EMS Limited has released the transcript of its earnings conference call held on May 30, 2026, to discuss the Audited Standalone and Consolidated financial results for the quarter and Financial Year ended March 31, 2026. The company acknowledged that the quarter's results were disappointing due to external factors such as delays in government permissions and cash flow constraints, which impacted revenue and margins. Management outlined steps to mitigate these issues, including intensified engagement with government stakeholders, reinforced working capital management, reprioritization of projects, and controlling discretionary spending. For FY26, standalone revenue was ₹608 crore and consolidated revenue was ₹732 crore, representing a significant fall from the previous year. The company cited increased work-in-progress inventory (around ₹100 crore) and the impact of the West Bengal elections, which halted key projects, as primary reasons for the revenue shortfall. Additionally, issues with bitumen supply, a new government payment system (SPARSH), and heavy rainfall in Uttarakhand also contributed to the challenges. The company's unexecuted order book stood at ₹1,837 crore as of March 31, 2026, with an additional ₹209 crore in orders received and more tenders expected. Management is targeting revenue of approximately ₹1,000 crore for FY27, with a Profit After Tax (PAT) margin of 15%. Long-term growth is projected at a 20%-25% CAGR. The company stated no immediate plans to diversify from government projects or the water sector, emphasizing the significant scope and ongoing bidding opportunities.
