Financial Performance Highlights

  • Q1 FY27 total income: ₹81.66 crores, representing 16.3% year-on-year growth
  • EBITDA: ₹9.86 crores, up 26.7% YoY
  • EBITDA margin: 12.07%, improved by 99 basis points
  • Net profit: ₹4.66 crores
  • Diluted EPS: ₹0.78

Business Segment Updates

Micro-irrigation Business

  • Company has 30 years of experience in manufacturing and exporting irrigation solutions
  • Manufacturing facilities located in Rajkot, Kurnool, and Ahmedabad
  • Distribution network across 16 states with approximately 750 dealers
  • Focus on increasing commercial and non-subsidy sales and allied products
  • Replacement demand in mature markets (Maharashtra, Gujarat, Andhra Pradesh, Tamil Nadu) estimated at 10-20%
  • Current manufacturing capacity can support micro-irrigation business of approximately ₹600 crores

Solar EPC Business

  • Focus on solar water pumping systems and rooftop solar solutions
  • Received orders for 500 solar pumps from MSEDCL followed by another 1,000 pumps in July 2026
  • Total order book: 1,500 solar pumps as of first 4 months of FY27
  • 800 pumps already executed, 700 pending completion expected by August 2026 end
  • Target: Solar EPC segment to contribute 50% of revenue over next 3 years
  • Expansion plans into Rajasthan, Jharkhand, Karnataka, and Haryana
  • Rooftop solar business: 60-70% coming from existing micro-irrigation dealers

Manufacturing Capacity Expansion

  • New production facility near Ahmedabad, Gujarat commenced operations
  • Facility size: 70,000 square feet
  • Focus on manufacturing critical components and accessories currently outsourced
  • Components targeted represent approximately 10% of micro-irrigation system value
  • Expected to improve EBITDA margin by 1-1.5% for micro-irrigation business when fully operational
  • Full ramp-up expected over 2-3 years with gradual product addition

Raw Material Price Environment

  • Key raw materials LLDP and HDPE prices increased by 50% at March 2026 end due to geopolitical situation
  • Current prices stabilized at 30-35% higher than January-February 2026 levels
  • Price increases passed on to customers in free pricing markets
  • Gujarat government has revised prices for micro-irrigation subsidy projects
  • Other states (Tamil Nadu, Andhra Pradesh) in process of price revisions expected in Q2 FY27
  • Central government price revision mechanism expected by end of September 2026

Working Capital Management

  • Micro-irrigation business payment cycle: 5-6 months typically, 8-10 months in Andhra Pradesh
  • Solar pumps business receivable cycle: 3-4 months
  • Working capital intensity increases during Q1-Q2, expected improvement in H2 (Q3-Q4)
  • Majority of working capital allocated to receivables rather than inventory

Market Development

  • Export business constitutes approximately 5% of micro-irrigation revenue
  • Focus markets: Africa and Latin America
  • Growth expected from new customer acquisition in export markets
  • NSE listing achieved in July 2026 to enhance market visibility

Operational Efficiency Focus

  • Volume growth identified as key margin driver
  • Cost optimization initiatives underway
  • Dedicated team established for solar pumps execution
  • Vendor selection optimized based on execution experience