SFC Environmental Technologies
SFC Environmental Technologies provides efficient technologies and comprehensive engineering solutions in wastewater treatment (WWT), wastewater recycling and reuse (WRR), and solid waste treatment (SWT).
The company was incorporated in 2005, with Enviropro Water Tech Private Limited and SFC Umwelttechnik GmbH of Austria as major shareholders, to offer solutions for WWT. The company acquired majority of the share capital of SFC Umwelttechnik GmbH in 2008. The holding was subsequently increased to 87.24%.
WWT core operations include the design, technology, manufacturing, supply, installation supervision, and commissioning of wastewater treatment equipment. With 728 installations commissioned as of July 31, 2026, particularly of sewage treatment plants (STPs), the company holds over 80% market share in sequencing batch reactor (SBR) technology, a key wastewater treatment method in India.
C-Tech, a proprietary technology, is an advanced solution for treating sewage and effluents. It has been implemented on a large scale SBR-based STPs in India. The standard components required for setting up a C-Tech project are customised and manufactured, either in-house or outsourced, as per the technical specifications of the respective projects.
In addition, the company offers high-efficiency turbo blowers for aeration in wastewater treatment, fibre disc filters for efficient removal of suspended solids from wastewater and solar sludge drying systems to efficiently dry sludge from wastewater and solid waste treatment using solar energy.
In 2024, the company entered an exclusive supply agreement with DuPont (DSP Singapore Holdings Pte Ltd) for membrane aerated biofilm reactor (MABR) technology, marketed as Oxyfas and OxyFilm, designed to enhance the efficiency and capacity of existing wastewater treatment plants, particularly those that are overloaded or outdated.
SWT technology solutions for solid waste treatment comprise design, engineering, turnkey solutions and O&M. The principal technology is the proprietary Orex, designed to separate biodegradable organics from inorganic materials and lignocellulosic fibres from mixed municipal wastes. The technology is particularly adept at processing the typical municipal solid waste found in India. The business model encompasses multiple revenue streams, including the revenue from project execution, O&M services, generation and sale of energy, sale of recyclables materials and compost, and tipping fees.
The SWT business designs, builds and operates two integrated SWT facilities in Goa for Goa Waste Management Corporation (GWMC) on public-private partnership and turnkey model, with a combined treatment capacity of 350 TPD, with an additional handling capacity of 75 TPD resulting in its aggregate treatment capacity of up to 425 TPD, to treat municipal solid waste, enabling generation of biogas, electricity, compost and recovery of recyclables.
Leveraging its established leadership and distribution network in wastewater treatment (WWT) and an exclusive supply arrangement with DuPont, a global provider of membrane-based WRR technologies, the company has expanded into the wastewater recycling and reuse (WRR) segment as an extension of its core business. The WRR segment is expected to witness significant growth, driven by increasing water scarcity and government initiatives focused on water conservation in India. In July 2025, the company secured its first WRR order.
The order book as of August 1, 2026, stood at Rs 1656.644 crore [WWT Rs 641.031 crore, SWT Rs 454.541 crore, and WRR Rs 561.072 crore] up from Rs 1574.521 crore end of March 2026 and Rs 560.386 crore end of March 2025.
With over 20 years of experience in WWT technology, the company expanded its product portfolio by developing inhouse manufacturing capabilities, forging exclusive strategic tie-ups and undertaking strategic acquisitions, including the acquisition of a controlling stake in 2011 in Chavare Engineering Private Limited, manufacturing LV control panels, implementation of PLC and Scada-based automation systems and execution of electrical and automation turnkey projects. Additionally, Chavare Engineering, now a subsidiary, also offers a substantial portion of its manufactured solutions to players in other sectors.
In 2011, it advanced its C-Tech technology package in India by integrating turbo blowers through an exclusive agreement with TurboMax Company Limited (South Korea), thereby enhancing its energy efficiency. During the same year, it introduced the solar sludge drying system in India through an exclusive partnership with IST-Anlagenbau GmbH (Germany). In 2014, it entered the tertiary treatment segment with the inclusion of fibre disk filters in India for wastewater reuse through an exclusive supply agreement with Yucheon Enviro Co, Ltd (South Korea) (Yucheon). In 2022, it incorporated Fine Aeration Systems Private Limited to manufacture diffusers in India, an essential component of its C-Tech package. In 2024 the company was authorised by EDI Inc. USA to manufacture, test and exclusively sell MP-3 MiniPanel and MP-3 Curvilinear Panel diffusers in India and overseas.
In Fiscal 2027, the company introduced PlasmaConnectTM, a modular, ready-to-use oxidation system for drinking water and wastewater treatment based on innovative C-Ion technology. It uses non-thermal plasma (NTP) for advanced oxidation using ionised air. The product is being marketed and distributed in India through wholly owned subsidiary Sustainyx Smart Solution Private Limited. The company secured initial commercial orders for the PlasmaConnect product for zero liquid discharge (ZLD) related applications. It commenced decanter manufacturing in Fiscal 2023 and subsequently expanded its production capacity in Fiscal 2024.
Strengthening its manufacturing capabilities, the company jointly incorporated Turbomax India Private Limited with TurboMax CO., Ltd to produce turbo blowers in 2022. The turbo blowers manufacturing unit commenced its operations in Fiscal 2024. It entered a licensing agreement with IST-Anlagenbau GmbH for in-house manufacturing of Solar Sludge Drying System to indigenise the manufacturing and to reduce costs. Such manufacturing and assembly of ?solar sludge drying systems? under license from IST-Anlagenbau GmbH commenced in Fiscal 2025 and was housed at its erstwhile Decanter Unit I and currently at Bhamboli Unit. As on July 30, 2025, the company acquired 80% equity stake in IST-Anlagenbau GmbH, making it its subsidiary.
The issue, Objects of the issue
The offer comprises fresh issue of equity shares of Rs 2 face value, aggregating to Rs 150 crore and OFS of 15682750 equity shares by promoter/promoter group as well as other selling shareholders.
The OFS component comprises promoter?s sale of 4670000 equity shares [Sandeep Sudhakar Asolkar 934000 equity shares and Saketchandrasingh P Dhandoriya 3736000 shares] and sale by other selling shareholders of 11012750 equity shares.
Out of the net proceeds from fresh issue, the company intends to use Rs 42.228 crore towards prepayment of borrwings availed by it and its subsidiary; Rs 74.917 crore towards funding working capital requirements; and balance towards general corporate purposes.
The outstanding borrowing on consolidated basis as of end July 31, 2026, stood at Rs 253.102 crore.
Strengths
Technology driven market leadership in the wastewater treatment market
Vertical integration with in-house manufacture of key components used in its proprietary technologies i.e. CTech and Orex.
High proportion of repeat business
The book translates to 1.9 times of TTM sales for the period ended Jun 2026.
Weaknesses
Significantly dependent on projects, contracts or works awarded or funded by government entities, either directly or through private customers of the company. Contracts or work awarded or funded by government entities accounted for 92.35% of revenue of WWT and 100% for SWT in Fiscal 2026.
Changes in government priorities, budget constraints, or changes in policy related to wastewater treatment and solid waste treatment could adversely affect overall business and results of operations.
Revenues and operations are dependent upon technology and thus any failure to upgrade or identify and develop new technologies could have an adverse impact on operations.
Top 10 customers accounted for 64.44% of revenue from operations in Fiscal 2026.
Had negative cash flows from operating activities in the certain past periods / fiscals and may continue to have negative cash flows in the future.
Statutory Auditors have included certain remarks (not in the nature of qualifications) in their independent auditors? report on the financial statement for Fiscals 2026, 2025 and 2024.
SWT is capital-intensive.
Subsidiaries SFC Umwelttechnik GmbH, Hindustan Waste Treatment (HWTPL) and Vasudha Waste Treatment (VWTPL) have been, and continue to be, involved in material legal proceedings or have received show-cause notices from statutory or regulatory authorities.
SWT projects are typically awarded primarily through competitive bidding process.
Orders may be delayed, modified or cancelled.
Failure to effectively treat emerging contaminants or failure of its treatment systems or spills causing discharge of untreated or partially treated waste can lead to various damages including environmental damage.
Absence of operational track record in the wastewater recycling and reuse business.
Exposed to significant cost variations on fixed-rate contracts.
WWT/SWT operations in India experience seasonality.
Operates in a competitive business environment.
Valuation
Consolidated re-stated revenue in Fiscal 2026 stood higher by 15% to Rs 803.63 crore. With OPM contracting by 40 bps to 29.3%, the growth of OP was 14% to Rs 235.79 crore. Finally, net profit after MI was higher by 7% to Rs 154.36 crore.
Sales were up 98% to Rs 133.94 crore in the quarter ended June 2026 over a year ago. With OPM staying flat at 7.4%, OP was up 97% to Rs 9.85 crore. Finally, net profit after MI was profit of Rs 1.51 crore against loss of Rs 1.31 crore.
Sales were Rs 869.78 crore and OP s 240.63 crore, with OPM at 27.7% in TTM ended June 2026 over a year ago. Finally, net profit after MI was Rs 157.18 crore.
On expanded equity, EPS for Fiscal 2026 was Rs 15.8 and that for TTM ended June 2026 was Rs 16. On the upper price band, the PE works out to 20.6 times its EPS for TTM ended June 2026. P/BV stands at 3.4 times and EV/Sales 4.1 times. ROE stood at 14%.
Though not an apple-to-apple comparison, Ion Exchange quotes at a PE of 33.3 times, Praj Industries 238.1 times, Thermax 68 times, Triveni Engineering & Industries 18.5 times and Va Tech Wabag 29.6 times.
ROE of Ion Exchange was 11.4%, Praj Industries 1.5%, Thermax 10%, Triverni Engineering 8.4% and VA Tech Wabag 14.6%. The FY26 OPM of Ion Exchange was 6.6%, Praj Industries 4%, Thermax 9.5%, Triverni Engineering 6.3% and VA Tech Wabag 12%.
| SFC Environmental Technologies : Re-stated Consolidated Financials |
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| 2403 (12) | 2503 (12) | 2603 (12) | 2506 (3) | 2606 (3) | |||
| Sales | 657.50 | 697.86 | 803.63 | 67.79 | 133.94 | |||
| OPM (%) | 29.4 | 29.7 | 29.3 | 7.4 | 7.4 | |||
| OP | 193.08 | 207.48 | 235.79 | 5.01 | 9.85 | |||
| Other income | 19.25 | 29.11 | 17.64 | 3.35 | 3.96 | |||
| PBIDT | 212.33 | 236.59 | 253.44 | 8.36 | 13.81 | |||
| Interest | 8.83 | 13.37 | 14.85 | 2.93 | 5.39 | |||
| PBDT | 203.50 | 223.21 | 238.59 | 5.43 | 8.41 | |||
| Depreciation | 12.46 | 17.84 | 27.85 | 6.36 | 6.47 | |||
| PBT | 191.04 | 205.37 | 210.75 | -0.93 | 1.94 | |||
| EO Exp | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| PBT after EO | 191.04 | 205.37 | 210.75 | -0.93 | 1.94 | |||
| Tax | 49.27 | 53.23 | 51.28 | -0.20 | 0.67 | |||
| PAT | 141.77 | 152.14 | 159.47 | -0.73 | 1.27 | |||
| Share of Profit from Associates | 2.41 | -0.13 | 0.74 | 0.45 | 0.21 | |||
| Minority Interest | 2.57 | 7.95 | 5.85 | 1.03 | -0.03 | |||
| Net profit after MI | 141.61 | 144.06 | 154.36 | -1.31 | 1.51 | |||
| EPS (Rs)* | 14.5 | 14.7 | 15.8 | -0.5 | 0.6 | |||
| * on post IPO fully dilluted equity (on upper price band) of Rs 19.59 crore. Face Value: Rs 2 | ||||||||
| EPS is calculated after excluding EO and relevant tax | ||||||||
| Figures in Rs crore | ||||||||
| Source: Capitaline Corporate database | ||||||||
| SFC Environmental Technologies : Issue Highlights |
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| Fresh Issue (Rs crore) | 150 |
| Offer for sale (in nos.) | 15682750 |
| Price band (Rs.) ** |
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| Upper | 330 |
| Lower | 313 |
| Post-issue equity (Rs crore) | |
| in Upper price band | 19.59 |
| in Lower Price Band | 19.64 |
| Post-issue promoter (including promoter group) stake (%) | 41.18 |
| Minimum Bid (in nos.) | 45 |
| Issue Open Date | 27-10-2026 |
| Issue Close Date | 29-10-2026 |
| Listing | BSE, NSE |
| Rating | 43 /100 |
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