SFC Environmental Technologies Limited is launching its ₹667.53 crore mainboard IPO on 27 October 2026, with a price band of ₹313-₹330 per share. The issue closes on 29 October 2026 and comprises a ₹150 crore fresh issue and a ₹517.53 crore offer for sale (OFS). The company operates in wastewater treatment, wastewater recycling and solid waste management.
In FY26, SFC reported revenue of ₹803.63 crore and consolidated net profit of ₹160.21 crore. It also had an order book of ₹1,656.64 crore as of August 2026. However, negative operating cash flow, rising working capital requirements and customer concentration remain important concerns.
This SFC Environmental Technologies IPO Analysis 2026 covers the company's business, financial performance, valuation, growth opportunities and key risks investors should understand before evaluating the IPO.
Table of Contents
- SFC Environmental Technologies IPO Details
- SFC IPO Important Dates
- SFC IPO Lot Size and Investor Reservation
- IPO Structure and Promoter Shareholding
- About SFC Environmental Technologies
- Business Model and Revenue Breakdown
- Technologies and Manufacturing Facilities
- Order Book and Project Pipeline
- Objects of the IPO
- Financial Performance FY24 to FY26
- Q1 FY27 Results
- Profitability, Margins and Return Ratios
- Cash Flow and Working Capital
- Borrowings and Financial Position
- SFC Environmental Technologies IPO Valuation
- Listed Peer Comparison
- Business Strengths and Growth Drivers
- Key Risks Investors Should Consider
- What Investors Should Track Next
- SFC Environmental Technologies IPO Review: Conclusion
The SFC Environmental Technologies IPO is a book-built mainboard public issue scheduled to open for subscription on 27 October 2026. Its proposed equity shares will be listed on the BSE and NSE under the NSE symbol SFCTECH.
The following table summarises the main SFC Environmental Technologies IPO details.
|
Particulars
|
Details
|
|
Company
|
SFC Environmental Technologies Ltd
|
|
IPO opening date
|
27 October 2026
|
|
IPO closing date
|
29 October 2026
|
|
Anchor bidding date
|
26 October 2026
|
|
Issue type
|
Book-built mainboard IPO
|
|
IPO price band
|
₹313–₹330
|
|
Face value
|
₹2 per share
|
|
Total IPO size
|
₹667.53 crore
|
|
Fresh issue
|
₹150 crore
|
|
Offer for sale
|
₹517.53 crore
|
|
Total shares offered
|
Approximately 2.02 crore
|
|
OFS shares
|
1,56,82,750
|
|
Lot size
|
45 shares
|
|
Minimum retail investment at ₹330
|
₹14,850
|
|
Estimated post-issue market capitalisation
|
₹3,232.57 crore
|
|
Listing exchanges
|
BSE and NSE
|
|
NSE symbol
|
SFCTECH
|
|
Registrar
|
MUFG Intime India Pvt Ltd
|
|
Book-running lead managers
|
IIFL Capital Services, JM Financial and Nuvama Wealth Management
|
At the upper price band, the IPO comprises approximately 2,02,28,204 shares, including 1,56,82,750 existing shares being sold through the OFS.
The fresh issue accounts for approximately 22.47% of the total offer, while the OFS represents 77.53%.
This distinction matters because the company receives funds from the fresh issue, whereas OFS proceeds go to existing selling shareholders.
The SFC Environmental Technologies IPO date schedule includes a three-day public bidding period, followed by allotment, refunds and the proposed listing.
|
Event
|
Date
|
|
Anchor investor bidding
|
26 October 2026
|
|
IPO opens
|
27 October 2026
|
|
IPO closes
|
29 October 2026
|
|
Basis of allotment
|
30 October 2026
|
|
Refund initiation or fund unblocking
|
2 November 2026
|
|
Shares credited to demat accounts
|
2 November 2026
|
|
Expected listing date
|
3 November 2026
|
The SFC Environmental Technologies IPO listing date is tentatively 3 November 2026, subject to completion of the allotment and listing formalities.
Investors using UPI must approve their mandate by 5:00 PM on 29 October 2026, according to NSE issue information.
/content-assets/cf5fb4430dee487ea1963e3d864a2e8c.png)
Get the latest updates on the SFC Environmental Technologies IPO, including its price band, issue structure, subscription details, and allotment timeline.
The minimum SFC IPO lot size is 45 equity shares. Retail investors must apply in multiples of 45 shares, with the investment amount depending on the final bid price.
SFC Environmental Technologies IPO investment details
The following amounts are calculated at the upper price band of ₹330 per share.
SFC IPO Lot Size and Shares
| Application category |
Shares |
| Retail minimum, 1 lot |
45 |
| 2 lots |
90 |
| 5 lots |
225 |
| 10 lots |
450 |
| Retail maximum, 13 lots |
585 |
| Small NII minimum, 14 lots |
630 |
| Large NII minimum, 68 lots |
3,060 |
SFC IPO Investment Amount at ₹330
| Application category |
Investment |
| Retail minimum, 1 lot |
₹14,850 |
| 2 lots |
₹29,700 |
| 5 lots |
₹74,250 |
| 10 lots |
₹1,48,500 |
| Retail maximum, 13 lots |
₹1,93,050 |
| Small NII minimum, 14 lots |
₹2,07,900 |
| Large NII minimum, 68 lots |
₹10,09,800 |
At ₹330, the maximum retail application is 13 lots because a retail application cannot exceed ₹2 lakh.
At the lower price band of ₹313, the maximum permitted number of lots can differ.
SFC IPO investor reservation
The IPO has separate allocation categories for institutional investors, non-institutional investors and retail applicants.
|
Investor category
|
Reservation
|
|
Qualified Institutional Buyers (QIBs), including anchors
|
Up to 50%
|
|
Non-Institutional Investors (NIIs)
|
At least 15%
|
|
Retail Individual Investors (RIIs)
|
At least 35%
|
The NII category is further divided into applications above ₹2 lakh and up to ₹10 lakh, and applications exceeding ₹10 lakh.
The issue-size figures used in this analysis do not include a separately quantified employee discount or employee reservation.
The SFC Environmental Technologies IPO includes new equity shares issued by the company and existing shares sold by promoters and other investors.
Fresh issue of ₹150 crore
The company plans to raise ₹150 crore through fresh equity issuance.
After applicable issue expenses, the proceeds will mainly support:
-
Repayment or prepayment of specified borrowings.
-
Funding of working capital requirements.
-
General corporate purposes.
Offer for sale of ₹517.53 crore
Existing shareholders will collectively sell 1,56,82,750 shares through the OFS.
The major selling shareholders are:
|
Selling shareholder
|
OFS shares
|
|
Sandeep Sudhakar Asolkar, jointly with Priya Sandeep Asolkar
|
9,34,000
|
|
Saketchandrasingh Pratapsingh Dhandoriya
|
37,36,000
|
|
Sarvesh Kumar Garg
|
35,65,000
|
|
Sandeep Sambhaji Parab
|
21,36,000
|
|
Rajesh Kesavan Nambisan
|
21,36,000
|
|
Kumaraguru Madurakavi
|
21,36,000
|
|
Veera Venkata Satyanarayana Yannamani
|
9,33,000
|
|
Jayshree Harit Shah, jointly with Harit Pragji Shah
|
70,000
|
|
Hardik Suresh Matalia
|
36,750
|
|
Total
|
1,56,82,750
|
Promoter shareholding before and after the IPO
The company's promoters are Sandeep Sudhakar Asolkar, Priya Sandeep Asolkar, Prachiti Sandeep Asolkar and Saketchandrasingh Pratapsingh Dhandoriya.
|
Shareholding
|
Percentage
|
|
Pre-IPO promoter and promoter-group holding
|
48.18%
|
|
Estimated post-IPO promoter and promoter-group holding
|
41.18%
|
The estimated reduction reflects the proposed promoter share sales and dilution from the fresh issue.
The final post-issue shareholding will depend on the completed allotment.
SFC Environmental Technologies Limited is an environmental engineering and technology company incorporated on 29 March 2005 in Mumbai, Maharashtra. It became a public limited company in August 2024.
Headquartered in Navi Mumbai, the company provides technologies and engineering solutions for wastewater treatment, wastewater recycling and reuse, and municipal solid waste processing.
Its customers primarily include engineering, procurement and construction (EPC) contractors executing wastewater projects for municipalities and government agencies.
Unlike a conventional infrastructure contractor, SFC's core wastewater business focuses on supplying treatment technologies, specialised equipment, engineering design and installation supervision.
Key operational highlights
|
Indicator
|
Details
|
|
Cumulative wastewater installations
|
728
|
|
Treatment capacity facilitated
|
17,511.11 million litres per day
|
|
Geographical presence in India
|
23 states and 5 Union Territories
|
|
Reported SBR technology market share
|
Over 80%
|
|
FY26 consolidated revenue
|
₹803.63 crore
|
|
Latest reported order book
|
₹1,656.64 crore
|
The installation figures are cumulative as of 31 July 2026.
The company's reported market share of more than 80% relates specifically to India's sequencing batch reactor (SBR) technology market, based on the Frost & Sullivan industry report cited in its RHP.
It does not mean SFC controls 80% of India's entire wastewater treatment industry.
SFC Environmental Technologies management
The company is led by professionals with experience in environmental engineering, finance and project management.
|
Name
|
Designation
|
|
Sandeep Sudhakar Asolkar
|
Chairman and Managing Director
|
|
Mandar Dinkar Desai
|
Chief Executive Officer
|
|
Amit Anil Sawant
|
Chief Financial Officer
|
|
Shweta Deshpande
|
Company Secretary and Compliance Officer
|
According to the company's offer document, Chairman and Managing Director Sandeep Asolkar has over 31 years of experience in environmental engineering.
SFC operates across three main business verticals. Although each deals with environmental infrastructure, their technologies, revenue models and capital requirements differ.
1. Wastewater Treatment (WWT)
Wastewater treatment is SFC's largest revenue-generating segment.
The company supplies technology and specialised equipment used in sewage treatment plants and other wastewater treatment facilities.
Its flagship proprietary technology is C-Tech, which uses a sequencing batch reactor process.
The treatment process involves successive stages of aeration, sedimentation and treated-water removal.
SFC earns revenue through equipment supply, technology packages, engineering solutions and commissioning-related support.
The segment depends significantly on projects awarded to EPC contractors by government authorities and municipal bodies.
2. Wastewater Recycling and Reuse (WRR)
The wastewater recycling and reuse business focuses on treating wastewater to make it suitable for further applications.
Its technology portfolio includes:
-
Ultrafiltration systems.
-
Membrane bioreactors (MBR).
-
Closed-circuit reverse osmosis (CCRO).
-
Other advanced filtration and water recovery solutions.
SFC also has technology and supply arrangements involving DuPont for specified treatment applications.
Although this segment contributed only 1.77% of FY26 revenue, it accounted for a considerably larger proportion of the company's reported order book as of August 2026.
This difference indicates potential future revenue but also makes timely project execution important.
3. Solid Waste Treatment (SWT)
SFC's solid waste business focuses on municipal waste processing, organic waste separation and related treatment technologies.
Its proprietary OREX technology is designed to separate organic material from mixed municipal waste for subsequent processing.
The company and its subsidiaries operate two integrated solid waste management facilities in North Goa and South Goa.
Together, these facilities have reported processing and handling capacity of up to 425 tonnes per day.
SFC is also expanding into compressed biogas projects through its subsidiaries.
This business provides revenue diversification but involves project development, operational commitments and working capital requirements.
SFC Environmental Technologies revenue breakdown
The company's revenue mix shows the continued importance of wastewater treatment alongside growth in solid waste processing.
The following figures represent consolidated revenue from operations.
Historical segment revenue, ₹ crore
FY24 Segment Revenue
| Business vertical |
Revenue (₹ crore) |
| Wastewater treatment |
524.44 |
| Wastewater recycling and reuse |
Not reported |
| Solid waste treatment |
50.19 |
| Other operating revenue |
82.87 |
| Total |
657.50 |
FY25 Segment Revenue
| Business vertical |
Revenue (₹ crore) |
| Wastewater treatment |
469.21 |
| Wastewater recycling and reuse |
Not reported |
| Solid waste treatment |
119.36 |
| Other operating revenue |
109.29 |
| Total |
697.86 |
FY26 Segment Revenue
| Business vertical |
Revenue (₹ cr) |
| Wastewater treatment |
542.76 |
| Wastewater recycling and reuse |
14.21 |
| Solid waste treatment |
140.16 |
| Other operating revenue |
106.50 |
| Total |
803.63 |
FY26 Revenue Contribution
| Business vertical |
Share |
| Wastewater treatment |
67.54% |
| Wastewater recycling and reuse |
1.77% |
| Solid waste treatment |
17.44% |
| Other operating revenue |
13.25% |
| Total |
100% |
Other operating revenue includes activities of subsidiary Chavare Engineering. Figures are rounded.
What does the revenue mix indicate?
Wastewater treatment remains SFC's principal business, contributing approximately two-thirds of FY26 revenue.
However, its other businesses are becoming increasingly important.
Wastewater treatment revenue increased from ₹524.44 crore in FY24 to ₹542.76 crore in FY26, representing relatively modest growth over the period.
Meanwhile, solid waste treatment revenue increased from ₹50.19 crore to ₹140.16 crore.
The figures indicate that SFC's future revenue growth may depend increasingly on successful expansion in solid waste management and wastewater recycling, alongside maintaining its established wastewater treatment business.
SFC's competitive position is closely linked to its proprietary technologies, specialised equipment and manufacturing capabilities.
The company combines internally developed technologies with equipment and solutions obtained through arrangements with external technology providers.
Key technologies and applications
|
Technology
|
Application
|
|
C-Tech
|
SBR-based wastewater treatment
|
|
OREX
|
Organic waste separation and processing
|
|
Ultrafiltration
|
Removal of suspended particles and impurities
|
|
Membrane bioreactor (MBR)
|
Advanced biological wastewater treatment
|
|
Closed-circuit reverse osmosis (CCRO)
|
Water purification and recovery
|
|
Membrane aerated biofilm reactor (MABR)
|
Improved biological treatment efficiency
|
|
Turbo blowers
|
Aeration and energy-efficient treatment
|
|
Solar sludge drying
|
Reduction of sludge moisture
|
The technology portfolio allows SFC to participate in different types of treatment projects.
However, dependence on third-party suppliers and technology arrangements also creates potential supply, licensing and integration risks.
Manufacturing capacity and utilisation
SFC and its subsidiaries operate manufacturing facilities in Maharashtra, with additional international manufacturing exposure through associated operations.
Selected manufacturing utilisation figures for FY26 are given below.
Manufacturing Installed Capacity
| Facility or product |
Installed capacity |
| Moving-arm decanters, Unit II |
210 metres/month |
| Bhamboli unit |
32 units/year |
| Satara diffusers |
10,000/month |
| Dombivli turbo blowers |
30/year |
| Electronic panels and boards |
5,500/year |
FY26 Manufacturing Utilisation
| Facility or product |
FY26 utilisation |
| Moving-arm decanters, Unit II |
117.03% |
| Bhamboli unit |
99.91% |
| Satara diffusers |
81.34% |
| Dombivli turbo blowers |
70.00% |
| Electronic panels and boards |
66.51% |
The moving-arm decanter unit operated above its stated rated capacity during FY26, while certain other facilities retained available production headroom.
The Bhamboli facility commenced operations in November 2025, so its FY26 utilisation should be considered in the context of a shorter operating period.
Importantly, SFC is not primarily raising fresh IPO funds for a major new manufacturing capacity expansion. Its stated priorities are working capital and debt repayment.
SFC Environmental Technologies reported an order book of approximately ₹1,656.64 crore as of 31 August 2026.
This is equivalent to around 2.06 times FY26 revenue from operations, indicating a sizeable pipeline of work relative to the company's recent annual revenue.
However, order-book value does not necessarily translate into revenue within a single financial year.
SFC Environmental Technologies order book breakdown
|
Business vertical
|
Order book (₹ crore)
|
|
Wastewater treatment
|
641.03
|
|
Wastewater recycling and reuse
|
561.07
|
|
Solid waste treatment
|
454.54
|
|
Total
|
1,656.64
|
Wastewater treatment remains the largest contributor to the order book, but recycling and reuse represent a substantial proportion of upcoming project activity.
Order book growth trend
The company's order book expanded significantly during FY26 after declining in FY25.
|
Reporting period
|
Order book (₹ crore)
|
|
FY24
|
785.23
|
|
FY25
|
560.39
|
|
FY26
|
1,574.52
|
|
30 June 2026
|
1,570.07
|
|
31 August 2026
|
1,656.64
|
The order book increased from ₹560.39 crore in FY25 to ₹1,574.52 crore in FY26, supported by projects in wastewater recycling and solid waste treatment.
The increase continued through August 2026.
Major projects and growth opportunities
Compressed biogas projects
Through subsidiary Hindustan Waste Treatment Private Limited, SFC secured contracts involving compressed biogas plants in Assam and Odisha.
The reported aggregate contract value is approximately ₹501.70 crore.
These projects include waste-processing infrastructure and associated operating obligations.
Successful execution could expand SFC's participation in waste-to-energy-related infrastructure, although construction and operational requirements introduce additional risks.
Wastewater recycling projects
SFC reported a wastewater recycling and reuse order book of ₹561.07 crore as of August 2026.
This compares with only ₹14.21 crore of recognised revenue from the segment during FY26.
The difference indicates an opportunity for the segment to become a more significant revenue contributor as projects are executed.
However, the timing of revenue recognition will depend on project milestones, customer acceptance and contractual conditions.
Municipal wastewater projects
The company's existing wastewater treatment business continues to serve EPC contractors working on government-funded and municipal treatment projects.
Its installed base and technical experience may support participation in future tenders, subject to competition and project funding.
Does the order book guarantee future revenue?
No. The reported order book provides business visibility but should not be treated as guaranteed future revenue.
The RHP's definition includes unexecuted portions of existing contracts and certain anticipated projects supported by letters of award, letters of intent, memoranda of understanding or similar commitments.
Therefore, investors should monitor project execution schedules, cancellations, customer collections, advance payments and profitability rather than relying only on the headline order-book number.
SFC intends to use the proceeds from its ₹150 crore fresh issue mainly to fund working capital and repay specified borrowings.
The proposed allocation reflects the financing requirements of a project-driven environmental engineering business.
SFC Environmental Technologies IPO fund utilisation
|
Object of the issue
|
Amount (₹ crore)
|
|
Repayment or prepayment of specified borrowings
|
42.23
|
|
Funding working capital requirements
|
74.92
|
|
General corporate purposes and applicable issue expenses
|
Balance, subject to finalisation
|
|
Gross fresh issue
|
150.00
|
The borrowings proposed for repayment include specified liabilities of the company and its wholly owned subsidiary, Vasudha Waste Treatment Private Limited.
Why is working capital funding important?
SFC has earmarked ₹74.92 crore, or nearly half of the gross fresh issue, for working capital requirements.
Environmental engineering projects often require spending on equipment procurement, manufacturing and project execution before corresponding customer payments are received.
A growing order book can therefore increase the company's funding needs.
The working capital allocation is particularly relevant because SFC's operating cash flow has remained weak despite reporting profits.
How could debt repayment affect financial performance?
The proposed ₹42.23 crore debt repayment could reduce interest costs and improve the company's financial flexibility.
However, this amount represents only part of its outstanding borrowings.
Any sustained reduction in debt will also depend on customer collections, future capital requirements and operating cash generation.
The ₹517.53 crore OFS proceeds will go to selling shareholders and will not be available for the company's business operations.
SFC Environmental Technologies reported growth in revenue, operating EBITDA and profit after tax between FY24 and FY26.
However, revenue and operating earnings grew faster than net profit, while operating cash flow remained inconsistent.
SFC Environmental Technologies revenue and EBITDA
The following table shows consolidated revenue from operations and operating EBITDA.
All amounts in ₹ crore
SFC Revenue from Operations
| Financial year |
Revenue (₹ crore) |
| FY24 |
657.50 |
| FY25 |
697.86 |
| FY26 |
803.63 |
SFC Operating EBITDA
| Financial year |
Operating EBITDA (₹ crore) |
| FY24 |
193.25 |
| FY25 |
207.48 |
| FY26 |
235.81 |
SFC Environmental Technologies PAT and EPS
The company's consolidated PAT increased during the three-year period, although profit growth remained relatively moderate.
SFC Profit After Tax
| Financial year |
PAT (₹ crore) |
| FY24 |
144.17 |
| FY25 |
152.01 |
| FY26 |
160.21 |
SFC Earnings Per Share
| Financial year |
EPS (₹) |
| FY24 |
15.16 |
| FY25 |
15.42 |
| FY26 |
16.52 |
The EPS figures represent basic and diluted EPS, which were identical in the disclosed financial periods.
FY24 financial performance
In FY24, SFC reported revenue from operations of ₹657.50 crore and consolidated PAT of ₹144.17 crore.
Operating EBITDA stood at ₹193.25 crore, translating into an EBITDA margin of 29.39%.
Despite these earnings, operating cash flow was negative at ₹11.69 crore.
FY25 financial performance
Revenue increased by approximately 6.14% to ₹697.86 crore in FY25.
Operating EBITDA rose to ₹207.48 crore, while PAT increased by approximately 5.43% to ₹152.01 crore.
Operating cash flow improved to ₹65.51 crore, and borrowings declined compared with FY24.
FY26 financial performance
SFC reported consolidated revenue growth of 15.16% to ₹803.63 crore in FY26.
Operating EBITDA increased by 13.66% to ₹235.81 crore, while PAT rose by 5.40% to ₹160.21 crore.
However, operating cash flow turned negative again at ₹25.80 crore, and total borrowings increased to ₹195.64 crore.
This divergence between accounting profits and cash generation is an important aspect of the company's financial performance.
Financial growth comparison
FY26 Financial Growth
| Financial indicator |
FY26 growth |
| Revenue from operations |
15.16% |
| Operating EBITDA |
13.66% |
| Profit after tax |
5.40% |
FY25 Financial Growth
| Financial indicator |
FY25 growth |
| Revenue from operations |
6.14% |
| Operating EBITDA |
7.36% |
| Profit after tax |
5.43% |
Over FY24-FY26, the company recorded the following two-year compound annual growth rates (CAGR):
Revenue and operating EBITDA expanded at nearly twice the pace of PAT growth.
This suggests that investors should examine factors affecting the conversion of operating earnings into net profit, including finance costs, depreciation, taxation, subsidiary performance and non-operating items.
SFC Environmental Technologies reported higher revenue and a return to profitability during the quarter ended 30 June 2026.
However, operating margins remained substantially below the full-year FY26 level, highlighting the seasonal nature of the company's project-driven operations.
SFC Environmental Technologies Q1 FY27 financial results
The following table compares the company's consolidated performance during Q1 FY26 and Q1 FY27.
Q1 FY27 Financial Results
| Financial metric |
Q1 FY27 |
| Revenue from operations |
₹133.94 cr |
| Operating EBITDA |
₹9.86 cr |
| Operating EBITDA margin |
7.36% |
| Profit after tax |
₹1.48 cr |
| PAT margin |
1.11% |
| Operating cash flow |
-₹21.34 cr |
Q1 FY26 Financial Results
| Financial metric |
Q1 FY26 |
| Revenue from operations |
₹67.79 cr |
| Operating EBITDA |
₹5.03 cr |
| Operating EBITDA margin |
7.42% |
| Profit after tax |
-₹0.28 cr |
| PAT margin |
-0.41% |
| Operating cash flow |
₹32.07 cr |
Revenue increased nearly 98%
Revenue from operations increased by approximately 97.58% year on year, from ₹67.79 crore to ₹133.94 crore.
The growth reflected higher project-related business during the quarter.
However, the timing of contract execution and revenue recognition can create significant differences between quarters.
Operating EBITDA increased but margins remained stable
Operating EBITDA increased from ₹5.03 crore to ₹9.86 crore.
Despite the increase in absolute operating earnings, the EBITDA margin declined slightly from 7.42% to 7.36%.
Therefore, the quarterly performance reflects stronger revenue and earnings rather than a material improvement in operating profitability.
PAT turned positive
Consolidated PAT improved from a loss of approximately ₹0.28 crore in Q1 FY26 to a profit of ₹1.48 crore in Q1 FY27.
Although this represents a turnaround, the quarterly profit remains relatively small compared with the company's full-year FY26 earnings.
Operating cash flow remained negative
SFC reported an operating cash outflow of ₹21.34 crore during Q1 FY27, compared with positive operating cash flow of ₹32.07 crore in Q1 FY26.
This reinforces the importance of monitoring working capital and customer collections.
Q1 FY27 revenue breakdown
The company's quarterly revenue mix also differed from FY26.
Q1 FY27 Segment Revenue
| Business vertical |
Revenue (₹ cr) |
| Wastewater treatment |
64.91 |
| Solid waste treatment |
53.25 |
| Wastewater recycling and reuse |
Nil |
| Other operating revenue |
15.78 |
| Total |
133.94 |
Q1 FY27 Revenue Contribution
| Business vertical |
Contribution |
| Wastewater treatment |
48.46% |
| Solid waste treatment |
39.76% |
| Wastewater recycling and reuse |
Nil |
| Other operating revenue |
11.78% |
| Total |
100.00% |
Wastewater treatment contributed 48.46% of quarterly revenue, while solid waste treatment contributed 39.76%.
Notably, wastewater recycling and reuse generated no recognised revenue during Q1 FY27 despite its sizeable outstanding order book.
This highlights the distinction between securing contracts and converting them into recognised revenue.
SFC maintained relatively stable full-year operating EBITDA margins between FY24 and FY26.
However, net profit margins and capital efficiency ratios declined over the period.
Operating EBITDA Margin
| Financial year |
EBITDA margin |
| FY24 |
29.39% |
| FY25 |
29.73% |
| FY26 |
29.34% |
PAT Margin
| Financial year |
PAT margin |
| FY24 |
21.93% |
| FY25 |
21.78% |
| FY26 |
19.94% |
Operating EBITDA margins remained close to 29% across all three years.
However, the PAT margin declined from 21.93% in FY24 to 19.94% in FY26.
This indicates that the company retained a smaller proportion of its revenue as net profit.
ROE and ROCE performance
Return on equity (ROE) measures profitability relative to shareholders' equity, while return on capital employed (ROCE) indicates how efficiently the business generates operating earnings from capital employed.
Return on Equity (ROE)
| Financial year |
ROE |
| FY24 |
29.80% |
| FY25 |
24.84% |
| FY26 |
21.55% |
Return on Capital Employed (ROCE)
| Financial year |
ROCE |
| FY24 |
28.56% |
| FY25 |
29.29% |
| FY26 |
22.21% |
Between FY24 and FY26:
-
ROE declined by 8.25 percentage points.
-
ROCE declined by 6.35 percentage points.
-
The company remained profitable, but returns did not increase proportionately with its capital base.
The reduction in ROE and ROCE is important because SFC is expanding into newer businesses that may require additional working capital and project investment.
Investors should assess whether these segments improve capital efficiency as they scale.
Cash flow is one of the most important financial factors in this SFC Environmental Technologies IPO Review.
Although the company reported profits throughout FY24–FY26, it generated negative operating cash flow in two of those three years.
This indicates that reported earnings were not consistently translating into cash generated from operations.
SFC Environmental Technologies profit versus operating cash flow
The following comparison highlights the difference between profitability and actual operating cash generation.
Profit After Tax
| Financial year |
PAT (₹ cr) |
| FY24 |
144.17 |
| FY25 |
152.01 |
| FY26 |
160.21 |
| Cumulative |
456.39 |
Operating Cash Flow
| Financial year |
Operating cash flow (₹ cr) |
| FY24 |
-11.69 |
| FY25 |
65.51 |
| FY26 |
-25.80 |
| Cumulative |
28.01 |
Cumulative operating cash flow is calculated using underlying unrounded reported figures.
Across FY24–FY26, SFC generated approximately ₹456.39 crore in cumulative PAT but only ₹28.01 crore in cumulative operating cash flow.
This represents cumulative operating cash conversion of approximately 6.14%, calculated as operating cash flow divided by PAT.
The difference does not establish that accounting profits are misstated. However, it raises questions about the cash tied up in receivables, inventories and other working capital requirements.
Increasing cash conversion cycle
The cash conversion cycle measures how long cash remains committed to operating activities before being recovered through customer payments.
Cash Conversion Cycle
| Financial year |
Cash conversion cycle |
| FY24 |
156 days |
| FY25 |
232 days |
| FY26 |
242 days |
Working Capital as a Percentage of Revenue
| Financial year |
Working capital/revenue |
| FY24 |
39.94% |
| FY25 |
63.51% |
| FY26 |
65.19% |
The working capital-to-revenue figures follow the company's disclosed basis.
The cash conversion cycle increased from 156 days in FY24 to 242 days in FY26, representing an increase of 86 days.
Over the same period, working capital as a percentage of revenue increased substantially.
This indicates that a greater amount of capital was being committed to supporting the company's operations.
Q1 FY27 cash conversion cycle
SFC reported a cash conversion cycle of 411 days during Q1 FY27.
However, the company attributed the elevated quarterly figure primarily to seasonality and the relatively low first-quarter revenue base.
The 411-day figure should therefore not be interpreted as a normalised full-year operating cycle or directly compared with annual figures without this qualification.
Increasing trade receivables
On a standalone basis, SFC's trade receivables increased considerably between FY24 and FY26.
FY26 Standalone Receivables
| Standalone indicator |
FY26 |
| Trade receivables |
₹431.23 cr |
| Receivable days |
282 days |
FY24 Standalone Receivables
| Standalone indicator |
FY24 |
| Trade receivables |
₹281.28 cr |
| Receivable days |
197 days |
Trade receivables increased by approximately ₹149.95 crore, while the receivable-days indicator rose by 85 days.
These are standalone measures and should not be confused with the consolidated cash conversion cycle.
Why is cash conversion important for SFC?
The company's business is closely linked to infrastructure projects where customer payments may depend on execution milestones, certification, commissioning and government-related payment processes.
Consequently:
-
Delayed customer payments can increase working capital requirements.
-
Rising receivables can reduce available operating cash.
-
Additional borrowings may be required even when the company reports profits.
-
Improved collections could reduce dependence on external financing.
The proposed working capital allocation from the IPO may help fund existing requirements, but sustained cash-flow improvement will depend on business execution and payment collection.
SFC Environmental Technologies increased its borrowings during FY26 and reported a further increase in Q1 FY27.
However, the company's net worth also expanded, and its reported net debt-to-equity ratio remained relatively low.
Total borrowings and net worth
The following figures are from the company's consolidated financial information.
Total Borrowings
| Period |
Borrowings (₹ cr) |
| FY24 |
139.16 |
| FY25 |
83.71 |
| FY26 |
195.64 |
| Q1 FY27 |
204.77 |
Net Worth
| Period |
Net worth (₹ cr) |
| FY24 |
534.30 |
| FY25 |
648.68 |
| FY26 |
804.17 |
| Q1 FY27 |
805.49 |
Borrowings declined during FY25 but increased from ₹83.71 crore in FY25 to ₹195.64 crore in FY26.
They subsequently rose to ₹204.77 crore as of June 2026.
Net debt and leverage
Net debt considers borrowings after deducting specified cash and bank balances, according to the company's RHP definition.
Net Debt
| Period |
Net debt (₹ cr) |
| FY24 |
-49.45 |
| FY25 |
-52.35 |
| FY26 |
38.82 |
| Q1 FY27 |
64.45 |
Net Debt-to-Equity Ratio
| Period |
Net debt/equity |
| FY24 |
-0.09x |
| FY25 |
-0.08x |
| FY26 |
0.05x |
| Q1 FY27 |
0.08x |
SFC moved from a net cash position in FY25 to a net debt position in FY26.
Nevertheless, the net debt-to-equity ratio remained comparatively modest at 0.05x in FY26 and 0.08x in Q1 FY27.
What does the financial position indicate?
The company has expanded its net worth, but its funding requirements have also increased.
The proposed debt repayment through IPO proceeds could strengthen financial flexibility and reduce some financing costs.
However, operating cash flow and customer collections remain important for determining whether borrowings can decline sustainably.
The SFC Environmental Technologies IPO price band is ₹313–₹330 per equity share.
At the upper price band of ₹330, the company has an estimated post-issue market capitalisation of approximately ₹3,232.57 crore.
The valuation needs to be assessed against FY26 earnings, historical growth, return ratios, cash generation and future project execution.
SFC Environmental Technologies IPO valuation metrics
|
Valuation indicator
|
Value
|
|
Upper IPO price
|
₹330
|
|
Estimated post-issue market capitalisation
|
₹3,232.57 crore
|
|
FY26 consolidated PAT
|
₹160.21 crore
|
|
FY26 profit attributable to owners
|
Approximately ₹154.36 crore
|
|
FY26 diluted EPS
|
₹16.52
|
|
P/E based on disclosed FY26 EPS
|
19.98x
|
|
Estimated post-issue P/E
|
20.94x
|
|
Price/pre-issue NAV
|
3.83x
|
|
Market capitalisation/FY26 revenue
|
4.02x
|
|
FY26 return on net worth
|
21.25%
|
Valuation metrics are calculated at ₹330 per share using the company's disclosed financial information and estimated post-issue equity capital.
Why are there two P/E ratios?
The company's disclosed FY26 diluted EPS is ₹16.52. Dividing the IPO price of ₹330 by this EPS gives a P/E ratio of approximately 19.98 times.
However, the fresh issue increases the number of outstanding equity shares. Using the estimated post-issue market capitalisation and FY26 profit attributable to owners produces a P/E ratio of approximately 20.94 times.
The latter provides a more consistent post-issue valuation comparison, assuming historical earnings remain unchanged.
Similarly, the price-to-book comparison of approximately 3.83 times uses the pre-issue NAV of ₹86.09 per share. The post-issue book value will change after accounting for the fresh issue and associated expenses.
Is the SFC Environmental Technologies IPO valuation reasonable?
The company's valuation reflects both established business strengths and financial concerns.
On the positive side, SFC has:
-
An established position in SBR wastewater treatment technology.
-
An order book of approximately ₹1,656.64 crore.
-
Historical full-year operating EBITDA margins close to 29%.
-
Growing opportunities in wastewater reuse, solid waste management and compressed biogas.
However, investors must also consider:
-
Weak operating cash conversion.
-
A longer cash conversion cycle.
-
Declining ROE and ROCE.
-
Increasing borrowings.
-
Execution risks in newer business segments.
A P/E of approximately 20.94x on estimated post-issue capital should therefore be evaluated alongside cash generation and the sustainability of earnings, rather than in isolation.
The SFC Environmental Technologies RHP identifies Thermax, Praj Industries and Ion Exchange (India) as listed industry peers.
These businesses provide a reference for comparing earnings valuation and return on net worth, although they differ significantly in scale and operating activities.
SFC IPO P/E ratio comparison
The following figures use FY26 diluted EPS and the reference P/E multiples disclosed in the offer document.
P/E Ratio Comparison
| Company |
P/E ratio |
| SFC Environmental Technologies |
19.98x |
| Thermax |
52.01x |
| Praj Industries |
220.77x |
| Ion Exchange (India) |
31.34x |
Diluted EPS Comparison
| Company |
Diluted EPS (₹) |
| SFC Environmental Technologies |
16.52 |
| Thermax |
63.94 |
| Praj Industries |
1.30 |
| Ion Exchange (India) |
12.03 |
SFC's P/E is calculated at ₹330 using disclosed FY26 EPS, before adjusting for post-issue dilution.
The listed peer P/E ratios are based on market prices as of 16 October 2026.
SFC IPO return on net worth comparison
Return on net worth provides another measure of financial performance relative to the company's equity base.
Return on Net Worth (RoNW) Comparison
| Company |
RoNW |
| SFC Environmental Technologies |
21.25% |
| Thermax |
13.74% |
| Praj Industries |
1.77% |
| Ion Exchange (India) |
11.20% |
FY26 Revenue Comparison
| Company |
FY26 revenue (₹ cr) |
| SFC Environmental Technologies |
803.63 |
| Thermax |
10,694.15 |
| Praj Industries |
3,167.88 |
| Ion Exchange (India) |
2,914.84 |
What does the peer comparison indicate?
At ₹330, SFC's historical EPS-based P/E of 19.98x is lower than those of all three listed peers.
Its FY26 RoNW of 21.25% is also higher than the reported peer ratios.
However, the comparison has important limitations.
Thermax is a significantly larger company with operations across energy and environmental engineering.
Praj Industries has exposure to process engineering and bioenergy, while Ion Exchange operates across a broader range of water treatment products and solutions.
Additionally, a company's P/E ratio can become unusually high when its earnings temporarily decline. Praj Industries' elevated multiple should be viewed in this context.
Therefore, SFC's lower P/E does not automatically establish that the IPO is undervalued.
Its smaller scale, cash-flow performance, working capital intensity and dependence on government-related projects must also be considered.
SFC Environmental Technologies operates in an industry supported by demand for wastewater treatment, environmental compliance and solid waste management.
Its established wastewater technology business provides an operating base, while recycling, waste processing and compressed biogas projects create opportunities for diversification.
1. Established position in SBR technology
SFC has facilitated 728 cumulative wastewater treatment installations, with total treatment capacity of approximately 17,511.11 million litres per day as of July 2026.
Its reported leadership in India's SBR technology market provides an established project execution record.
This experience may help the company qualify for future technology-supply contracts, although new business remains dependent on competitive tendering and project approvals.
2. Increasing demand for wastewater treatment
Urbanisation, environmental compliance requirements and the need to reuse treated water could support demand for advanced wastewater treatment technologies.
SFC's existing wastewater treatment portfolio and growing recycling capabilities position it to participate in these opportunities.
However, market demand will translate into revenue only when projects receive funding, approvals and successful execution.
3. Large order book
The reported ₹1,656.64 crore order book provides visibility into potential future business.
Its size relative to FY26 revenue indicates a meaningful pipeline of projects.
However, revenue recognition and profitability will depend on the timing, contractual conditions and successful completion of individual projects.
4. Wastewater recycling and reuse opportunity
The wastewater recycling and reuse segment had an order book of ₹561.07 crore as of August 2026, compared with FY26 revenue of just ₹14.21 crore.
As municipalities and industrial customers focus on reducing freshwater consumption, this business could become more important.
The immediate challenge is converting the outstanding project pipeline into recognised revenue while maintaining profitability and cash collection.
5. Solid waste management and compressed biogas
SFC's existing waste management facilities and compressed biogas projects provide diversification beyond conventional wastewater treatment.
According to the industry report cited in the RHP, India's municipal solid waste-related business revenue potential is estimated to increase from approximately ₹21,740 crore in FY26 to ₹32,920 crore by FY31.
These are industry-level estimates, not revenue forecasts for SFC.
The company's ability to benefit will depend on contract wins, technology capabilities, project execution and operating efficiency.
6. Established repeat customer relationships
The RHP reports that repeat customers contributed approximately 91.98% of FY26 standalone revenue.
This indicates established relationships with customers and EPC contractors.
However, repeat business should not be confused with guaranteed recurring revenue, particularly because the company does not have long-term contracts with most of its major customers.
The SFC Environmental Technologies IPO has several business and financial risks that need to be assessed alongside its growth opportunities.
The company's profitability and order book are important strengths, but cash conversion, customer dependence, execution requirements and regulatory exposure remain significant.
1. Negative operating cash flow
SFC reported negative operating cash flow in FY24 and FY26 despite remaining profitable.
The company generated cumulative PAT of ₹456.39 crore between FY24 and FY26, against cumulative operating cash flow of only ₹28.01 crore.
Continued weak cash conversion could increase funding requirements and limit financial flexibility.
2. Increasing working capital requirements
The cash conversion cycle increased from 156 days in FY24 to 242 days in FY26.
A longer operating cycle means more funds remain tied up in project execution, inventories and customer receivables.
If collections do not improve, growth in the order book could create additional liquidity requirements.
3. Customer concentration
SFC receives a substantial proportion of its revenue from a relatively small group of customers.
The concentration increased during Q1 FY27.
Q1 FY27 Customer Concentration
| Customer concentration |
Q1 FY27 |
| Largest customer |
26.68% |
| Top five customers |
62.12% |
| Top ten customers |
79.20% |
FY26 Customer Concentration
| Customer concentration |
FY26 |
| Largest customer |
14.34% |
| Top five customers |
47.10% |
| Top ten customers |
64.44% |
In FY26, the top ten customers accounted for 64.44% of revenue. This increased to 79.20% in Q1 FY27.
The company also does not have long-term contracts with most major customers.
Consequently, the loss of a significant customer, delayed orders or payment disputes could materially affect revenue and cash flow.
4. Dependence on government-funded projects
A major share of SFC's business ultimately depends on government agencies or publicly funded projects.
According to its RHP, revenue directly or indirectly attributable to government entities or tenders represented:
This exposes the business to government funding availability, tender delays, changes in public infrastructure priorities and payment-related risks.
5. North Goa concession renewal risk
SFC's North Goa solid waste management facility has a concession arrangement disclosed as running until 20 August 2027, or until a new operator takes over, whichever is earlier under the applicable terms.
Continuation beyond the existing arrangement is not guaranteed.
Failure to retain the concession could affect the associated revenue and earnings contribution.
6. Execution risks in newer businesses
Wastewater recycling and compressed biogas projects represent important growth opportunities.
However, these projects can involve complex engineering requirements, technology integration, construction, commissioning and customer acceptance.
Delays or cost overruns could postpone revenue recognition and affect profitability.
7. Dependence on technology and specialised suppliers
SFC uses proprietary treatment processes alongside technologies and equipment sourced through external arrangements.
Supply disruptions, licensing restrictions, technological changes or stronger competition could affect project execution and its competitive position.
8. Seasonal revenue and profitability
SFC's business is influenced by project execution schedules, government payment cycles and monsoon-related construction delays.
Its Q1 FY27 EBITDA margin of 7.36% was significantly below the FY26 full-year margin of 29.34%.
This demonstrates why quarterly results should not be annualised without considering the timing of project execution and revenue recognition.
9. Increasing borrowings
Total borrowings increased from ₹83.71 crore in FY25 to ₹195.64 crore in FY26 and further to ₹204.77 crore in Q1 FY27.
Although leverage remains relatively modest, continued negative operating cash flow could increase dependence on external financing.
10. Pending litigation and regulatory proceedings
The RHP discloses proceedings involving SFC, its directors, promoters and subsidiaries.
The following table summarises the disclosed outstanding proceedings.
Criminal and Tax Proceedings
| Entity |
Criminal / Tax |
| Company |
1 / 14 |
| Directors |
1 / 4 |
| Promoters |
1 / 4 |
| Subsidiaries |
2 / 5 |
Regulatory and Material Civil Proceedings
| Entity |
Regulatory / Material civil |
| Company |
Nil / Nil |
| Directors |
Nil / Nil |
| Promoters |
Nil / Nil |
| Subsidiaries |
10 / 2 |
Some proceedings involve overlapping parties and should not be added together as entirely separate cases.
The RHP also discloses two material civil proceedings involving Austrian subsidiary SFC Umwelttechnik GmbH and others.
The aggregate amount involved is approximately €6.25 million, equivalent to ₹66.69 crore, using the exchange rate specified in the offer document.
These are pending proceedings and do not establish that the company owes the amounts claimed. Nevertheless, adverse outcomes could have financial consequences.
11. Corporate record discrepancies and auditor remarks
The offer document identifies certain historical corporate record discrepancies or missing records.
It also discusses remarks made by statutory auditors in historical financial statements, which are described as not being in the nature of qualifications.
These matters warrant examination when assessing corporate governance and financial reporting practices.
12. Large OFS component
Approximately 77.53% of the IPO size comprises an offer for sale.
This means most of the total offer proceeds will go to selling shareholders rather than to SFC.
Only the fresh issue proceeds, after applicable expenses, will be available to fund the company's requirements.
13. Valuation and listing risk
The ₹330 upper issue price reflects expectations regarding SFC's earnings, market position and future execution.
However, the company faces cash-flow, working capital and project-related risks.
There is no assurance that its shares will list or subsequently trade at or above the IPO issue price.
After listing, SFC's operating performance and cash conversion will be important indicators of whether its project pipeline is creating sustainable shareholder value.
The following factors warrant particular attention:
-
Operating cash flow: Whether the company begins consistently converting reported profits into positive operating cash flow.
-
Trade receivables: Whether outstanding customer payments and collection periods decline.
-
Order book execution: How effectively the ₹1,656.64 crore order book converts into recognised revenue and operating profits.
-
Wastewater treatment business: Whether the established business maintains its market position, project pipeline and margins.
-
Wastewater recycling growth: Whether the newer segment starts generating meaningful revenue from existing orders.
-
Solid waste and compressed biogas projects: Progress in construction, commissioning and operational performance.
-
Operating margins: Whether SFC maintains historical full-year profitability as its business mix changes.
-
Borrowings and finance costs: Whether IPO-funded repayments and improved cash generation strengthen the balance sheet.
-
ROE and ROCE: Whether capital efficiency improves following the decline observed in FY26.
-
Government project exposure: Changes in tender awards, public funding and execution schedules.
-
North Goa concession: Developments regarding the facility's operations and concession arrangements beyond the existing period.
-
Litigation and governance: Material updates regarding pending proceedings, regulatory matters and financial disclosures.
The most important financial indicators are likely to be cash conversion, working capital efficiency and the profitability of new projects.
Planning to apply for the SFC Environmental Technologies IPO? Apply online through Zerodha and submit your IPO application with ease.
SFC Environmental Technologies enters the public market with an established wastewater treatment technology business, a sizeable order book and growing exposure to wastewater recycling, solid waste processing and compressed biogas projects.
Between FY24 and FY26, revenue increased from ₹657.50 crore to ₹803.63 crore, while consolidated PAT rose from ₹144.17 crore to ₹160.21 crore. The company maintained operating EBITDA margins close to 29% and reported an order book of ₹1,656.64 crore as of August 2026.
However, weak operating cash flow, increasing receivables, rising borrowings and customer concentration remain important concerns.
At the upper price band of ₹330, the SFC Environmental Technologies IPO valuation implies an estimated post-issue P/E of approximately 20.94x FY26 profit attributable to owners.
For investors evaluating the SFC Environmental Technologies IPO 2026, the central factor is whether the company can convert its established technology position and project pipeline into sustained earnings growth, stronger operating cash flow and improved capital efficiency.
Want to compare SFC Environmental Technologies with other mainboard listings across sectors? Use the IPO dashboard to review issue sizes, price bands, subscription details, and listing timelines.
Frequently Asked Questions
1. What are the SFC Environmental Technologies IPO opening, closing and listing dates?
The SFC Environmental Technologies IPO opens on 27 October 2026 and closes on 29 October 2026. The tentative allotment date is 30 October 2026, while the expected listing date is 3 November 2026 on the BSE and NSE.
2. What is the SFC Environmental Technologies IPO price band and lot size?
The SFC Environmental Technologies IPO price band is ₹313–₹330 per share, with a lot size of 45 shares. At the upper price band of ₹330, the minimum retail investment is ₹14,850.
3. What is the SFC Environmental Technologies IPO size?
The total SFC Environmental Technologies IPO size is ₹667.53 crore at the upper price band. It comprises a fresh issue of ₹150 crore and an offer for sale of ₹517.53 crore. The company plans to use the fresh issue proceeds primarily for debt repayment and working capital.
4. What is the SFC Environmental Technologies IPO P/E ratio and valuation?
At ₹330 per share, the IPO has a P/E ratio of approximately 19.98x based on disclosed FY26 diluted EPS of ₹16.52. Its estimated post-issue P/E is approximately 20.94x based on FY26 profit attributable to owners. The implied post-issue market capitalisation is approximately ₹3,232.57 crore.
5. What is the SFC Environmental Technologies IPO GMP?
The SFC Environmental Technologies IPO GMP refers to its unofficial grey market premium before listing. GMP quotations are unregulated, can change frequently and are not guaranteed indicators of listing performance. No specific GMP quotation is used in this fundamental analysis.