SFC Environmental Technologies’ current order book across its C-Tech, wastewater recycling and municipal solid waste treatment businesses, provides visibility into its project pipeline, said Sandeep Asolkar, chairman and managing director of the company.
The order book comprises approximately ₹650 crore from the C-Tech segment, ₹600 crore from wastewater recycling and ₹350 crore from municipal solid waste treatment. However, revenue generation will depend on project execution and equipment supplies, he said.
“We have already seen a good growth in the first quarter of this financial year,” Asolkar said.
The company, which is preparing for an initial public offering (IPO), reported a more than twofold year-on-year increase in revenue to ₹135 crore in the April-June quarter of 2026 (Q1FY27), compared with ₹65 crore in the year-ago period.
The company supplies technology and equipment to engineering, procurement and construction (EPC) contractors and project developers. It recognises revenue when equipment or components are supplied for a project, rather than when the entire project is completed.
SFC Environmental Technologies plans to use ₹42 crore of its fresh issue proceeds to repay term debt. CFO Amit Sawant said the company currently has total debt of around ₹200 crore, including term loans and working capital facilities, while its net debt stands at approximately ₹50-60 crore.
The repayment is expected to bring net debt close to zero and reduce annual finance costs by around ₹3-4 crore. The savings could support profitability by lowering the company’s interest burden. Sawant said the term debt carries an interest rate of more than 8%.
“Roughly three to four crore rupees of finance cost will reduce post this repayment on annual basis,” Sawant said.
The company’s working capital requirements vary across its businesses. It extends credit of around 120-150 days to customers in the C-Tech segment, compared with about 60 days in wastewater recycling and 45 days in municipal solid waste treatment. A higher contribution from segments with shorter credit periods could help improve the working capital cycle over time.
However, the business is seasonal, with around 55-60% of annual revenue generated in the fourth quarter. This can make working capital requirements appear higher at the end of the financial year.
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SFC Environmental Technologies IPO: Revenue doubles to ₹135 crore, order book at ₹1600 crore
Margins across the three technology segments are broadly similar, with differences of around 10%, according to Asolkar. Since market conditions largely determine selling prices, the company is focusing on improving internal efficiency through automation, standardisation, lower manufacturing costs and better inventory management.
“The basic driver to having better margins is improve your internal efficiencies, because the prices are decided by the market,” Asolkar said.
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