SYNOPSIS: A multi-disciplinary EPC company disclosed that promoter Ramveer Singh created an additional pledge of 4.5 lakh shares with lenders to provide collateral for existing financing arrangements, increasing the total encumbered promoter shareholding to 21.71 percent.
During Wednesday’s trading session, shares of a multi-disciplinary EPC company providing turnkey services in water and wastewater collection, treatment and disposal, hit a 20 percent upper circuit on the stock exchanges. So, what triggered this sharp rise? Let’s break it down in this article.
With a market cap of Rs. 1,727 crores, shares of EMS Limited hit a 20 percent upper circuit at Rs. 311 on BSE, compared to its previous closing price of Rs. 259.2. The stock has delivered negative returns of over 50 percent in one year, and has fallen by around 16 percent in the last one month.
News
On Tuesday, 10th March, the Union Cabinet approved a total outlay of Rs. 8.69 lakh crore for the Jal Jeevan Mission, increasing the Centre’s contribution to Rs. 3.59 lakh crore, compared to Rs. 2.08 lakh crore allocated earlier in 2019-20.
Earlier, in November 2025, the central government had temporarily paused the release of fresh funds under the Jal Jeevan Mission after reports of widespread irregularities surfaced. The funding was withheld until states took corrective measures, which had also led to payment delays for several EPC contractors involved in the projects.
As of December 2025, the company has an unexecuted order book of nearly Rs. 2,200 crores. The management indicated that it is actively participating in new tenders, and is bidding in about Rs. 2,000 crores tenders in the Delhi Jal Board and other places. Based on the ongoing bidding activity, the company expects its order book to increase by around Rs. 1,000 crores over the next 3-4 months.
In addition, the company’s current bidding pipeline stands at nearly Rs. 4,000 crore. Historically, the company’s order win rate has been in the range of 10-15 percent, but with a more aggressive bidding strategy in place, the management aims to improve the win rate to around 20 percent going forward.
Additional News
According to the latest stock exchange disclosures, EMS Limited reports that its promoter, Ramveer Singh, has created an additional pledge on a portion of its shareholding.
Ramveer Singh currently holds 3,76,75,882 equity shares in the company, representing 67.85 percent of the total share capital. Out of this, 1,16,08,690 shares, equivalent to 20.9 percent of total capital, were already encumbered prior to this transaction.
On 10th March 2026, the promoter entity created an additional pledge of 4,50,000 shares, accounting for 0.81 percent of the company’s total share capital, in favour of TATA Capital Limited & SG Finserve Limited. The pledge has been created to provide additional collateral for earlier financing arrangements and to maintain liquidity in view of prevailing market conditions to cover Margin.
Following this transaction, the total number of encumbered shares held by the promoter has increased to 1,20,58,690 shares, representing 21.71 percent of the promoter’s shareholding in the company.
Financials
EMS Limited is engaged in the business of sewerage contracting, Sewerage Treatment Plant (STP) works, electricity transmission and distribution & building and manufacturing of its own products used for construction purposes.
The company reported a decline in revenue from operations by over 18 percent YoY, from Rs. 245 crores in Q3 FY25 to Rs. 200 crores in Q3 FY26. Likewise, its net profit decreased from Rs. 51 crores to Rs. 19 crores, representing a fall of around 63 percent YoY.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Why Did EMS Ltd Shares Hit 20% Upper Circuit Despite Promoter Pledging Additional Shares? appeared first on Trade Brains.