Ladies and gentlemen, good day and welcome to Antony Waste Handling Cell Limited Q4 FY 2026 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Subramanian N.G., Group CFO from Antony Waste Handling Cell Limited. Thank you, and over to you, Mr. Subramanian. Thank you. Good afternoon, everyone. Thank you for joining us for our Q4 FY 2026 earnings conference call. I'm joined today by our investor relations advisors, SGA. Our investor presentation for Q4 FY 2026 is now available on the stock exchanges and on the company's website. Before I turn to our performance, I want to step back and acknowledge the singular significance of FY 2026, a year that marks 25 years of Antony Waste's journey in transforming India's waste management landscape. What began as a modest vision a quarter century ago has evolved into a scaled, purpose-driven platform serving millions of citizens, enabling cleaner cities, and contributing measurably to India's sustainable future. That transformation was not built in a boardroom. It was built by the trust of our customers, the partnership of our clients, and the relentless commitment of over 10,000 employees, vendors, and support staff across the country. To each one of them, I extend my deepest gratitude. In recognition of this milestone, the Board has recommended a maiden dividend of INR 0.5 per equity share. That is 10% of the face value of INR 5. This reflects our confidence in our financial position and our commitment to rewarding shareholders while preserving the capital needed to fund our next phase of growth. Across FY 2026, we made deliberate high-quality additions to our platform that meaningfully expand our long-term earnings power. We entered the EPR business and monetized nearly 20% of our allotted EPR credits in the first year of PCMC WTE operations, a strong initial proof point. We secured two Waste-to-Energy projects in Andhra Pradesh, two new collection and transportation contracts in Mumbai, and a pre-processing solid waste facility in Thane. Our strategic partnership with Japan's JFE Engineering for WTE development in Andhra Pradesh further deepens our technology edge, and the successful merger of AG Enviro Infra Projects into the company has strengthened our operational integration and long-term capability base. FY 2026 was a year of broad-based volumes growth across our platform. The C&T volumes grew approximately 9% year-on-year to 2.12 million tons, while processing volumes expanded approximately 19% to 3.6 million tons, driven by new project additions, contract renewals, and the continued scaling of our biomining and RDF operations. Total MSW managed for the year rose by 15% to 5.69 million tons. In Q4, the momentum was particularly strong in processing. Volumes rose by 32% to 1.15 million tons, reflecting improved utilization at our biomining and MRF facilities. Total quarterly MSW handled grew 23% to 1.67 million tons. Our PCMC, that's Pimpri-Chinchwad Municipal Corporation's waste-to-energy facility, delivered 69.3 million units of green power in FY 2026 and helped avoid approximately 10,000 tons of equivalent carbon dioxide emissions during the year. This consistent performance validates our technology and execution capability in WTE projects. During the year, the company had approximately 90 days of planned and reparative shutdown, which reflected in a lower PLF of 56%. Post the maintenance period, our plant has been operating at approximately 86% PLF consistently. Our construction and demolition recycling facility continued to lead the sector with a 96% recycling rate. Annual RDF sales reached a record 177,000 tons, up 20% year-on-year, further diversifying our non-municipal solid waste revenue base. FY 2026 operating revenue reached INR 920 crore, which is up 9%, while Q4 operating revenue came in at INR 254 crore, up 14%. Growth was underpinned by higher volumes, contractual tariff escalations, and consistent execution across our project portfolio. A milestone worth highlighting, our core operational revenue, including project revenue, crossed INR 1,000 crore for the first time, a meaningful threshold that reflects the scale we have built over the last 25 years. From a broader operational perspective, the C&T revenue for the entire year is up by 11% to INR 646 crore. Processing revenue is up by 5% at INR 274 crore. The Q4 performance was equally solid, C&T at INR 160 crore, up 14%, and processing at INR 94 crore, which is up by 15% year-on-year. EBITDA margins held at around 22% for both Q4 and for full year, in line with our stated guidance, reflecting disciplined cost management even as we invest in scale. Our profitability for the fourth quarter stood at INR 37 crore, and for the full year, the reported profit after taxes was INR 92 crore. It is important to note that both Q4 FY 2025, that's last year, and for FY 2025, the full year of last, included one-time income of INR 24 crore. Adjusted for `this exceptional line item, the Q4 PAT is up by approximately 67% year-on-year, and for the full year, PAT has risen by 20%, demonstrating strong underlying earnings momentum. On the balance sheet front, as of March 2026, the group's gross debt stands at approximately INR 426 crore. Cash and bank balances is around INR 123 crore, resulting in a net debt of approximately INR 302 crore. Our net debt to equity stands at 0.3x, and the weighted average cost of debt is around 9.9%. The DSOs for the quarter was around 108 days. Our order book as of March 2026 stands at an all-time high of INR 18,000 crore, providing exceptional revenue visibility, underpinning our confidence in sustained compounding growth ahead. Before we open for Q&A, I want to flag a significant development in Q1 FY 2027. The Honorable Supreme Court dismissed the Bhiwandi Nizampur City Corporation's special leave petition in the longstanding Bhiwandi arbitration matter, thereby directing the corporation to disburse the settlement amount of INR 15 crore within three months with an interest of 9% on any delay. This favorable ruling reinforces our track record of contractual compliances and gives us added confidence in the resolution of remaining arbitration matters. Looking ahead, we remain focused on driving sustainable growth through disciplined execution, operational excellence, and continued innovation. Supported by a record order book, a growing project portfolio, and expanding opportunities across the waste management value chain, we are well-positioned to capitalize on the sector's long-term potential. We remain confident of delivering 15%-20% revenue CAGR over the next five years, backed by a record INR 18,000 crore order book, two large-scale WTE projects in Andhra Pradesh, an expanding EPR platform, and India's secular tailwind in urban waste infrastructure, all while deepening our sustainability impact and creating long-term value for all our stakeholders. We will now open the floor for questions. Thank you. Thank you. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ronak Shah with Equirus Securities. Please go ahead. Yeah. Thanks for the opportunity and very solid set of numbers. My first question is regarding the top-line performance. When we are guiding 15- odd% top-line CAGR expectation, I feel, based on the contractual term, you will see a significant bump in FY 2028, 2029 with the new waste-to-energy plants coming in. From the working capital perspective and the debt component perspective, how you are seeing that aspect? Secondly, considering the current macro environment, wherein the fuel cost is rising up very rapidly. On top of that, in certain states, the minimum wage hikes are there. I do consider that we apply for the escalation and all. Considering the near-term pressure, how we are going to see our operating profitability, wherein we are having a long-term aspiration of 20%-22% EBITDA margin. These are my first questions. Thanks, Ronak. On the ability to raise debt and working capital for our upcoming projects, our net debt to equity today is just 0.3X. That gives us enough firepower to borrow more for our upcoming projects, which have assured revenue streamlines and also are backed by long-term contracts. Both the WTE projects come with a firm commitment from JFE, our technology vendor, and it comes at a fixed-term cost contract for us. Thereby, the cost overrun element has been captured well, and the time overrun is also well within the nature of the business in this case. Financially, I think we are in a much sweeter spot today than what we were in during the pre-COVID times. Our ratings are strong. We have an A- rating at the key downstream subsidiary level. We are BBB- at the listed entity level. Those give us added strength, and our cost of borrowing today is sub 10%. Going forward, we will be able to leverage more for prospective projects. That should take care of our requirement. Coming back to your second point on the rising fuel cost, additive cost, and labor cost. All my projects, 100% of my revenue has escalation built into the system. If minimum wage changes, as has been changed in the labor code that we have seen recently, it just had an implication of just INR 5.2 crore for my entire books as compared to other large infra companies. We have been well cushioned on that front. Our escalations are time bound, and though there is a delay in realization, but the same is accepted and acknowledged by the clients. There might be a delay in realizing the cash flows, but the debt is acknowledged, the liability is acknowledged by the clients as per the tender conditions and is contractual, and that comes to us in due course of time. That kind of helps us maintain this margin profile of 20%-22% for us. Yes. Also, that's something I'm asking for. In the near term, are we sensing any margin pressure on reported basis? Though I do consider that on a rollover basis, you will get the approvals and have a one-off impact on that. We don't expect a timing mismatch significantly because these are set projects and set tenders. The reason for a delay in the past was the absence of standing committees and elected members. That led to a significant delay in recognizing the escalations. Now, most of the municipal corporations have elected members, so this is a procedural aspect of the project life. If you were to look at the books pre-COVID times, the escalation was recognized every quarter or every half yearly as and when it was due. Now that has been rectified, so we don't expect significant delays on recognitions going forward. Understood. My second follow-up on your waste to energy plant. What is the status of the escalations, what we have touted for? Secondly, are there any updates on the waste to energy at your Mumbai operations? The Waste-to-Energy project, which is ongoing, which is a Waste-to-Energy at Pimpri-Chinchwad. The escalation has already been computed, and we already got an escalation due for FY 2025, FY 2026. The next round of escalation is due from March 2026 onwards, for which we have already submitted our documents, and that will be approved in the upcoming meeting of the client. That is coming to us every quarter. That is not an issue on the WTE front. On the Mumbai Waste-to-Energy part, I think this matter is being taken very seriously at the Bombay High Court, which has been looking at a long-term sustainable solution. I believe the corporation here would be coming back with a proposal of setting up a WTE in the near future. Understood. That's it from my side. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Ketan Chheda. An individual investor, please go ahead. Hi. Thank you for the opportunity. My question is, sir, when we look at the volumes, the volumes have increased significantly, but the revenue increase is not equivalent to that. Can you help explain the difference? If you look at the volumes jump, that's mainly coming from the CIDCO biomining project, which is a fixed-term contract. The entire revenue jump is not commensurate to the volumes jump, as the growth in revenue was mainly because of the CIDCO biomining. If you look at the non-CIDCO biomining revenue zone, that has been up by around 8%, which is what the underlying revenue growth is. Just a follow-up on that question. How much proportion would be of your entire volumes from the CIDCO biomining? That would be close to 22% in the last quarter. Okay. All right. The other question is, this monetization of EPR credit that you have done, how much is the value for that from the sale of those EPR credits? We recognized close to INR 2.2 crore of the EPR credits that was eligible for us, earned in FY 2025. 2025. That's the amount. It's not a significant amount today, but once the pattern is set and we are able to quantify that will add close to 10% of our PCMC WTE's revenue. 10% of PCMC WTE revenue? Yes. Okay. Last question is, your long-term debt has reduced by a good amount. Can you help us? What helped us reduce this debt? Is it the cash flow that we generated from the business or some other reasons? Normally the pay-down comes from our operations only. If you look at the cash flow from operations before working capital, we earned around INR 220 odd crore, and we used part of it to repay our debt during the year. The total financing impact was INR 93 crore. We have a very aggressive policy in paying down this debt so that we can then have a healthy cash cushion for future upcoming projects. All right. Thank you so much, and wish you all the best for your future endeavors. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Neerav Dalal with MIB Securities India. Please go ahead. Mr. Dalal, please go ahead with the question. Mr. Dalal, please unmute yourself and go ahead with the question. Since there is no reply from the line of Mr. Dalal, we will move to the next participant, and that is from the line of Arjun Agarwal with FDA Advisory. Please go ahead. Am I audible? Yep. Yeah. Thank you for giving me this opportunity. I have two questions. My first question is, could you share the contribution of the C&D business for the quarter as well as the full year? Also, what kind of contribution do you expect for this segment in FY 2027? My second question is, currently, a large portion of our revenue comes from municipal corporation. Are there any plans to diversify the revenue mix over the coming years? If yes, what areas or segments are you focusing on? All right. The C&D revenue for FY 2026 was up 11% at INR 646 crore, and for processing it's up 5% at INR 274 crore. For Q4, the C&D was INR 160, processing was INR 94. Going forward, the non-municipal revenue streams for us is strongly skewed towards RDF sales, compost, getting into recyclables, and EPR. That's the revenue stream that we are seeing. We also have a new business line called Click2Clean, which is part of the Antony Recycling, which is more into the B2B segment, which is into small-scale pest control, recyclables, and deep housekeeping clients. Has currently got clients like P. N. Gadgil, Asian Paints, your Suntory wines, Beam Suntory. That is another small revenue stream that we are looking at. These are our attempts to improve our non-MSW stream. Going forward, revenue from sale of power to DISCOMs from the AP projects will also add into this bucket. Okay. Thank you, sir. Understood. Wish you all the best for your future endeavors. Thanks, Arjun. Okay. Yeah. Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Neerav Dalal with MIB Securities India. Please go ahead. Hello. Hi, Neerav. Yeah, hi. A couple of questions from my end. The INR 18,000 crore of order book that you mentioned, could you give us a split in terms of the three segments? That is number one. The second thing related to that would be, what would be the CapEx requirements for achieving that INR 18,000 crore of revenues? INR 18,000 crore revenue split will be broadly 60% would be processing, the balance 40% would be C&D businesses for us. That's the revenue split at that end. The incremental CapEx would be the CapEx related to my processing contracts largely. That's around INR 750 odd crore of CapEx that I would need to invest to achieve this growth, because bulk of the C&D operations, excluding the BMC's two contracts, have already been funded and the revenues is already coming in. The incremental CapEx is mainly for the new projects, which is the [Hadveli] processing, the two WTE projects at AP and the BMC two C&D contracts. Got that. Largely INR 750 crore plus a couple of C&Ts in Mumbai. Yeah. Yeah. Okay. In terms of the C&T projects in Mumbai, what would be the size of those projects? I think it's a INR 1,000 crore revenue stream spread over 10 years. That's why a INR 1,000 crore is what we look to achieve per year. That will be the annual run rate for the BMC contracts. Got that. The third question is regarding the deferred tax asset that has been created this year. Could we get an explanation in terms of how it was created? Is there any milestone related to this? How should we look at the tax rates going up? Actually, the two things happened, which kind of led to this number. The INR 19 crore of tax reversal that you see is mainly because of INR 8 crore of tax on undistributed profit, which has to be returned back due to the merger of AG Enviro into Antony Waste. That's a one-time line item. The second would be the INR 3 crore tax provision that we have created at our Section 80-IA, Antony Lara SPV, which enjoys MAT and there was incremental CapEx that was done. There is a INR 3 crore of excess tax provision being returned back. Those were the line items that led to the deferred tax thing coming in. Going ahead, then what would be the approximation? I think 25% is our stated assumption of effective tax rate for the group companies. Okay. Thank you. Thank you. A reminder to all the participants that you must press star and one to ask a question. Next question comes from the line of [Jug Moody], KP Capital. Please go ahead. Hello. Hi, sir. Thank you. Sir, if we look at company's performance over the last five years, both revenue and EBITDA have grown steadily while the PAT has remained relatively flat. Could you help understand the key reasons behind it and how can the PAT growth be going forward? One of the key factors why the translation of the growth in EBITDA is not translation into the growth in PAT is interest and depreciation. Over the last three years, our WTE plants have kicked in, the three large C&D contracts also kicked in. Those were the reasons why the interest and depreciation were slightly larger than in the previous six years of operations. Going forward, if status quo were to be maintained, the translation EBITDA higher PAT is definitely on the till. With the two WTE projects that we have envisaged of KP will start contributing to revenue post FY 2029. That will kick in post 2029. The difference is mainly because of higher interest and depreciation for assets that were built, capitalized, and now revenue generating. Okay. Sir, lastly, can you provide any like any recent bid or tender that the company has participated in? We have bid for three collection and transportation contracts in the northern part of the country. There is one waste to energy project that we are looking at in the southern part of the country. That's the projects in pipeline for us. I mean, the bidding stage that is. Okay. Sir, that answers my question. Thank you, sir. Thank you. A reminder to all participants press star and one to ask a question. Next question comes from the line of Prashant Singh with MB Securities. Please go ahead. Hello. Good afternoon, sir. Sir, I had two questions. First one was, we have seen our employee expenses and other expenses increase by around 19% and 17% respectively during FY 2026. Could you help us understand the key reasons behind the increase? Second was during some decline in EBITDA margins this year. Could you share some light on the factors what impacted our EBITDA margins and how should we think going forward about our EBITDA margins? Hi, Prashant. The 19% and 20% increase is in labor and other expenses. The headcount has increased at the labor count and also because of normal wage inflation that has occurred over our system and the minimum wage changes that's happened. That has led to a significant increase in the wage bill a bit on a year-on-year basis. Other expenses also includes a major chunk of RDF transportation cost and hiring expenses, which have increased over the last two quarters because of higher transportation is volumes driven. We sold around 177,000 tons of RDF, so that has resulted in higher transportation costs, and that sits in the other expenses line item. On the EBITDA front, I think there were two key factors which has kind of led to a slight softness on a year-on-year basis. One is the volumes of the construction demolition waste sector is just picking up. The monsoon in Mumbai had a longer stay. It ended up only post-November. The volumes was a drag on the numbers because the cost factor is different in the construction demolition waste entity. Also we incurred certain additional vehicles being deployed at Nagpur, Noida and in PCMC because of higher tonnage, which has reflected in slightly higher cost and hiring costs, which has led to a softer EBITDA because of these three factors. Yeah, understood, sir. That was helpful. That's all from my side. Thank you. Thank you. A reminder to all the participants that you must press Star and one to ask a question. Next question comes from the line of Ronak Shah with Equirus Securities. Please go ahead. Yeah, thanks for the follow-up. Sir, my question is regarding our C&D business. What was the quantum of revenue we have recognized in FY 2026 and how we are seeing the scale-up of that? Secondly, it's been long when we are aspiring for our scrappage or the recycling business. What is the status of that? Yeah. On the construction and demolition, I think it contributed to around INR 9 crore of our revenue this year. It's been lower than what we had anticipated. We expect an uptick in the current year, which from February onwards, the volumes have jumped. We are averaging around 480 tons- 520 tons per day as compared to 280 tons- 300 tons in the previous eight months. That has been a significant uptick at that end. In the auto tire recycling and the scrapping businesses, I think the kind of volumes that we're looking at, the institution demand has not kind of captured our expectation. I think it's more of a wait and watch for us till the time the industry stabilizes before we invest incremental capital into a revenue generating mode. Understood. That's it from my side. Thank you. Thank you. A reminder to all the participants that you may press star and one to ask a question. Next question comes from the line of Neerav Dalal, MIB Securities India. Please go ahead. Thank you again for the opportunity. In terms of the C&D, what has changed, which has led to the doubling of the volumes, and is this the volume that we should look at or we will see incremental volume increase over this? That is the first question. The second question is in terms of the INR 750 crore of CapEx that we will do for the Andhra projects. I assume that we will be booking those under contract revenue over the next two years. Is my assumption right, or there would be any changes? Yeah, Neerav, I think your assumption is right. The total CapEx of INR 650 odd crore-INR 700 odd crore will be captured to the contract revenue, contract costing model. That's the pattern that will follow over the next two and a half years. That's how it will move on. What has happened on the construction and demolition waste has been a very strong policy change at the BMC, wherein they have made it mandatory that for all the developers to route their waste through only professional or authorized collection and distribution of the C&D processing units. That push has really changed the way the processing volumes have improved, and that is going to stay for long. This was to be done almost a year back, but because of lack of available elected members, procedural delays, the volumes was not up to the mark. Now things are in place. There are rules and regulations around disposal of construction, demolition waste. That is translating into higher volumes, and that is what we can see today. It would not be wrong to assume that in the current year, we would be doing about INR 18 crore- INR 20 crore on the C&D business. That's a very fair assumption, and the underlying volumes today definitely provide us comfort on that front. Correct. Just in terms of the INR 700 crore that will be booked on the contract revenue side. It will be fair to assume that it will be largely backended. I guess FY 2028 and first half of FY 2029, if there is any delay in the commissioning. That would be the right assumption. Yeah. It's normally spread in 40%-60% kind of a ratio in year one and year two. Okay. That should be the fair approach. That should be the way to get it. In the current year, we've also booked about INR 160 crore of contract revenues. What should be our assumption on this number in the coming years? I think we are in the first quarter. Maybe by second quarter onwards, there will be a slight uptick in the numbers because post-monsoon is where we'll see a lot of action happening at the ground level. When we talk about the entire 40%-60% spread in year one and year two, we're talking about calendar years here because we have 24 months of construction period. Maybe a part of that will come in the current financial year, a large chunk of it can fall into the next financial year and thereafter. No, right. The INR 160 crore that we've booked in the current year, so FY 2026, none of that would be for the new project, right? No, none of that is for the new project. Correct. I just wanted to understand, would we see a similar quantum in the coming years on an annual basis, or this number should frankly come down? The entire amount is not sitting as project costing. There's also a decent amount of revenue from sale of MRF compost and revenue from mechanical sweeping, which sits in part of this bulk number. Perfect. I would say around not more than 25% will be contract revenue and you are right, that will not be present in the current financial year, but 70% of that will continue in the current financial year because they belong to different revenue heads. Different projects. Okay. Got that. Thank you. Sure. Thank you. Next question comes from the line of Nishita Shanklesha, Sapphire Capital. Please go ahead. Yes. I just had two questions. I just wanted to know the INR 18,000 crore of order book that we have. What is the execution timeline for that? So I think this is--the next-- Most of our contracts are either seven years old or they're 20 years old. I would say 40% of the revenue will be executed in the next five to seven years period of time because they are C&T operations. The balance will be spread over the period of time for the next 15 years. Okay. Understood. Just a clarification, you mentioned that we'll book INR 700 crore of revenue on contract revenue side in FY 2027. Did I hear that correctly? That's the total CapEx that we need to spend over two years. INR 750, we have to split it into two buckets, 40% may be in FY 2027-2028, part of it, and balance 60% FY 2028-2029. Okay. Understood that. Thank you. Thank you. Reminder to all participants you need to press star one to ask a question. Ladies and gentlemen, as there are no further questions, we have reached the end of question- and- answer session. I now hand the conference over to Mr. Subramanian N.G. for closing comments. Yeah. Before we conclude, I want to take a moment to express my heartfelt appreciation to my entire team for their unwavering commitment and exceptional contributions. The work and hard work has been instrumental in achieving our success and sustaining our growth and also celebrating our 25 years of work in this tough working environment. As we look ahead, we remain focused on executing our growth strategy, and I'm truly excited about the journey ahead as we continue to build a cleaner, greener and more sustainable future for our communities and stakeholders. Thank you once again for your continued trust and support, and I wish everyone a very pleasant evening. Thank you very much. Thank you. On behalf of Antony Waste Handling Cell Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.