SFC Environmental IPO plans include a ₹150 crore fresh issue to repay debt and a ₹517.5 crore offer for sale. The proposed offering comes after the Indian wastewater and solid waste treatment company reported higher revenue and profit in fiscal 2026, alongside negative operating cash flow.

Key Takeaways

  • Promoter ownership is expected to fall to 38.4% after the IPO, from 48.2%.
  • The company’s top 10 customers accounted for 64% of FY26 revenue.
  • Operating cash flow was negative ₹25.8 crore in FY26.

SFC Environmental IPO structure

The planned offering consists of newly issued shares and an offer for sale of existing shares. SFC Environmental Technologies plans to use the ₹150 crore raised through the fresh issue to repay debt.

The available details do not specify an IPO subscription timetable or share price band.

Revenue grew as cash flow weakened

Revenue from operations rose to ₹803.6 crore in FY26 from ₹657.5 crore in FY24. Net profit increased to ₹160 crore from ₹144 crore over the same period. The EBITDA margin, a measure of operating profitability before depreciation and amortization, was broadly stable at 29.3% in FY26.

Operating cash flow turned negative at ₹25.8 crore in FY26, compared with positive cash flow of ₹65.5 crore in FY25. Higher working capital requirements associated with business growth were the main reason for the change.

Government contracts and customer concentration

Government entities or government tenders accounted for 92% of FY26 revenue, while repeat customers contributed nearly 92%. The company’s order book stood at ₹1,574.5 crore on March 31, 2026.

SFC provides engineering, equipment, installation supervision and maintenance services for wastewater and solid waste treatment. It had 728 wastewater treatment installations across 23 Indian states and five union territories as of July 31, 2026. Frost & Sullivan estimated that the company held more than 80% of the Indian market for sequencing batch reactor technology.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.