Concall AI

Captain Polyplas — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Captain Polyplast Limited reported its highest-ever quarterly revenue and operating profit in Q3 FY26, driven by strong growth in both its Micro-Irrigation Systems (MIS) and Solar EPC businesses. The company achieved a 40% YoY increase in total income to INR127 crores and a 41% YoY rise in net profit to INR9.47 crores. Strategic initiatives include aggressive expansion in solar pumps, a new manufacturing plant in Ahmedabad for high-margin MIS components, and a long-term goal to balance its business mix between MIS and Solar EPC.

Highlights

Total income for Q3 FY26 rose to INR127 crores, a 40% YoY growth.
EBITDA for Q3 FY26 increased by 35% YoY to INR16.13 crores, with a margin of 12.68%.
Net profit for Q3 FY26 was INR9.47 crores, up 41% YoY, resulting in an EPS of INR1.59.
For 9M FY26, total income grew 32% YoY to INR278 crores.
9M FY26 EBITDA increased by 26% to INR32.15 crores, with a margin of 11.58%.
Secured two solar pump orders totaling 1,300 pumps with an aggregate value of INR35.86 crores during Q3 FY26.
Targeting a business mix of 50% Micro-Irrigation and 50% Solar EPC within the next 3 years, from 90-10 in FY25.
New Ahmedabad plant, focusing on high-margin micro-irrigation components, is expected to be operational next month.

Key financials

4 periods

Q3 FY25

Total Income
₹91 Cr

Q3 FY26

Total Income
₹127 Cr
YoY +40%
EBITDA
₹16.13 Cr
YoY +35%
EBITDA Margin
12.7%
Net Profit
₹9.47 Cr
YoY +41%
EPS
₹1.59

9M FY25

Total Income
₹211 Cr

9M FY26

Total Income
₹278 Cr
YoY +32%
EBITDA
₹32.15 Cr
YoY +26%
EBITDA Margin
11.6%
Net Profit
₹18 Cr
EPS
₹3.02

What they filed

Q1 FY27: revenue up 16.4%, net profit up 8.4% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	53	90	78	70	80 +50%	126 +40%	141 +80%	81 +16%
Expenses	47	79	71	62	72	111	128	72
EBITDA	6	11	8	7	8 +35%	15 +35%	13 +69%	9 +28%
Margin	11%	13%	10%	10%	10%	12%	9%	12%
Other income	17	1	1	1	0	1	1	1
Interest	3	2	1	2	2	3	1	2
Depreciation	1	1	1	1	1	1	1	1
Profit before tax	19	9	7	6	6 −69%	13 +40%	13 +90%	7 +26%
Tax rate	15%	26%	25%	22%	28%	25%	25%	33%
Net profit	16	7	5	4	4 −74%	9 +41%	10 +91%	5 +8%
EPS	2.94	1.22	0.89	0.72	0.71	1.58	1.62	0.77

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Micro-Irrigation Segment
90% Revenue Contribution (FY25)₹400 Cr Revenue Capacity (Existing Plants)
Solar EPC Segment
10% Revenue Contribution (FY25)

Order book

high confidence

Total value

₹41.37 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹35.86 Cr

Execution

60% of 1,500+ solar pump orders executed, balance to be executed in current quarter (Q4 FY26)

Composition

Solar Pumps (product) ₹41.37 Cr 100%

The solar pump segment has seen significant order wins since September, with a substantial portion already executed. The solar rooftop segment is a fast-churn business with no traditional order book.

Source: Prepared remarks

Capital allocation

high confidence

Capex ₹5 Cr this quarter · ₹10 Cr (FY26) planned
- New plant at Ahmedabad for micro-irrigation components (valves, fittings, accessories)
Also, right now, we are in process of setting up a new plant at Ahmedabad, which should come online during this quarter. So, that plant will have certain capacity for components which are outsourced right now. And also, there will be capacity for further expansion there as per requirement for micro-irrigation business. ... The expected capex amount for this plant is INR10 crores. So, almost 50% of it is already incurred and the 50% is of, the balance 50% would be incurred in the current quarter. Apart from that, going forward, there is no sizable capex planned at the moment.

Guidance & targets

Revenue Growth

Micro-Irrigation Segment Growth Revenue Growth · next 3 years · High confidence 25%

So, in micro-irrigation segment, we already have an existing presence and there we are targeting a growth of 25% over next 3 years.

— Ritesh Khichadia

Business Mix

MIS vs Solar EPC Revenue Mix Business Mix · next 3 years · High confidence 50-50

From 90-10 (FY25) today

Right now, the business mix which is at 90-10, that mix would come to 50-50 over the next 3 years. So, for that to happen, there will be a significantly faster growth trajectory for the solar EPC segment, which will be driven primarily by solar pumps segment.

— Ritesh Khichadia

Capacity Utilization

Ahmedabad Plant Full Utilization Capacity Utilization · FY28 · High confidence Full Utilization

So, it would be in FY '28. 2 years from here. We will see so, once the production starts in next month, we will see first full year in FY '27. And we are expecting full utilization to be achieved by FY '28.

— Ritesh Khichadia

Margin Improvement

Micro-Irrigation Business Operating Margin Margin Improvement · within 1-2 years · High confidence 1.5 percentage points improvement

So, within 1 to 2 years, we are expecting a margin improvement of around 1.5 percentage for the micro-irrigation business because of the new product capacity that will be setting up at the Ahmedabad plant.

— Ritesh Khichadia

Margin Outlook

Overall Margins Margin Outlook · coming quarters (FY27) · Medium confidence Sustain current quarter margins (12.68%)

So, we are expecting that the margins which we have seen in the current quarter, we will be able to sustain that in the coming quarters as well.

— Ritesh Khichadia

Growth Outlook

Solar EPC Segment Growth Growth Outlook · next 3 years · Medium confidence Aggressive growth

In the solar EPC segment, we are targeting aggressive growth by scaling up our solar pumps business.

— Ritesh Khichadia

What to watch in Q4 FY26

Ahmedabad Plant Operational Status

next month (Q4 FY26)

Current Almost complete, not yet operational

Target Operational

Why it matters

Commissioning of this plant is key for in-house production of high-margin MIS components and future margin improvement.

It is not operational right now. It is almost on the verge of completion of setup. So, we are expecting that it would be operational in the next month.

Risks & concerns

Competitive pressure in Solar Rooftop segment
medium

The solar rooftop market is highly competitive with multiple vendors, leading to lower operating margins (high single digits) compared to solar pumps.

Analyst acknowledged
Potential delays in PM KUSUM project targets
low

Analyst raised concerns about KUSUM targets running behind, but management clarified that it's a continuous project with committed budget allocation for the next financial year, implying sustained demand.

Analyst downplayed

Q&A highlights

8 direct

Growth outlook and capacity utilization Direct

So, in micro-irrigation segment, we already have an existing presence and there we are targeting a growth of 25% over next 3 years. ... Right now, the business mix which is at 90-10, that mix would come to 50-50 over the next 3 years.

Analyst sought clarity on long-term growth strategy and capacity, which management addressed with specific targets for segment growth and business mix.

Asked by Vidhi Purohit

Ahmedabad plant operational status, product focus, and margin impact Direct

It is not operational right now. It is almost on the verge of completion of setup. So, we are expecting that it would be operational in the next month. ... So, for this plant, in the first phase, we are primarily targeting various accessories which are used in micro-irrigation like valves, fittings, and other components which form around 5% to 10% of the value of a micro-irrigation system.

Provided details on the new plant's timeline, product focus (high-margin components), and expected positive impact on MIS segment margins.

Asked by Nivedita Jain

Solar pump execution status and comparison to previous periods Direct

So, if we talk about our solar pumps business, we have just started this segment from September onwards. All of our order wins have been from September onwards only. So, we do not have a year-on-year comparison because the last year, there was no solar pumps business. So far, if you see, we have almost 1,500 plus order wins, out of which almost as on date, 60% of the work is executed.

Clarified the recent entry into solar pumps, the current order book, and execution progress, indicating strong initial traction in this new segment.

Asked by Nivedita Jain

Order book in EPC and its contribution to total revenue Direct

So, for the solar EPC segment, there are basically two components. One is the solar pumps... we have total order wins of 1,500 out of which... 60% is already executed. ... On the rooftop segment... that is a fast-churn business. So, we do not keep a track of order book per se for that segment. ... The last year, entire solar EPC vertical was 10% of our total revenue.

Distinguished between solar pump and rooftop EPC order book dynamics and provided historical revenue contribution for the EPC vertical.

Asked by Mahesh Seth

Performance measurement of micro-irrigation systems and competitive positioning Direct

So, there are no standard KPIs because as I mentioned, the system is designed for each and every farmer's requirement. ... When we talk about the market perception, you know, this is not a simple product sale. This is a product plus service sale. ... the quality of product which we are providing, it is actually at par or better than them because the heart of the product is drip lines.

Management explained the customized nature of MIS solutions, the importance of service, and asserted competitive product quality due to imported technology.

Asked by Mahesh Seth

Capex plan for the next two years Direct

The expected capex amount for this plant is INR10 crores. So, almost 50% of it is already incurred and the 50% is of, the balance 50% would be incurred in the current quarter. Apart from that, going forward, there is no sizable capex planned at the moment.

Provided clear, quantified capex plans, indicating a limited future capex outlay beyond the Ahmedabad plant.

Asked by Shakshi Shinde

Margin outlook for FY27 and competitive pressures in Solar EPC Direct

So, we are expecting that the margins which we have seen in the current quarter, we will be able to sustain that in the coming quarters as well. ... In solar pumps, the margins depend on the prices which are discovered in the tender. ... Whereas the other segment which we have, which is solar rooftop... This market is a highly competitive market. ... Generally, for the rooftop segment, the operating margins are in high single digits.

Management provided a nuanced view on margins, differentiating between higher-margin solar pumps (tender-driven) and lower-margin, competitive solar rooftop business, and expressed confidence in sustaining overall current margins.

Asked by Shakshi Shinde, Pooja Mishra

PM KUSUM project extension and future growth outlook Direct

So see, the project is going to continue. If you see the budget for this year as well, the government has continued allocation for this project. ... But for the next financial year, there is already a committed budget and hence the project will continue. So, now it is not a question of PM KUSUM 1 and PM KUSUM 2. This is in a sense a continuous ongoing project.

Addressed concerns about potential delays in the PM KUSUM project, reassuring that it is a continuous, well-funded government initiative, which is crucial for the company's solar pump business.

Asked by Arvind Singh

2 min read 6 chapters

Detailed narrative

Strong Q3 FY26 Financial Performance

Captain Polyplast delivered its best-ever quarterly performance, with total income rising 40% YoY to INR127 crores in Q3 FY26, compared to INR91 crores in Q3 FY25. This growth was supported by robust volume increases in both Micro-Irrigation Systems (MIS) and Solar EPC segments. EBITDA for the quarter increased 35% YoY to INR16.13 crores, achieving a margin of 12.68%. Net profit also saw a significant 41% YoY growth, reaching INR9.47 crores, with an EPS of INR1.59.

Operational Acceleration in Solar EPC

The company is entering a strong acceleration phase in its solar EPC segment, marked by multiple order wins. During Q3 FY26, Captain Polyplast secured two orders for 1,300 solar pumps, valued at INR35.86 crores. Since September, the company has won orders for over 1,500 solar pumps, with 60% already executed and the remainder expected to be completed in the current quarter. The company is aggressively pursuing empanelment in additional states beyond Maharashtra and Gujarat to expand its solar pump presence.

Micro-Irrigation Business and Government Support

The micro-irrigation business remains the core of Captain Polyplast, contributing the majority of its revenue. The government continues to support this segment through initiatives like 'Per Drop More Crop' and sustained budgetary allocations. The recent reduction in GST from 12% to 5% on both micro-irrigation and solar products is expected to improve affordability and boost demand in both segments. The company aims for a 25% growth in the MIS segment over the next three years.

New Ahmedabad Plant and Capacity Expansion

Captain Polyplast is establishing a new plant in Ahmedabad, which is expected to become operational next month. This plant, with an estimated capex of INR10 crores (50% already incurred, balance in Q4 FY26), will primarily produce high-margin accessories for micro-irrigation systems, such as valves and fittings, which are currently outsourced. This strategic move is anticipated to improve the operating margin of the micro-irrigation business by approximately 1.5 percentage points within 1-2 years, with full utilization targeted by FY28.

Strategic Business Mix Transformation

The company is targeting a significant shift in its business mix over the next three years. From an FY25 composition of 90% micro-irrigation and 10% solar EPC, Captain Polyplast aims to achieve a 50-50 split. This transformation will be driven by a significantly faster growth trajectory in the solar EPC segment, particularly in solar pumps. The company's existing micro-irrigation plants have a revenue capacity of INR400 crores, providing a strong base for continued growth.

Margin Outlook and Competitive Landscape

Management expects to sustain the current quarter's EBITDA margin of 12.68% in the coming quarters. While margins in the solar pump business are generally higher due to its tender-driven nature, the solar rooftop segment is highly competitive, resulting in high single-digit operating margins. The company's focus on high-quality products, supported by imported Israeli technology for drip lines, and an extensive service network positions it competitively in the micro-irrigation market.

This is an AI-generated summary of a publicly available earnings call transcript.

View original transcript