Jain Irrigation Systems Limited — Q2 FY26 earnings call

Call held 30 Oct 2025

Management summary

Jain Irrigation reported a strong Q2 FY26, with overall income growing 20% to ₹1,432 crores and EBITDA up 43% YoY, despite a deflationary environment and monsoon season. High-tech and agro-processing segments led the growth, with high-tech maintaining a 19% EBITDA margin. The company is focused on working capital efficiency, debt repayment, and expanding into new growth areas like beverage bottling, which is expected to add significant revenue in FY27. However, the timeline for collecting substantial government receivables has been pushed to FY27.

Highlights

  • Overall income grew 20% YoY to ₹1,432 crores in Q2 FY26.

  • EBITDA for the Company grew 43% YoY in Q2 FY26, with an overall EBITDA margin of 13.9%.

  • High-tech business revenue grew 39% and EBITDA grew 37% in Q2 FY26, maintaining a 19% EBITDA margin.

  • Agro-processing business revenue grew 15% in Q2 FY26, with EBITDA margin improving to double-digits.

  • Plastic business revenue grew 9.5% in Q2 FY26, achieving double-digit EBITDA margin.

  • First half (H1 FY26) overall growth was around 12%, with revenue close to ₹3,000 crores and EBITDA of ₹400 crores.

  • Consolidated order book stands at ₹1,900 crores, with ₹1,500 crores expected to be executed by March 2026.

  • New beverage bottling unit is projected to add ₹400-500 crores in incremental revenue in FY27.

Concerns

  • Delay in Government Receivables Collection

Key financials

2 periods

Headline

  • Revenue
    ₹1,432 Cr
    YoY +20.2%
  • EBITDA Growth
    —
    YoY +43%
  • EBITDA Margin
    13.9%

H1

  • Revenue
    ₹3,000 Cr
    YoY +12%
  • EBITDA
    ₹400 Cr

What they filed

Q1 FY27: revenue down 2.5%, net profit down 263.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,192 1,361 1,749 1,546 1,432 +20%1,598 +17%1,824 +4%1,508 −2%
EBITDA139 176 223 201 198 +42%166 −6%236 +6%164 −18%
Net profit-13 -1 28 11 15 +215%-47 −4600%-19 −168%-18 −264%
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

SegmentRevenue GrowthEBITDA Margin
High-tech Business39%19%
Plastic Business9.5%double-digit %
Agro-processing15%double-digit %
Exports——

Guidance & targets

Overall Growth

  • Revenue Growth Overall Growth · FY26 · High confidence beyond 15%
    overall, for the year, we would expect to grow beyond 15%.

    — Anil Jain

Working Capital

  • Inventory and Receivables Working Capital · by end of FY26 · High confidence less than at start of year
    by the end of the year, FY26, we would have less inventory and receivables than we had at the start of the year.

    — Anil Jain

Debt Repayment

  • Debt Repayment (FY27 due) Debt Repayment · FY27 · High confidence entire debt repayment (approx. ₹200 crores)
    I believe we should be able to pay the entire debt repayment through internal accruals. We have approximately Rs. 200 odd crores falling due in FY27, September...

    — Anil Jain

Receivables Collection

  • Old Receivables Collection Receivables Collection · next 6 months · High confidence ₹300-350 crores
    Even a release of approximately Rs. 300-350 crores, we anticipate at least minimum in the next 6 months on that count, should easily suffice to give additional growth.

    — Anil Jain

EPC Project Completion

  • Major EPC Projects Completion EPC Project Completion · by March '26 · High confidence 90% of work (remaining 5-10%)
    the projects which were where we are more than 90%, which are major five projects, we should be able to complete sometimes in next 6 months or so by March '26.

    — Anil Jain

EPC Project Funds Flow

  • Funds from EPC Projects EPC Project Funds Flow · by March '27 · High confidence all funds
    So, all that funds should flow into the Company by March '27.

    — Anil Jain

Beverage Bottling Unit

  • Incremental Revenue Beverage Bottling Unit · full year of working (FY27) · High confidence ₹400-500 crores
    I think the first two lines should add close to about Rs. 400 to 500 crores in full year of working at about 65% to 75% capacity utilization.

    — Anil Jain

Tissue Culture Division

  • Growth Tissue Culture Division · High confidence +20%
    Overall, I expect this particular division to maintain about (+20%) growth regardless of coffee.

    — Anil Jain

Order Book Execution

  • Order Book Conversion Order Book Execution · next 6 months (by March '26) · High confidence ₹1,500 crores
    I think if you look at total Rs. 1,900 crores, the consol, let's say Rs. 400 crores would move into the next fiscal, but Rs. 1,500 crores should happen during the current year.

    — Anil Jain

  • Order Book Conversion (remainder) Order Book Execution · next September (FY27) · High confidence ₹400 crores
    So, out of Rs. 1,900 crores order book, about Rs. 1,500 crores should get done in next 6 months and about Rs. 400 crores by next September.

    — Anil Jain

Net Margin

  • Net Margin Net Margin · reasonable future (couple of years) · Medium confidence 5% to 7%
    I think that from 1% or 2%, how do we move at least in the reasonable future, how do we move to 5% to 7%?

    — Anil Jain

IPO

  • Jain Foods IPO IPO · '26 calendar year · Medium confidence look at bringing that IPO
    Sometimes in '26 calendar year, we should look at bringing that IPO for Foods.

    — Anil Jain

Risks & concerns

  • Delay in Government Receivables Collection

    high

    The timeline for collecting ₹900 crores in EPC-related government receivables has shifted from FY25 to FY27, impacting cash flow projections.

    Analyst acknowledged

  • Deflationary Environment

    medium

    Low PVC resin and fruit pulp prices impacted revenue growth in value terms, though quantity growth was higher.

    Management acknowledged

  • Monsoon Season & Government Spending

    medium

    Heavy monsoon led to wet fields and reduced demand for irrigation/pipes; government spend on pipe infrastructure was lower than previous years.

    Management acknowledged

  • Geopolitical Issues & Climate Change

    medium

    External factors that can introduce additional challenges to business operations.

    Management acknowledged

Areas of evasion (1)

  • Reasons for repeated delays in government receivables collection beyond stating external factors like electricity connection.

Q&A highlights

2 direct
Debt Repayment and Working Capital Funding for Growth Direct
I believe we should be able to pay the entire debt repayment through internal accruals... Even a release of approximately Rs. 300-350 crores, we anticipate at least minimum in the next 6 months on that count, should easily suffice to give additional growth.

Addresses a critical financial health concern, detailing how the company plans to manage upcoming debt maturities and fund growth without additional debt.

Asked by Praneet

Government Receivables Timeline and Amount Partial
So, out of Rs. 2,000 crores, project related receivables are about Rs. 900 crores. So, most of that should be with us by March '27... In FY24, we were expecting it to come in FY25, but now we have moved this timeline to FY27.

Reveals a significant delay in the collection of substantial government receivables, impacting cash flow projections and raising questions about execution.

Asked by Praneet, Madhur Rathi

Strategy for New Segments vs. Core Business & High-tech Growth Direct
We are quite confident of that and see all businesses have their own merits... In terms of the new growth opportunity in the food business, we make the pulp and now this is the next stage, from pulp you make the juice. So, we are using our existing infrastructure which is already considerable capital investment.

Clarifies management's rationale for diversifying into new areas like beverage bottling while also addressing the growth trajectory of core high-tech and piping businesses.

Asked by Sankit Kumar

2 min read 6 chapters

Detailed narrative

Q2 FY26 Performance Overview

Jain Irrigation reported a robust Q2 FY26, with overall income growing by 20% year-on-year to ₹1,432 crores, up from ₹1,191 crores in the same period last year. This growth was achieved despite a deflationary environment, leading to an estimated 25% growth in quantity terms. The company's EBITDA saw a significant 43% increase, indicating improved operational efficiency and quality of earnings. For the first half of FY26, the company achieved approximately 12% growth, with total revenue nearing ₹3,000 crores and EBITDA reaching ₹400 crores.

Segmental Growth & Profitability

The high-tech business was a key driver, growing almost 39% in revenue and 37% in EBITDA during Q2 FY26, maintaining a healthy EBITDA margin of around 19%. The agro-processing segment also performed well, with 15% revenue growth and an improvement in EBITDA margin from low single-digit to double-digit. The plastic division, despite facing deflationary pressures, grew 9.5% in revenue and achieved double-digit EBITDA margins. Exports showed strong momentum, growing 38% in H1 FY26, with Q2 exports at ₹129 crores.

Working Capital & Debt Management

Management emphasized its focus on working capital efficiency, aiming for less inventory and receivables by the end of FY26 compared to the start of the year. The company generated ₹190 crores in net cash from operating activities post working capital change in Q2. Jain Irrigation expects to repay its entire debt of approximately ₹200 crores due in FY27 through internal accruals, having already repaid ₹1,300 crores of debt from normal operations over the last 3.5 years.

Government Receivables & EPC Projects

A significant portion of the company's receivables, approximately ₹900 crores, is tied to EPC projects with state governments. While management anticipates collecting ₹300-350 crores in old receivables within the next six months, the timeline for the bulk of EPC-related funds has been pushed from FY25 to March 2027. The company expects to complete the remaining 5-10% work on major EPC projects by March 2026, with funds flowing in by March 2027.

New Growth Avenues: Beverage Bottling & Tissue Culture

Jain Irrigation is expanding into new growth areas, including a beverage bottling unit in its food processing subsidiary, Jain Farm Fresh. The first two lines of this unit are expected to be operational by March 2026, projected to add ₹400-500 crores in incremental revenue in FY27. The tissue culture business, which supplies planting materials like banana and pomegranate, is booming, with demand for banana leading to sold-out capacity. This division is expected to maintain a 20% growth rate, with plans to double capacity over the next three years.

Market Competitiveness & GST Impact

The company highlighted its leadership in the micro-irrigation business in terms of revenue, size, technology, and profitability, maintaining around 19% EBITDA margins. The government's reduction of GST on drip irrigation from 12% to 5% and on solar pumps is expected to boost demand, as the benefits are passed on to end customers. Management believes this, coupled with the end of the monsoon season, will spur demand in Q3 and Q4.

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