Jain Irrigation Systems Ltd. announced a strong performance for its second quarter and first half of fiscal year 2027. The company reported positive revenue growth, with overall revenue reaching approximately INR 1,576 crore in Q2 FY27. EBITDA also saw an increase to INR 207 crore for the quarter, demonstrating improved profitability. The company highlighted a reduction in its working capital cycle and expressed confidence in a positive performance for the second half of FY27.
Jain Irrigation Systems Ltd. Reports Robust Q2 and H1 FY27 Results
Jain Irrigation Systems Ltd. has announced a commendable performance for the second quarter and the first half of fiscal year 2027, indicating a positive trajectory for the company. Anil Jain, CEO and MD, presented the results, highlighting significant improvements in revenue and profitability amidst challenging market conditions.
Q2 FY27 Financial Highlights
In the second quarter of FY27, Jain Irrigation achieved an overall revenue of approximately INR 1,576 crore, marking a double-digit growth compared to the previous year. The company’s EBITDA also saw a substantial increase, reaching INR 207 crore, up from INR 207 crore in the prior year. While the overall margin stood at 13.2%, the Hi-Tech MI micro-irrigation segment maintained a high-teen margin of 18.8%, and the Plastics segment posted around 9% margin. The company reported an adjusted PAT of INR 40 crore after accounting for NCD wind down, signifying a profitable quarter.
First Half FY27 Performance
For the six-month period of FY27, Jain Irrigation’s revenue stood at approximately INR 3,100 crore, a 4% increase compared to the previous year. The overall EBITDA for the first half was INR 372 crore, with a healthy margin of 12.1%. Adjusted PAT for H1 FY27 was around INR 43 crore. The company has observed steady improvement in its overall performance across various business segments.
Segment Performance and Outlook
The drip irrigation business continues to perform well, and the retail business saw domestic growth of almost 18%. While the piping business experienced a negative growth of 25-30% in the first quarter, it has recovered to levels similar to the previous year. The Hi-Tech MI micro-irrigation agribusiness maintained high-teen growth, and the retail business grew approximately 12%. Agro-processing registered 8.4% growth with about INR 560 crore in revenue for the quarter, and the Plastics segment saw almost 17% growth.
Anil Jain noted that despite challenges like drought and higher polymer prices, the company is focused on cash flow generation, debt reduction, and securing funding for future growth. The company expects a flattish to positive growth in the second half of FY27, contingent on improvements in monsoon conditions and polymer prices. They anticipate significant debt repayments being completed by March, improving liquidity for further growth in the next fiscal.
Working Capital Improvement
A key highlight of the quarter was the improvement in the working capital cycle, which reduced by four days, from 183 to 179 days. This improvement is attributed to a 15-day reduction in Days Sales Outstanding (DSO) and improvements in inventory and accounts payable. The company remains focused on cash flow generation to manage obligations and support future expansion.
Future Growth Prospects
Looking ahead, Jain Irrigation sees opportunities in large-diameter pipes due to infrastructure projects, demand for solar water pumps, and growth in its food processing and beverage businesses. The company is also focused on improving its working capital cycle over the next 12 months, with expectations of stronger balance sheets by FY28. Growth CAPEX for the current fiscal year includes investments in a tomato JV and beverage line expansion, with biochar projects expected to see major CAPEX in the next fiscal year.
Source: BSE
