IPO closes on 29 Oct'26
SFC Environmental Technologies Limited
Minimum Investment
₹ 14,850 / 45 shares
Our Verdict:
Neutral
- Earnings are steady and high-margin but growing slowly: PAT rose from ₹144.17 crore (FY24) to ₹160.21 crore (FY26), a ~5.4% annual rate against ~10.6% for revenue, so the PAT margin slipped from 21.9% to 19.9% while the EBITDA margin held near 29%. Q1 FY27 was weak, with PAT of ₹1.48 crore on revenue of ₹133.94 crore (EBITDA margin 7.4%), though the business is project-based and quarters are uneven.
- The valuation looks reasonable for a niche technology player: the implied market value of ~₹3,233 crore is ~20x FY26 earnings and ~3.8x book value against a return on net worth of ~21%. The price already assumes the margins hold and the government-funded solid waste and wastewater order flow keeps coming.
- Cash conversion and balance sheet use are the watch points: working capital was ~65% of FY26 revenue (and far higher in Q1 FY27), borrowings rose from ₹83.71 crore in FY25 to ₹195.64 crore in FY26, and operating cash flow has been negative in some past periods. Debt is still modest at ~0.24x net worth, so the issue is whether profits turn into cash as the business grows.
About the company
Founded in
1 Mar'05
Managing director
Mandar Dinkar Desai
- SFC Environmental Technologies Limited is an environmental technology company providing technologies and engineering solutions in wastewater treatment (WWT), wastewater recycling and reuse (WRR) and solid waste treatment (SWT), with its WWT business built on proprietary C-Tech sequencing batch reactor technology.
- Its technologies have been installed in WWT projects across 23 states and five Union Territories (as of July 31, 2026), with manufacturing sites in Pune, Satara, Dombivli and the Czech Republic and two integrated solid waste management plants in Goa through its subsidiaries.
- Revenue from operations grew from ₹657.50 crore (FY24) to ₹803.63 crore (FY26) and PAT from ₹144.17 crore to ₹160.21 crore, with an FY26 EBITDA margin of 29.34%; WWT and WRR customers are mainly EPC companies, while SWT customers include Goa Waste Management Corporation and oil marketing companies.
- Promoters: Sandeep Sudhakar Asolkar (Chairman and Managing Director), Priya Sandeep Asolkar, Prachiti Sandeep Asolkar and Saketchandrasingh Pratapsingh Dhandoriya, who hold 42.84% before the offer
STRENGTHS
- Proprietary Wastewater Technology: C-Tech sequencing batch reactor technology has been installed in WWT projects across 23 states and five Union Territories.
- High and Stable Margins: EBITDA margin of 29.3% in FY26, 29.7% in FY25 and 29.4% in FY24, with a return on net worth of about 21%.
- Integrated Engineering and Manufacturing: Design, engineering, manufacturing, supply and commissioning from sites in Pune, Satara, Dombivli and the Czech Republic.
- Repeat Customer Base: Repeat customers contributed about 92% of FY26 revenue.
- Solid Waste Treatment Presence: Proprietary OREX technology and two integrated solid waste management plants in Goa.
RISK FACTORS
- Government Dependence: Government-linked work was 100% of solid waste treatment revenue in FY24 to FY26, so project funding and payment delays affect results.
- Customer Concentration: A significant share of revenue comes from the top 10 customers, and most do not have long-term contracts with the company.
- High Working Capital Needs: Working capital was 65.19% of FY26 revenue, operating cash flows have been negative in some past periods, and borrowings rose to ₹195.64 crore in FY26 from ₹83.71 crore in FY25.
- Technology Reliance: The business depends on its proprietary technologies, which could be displaced by newer technology.
- Litigation and Records: A subsidiary faces material civil litigation involving about ₹66.69 crore, and some corporate records are untraceable or contain discrepancies.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ About ₹668 crore
Fresh Issue
₹ Up to ₹150 crore
OFS
₹ Up to 1,56,82,750 shares
Price range
₹ 313 - 330
Lot size
45 shares
Issue Objective
- Fresh Issue of up to ₹150 crore: ₹42.23 crore to prepay certain borrowings of the company and its wholly owned subsidiary Vasudha Waste Treatment Private Limited, ₹74.92 crore for working capital requirements, and the balance for general corporate purposes. The Offer for Sale is by selling shareholders; the company receives no proceeds from it.
Dates
Bidding open
27 Oct'26
Bidding close
29 Oct'26
Allotment date
30 Oct'26
Refund date
2 Nov'26
Listing
3 Nov'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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