures and reduced efficiency, which have impacted overall profitability and margins during the period.
EMS has an unexecuted order book of ~₹2,200 crore and a strong bidding pipeline of ~₹4,000 crore. Management expects ~₹1,000 crore inflows in the next 3–4 months, mainly from DJB tenders. Win rate is targeted at ~20% (vs. 10–15% earlier). Order book may reach ~₹3,000 crore by Q1 FY27, with ~₹200 crore execution in the current quarter.
EMS management indicated a stronger rebound is expected in Q1 FY27 as projects move to execution. They guided FY27 to surpass FY25. While risks like monsoon and approvals remain, EMS stressed no financial or order book stress and highlighted aggressive bidding under AMRUT 2.0 and DJB opportunities.
EMS Ltd is an infrastructure company focused on water supply and sewerage projects. It undertakes EPC and HAM-based works, mainly for government bodies. With strong execution capabilities and a growing order book, EMS benefits from rising investments in urban infrastructure, particularly under schemes like AMRUT, supporting its long-term growth visibility.
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