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View Promises →Ems Ltd — Q3 FY26
EMS Ltd reported a weak Q3 FY26, with revenue and PAT significantly below expectations due to extended monsoon in Uttarakhand and delayed project starts.
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EMS Ltd reported a weak Q3 FY26, with revenue and PAT significantly below expectations due to extended monsoon in Uttarakhand and delayed project starts. Management cited 15-20 days of work loss from natural disasters and 50% of the order book (₹1,100 Cr) in design phase, incurring costs without revenue recognition. PAT margin for the quarter fell to ~10%, though 9-month PAT margin remains at 15.86%. Order book stands at ₹2,200 Cr with a bidding pipeline of ₹4,000 Cr. Management guided for Q4 improvement but cautioned full recovery only by Q1 FY27. Key risk: continued execution delays and margin compression from competitive bidding and project ramp-up costs.
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Execution delays from new project ramp-up
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Read Transcript →Quarter Snapshot
Order Book
₹2,200 Cr
+40-50% expected by Q1 FY27
Unexecuted order book as of Dec 2025; management expects growth to ~₹3,000 Cr by Q1 FY27.
Bidding Pipeline
₹4,000 Cr
N/A
Current tenders under evaluation, including Delhi Jal Board projects worth ₹2,000 Cr.
Promoter Pledge
28%
+17pp from 11% in Q1 FY26
Promoter pledged shares increased to 28% due to personal loan of ₹210 Cr; reduced to ₹140 Cr outstanding.
Unbilled Revenue
₹283 Cr
N/A
Unbilled revenue as of Dec 2025; expected to convert to billed revenue as projects progress.
What Changed vs Last Quarter
NEW
Q4 FY26 PAT margin above 15%
Management expects PAT margin for full FY26 to be above 15%, implying a strong Q4 recovery from Q3's ~10%.
NEW
Order book to reach ~₹3,000 Cr by Q1 FY27
Current order book of ₹2,200 Cr expected to grow by 40-50% in Q1 FY27, driven by new project wins.
NEW
Promoter pledge to be reduced to zero by FY27 end
Outstanding personal loan of ₹140 Cr to be reduced to ₹100 Cr by Q4 FY26 and fully repaid in FY27.
DROPPED
Full-year revenue growth of 20% over FY25
Management reaffirms 20% annual growth, targeting ~₹1,150 crore revenue for FY26.
DROPPED
PAT margin to remain at 18-19%
Historical PAT margin of 18% ±1% is expected to be maintained for FY26.
DROPPED
H2 revenue to be double H1
Management expects H2 revenue of ~₹740 crore, more than double H1's ~₹411 crore.
DROPPED
Order inflow of ₹500-600 crore in FY26
From the ₹4,000 crore tender pipeline, management expects to win ₹500-600 crore in new orders.
NEW RISK
Execution delays from new project ramp-up
50% of order book is in design phase; revenue recognition may be delayed further if approvals or site readiness slip.
NEW RISK
Margin compression from competitive bidding
Management noted increasing competition and guided PAT margins may settle around 15% vs historical 18-20%.
NEW RISK
High promoter pledge and personal debt
Promoter pledge rose to 28% from 11% in two quarters; personal loan of ₹210 Cr raises governance concerns.
RISK GONE
Monsoon disruption recurrence
Heavy rains in Q2 severely impacted execution; changing monsoon patterns could affect future quarters.
RISK GONE
Competitive pressure on margins
Analyst noted historical PAT margins of 24-25% have declined to 18-19% due to increased competition in government EPC projects.
RISK GONE
Order book execution risk
Despite large order book, only 45-50% is typically executed annually; any delay could impact revenue guidance.
Fast read
Guidance and risk preview
Management expects PAT margin for full FY26 to be above 15%, implying a strong Q4 recovery from Q3's ~10%.
50% of order book is in design phase; revenue recognition may be delayed further if approvals or site readiness slip.
View Risks →