/** Title: Jain Irrigation’s FY26: Hi-Tech Agri Leads Growth, Cash Flow Improves, FY27 Hinges on Collections and New Food Bets */

Jain Irrigation’s FY26: Hi-Tech Agri Leads Growth, Cash Flow Improves, FY27 Hinges on Collections and New Food Bets

Jain Irrigation Systems Limited closed FY26 with a stronger operating performance, led by its Hi-Tech Agri division and aided by tighter working capital control. Consolidated revenue rose to INR 6,399.5 crore in FY26 from INR 5,779.3 crore in FY25, a 10.7% year-on-year increase. Consolidated EBITDA increased 12.8% to INR 808.9 crore, with margins inching up to 12.6%.

The March quarter, however, was shaped by volatility in polymer prices and global uncertainty. Q4 FY26 consolidated revenue grew 4.3% year on year to INR 1,824.0 crore, while EBITDA increased 7.3% to INR 239.9 crore. Management highlighted that the company held margins despite demand disruption in March when PVC and polyethylene prices surged sharply, causing farmers to defer purchases.

Q4 FY26: Growth held up, but segment mix mattered

Q4 performance reflected a familiar Jain Irrigation pattern: the Hi-Tech Agri segment delivered the strongest profitability while the diversified portfolio helped soften shocks elsewhere.

Hi-Tech Agri revenue grew 7.8% year on year to INR 665.0 crore, and EBITDA rose 21.8% to INR 131.7 crore. The segment’s EBITDA margin improved to 19.8% from 17.5%, supported by improved performance in India and better margin management.

Plastic revenue declined 1.3% to INR 579.8 crore, while EBITDA increased 3.3% to INR 59.0 crore. Management attributed the quarter’s softness in domestic piping partly to the price shock in March and customer hesitation.

Agro Processing revenue increased 6.3% to INR 579.2 crore, but EBITDA fell 15.8% to INR 49.2 crore as overseas margins remained under pressure during the quarter. Management noted that EBITDA margins improved in the India agro processing business even as overseas performance was weaker.

A notable highlight in Q4 was cash generation. The company reported cash from operations of INR 233 crore during the quarter, which management described as about 97% of EBITDA. Working capital cycle remained stable at 186 days versus December 2025.

FY26: Hi-Tech Agri did the heavy lifting

For the full year, the Hi-Tech Agri division was the central driver of both growth and profitability.

Consolidated segment revenue mix in FY26 was 37% Hi-Tech Agri, 31% Plastic and 32% Agro Processing. Hi-Tech Agri revenue increased 20.5% to INR 2,342.9 crore, while EBITDA rose 26.2% to INR 436.1 crore. This expansion improved segment margins to 18.6% from 17.8%.

Agro Processing revenue grew 9.3% to INR 2,062.0 crore and EBITDA increased 9.0% to INR 180.9 crore. Management said overseas volumes were healthy but margins continued to face pressure, while India operations showed improvement.

Plastic revenue increased 2.4% to INR 1,994.6 crore, but EBITDA declined 6.5% to INR 191.9 crore, pulling segment margins down to 9.6% from 10.5%. On the concall, management cited the raw material shock and weak demand in March-April as a near-term headwind for domestic pipes, while overseas plastics remained strong.

On cash flow, consolidated cash from operations in FY26 was INR 619 crore. Management presented this as about 76% of EBITDA, helped by tighter working capital management. The working capital cycle improved by 15 days year on year, from 201 days in March 2025 to 186 days in March 2026.

Reported PAT vs adjusted profitability: what changed in FY26

Despite higher EBITDA and stronger adjusted profitability, reported PAT was negative in both Q4 and FY26. The company disclosed that adjusted PAT is calculated before exceptional items, deferred tax remeasurement impact and unwinding of finance costs related to 0.01% NCDs.

For FY26, exceptional items included a statutory impact from implementation of new Labour Codes, de-recognition of goodwill after liquidation of a non-operational subsidiary and one-time costs linked to shutdown and repair of critical plant equipment due to a prolonged disruption.

In addition, pursuant to amendments under the Finance Act, 2026, the parent company and one Indian subsidiary opted to transition to the concessional tax regime under Section 115BAA effective April 1, 2026. Deferred tax assets and liabilities were remeasured at an effective tax rate of 25.17%, resulting in a one-time deferred tax charge in FY26.

Management also reiterated on the concall that the accounting unwind of the 0.01% NCDs is a non-cash impact that flows through reported profitability.

Balance sheet, debt and the near-term focus on collections

The company’s consolidated net worth increased to INR 6,158.7 crore as of March 31, 2026. Consolidated borrowings rose to INR 3,901.6 crore from INR 3,640.5 crore a year earlier. The company disclosed that reported debt increased primarily due to currency translation of around INR 100 crore and unwinding of fair valuation of INR 83.61 crore on the NCDs.

Management said long-term debt repayment was offset by financing for the beverages project in the food subsidiary and expansion-related financing in overseas plastics.

The near-term investor concern remains servicing scheduled repayments. On the call, management emphasized cash flow as the main priority for FY27 and positioned collection of government and project receivables as a key lever. It also said that on a standalone basis, as of March 31, 2026, the company had fully repaid all RTL and FITL obligations.

New growth levers: beverages and tomato processing

A central strategic development in FY26 was the company’s move deeper into beverages within the food business.

Management stated that two beverage lines started in the quarter, one for juice and one for carbonated soft drinks. It said the company invested about INR 140 crore over the last couple of quarters and that early revenue of about INR 27-28 crore was booked before the end of March.

Management also said discussions are ongoing to add three more beverage lines in FY27, with investment potentially around December-January. Most of the revenue contribution from these additional lines would come in the next fiscal year, with limited contribution expected in the initial quarter of commissioning.

Separately, management discussed a collaboration with Kagome, a Japanese player, related to tomato processing. It indicated the plant would start around January aligned with the tomato season.

What to watch in FY27

Management’s tone was cautious but constructive. It pointed to stabilizing PVC prices after the March spike, improving demand for pipes, and expectations of stronger demand for water management products if monsoon is below normal. It also said it expects the second half of the current quarter to be better than the first half.

The company’s stated priorities for FY27 are revenue growth, improved collections from project receivables and sustainable free cash flow generation. Management also said it expects FY27 to be PAT positive.

The FY26 numbers show that Jain Irrigation’s strongest engine remains Hi-Tech Agri, and that cash conversion improved even in a disrupted quarter. FY27 will likely be judged on two practical execution points: whether collections meaningfully reduce receivable overhang, and whether the new beverage capacity scales without stretching the balance sheet.