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SFC Environmental Technologies Ltd IPO
SFC Environmental Technologies Ltd
₹14,085 /45 sharesMinimum investment
IPO details
Minimum investment
₹14,085
Price range
₹313 - ₹330
Lot size
45
Issue size
667.53 Cr
Face value
2
IPO document
Subscription rate
Data will be available soon
Schedule
27 Oct 2026
IPO open date
29 Oct 2026
IPO close date
30 Oct 2026
Allotment date
30 Oct 2026
Funds unblock or debit
3 Nov 2026
Tentative listing date
About
Founded in
2005
MD/CEO
Mr Sandeep Sudhakar Asolkar
Parent organisation
SFC Environmental Technologies Ltd
SFC Environmental Technologies Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
According to the prospectus, SFC Environment was the first technology provider to introduce sequencing batch reactor (SBR) technology through its C-Tech system in India. As of July 31, 2026, the company had commissioned 728 wastewater treatment installations and claims to hold over 80% market share in SBR technology in India.
The company claims to have developed in-house manufacturing capabilities for components used in its C-Tech and OREX technologies, including decanters, diffusers, turbo blowers, and solar sludge drying systems. It has also entered into technology and supply agreements with international companies, including TurboMax Company Limited of South Korea, IST-Anlagenbau GmbH of Germany, and EDI Inc. of the USA.
The company operates two integrated solid waste treatment facilities in Goa for the Goa Waste Management Corporation, with a combined treatment capacity of 350 tonnes per day and an additional handling capacity of 75 tonnes per day. According to the prospectus, its Saligao plant in North Goa has operated for over 10 years and recorded an average biogas yield of more than 150 Nm³ per tonne of organic waste in the last financial year.
Through its wholly owned subsidiary, HWTPL, the company has secured orders from a public sector oil marketing company for two compressed biogas plants. These include a 125-tonne-per-day plant in Tinsukia, Assam, and a 300-tonne-per-day plant in Bhubaneswar, Odisha, with a combined order value of Rs 501.70 crore. The contracts include engineering, procurement, commissioning, and operations and maintenance for 10 years.
As of August 31, 2026, the company’s total order book stood at Rs 1,656.64 crore across wastewater treatment, wastewater recycling and reuse, and solid waste treatment.
The company has shown a consistent increase in revenue from operations and profit after tax (PAT) in FY24, FY25, and FY26. Revenue from operations increased from Rs 657.49 crore in FY24 to Rs 697.86 crore in FY25 to Rs 803.63 crore in FY26, while PAT increased from Rs 144.17 crore to Rs 152.01 crore and Rs 160.21 crore over the same period.
SFC Environment derives 88.22%, 84.98%, 84.34%, and 87.40% of its consolidated revenue from operations from its wastewater treatment (WWT) and solid waste treatment (SWT) segments in the three months ended June 30, 2026, FY26, FY25, and FY24, respectively. Revenue attributable to government entities or government tenders accounted for 91.97%, 92.35%, 92.40%, and 95.72% of the WWT segment’s revenue during these periods, while the SWT segment derived 100% of its revenue from such sources in each period. Adverse changes in government policies, budgetary allocations, or tender awards, or reductions or terminations of government-funded projects, could hurt the company’s business and financial condition.
The company’s top 10 customers contributed Rs 106.09 crore (79.20%) in the three months ended June 30, 2026, Rs 517.84 crore (64.44%) in FY26, Rs 428.28 crore (61.37%) in FY25, and Rs 389.11 crore (59.18%) in FY24 to its revenue from operations. The company does not generally enter into long-term contracts with customers in its WWT and WRR segments, relying instead on purchase orders or letters of intent that can be terminated with or without notice. Any failure to retain key customers, cancellation or reduction of orders, or delays in payments from major customers could adversely affect the company’s revenue, profitability, and financial condition.
The company reported negative operating cash flows of Rs 21.34 crore in the three months ended June 30, 2026, Rs 25.80 crore in FY26, and Rs 11.69 crore in FY24. These were primarily due to working capital movements, including increases in trade receivables in FY26 and in FY24, along with increases in inventories and other current assets. The company also reported negative investing cash flows of Rs 66.47 crore in FY26 and Rs 77.15 crore in FY24, mainly due to investments in fixed deposits, capital expenditure, acquisitions of subsidiaries, and loans given. Negative financing cash flows of Rs 106.52 crore in FY25 primarily resulted from repayment of borrowings, dividend payments, interest payments, and lease liabilities. Any continued working capital requirements, capital expenditure, acquisitions, or debt repayments could result in further negative cash flows and adversely affect the company’s liquidity and financial condition.
The company’s solid waste treatment (SWT) business requires substantial upfront capital investment and working capital. Project agreements may require equity contributions of up to 25% of project costs and performance bank guarantees of up to 10% of project costs, while investments under concession agreements may be recovered over several years after commissioning. The RBI’s Project Finance Directions, 2025, effective October 1, 2025, require at least 90% of a project’s total financing to be tied up and contractually committed before the first loan disbursement, which could delay financial closure and project commencement. Planned compressed biogas and waste-to-energy projects may also require further equity or capital investments, with funding amounts and timelines yet to be determined. The company may need additional debt or equity financing to meet these requirements, and any difficulty in obtaining funds on favourable terms could increase financing costs, debt obligations, and cash flow pressures, adversely affecting its financial condition and results of operations.
The company is involved in legal proceedings pending before various courts, tribunals, and governmental authorities. Any adverse rulings, changes in applicable laws, or developments in these proceedings could require the company to make additional provisions in its financial statements, increase its expenses and current liabilities, and adversely affect its business, financial condition, results of operations, and cash flows.
The company’s top 10 suppliers accounted for Rs 36.99 crore (54.48%) of its purchases of stock-in-trade and raw materials in the three months ended June 30, 2026, Rs 195.26 crore (55.66%) in FY26, Rs 144.28 crore (47.71%) in FY25, and Rs 218.99 crore (63.71%) in FY24. The company generally procures raw materials and components, including decanters, diffusers, spares, and PVC pipes, through purchase orders rather than continuing and exclusive supply agreements. It also relies on imports for key materials, with imported stock-in-trade accounting for 64.24% of purchases in the three months ended June 30, 2026, and 69.12%, 71.67%, and 77.99% in FY26, FY25, and FY24, respectively. Any supplier disruption, price increase, delay in imported materials, or difficulty finding alternative suppliers could increase costs, delay project execution, result in contractual claims, and adversely affect the company’s operations, cash flows, and financial condition.
The company has experienced an increase in its cash conversion cycle, which may continue to require significant working capital and adversely affect its liquidity and financial condition. The company’s cash conversion cycle increased from 141 days in FY24 to 259 days in FY25, before declining to 235 days in FY26, and further increased to 569 days in the three months ended June 30, 2026, primarily due to the seasonality of its business and lower revenue during the first half of the financial year. Trade receivable days increased from 197 days in FY24 to 262 days in FY25 and 282 days in FY26, while inventory days increased from 78 days in FY24 to 106 days in FY25 and FY26. A consistent increase in the cash conversion cycle, delays in customer payments, inability to manage inventory efficiently, or a reduction in credit periods extended by suppliers could increase the company’s working capital requirements, result in cash flow mismatches and adversely affect its liquidity, cash flows, financial condition and results of operations.
The company had consolidated outstanding borrowings of Rs 253.10 crore as of July 31, 2026. The company’s indebtedness and related financing obligations could increase its financial costs and affect its cash flows and financial condition.
Application details
For SFC Environmental Technologies IPO, eligible investors can apply as Regular.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Regular | ₹313 - ₹330 | Upto ₹2 Lakhs | 45 |
| High Networth Individual | ₹313 - ₹330 | ₹2 - ₹5 Lakhs | 45 |