Financial Performance Summary

Q4 FY26 Results:

  • Revenue: ₹142 crores (highest ever quarterly revenue), up 80% YoY from ₹79.1 crores in Q4 FY25
  • EBITDA: ₹14.16 crores, up 66% YoY
  • EBITDA Margin: 9.96%, declined 86 basis points YoY primarily due to sharp increase in raw material prices in March from unforeseen geopolitical events
  • Net Profit: ₹9.76 crores, up 91% YoY
  • EPS: ₹1.64

Full Year FY26 Results:

  • Total Income: ₹419 crores, growth of 44% over FY25
  • EBITDA: ₹46.32 crores (based on margin calculation)
  • EBITDA Margin: 11.03%

Business Segment Performance & Strategy

Solar EPC Business:

  • Significant expansion beyond Gujarat into multiple states for PM Surya Ghar Yojana (rooftop segment)
  • Solar pumps business grew extremely well with new orders from Maharashtra and Gujarat
  • Received 1,500 solar pumps order from Maharashtra in FY26 (first year of operation in the state)
  • Recently received additional order of 500 solar pumps worth approximately ₹11 crores
  • Solar pumps margin similar to micro-irrigation business (no dilution from business mix)
  • Targeting solar EPC contribution to equal micro-irrigation business in next two years (currently 15-20% of revenue)

Micro-Irrigation Business (Core Business):

  • Bulk remains subsidy-driven business linked to state government disbursement cycles
  • Focused on strengthening non-subsidy segment including commercial projects, export revenue, and other products
  • Non-subsidy contribution currently around 15% of micro-irrigation revenue
  • Export contribution currently 5% of micro-irrigation revenue, targeting double-digit in next five years
  • Export markets: African countries and Latin American countries
  • Targeting 20-25% average growth over next three years

Operational Updates

Ahmedabad Plant:

  • 70,000 square foot facility now operational
  • Expected to improve micro-irrigation business EBITDA margin by 1% to 1.5% once fully operational
  • Focus on high-margin components for micro-irrigation systems
  • Currently not targeting third-party sales, focused on captive consumption

Manufacturing Capacity:

  • Current capacity can support ₹400 crores micro-irrigation revenue without additional capex for next couple of years
  • Utilizes Rajkot plant, Kurnool plant, and now Ahmedabad plant

Credit Rating & Financing:

  • External credit rating upgraded during FY26 due to good financial performance
  • Total debt as of March end: ₹89 crores
  • 30-35% of sanctioned banking limits remain unutilized
  • SBI credit line of ₹50 crores available with significant unutilized portion

Working Capital & Capital Allocation

  • Working capital intensity increased due to aggressive growth in both business segments
  • Expecting stabilization in current year with substantial recoveries on receivable side
  • Solar EPC business requires minimal incremental working capital
  • Capital allocation priority: Working capital over manufacturing expansion (low capex intensity business)
  • Targeting improved ROCE and asset turns as margins remain constant and business scales

Market Opportunity & Growth Drivers

Micro-Irrigation Market:

  • 70 million hectares of arable land identified as potential market for micro-irrigation
  • Current penetration: 17-18%, leaving over 80% under-penetrated
  • Growth expected from market share gains rather than new market expansion

Solar Business Opportunity:

  • PM-KUSUM targeted 15 lakh solar DC pumps, representing single-digit penetration of overall agriculture market
  • Government continued support with same budget level in current year
  • Rooftop solar penetration varies by state with significant opportunity in northern states (UP, Haryana, MP) and eastern states (Bihar, Jharkhand)

Competitive Advantages

  • Network of 750 dealers across major agricultural states
  • 30 years of experience in micro-irrigation building brand recall among farmers
  • Existing micro-irrigation network provides advantage in solar EPC execution
  • Focus on tier-2, tier-3, and tier-4 markets for solar rooftop where fewer quality vendors exist
  • Strong execution capabilities leading to repeat business in solar pumps

Order Book & Pipeline

  • Current unexecuted solar order book: ₹11 crores (500 solar pumps)
  • Targeting execution of at least 1,000 pumps per quarter
  • Solar pump orders allocated on L1 basis with allocation based on historical execution performance
  • Expecting new orders to materialize in current month

Risk Factors

  • Subsidy timelines and government disbursement cycles
  • Competitive intensity in both business segments
  • Broader macroeconomic conditions
  • Raw material price volatility (as experienced in March)
  • Working capital requirements due to business nature

Management Guidance

  • FY27 outlook: Healthy order book especially in solar pumps business
  • Micro-irrigation: Targeting 20-25% growth over next three years
  • Solar EPC: Targeting higher growth, especially in water pumps business
  • Export revenue: Targeting double-digit contribution in micro-irrigation in next five years
  • Focus on disciplined execution, working capital management, and efficient conversion of solar EPC pipeline