Jain Irrigation Systems reported a 17% revenue increase in Q3 FY26, reaching approximately ₹1,600 crore. Hi-Tech, plastic, and agro-processing segments all contributed to growth, with retail sales up by 24%. While EBITDA was slightly lower YoY due to sector-specific issues, the company anticipates strong revenue and earnings growth to continue and expects to meet full-year targets, driven by increased retail focus and improved market conditions.
Financial Performance
Jain Irrigation Systems announced a 17.4% increase in revenue, reaching approximately ₹1,600 crore for Q3 FY26. The company saw growth across all three major business segments.
- Hi-Tech Irrigation: Grew by approximately 16%, reaching ₹625 crore.
- Plastic Division: Increased by 18%, reaching ₹462 crore.
- Agro Processing: Grew by 18.5%, reaching ₹509 crore.
Retail sales grew strongly, with a 24% increase in the piping, irrigation, and tissue culture segments. The company is focusing on retail sales for future growth, aiming for a more efficient working capital cycle.
Profitability and Margins
EBITDA for the quarter was approximately 10.5%, slightly lower than the 12.9% in the same period last year. In absolute terms, it decreased by 4%, from ₹175 crore to ₹168 crore. However, for the first nine months, EBITDA grew by 15%, from ₹493 crore to ₹569 crore, with revenues growing by 13.5%.
Strategic Focus and Outlook
The company’s inventory at the standalone India level decreased by approximately ₹100 crore, improving cash flow. The net working capital cycle improved by 15 days, decreasing from 196 days to 181 days. Jain Irrigation is focused on increasing its retail market share and expanding into new markets. The recent signing of FTAs by the Indian government is expected to benefit the company’s export business, especially to Europe and the U.S.
The company expects to maintain a revenue growth of 15% plus and an EBITDA growth of 15% plus for the whole year. Internal targets for the next fiscal year include revenue and earnings growth closer to 18%-20%.
Key Developments
- The beverage line at the food processing subsidiary is starting commercial production, with Phase 2 expected by the end of the calendar year.
- Tomato processing JV with a Japanese company, with revenue expected from January 2027.
Impact of Labor Code and Subsidiary Liquidation
The company recorded a ₹23 crore one-time book entry due to the new Labor Code and a goodwill write-off due to the liquidation of a European subsidiary. These are non-cash items.
Source: BSE
