# 1. Financial Performance ## A. Key Figures * Revenue: ₹1,738 Lakh consolidated Q2 FY'26 (+117%) · ₹3,800 Lakh consolidated H1 FY'26 ## B. Profit Margins * **Exceptional Margin Expansion:** Record EBITDA and net margins driven by high-margin project execution, with structural advantages over peers in GPM (~70%) and EBITDA margin (22%). * **Sustainable Profitability Framework:** Target EBITDA margins of **25%–30%** and net margins of **17%–20%** supported by disciplined project selection and cost management. * **One-Time Gain Exited:** Prior year’s PAT significantly boosted by one-time other income (~60–65%); current year reflects normalized, operationally driven earnings. ## C. Balance Sheet Strength * **Clean Capital Structure:** Forfeiture of warrants treated as balance sheet adjustment (credited to capital reserve), with no P&L impact, preserving earnings quality. ## D. Cash Flow & Funding * **Flexible Funding Model:** Projects financed via equity, debt, and internal accruals; strong banking relationships ensure access to additional debt if needed. * **Working Capital Dynamics:** EPC-heavy mix elevates near-term working capital needs (6–8 month cycle, retention payments after 8–9 months), expected to ease as BOOT projects scale. --- # 2. Order Book & Project Mix ## A. Key Figures * ₹1.43 Cr EPC order (steel sector, 75 KLD ZLD plant) * **Turnover Guidance:** ₹110–130 Cr total project target (current year) · ₹60–70 Cr from EPC projects * **Client Contribution:** **20–30%** of investment in BOOT projects contributed by client ## B. EPC vs BOOT Projects * **Strategic Model Selection:** Project execution spans EPC, BOOT, BOO, O&M, and PPP models, with model choice driven by **contract terms, counterparty strength, and long-term O&M potential**. * **Margin & Capital Trade-off:** EPC delivers **higher margins with lower capital intensity**, while BOOT requires greater investment but secures **recurring operational revenue**. * **Integrated Service Expansion:** Recent EPC win includes post-commissioning **O&M component**, reinforcing hybrid value capture. ## C. Order Inflow Trends * **Growth Trajectory:** FY '27 expected to outperform FY '26, reflecting **strong order momentum** and scaling execution capacity. * **Order Book Stability:** Current backlog **in line with March levels**, with visibility into Q4 performance supported by large EPC project execution. * **Organic Deal Sourcing:** New orders driven by **tenders, client expansions, and referrals**, with minimal reliance on formal sales infrastructure. ## D. Contract Value & Duration * **Pricing Flexibility:** BOOT and EPC pricing shaped by **client negotiations, advance payments, and capital structure**, limiting standardization. * **Short EPC Cycles, Long O&M Upside:** EPC phase for recent projects spans **2–3 months**, enabling rapid revenue recognition ahead of **long-term O&M contracts**. --- # 3. Segment & Revenue Streams ## A. Key Figures * **O&M Revenue Contribution:** **35%-40%** of total turnover * EPC EBITDA Margin: 15%-20% * **BOOT EBITDA Margin:** **20%-25%** * **Plastic Recycling Revenue Run Rate:** **₹3–5 Cr/month** (projected) * **Plastic Recycling Margin:** **5%-10%** (estimated) ## B. O&M & Project Model Economics * **Recurring Revenue Base:** O&M contributes a significant and growing share of turnover, underpinned by integrated EPC-BOOT-BOO project models with embedded long-term service obligations. * **Higher-Margin Operations:** O&M and BOOT segments deliver superior margins versus EPC, enhancing overall profitability and cash flow visibility. * **Near-Term O&M Ramp-Up:** Three oil & gas BOO contracts now operational or即将 operational, including a **₹87 Cr** flagship project, driving incremental revenue and margin expansion. ## C. Plastic Recycling Commercialization * **Fast-Track Market Entry:** Expansion into plastic recycling via acquisition of 2–3 operational units in Gujarat, enabling rapid scale and **commercial revenue within FY25**. * **High Turnover, Low Margin Model:** Business expected to generate **₹3–5 Cr/month** with moderate margins, augmented by **EPR credit monetization** for enhanced returns. * **Technology Validation:** Successful production of **virgin-quality granules** from complex waste streams (e.g., Amul pouches) confirms technical differentiation. ## D. Metal Recovery Timeline * **Longer-Term Growth Vector:** Metal recovery remains pre-revenue, with commercial operations anticipated only by **FY27–28**, pending plant commissioning and regulatory alignment. --- # 4. Capacity & Operations ## A. Key Figures * **Oil Processing Capacity:** **100 TPD** (India & Oman) * **Production Area:** **34,260 sqm** (Gujarat & Oman) * **Workforce:** **~485 employees** (company & subsidiaries) * **Active Projects:** **3,500-KLD**, **1,000-KLD**, **1,050-KLD**, and upcoming **4,000-KLD ZLD CETP** ## B. Plant Utilization * **Integrated Operations:** Fully vertically integrated oil processing footprint across India and Oman, covering collection, refining, and end-product generation. * **Dual Capacity Model:** Distinct waste oil restoration (base oil output) and crude oil processing (furnace oil output) streams based on feedstock and product specifications. * **Customized Scaling:** Project capacity is client- and sector-specific, especially in water treatment, with no standardized benchmark due to tailored engineering requirements. ## C. Inventory & Spares * **Operational Readiness:** Elevated inventory levels maintained to ensure uninterrupted operations through strategic stockpiling of **critical spares and consumables**. --- # 5. Technology & Customization ## A. Process Innovation * **Headline:** Founded in **2010** as an eco-tech startup, Felix has evolved into a leading environmental conservation company anchored in zero-waste philosophy and deep-tech innovation. * **Headline:** Growth strategy prioritizes **technical differentiation and branding** over conventional sales, operating with minimal dedicated sales force. ## B. Proprietary Recycling Tech * **Headline:** Core expertise spans advanced oil recycling, hydrocarbon reclamation, and integrated hazardous waste management, enabling circular economy outcomes in oil & gas and industrial sectors. * **Headline:** Proprietary pyrolysis and refining yield high-quality base oils and fuels, turning waste oil and sludge into valuable resources with low environmental impact. * **Headline:** Water stewardship is central, with **ZLD systems**, effluent treatment, and recycling solutions enabling regulatory compliance and sustainable water reuse. * **Headline:** Focused expansion into **high-purity metal recovery** (up to **999% purity**) from hazardous waste—distinctive capability held by only **2–3 players in India**—targeting 9% grade copper and zinc output. ## C. Client-Specific Solutions * **Headline:** Competitive margin advantage driven by **customized process engineering** for complex, non-standard waste streams, differentiating from peers reliant on off-the-shelf technologies. * **Headline:** Consumer-facing innovations include **Rosoft** (household potable water system) and **Aiwasun** (adaptive heat pump for hot/cold water), extending tech platform into home sustainability. --- # 6. Risks & Counterparty Exposure ## A. Capital Intensity Risk * **Execution Model Drives CAPEX Profile:** EPC projects entail significantly lower capital intensity versus capital-intensive BOOT models, allowing strategic alignment with risk appetite. * **Risk-Based Client Selection:** BOOT projects are reserved for financially strong counterparties, while EPC is deployed for smaller or less creditworthy clients, as seen in a recent **₹5 Cr project**. ## B. Project Execution Risk * **Disciplined Project Screening:** All engagements undergo comprehensive technical and financial due diligence by promoters and technical teams to determine optimal execution structure. --- # 7. Guidance & Outlook ## A. Key Figures * Revenue Guidance (FY '26): **₹110–120 Cr** (ongoing execution supports target despite no new orders) * **Projected Revenue (FY '27):** **₹180–200 Cr** (driven by O&M ramp-up; no formal guidance) * **Plastic-Related Revenue (FY '26):** **₹5–7 Cr** (minimal contribution; significant upside expected from FY '27 onward) ## B. Revenue Projections * **Execution Confidence:** Revenue guidance remains intact due to strong progress on existing orders, with project revenues expected to materialize **this quarter and into the next**. * **O&M Growth Trajectory:** O&M revenue set to scale significantly, reaching **60%-70% of FY '26 levels by FY '27**, supported by new projects commencing operations in **April-May next year**. * **Plastic Revenue Inflection:** Plastic recycling to be **incremental to the ₹200 Cr target**, with meaningful contributions anticipated only after full-scale production begins. ## C. Strategic Expansion * **Focused Scaling:** Growth strategy centers on deepening presence in **water treatment, oil & waste services (Oman), government/ONGC projects (Rivita), and effluent infrastructure (Eco-Vision)**—not new sector diversification. * **Capacity-Led Expansion:** Scaling driven by **ongoing project execution and capacity build-out**, with Felix India, Oman, and Rivita collectively targeted to deliver the **₹200 Cr milestone**. ## D. FY27 Growth Expectations * **Oman Phase-II Timing:** Expansion of Oman operations delayed to **next year**, contingent on sustained **month-on-month revenue improvement** from current facility performance.