Highlights
| Issue Size – 2,02,28,204 shares | Issue Open/Close –27 Oct/29 Oct, 2026 |
| Price Band (Rs.) 313-330 | Issue Size (Rs.) – 6,675 mn |
| Face Value (Rs) 2 | Lot Size (shares) – 45 |
SFC Environmental Technologies Limited (SETL) incorporated in 2005, is an environmental technology company engaged in providing technology, design, engineering, manufacturing, supply, installation and commissioning solutions for wastewater treatment (WWT), wastewater recycling and reuse (WRR), and solid waste treatment (SWT).
SETL operates across 23 states and 5 UTs in India, serving EPC companies, municipal bodies and government-owned entities, with 728 commissioned WWT installations, primarily in sewage treatment plants (STPs), holds over 80 pct market share in India’s SBR technology with wastewater treatment capacity of 17,511 mn litres per day.
SETL’s growth strategy focuses on expanding its wastewater recycling and reuse capabilities while diversifying into adjacent waste-management opportunities, including solid waste treatment, compressed biogas and waste-to-energy projects.
Out of the total proceeds of Rs. 6,675 mn, Rs. 422 mn would go towards prepayment of certain outstanding borrowings availed by company and its subsidiary, Rs. 749 would go towards funding working capital requirements, and remaining Rs. 329 mn would go towards funding general corporate purposes. Additionally, Rs. 5,175 mn would go towards promoter and investor selling shareholders of the company.
Key Highlights
- India’s wastewater treatment market is valued at Rs. 171 bn in FY26 and is projected to grow at a CAGR of 9.6 pct to Rs. 270 bn by FY31, driven by the need to bridge the gap between sewage generation (90,061 MLD) and processing capacity (52,436 MLD), with both expected to reach 110,350 MLD and 83,172 MLD, respectively, by FY31. Meanwhile, the tertiary treatment market is expected to grow at a CAGR of 30.26 pct from Rs. 18.70 bn in FY26 to Rs. 70.13 bn by FY31.
- SETL’s wastewater treatment business is primarily based on its proprietary C-Tech technology, an advanced SBR process for sewage and industrial effluent treatment, offering technology packages, equipment, automation systems, installation, commissioning and related services to EPC companies, those ultimately execute STP projects for municipalities and government bodies.
- Alongside its core WWT business, SETL has expanded into wastewater recycling and reuse (WRR), providing tertiary treatment solutions to make treated wastewater suitable for industrial reuse through ultrafiltration, closed-circuit reverse osmosis and membrane bioreactor technologies, supported by an exclusive supply arrangement with DuPont for selected products in India.
- While, its solid waste treatment business is based on its proprietary Organic Extraction (OREX) technology, designed to separate biodegradable organic matter from mixed municipal waste to support biogas generation and resource recovery. SETL operates two integrated solid waste treatment facilities in Goa with an aggregate treatment capacity of up to 425 tonnes per day. It has also secured orders for compressed biogas plants in Assam and Odisha, with cumulative order value of Rs. 5,017 mn, and has expanded into projects involving agricultural waste and biomass.
- SETL’s solid waste treatment business is based on its proprietary Organic Extraction (OREX) technology, which separates biodegradable organic matter from mixed municipal waste for biogas generation and resource recovery. It operates two integrated solid waste treatment facilities in Goa with an aggregate capacity of up to 425 tonnes per day, and has secured orders worth Rs. 5,017 mn for compressed biogas plants in Assam and Odisha, while is expanding into agricultural waste and biomass projects.
- SETL’s total order book stood at Rs. 16,566 mn as of August 2026, providing strong revenue visibility for the next two years. Of these, WWT business order book stands at Rs. 6,410.31 mn, followed by Rs. 4,545.41 mn for SWT and Rs. 5,610.72 mn for WRR.
- SETL’s key growth strategies include (i) To expand into agro-waste projects and also its SWT business through large-scale SWT projects, (ii) pursue forward integration with innovative technologies for recycling and reuse of wastewater, (iii) strengthen its core Wastewater Treatment Business, (iv) pursue acquisitions and expansion in new geographies while strengthening its presence in existing geographies, and (v) enhance its R&D capabilities to increase commercialized technological offerings.
- The sales of the company have grown by 10.56 pct CAGR over FY24-26 and EBITDA/Profit has grown by 10.46 pct/5.42 pct CAGR over same period. In FY26 the company reported sales of Rs. 8,036 mn rose by 15.16 pct YoY. EBITDA of the company rose by 13.66 pct YoY to Rs. 2,358 mn. In FY26 the company posted profit of Rs. 1,602 mn, which grew by 5.40 pct YoY.
Key Risk
- SETL’s WWT business is seasonal, with a major share of annual revenue generated in H2 due to the timing of government budget releases.
- SETL’s revenues and operations are dependent on its proprietary technologies; any failure of the technologies or failure to upgrade, innovate or develop new technologies could adversely business.
- SETL’s trade receivable days increased significantly from 197 days in FY24 to 282 days in FY26. Delayed collections potentially affecting its financial conditions.
- SETL’s SWT business is largely dependent on government agencies, including oil marketing companies; loss of business or termination/non-renewal of contracts could materially impact operations.
Financial Performance
| Particulars (in Rs. mn) | FY24 | FY25 | FY26 | CAGR | YoY | Q1FY26 | Q1FY27 | YoY |
| Sales | 6,575 | 6,979 | 8,036 | 10.56% | 15.16% | 678 | 1,339 | 97.58% |
| EBITDA | 1,933 | 2,075 | 2,358 | 10.46% | 13.66% | 50 | 99 | 95.91% |
| EBITDA Margin % | 29.39% | 29.73% | 29.34% | 7.42% | 7.36% | |||
| Profit/Loss | 1,442 | 1,520 | 1,602 | 5.42% | 5.40% | -3 | 15 | – |
| Profit/Loss Margin % | 21.93% | 21.78% | 19.94% | -0.41% | 1.11% | |||
| ROE % | 29.80% | 24.84% | 21.55% | -0.04% | 0.18% | |||
| ROCE % | 28.56% | 29.29% | 22.21% | 0.27% | 0.72% |
Source: – RHP.
Peer Comparison based on FY26 Financials.
| Particulars (in Rs. mn) | SFC Environmental Technologies | Thermax | VA Tech Wabag | Praj Industries | Ion Exchange |
| Sales | 8,036 | 1,06,942 | 39,442 | 31,679 | 29,148 |
| EBITDA | 2,358 | 10,263 | 9,404 | 1,518 | 2,102 |
| EBITDA Margin % | 29.34% | 9.60% | 23.84% | 4.79% | 7.21% |
| Profit/Loss | 1,602 | 7,203 | 3,698 | 238 | 1,432 |
| Profit/Loss Margin % | 19.94% | 6.70% | 9.38% | 0.75% | 4.91% |
| ROE % | 21.55% | 13.70% | 15.90% | 1.77% | 11.20% |
| ROCE % | 22.21% | 15.00% | 21.3% | 5.59% | 14.30% |
Source: – RHP.
Valuation
SFC Environmental Technologies (SETL) was established with the vision of setting new benchmarks in wastewater treatment in India. They introduced advanced technologies tailored to local conditions, beginning with the C-Tech process for municipal sewage treatment. Over the years, SFC has retained 80 pct+ market share in SBR technology, playing a pioneering role in delivering innovative and sustainable solutions that continue to shape the future of wastewater management. At the upper end of the price band of Rs. 330, the issue is priced at an TTM PE of 20x its FY26 post issue capital. The issue appears to be fully priced.
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