Sattva Engineering Construction Ltd is a specialist that builds and runs the hidden plumbing of India’s cities - water treatment plants, sewage networks, and underground drainage - for government bodies that own the pipes but not the expertise. Founded in Chennai in 1985 and listed on the National Stock Exchange as SATTVAENGG, the company has spent four decades evolving from a local subcontractor into a direct contractor for municipal authorities such as Chennai’s water board (CMWSSB) and Bangalore’s water board (BWSSB), with an order book of roughly INR447 crores across 13 projects as of mid-2026. Its recurring approach is to win competitively tendered government work at the lowest price, execute it with an in-house engineering team that reduces reliance on outside consultants, and then lock in years of steady operations-and-maintenance income once the plant is built - a model that turns one-off construction wins into multi-year revenue streams. # Business segments A single engine with five complementary verticals - water storage, underground sewage, water treatment, sewage treatment, and long-term operations - plus two small allied re-entries, all serving the same government clients from the same execution base. ## 1. Water and wastewater EPC and O&M: the core government-infrastructure engine **The company designs, builds, and then operates water and sewage plants for municipal authorities, earning a construction fee upfront and a recurring maintenance fee for years afterward - often on the same contract.** - **End-to-end control, from drawing to maintenance** - the company runs an in-house engineering and design team that handles everything from initial plans through commissioning, which cuts dependence on third-party consultants and keeps quality under its own roof; quality-control managers run regular inspections and tests across sites. - **Five verticals under one roof** - the work spans Water Storage & Supply (overhead tanks, pump houses, pipeline laying), Underground Sewage Systems (sewage pipelines, manholes, collection wells), Water Treatment Plants (clarifiers, sand filters, chlorinators for river or lake water), Sewage Treatment Plants (SBR basins, sludge digesters, biogas tanks), and the O&M that follows. - **Built, then operated for a decade** - many contracts follow a design-build-operate-transfer (DBOT) model, so a single project delivers both an EPC construction payment and a 10-year O&M income stream; the company currently has two sewage treatment plants under O&M and a flagship 47 MLD water treatment plant in Surapet, Chennai, with a 10-year O&M tail worth INR106 crores in total. - **Government clients, government-funded schemes** - customers are quasi-government bodies like CMWSSB, BWSSB, and Hosur City Municipal Corporation, and projects are often partly funded by central programmes such as AMRUT, Jal Jeevan Mission, and Smart Cities Mission, which means the order pipeline is tied to public spending cycles rather than private capital. - **Bigger projects, less competition** - the company has executed plants ranging from 12.5 MLD to 60 MLD and deliberately bids for higher-capacity work where fewer competitors show up, giving it better margins and economies of scale; in FY26, the mix shifted toward higher-margin STP and WTP work and away from lower-margin water-supply contracts. - **South Indian base, now pushing north** - historically concentrated in Tamil Nadu, the company won its first Karnataka order in FY26 (an odour control unit for BWSSB in Bangalore) and has since secured INR127 crores of Karnataka work, with a purchase order for engineering services in Uttar Pradesh marking its entry into the northern states. ## 2. Odour control systems: a small bolt-on to the sewage business **A niche line that puts scrubbers on sewage pumping stations to stop the smell - sold to the same municipal clients that already buy the company’s sewage plants.** - **Cross-sold to existing customers** - the company leverages its relationships with water and sewage authorities to win odour-control work alongside its core STP contracts, treating it as an allied service rather than a standalone business. ## 3. Industrial and utility building: a tentative re-entry **A small vertical building factories and institutional structures in South India, restarted in FY26 after a period of dormancy.** # Group structure and partners **The company is promoter-led, debt-light, and operates without subsidiaries - it goes to market alone or in project-specific consortiums.** - **No subsidiaries, no joint ventures** - as of March 2025, the company had no associate companies or subsidiaries, keeping its structure simple and its balance sheet unconsolidated. - **Consortium partners for specific bids** - for larger or specialised tenders, the company teams up with partners such as JSR Infra Developers, as it did for a 46 MLD STP at Koladi, Tamil Nadu, under a DBOT model. - **Promoter-operators with skin in the game** - the three promoters, S. Seshadri, R. Sekar, and Jagachchandarr Sekar Uthra, together hold over 85% of the company and are working directors with more than three decades of industry experience each, actively running day-to-day operations. - **Banking and asset base** - the company banks with Union Bank of India and HDFC Bank, operates from an owned office on Greams Road in Chennai, and carries a net debt-to-equity ratio of roughly 0.2 as of FY26, down from 0.8 the year before.