Synopsis:
Envirotech Systems ltd. is making headlines with its latest Qatar order worth over USD 2,32,000 for the RAS Laffan Port Control Tower project. Backed by solid profits, low debt, and growing assets, the company is steadily scaling its acoustic solutions business while strengthening its global presence.
A niche industrial solutions provider is gaining attention after securing a significant export order valued at approximately USD 2,32,728 from Aluminum Gulf RAY W.L.L, QATAR. The project involves specialized acoustic solutions for the Qatar Energy RAS Laffan Port Control Tower.
The company in focus is Envirotech Systems Limited, currently valued at a market capitalization of Rs. 256.95 crore. The stock opened today at Rs. 126.95, slightly above its previous close of Rs. 126.55, and surged to an intraday high of Rs. 138.50, reflecting a gain of approximately 9.44 percent from the previous close.
What’s the News?
Envirotech Systems has secured a foreign purchase order from Aluminum Gulf RAY W.L.L, Qatar, for the supply of horizontal acoustic louvers and vertical blade sand trap louvers.
The order, valued at approximately USD 2,32,728 (around Rs. 2 crore), is meant for the Qatar Energy RAS Laffan Port Control Tower Project and is expected to be completed within 10-12 weeks from the date of drawing approvals post receipt of PO.
Financially, Envirotech Systems reported an increase in sales from Rs. 46 crore in March 2024 to Rs. 48 crore in March 2025. Net profit grew from Rs. 11 crore to Rs. 14 crore over the same period. The company’s EPS stands at Rs. 7.48. However, operating margins saw a slight dip, with the OPM recorded at 32 percent.
Envirotech maintains strong profitability ratios with a Return on Capital Employed (ROCE) of 39.2 percent, Return on Equity (ROE) of 33.7 percent, and Return on Assets (ROA) of 23.5 percent. The company’s Debt-to-Equity ratio is a conservative 0.13, highlighting minimal financial leverage.
The company’s total assets doubled, rising from Rs. 39 crore in March 2024 to Rs. 81 crore in March 2025, while net cash flow turned positive at Rs. 4 crore. Primarily, compounded profit growth over the last three years stands at an impressive 137 percent.
Additionally, the company had earlier received a significant service order from Hitachi Hi-Rel Power Electronics Private Limited, a Hitachi group company, for the supply and installation of an acoustic enclosure project worth Rs. 1.51 crore. These back-to-back contracts underline the company’s expertise in tailored acoustic solutions for both domestic and global clients.
Strategic Outlook
Envirotech is currently expanding its production capacity with a new manufacturing facility partially operational as of mid-June 2025 at 40 percent utilization, with full capacity targeted by December 2025.
The plant, with a covered area of 1 lakh sq. ft., involves a total capex of approximately Rs. 35 to 37 crore, funded through a mix of IPO proceeds and internal accruals.
The management expects to ramp up plant utilization significantly in FY26, targeting revenue of Rs. 100 crore for the year, with an eventual capacity to scale up to Rs. 200-250 crore per annum.
The company has an active order book of Rs. 22-25 crore as of March 2025, complemented by a robust project pipeline of Rs. 80 crore. Management expects around Rs. 30 crore worth of orders to convert by July 2025, supported by a 30-40 percent bid conversion rate. Execution timelines typically span one quarter plus an additional month, although government and defense orders may extend depending on site readiness.
About the Company
Envirotech Systems Limited is a prominent manufacturer of noise control products and customized acoustic solutions in India and abroad. The company specializes in acoustic enclosures for turbines, compressors, centrifugal blowers, cooling towers, and industrial machinery.
Approximately 20-25 percent of the company’s revenue is derived from these enclosures, with the remainder coming from a diversified set of customized projects. This diversification, coupled with strategic expansion and solid financial management, positions Envirotech well for long-term growth.
Written by Manan Gangwar
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