Captain Polyplas — Q4 FY26 earnings call

Call held 25 May 2026

Management summary

Captain Polyplast delivered a strong Q4 and full-year FY26, marked by record quarterly revenue growth of 80% and a 44% increase in full-year total income. The solar EPC business saw significant expansion with new orders, and the Ahmedabad plant became operational, promising future margin improvements. Despite a slight Q4 margin contraction due to raw material costs and increased working capital intensity from growth, management expressed confidence in continued government support, a healthy order book, and improved capital efficiency going forward.

Highlights

  • Q4 FY26 revenue reached a record ₹142 crores, an 80% YoY increase, driven by strong demand in micro-irrigation and solar pumps.

  • Full-year FY26 total income grew 44% YoY to ₹419 crores, demonstrating robust top-line performance.

  • Q4 FY26 EBITDA increased 66% YoY to ₹14.16 crores, with net profit up 91% to ₹9.76 crores.

  • The Ahmedabad plant is now operational, expected to improve micro-irrigation EBITDA margins by 1-1.5% through in-house production.

  • The company's external credit rating was upgraded during FY26, reflecting improved financial performance.

Concerns

  • Q4 FY26 EBITDA margin slightly declined by 86 basis points to 9.96% YoY, primarily due to a sharp increase in raw material prices in March 2026.

  • The reported full-year FY26 EBITDA of ₹6.32 crores with an 11.03% margin appears to be a significant discrepancy or typo, as it contradicts the reported total income of ₹419 crores and Q4 EBITDA of ₹14.16 crores.

  • Working capital intensity increased in FY26 due to aggressive growth in both micro-irrigation and solar pump businesses, which are inherently working capital-heavy.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹142 Cr
    YoY +80%
  • EBITDA
    ₹14.16 Cr
    YoY +66%
  • EBITDA Margin
    10%
    YoY -0.86%
  • Net Profit
    ₹9.76 Cr
    YoY +91%
  • EPS
    ₹1.64

FY26

  • Total Income
    ₹419 Cr
    YoY +44%
  • EBITDA
    —
  • EBITDA Margin
    11%

What they filed

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

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue53 90 78 70 80 +50%126 +40%141 +80%81 +16%
EBITDA6 11 8 7 8 +35%15 +35%13 +69%9 +28%
Net profit16 7 5 4 4 −74%9 +41%10 +91%5 +8%
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.

Order book

medium confidence

Inflow this quarter

₹11 Cr

Execution

Solar pump orders have a defined timeline, typically 60 days for execution.

Pipeline

other

Targeting empanelment for PM-KUSUM in other states to generate new order opportunities.

The solar pumps business has a very good order book, and the company is targeting new empanelments for PM-KUSUM in other states to build on its execution capabilities.

Source: Prepared remarks

Capital allocation

medium confidence
  • Capex Capex disclosed
    So, even going forward also, capex intensity for the overall business would not be significantly high. The only capital investment which goes for both the segments is working capital.
  • Debt Net ₹89 Cr
    No, I'll not disclose the exact figures, but if you see at the end of March, our total debt was around INR89 crores.
  • Liquidity Liquidity disclosed Company has sufficient cushion with 30-35% unutilized limits from sanctioned banking limits.
    We have quite of quite a bit of unutilized limits from the banks. Almost I think 30% to 35%.

Guidance & targets

Profitability

  • Micro-irrigation EBITDA Margin Improvement Profitability · this year (FY27) · Medium confidence 1-1.5%
    So for the micro-irrigation business, once this plant is fully operational during this year, we are expecting that micro-irrigation business EBITDA margin should improve by 1% to 1.5% only because of the contribution from this plant.

    — Ritesh Khichadia

Revenue

  • Micro-irrigation Average Growth Revenue · next three years · Medium confidence 20-25%
    If we talk about micro-irrigation business, we are targeting a average growth of 20% to 25% over the next three years.

    — Ritesh Khichadia

Business Mix

  • Solar EPC Contribution to Total Business Business Mix · next two years · Medium confidence 50%

    From 15-20% today

    So we are targeting that the contribution of solar EPC segment should be equal to micro-irrigation business in next two years. So the balance which right now is around 85%, 15%, 80%, 20%, that should move to 50% to 50% in next couple of years.

    — Ritesh Khichadia

Capacity

  • Micro-irrigation Revenue Capacity Capacity · next couple of years · High confidence INR400 crores
    What is the maximum revenue for micro-irrigation business which we can achieve with this existing setup? So, right now based on the current capacity, we can easily achieve INR400 crores without any additional capex for the next couple of years.

    — Ritesh Khichadia

Order Execution

  • Solar Pump Execution Volume Order Execution · this quarter (Q1 FY27) · Medium confidence at least 1,000 pumps
    In the previous quarter, as I said, we completed 1,000 pumps and, in this quarter, also we are targeting, yes, at least 1,000 pumps.

    — Ritesh Khichadia

Market context

  • Micro-irrigation Export Contribution Revenue · next five years · Medium confidence double digit

    From 5% today

    At present, the export contribution in micro-irrigation business is around 5% of the total revenues. And we are planning that, you know, as we focus more on this segment, this should at least, you know, move to double digit in next five years.

    — Ritesh Khichadia

What to watch in Q1 FY27

Working Capital Stabilization and Receivables Recovery

current year (FY27)
Current Increased working capital intensity in FY26
Target Stabilization and substantial recoveries on receivables

Why it matters

Improved working capital management is crucial for cash flow and capital efficiency, especially with high growth.

But we are expecting that this should stabilize in the current year as there are substantial recoveries in both the business segments, especially on the receivable side.

Risks & concerns

  • Discrepancy in reported full-year FY26 EBITDA

    high

    The reported full-year FY26 EBITDA of ₹6.32 crores is mathematically inconsistent with the reported total income of ₹419 crores and 11.03% margin, suggesting a potential reporting error.

    Not addressed

  • Raw material price volatility

    medium

    Sharp increase in raw material prices in March 2026 due to unforeseen geopolitical events led to Q4 FY26 EBITDA margin decline.

    Management acknowledged

  • Increased working capital intensity

    medium

    Aggressive growth in both micro-irrigation and solar pump businesses, which are inherently working capital-heavy, increased intensity in FY26.

    Management acknowledged

  • Dependence on government policy and subsidy timelines

    low

    Growth in both micro-irrigation and solar EPC depends on government policy push, but management sees continued support and no foreseeable change in policy.

    Management downplayed

  • Competitive intensity and broader macroeconomic conditions

    low

    Management remains mindful of external variables including competitive intensity in both businesses and broader macroeconomic conditions.

    Management acknowledged

Q&A highlights

8 direct
EBITDA margin contraction despite high revenue growth Direct
No, as I said in my remarks as well, the primary reason for decline in EBITDA margin was the increase in raw material costs, especially during the month of March. So that has been the primary driver for shrink in the EBITDA margins. If I talk about the margins from solar EPC business, then the margin from pumps business is actually almost similar to what we are getting in the micro-irrigation business. So there is no dilution because of the business mix.

Addressed concerns about margin pressure and clarified that solar EPC business is not inherently lower margin, attributing the decline to raw material costs.

Asked by Rupen Mehta

Working capital cycle stretching and future outlook Direct
So if we see this year, we have grown aggressively in both the micro-irrigation business and solar pumps business, both of which by the nature of industry entail higher working capital. So because of the high growth, definitely this year the working capital intensity has increased. But we are expecting that this should stabilize in the current year as there are substantial recoveries in both the business segments, especially on the receivable side.

Explained the reason for increased working capital intensity (high growth in capital-intensive segments) and provided an outlook for stabilization.

Asked by Rupen Mehta

Sustainability of growth given policy-linked nature of businesses Direct
So if you see both the business, as you rightly said, the growth definitely depends on the policy push from the government side. But we are, you know, I'm very pleased to say that there is continued support for both the segments from the Government of India. Government is strongly focusing on both sustainable farming and renewable energy. So we don't, you know, foresee a situation where there would be any change in policy support from the government side.

Reassured investors about the stability of government support for both micro-irrigation and solar EPC, which are crucial for growth.

Asked by Mahesh Seth

Future growth strategy for micro-irrigation (market share vs. penetration) Direct
It will primarily come from market share gains.

Clarified that future micro-irrigation growth will primarily be driven by gaining market share rather than just deeper penetration in existing markets.

Asked by Mahesh Seth

Exports as a strategic growth lever and future contribution Direct
At present, the export contribution in micro-irrigation business is around 5% of the total revenues. And we are planning that, you know, as we focus more on this segment, this should at least, you know, move to double digit in next five years.

Provided specific targets for export growth and identified target markets (African and Latin American countries).

Asked by Nidhi Purohit

Differentiation from larger players in government tenders/institutional projects Direct
So there the business does not depend on only product sale. It is a system or concept sale. We have to provide both the product and the service to the farmers which are our customers. So because of our presence in this business for almost 30 years now, we have built that brand recall amongst farmers in terms of quality of our products and also because of our deep, you know, network, we are able to provide timely service and timely availability which are the key criteria for the farmers.

Highlighted the company's competitive advantages, including brand recall, deep network, and service-oriented approach, especially in the micro-irrigation segment.

Asked by Nidhi Purohit

Strategic rationale for aggressively scaling rooftop EPC despite competitive, lower margin segment Direct
There are two things. One is obviously the working capital part of it. As we grow this business, there is very minimal incremental working capital which is required. So, one is that. And other is managing the business volatility. So, if we see micro-irrigation business, not only for us but also, for the dealers who are associated with us, it is a cyclical business. So, during the entire year, major part of micro-irrigation business in any market happens majorly during six months of the year. And during remaining six months, during monsoon and other months, there is very minimal micro-irrigation business. So, this solar EPC business, especially rooftop business, helps us, flatline that volatility in micro-irrigation business.

Explained the dual benefits of scaling rooftop EPC: minimal incremental working capital and its role in stabilizing revenue during the cyclical off-season of micro-irrigation.

Asked by Yashree Singhla

Ahmedabad plant's impact on micro-irrigation EBITDA margin Direct
So for the micro-irrigation business, once this plant is fully operational during this year, we are expecting that micro-irrigation business EBITDA margin should improve by 1% to 1.5% only because of the contribution from this plant.

Provided a specific numerical target for margin improvement from the new Ahmedabad facility, indicating its direct financial impact.

Asked by Rupen Mehta

3 min read 7 chapters

Detailed narrative

Record Revenue Growth Driven by Diversification

Captain Polyplast achieved its highest-ever quarterly revenue in Q4 FY26, reaching ₹142 crores, an 80% increase year-on-year. This strong performance contributed to a full-year FY26 total income of ₹419 crores, marking a 44% growth over FY25. The growth was primarily fueled by robust demand across both the micro-irrigation business and the expanding solar pump segment, indicating successful diversification of revenue streams.

EBITDA Margin Impacted by Raw Material Costs

Despite significant revenue growth, the company's Q4 FY26 EBITDA margin experienced a slight decline of 86 basis points, settling at 9.96%, with EBITDA at ₹14.16 crores. Management attributed this contraction primarily to a sharp increase in raw material prices during March 2026, influenced by unforeseen geopolitical events. They clarified that margins from the solar pump business are comparable to micro-irrigation, suggesting no structural dilution from the changing business mix.

Strategic Expansion and Order Inflow in Solar EPC

The solar EPC business, particularly solar pumps, emerged as a key growth driver, with the company securing a new order for 500 solar pumps worth ₹11 crores this quarter. This follows a previous order of 1,500 pumps from Maharashtra, marking a successful entry into the state's solar pump market. Management aims for the solar EPC segment's contribution to equal that of micro-irrigation within the next two years, shifting the current 85/15 or 80/20 mix towards a 50/50 balance.

Micro-Irrigation Business Evolution and Export Focus

The core micro-irrigation business is undergoing a strategic shift to strengthen its non-subsidy revenue mix through commercial projects and increased exports. Currently, exports contribute approximately 5% to micro-irrigation revenues, with a target to achieve double-digit contribution within the next five years. The company is primarily targeting African and Latin American countries, which are at a similar micro-irrigation adoption level to India's past, presenting significant growth opportunities.

Operational Enhancements and Capacity Utilization

A significant milestone for the year was the Ahmedabad plant becoming operational. This facility is expected to improve micro-irrigation EBITDA margins by 1-1.5% by enabling in-house production of high-margin components. The company's combined existing capacity across its Rajkot, Kurnool, and Ahmedabad plants is projected to support up to ₹400 crores in micro-irrigation revenue for the next couple of years without requiring additional capital expenditure.

Working Capital and Debt Management

Aggressive growth in both micro-irrigation and solar pump businesses, which are inherently working capital-intensive, led to an increase in working capital intensity during FY26. However, management anticipates stabilization in the current year, driven by expected substantial recoveries in receivables. The company reported total debt of ₹89 crores at the end of March, with 30-35% of its sanctioned banking limits remaining unutilized, indicating a comfortable liquidity position.

Favorable Government Support and Market Opportunity

Management expressed confidence in continued government support for both sustainable farming and renewable energy initiatives, which underpin the company's growth segments. India's micro-irrigation market still has over 80% under-penetration, with 70 million hectares identified as potential arable land. Similarly, solar pumps and rooftop solar segments offer vast opportunities, particularly in states with lower adoption rates, ensuring a long runway for growth.

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