The shares of a Small-Cap company that specializes in engineering, procurement, and construction (EPC) and turnkey services for water and wastewater management, including collection, treatment, and disposal facilities, are in focus after rallying 11 percent in the day’s trade upon receipt of the Big Rajasthan Sewage Project.
With a market capitalization of Rs. 2,204.02 crores in the day’s trade, the shares of EMS Ltd rose upto 10.2 percent, making a high of Rs. 409.95 per share compared to its previous closing price of Rs. 371.95 per share.
What Happened
EMS Ltd. has been awarded L-1 (Lowest Bidder) by the Directorate of Local Bodies, Government of Rajasthan for a Sewerage project having an order value of around Rs. 218.65 crores including GST.
The project consists of sewage and septage management, which includes constructing sewage treatment plants (STP), laying, joining, testing, and commissioning of the sewerage network in six Urban Local Bodies (ULB).
The work will be executed across the Ganganagar, Hanuman Nagar and Churu districts of Rajasthan. The project has an execution period of 18 months, along with a 1-year defect liability period and 10 years of operations and maintenance (O&M).
The order is given by a government body from within the country, and according to EMS, there is no promoter or interest from group companies in the awarding government body. The company will provide more information upon receipt of the Letter of Award (LOA).
Check out its Orderbook Details
In Q1 of FY27, EMS Limited has won order bookings to the tune of about Rs. 317 crores, with another Rs. 158 crores of orders booked so far in Q2. EMS Limited also holds L1 status for an order from Varanasi worth more than Rs. 100 crores.
As of July 2026, EMS’ order backlog was Rs. 2,329 crore, which gives good revenue visibility. There are more conversions expected from the bid pipeline for the current quarter, coming after the previous pipeline of Rs. 2,500-Rs. 3,000 crore in Delhi and Maharashtra.
Financials & Others
Revenue from Operations decreased by 34.3 percent YoY, from Rs. 239 crore in Q1 FY26 to Rs. 157 crore in Q1 FY27. It increased by 30.8 percent QoQ, from Rs. 120 crore in Q4 FY26 to Rs. 157 crore in Q1 FY27.
The company’s Net Profit decreased by 60.5 percent YoY, from Rs. 38 crore in Q1 FY26 to Rs. 15 crore in Q1 FY27. It also increased by 150 percent QoQ, from Rs. 6 crore in Q4 FY26 to Rs. 15 crore in Q1 FY27.
The company’s ROCE stands at 12.5%, while ROE is 8.91%, indicating moderate returns on capital and equity. Its debt-to-equity ratio of 0.15 reflects low financial leverage and a relatively conservative capital structure.
EMS Ltd is an Indian company dealing in infrastructure activities such as water management, sewerage, STP (sewage treatment plant), and related infrastructure projects. The company executes projects for governmental organizations and urban local bodies.
The firm also offers operation and maintenance services for water and wastewater utilities. The company’s operations have been backed by an increasing order book, which includes projects in sewerage systems, water treatment and urban infrastructure development among others.
Quarterly phasing guidance (FY’27)
Management is forecasting revenue growth in Q2 FY27 to be roughly 30%-35% above Q1 FY27, even as management has mentioned that Q2 will continue to be the weakest quarter for the entire fiscal year.
Quarter-on-quarter growth of more than 50% is expected for Q2 and thereafter, signaling an acceleration of business activity in the second half of the year. Q4 will be the strongest quarter in FY27.
Management is expecting revenue of Rs. 900-950 crore for FY27, which is in line with the FY25 level of revenue. Although there is a substantial need for H2 revenue, management was confident of providing that level of Q3 and Q4 performance.