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    Captain Polyplas

    536974
    Capital Goods·25 Nov 2025
    Management Summary

    Captain Polyplast Limited reported strong Q2 FY26 results, driven by robust growth in both micro-irrigation and solar EPC segments. The company is strategically expanding its solar pump business and enhancing its micro-irrigation capabilities with a new plant. Policy tailwinds and GST reductions are expected to further support growth and affordability in the coming periods, despite working capital intensity in subsidy-dependent segments.

    Highlights

    7
    • Total income (Revenue) for Q2 FY26 rose to ₹80 Crores, a 48% Y-o-Y growth.

    • EBITDA increased by 23% Y-o-Y to ₹8.24 Crores, with an EBITDA margin of 10.29%.

    • Net Profit for the quarter was ₹4.24 Crores, resulting in an EPS of ₹0.71.

    • Secured initial orders for 500 off-grid solar pumps totaling ₹14.14 Crores under PM-KUSUM, with revenue largely accruing in H2 FY26.

    • Micro-irrigation business targets 25% growth over the next three years, aiming for a 50-50 revenue split with Solar EPC by FY2028.

    • The new Ahmedabad plant, focused on high-margin irrigation accessories, is expected to commence commercial production by December 2025.

    • GST reduction from 12% to 5% for micro-irrigation and solar products is expected to boost demand and affordability, with results anticipated in Q3 and Q4.

    What Changed1

    vs Q3 FY26

    Guidance items6 → 8 (+2)

    Key financials

    Single quarter

    06 metrics
    1. 01Total Income₹80 Cr+48%YoY
    2. 02EBITDA₹8.24 Cr+23%YoY
    3. 03EBITDA Margin10.3%
    4. 04PBT (excl. exceptional)₹5.76 Cr+65%YoY
    5. 05Net Profit₹4.24 Cr

    Segment breakdown

    Micro-irrigation (MIS)
    85% Revenue Contribution (H1 FY26) Margin Profile
    Solar EPC
    15% Revenue Contribution (H1 FY26) Rooftop Solar Margin Solar Pumps Margin
    List

    Order Book

    high confidence

    Total Value

    ₹ 14.14 crores

    as of 2025-09-30

    quantified

    Inflow this qtr

    ₹ 14.14 crores

    Execution

    Majority of revenue from these orders would be accrued in H2.

    Composition

    Off-grid solar pumps(product)
    ₹ 14.14 crores100.0%

    Pipeline

    qualified rfp

    Participated in another tender in Maharashtra for 1 lakh pumps.

    "The solar pump order wins reinforce execution capability and strengthen confidence in the vertical. Rooftop solar segment has no extensive order book as business is routine and executed within top customers."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹10 crores

    partly our internal accruals and partly debt

    Liquidity

    Liquidity disclosed

    H1 cash flow from operations is typically negative due to receivables from government subsidies in micro-irrigation, with recovery expected in H2.

    Guidance & targets

    8
    CategoryTargetPriority
    Revenue
    Micro-irrigation business growth
    25%
    High
    Revenue
    Solar EPC revenue contribution to total revenue
    50%
    High
    Capacity
    Micro-irrigation business revenue potential from existing capacity
    ₹400 Crores
    High
    Operations
    Ahmedabad plant commercial production start
    Current quarter / end of December
    High
    Profitability
    Overall EBITDA margin for micro-irrigation business (from Ahmedabad plant)
    1% to 1.5% improvement
    Medium
    Profitability
    Overall company margin (from Ahmedabad plant)
    0.5% to 1% improvement
    Medium
    Working Capital
    Receivable cycle for solar pumps
    2-3 months
    Medium
    Working Capital
    Receivable cycle for micro-irrigation business
    5-6 months
    High

    Ahmedabad plant operationalization and margin impact

    next quarter
    CurrentExpected to be operational by end of December 2025
    TargetCommercial production started, initial contribution to MIS EBITDA margin

    Why it matters

    The plant is expected to improve MIS EBITDA margins by 1-1.5% by in-housing high-margin components.

    We are expecting the commercial production to start in the current quarter... So the overall EBITDA margin for micro-irrigation business would improve by 1% to 1.5% as we fully absorb the Ahmedabad plant.

    How to verify

    guidance_and_targets

    Risks & concerns

    2
    RiskSeverity

    Working capital intensity due to government subsidy dependence

    Micro-irrigation and solar pump businesses have 5-6 month and 2-3 month receivable cycles respectively, due to reliance on government subsidies, leading to negative H1 cash flows.Management acknowledged

    medium

    Competitive pressure in rooftop solar segment

    The rooftop solar segment is highly competitive with lower, single-digit margins, though less so in Tier 2, 3, 4 markets.Management acknowledged

    low

    Q&A highlights

    7

    “So, first I will share on the margin side, which you asked for the different segments. So, as you rightly said that in the micro-irrigation segment, most of our products are manufactured in-house. So, definitely the margin profile for the overall MIS system is much better compared to the solar EPC side.”

    Clarifies margin differences between MIS (higher) and Solar EPC (rooftop lower, pumps similar to MIS) and sets growth expectations for both segments.

    asked by Lakshay Kataria

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q2 FY26 Performance Driven by Dual Growth Engines

    Captain Polyplast reported a robust Q2 FY26, with total income surging by 48% year-on-year to ₹80 Crores. EBITDA grew by 23% to ₹8.24 Crores, achieving a margin of 10.29%. Net profit stood at ₹4.24 Crores, translating to an EPS of ₹0.71. This performance was supported by solid progress in the core micro-irrigation business and growing momentum in solar EPC initiatives.

    02

    Strategic Expansion in Solar EPC with Significant Order Wins

    The company secured empanelment under the PM-KUSUM program in Maharashtra and Gujarat, leading to initial orders for 500 off-grid solar pumps totaling ₹14.14 Crores. The majority of revenue from these orders is expected to accrue in H2 FY26. Captain Polyplast is also developing a range of branded off-grid solar pumps (2 HP to 20 HP) and expanding its rooftop solar EPC business outside Gujarat, targeting a 50-50 revenue split between MIS and Solar EPC within three years.

    03

    Micro-Irrigation Business Reinforcement and Growth Outlook

    The micro-irrigation segment remains the backbone of the business, contributing over 90% of revenues. Management targets a 25% growth rate for this segment over the next three years, outpacing the industry average of 15%. The upcoming Ahmedabad plant, expected to be operational by December 2025, will add capacity for high-margin injection moulding components (accessories), which were previously outsourced, thereby enhancing overall MIS EBITDA margins by 1% to 1.5%.

    04

    Policy Tailwinds and GST Reduction to Boost Demand

    Government initiatives like PM-KUSUM and PM Surya Ghar Yojana provide strong policy support. A recent reduction in GST rates from 12% to 5% for micro-irrigation and solar products is expected to significantly improve product affordability. This reduction lowers the farmer's contribution for drip systems and the effective GST rate for rooftop solar, with positive demand impacts anticipated in Q3 and Q4 FY26.

    05

    Working Capital Dynamics and Margin Management

    The micro-irrigation business typically experiences a 5-6 month working capital cycle due to government subsidy dependence, leading to negative cash flow from operations in H1, which is expected to recover in H2. Solar pump projects are anticipated to have a 2-3 month receivable cycle. While rooftop solar has lower, single-digit margins due to competition, the shift towards higher-margin solar pumps and in-house manufacturing of MIS accessories is expected to improve overall company margins by 0.5% to 1%.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.