Jain Irrigation Systems Limited held its Q3/9M FY26 earnings conference call on February 4, 2026, where management provided comprehensive insights into the company's performance and future outlook. The call was hosted by DR Choksey Finserv Private Limited with CEO & MD Anil Jain and CFO Bipeen Valame addressing investor queries.

Strong Revenue Performance Across Segments

The company achieved robust revenue growth of 17.4% in Q3FY26, reaching approximately ₹1,600 crore. Management highlighted that all three business segments delivered strong performance during the quarter.

Retail Sales Drive Growth Momentum

A key highlight was the exceptional performance in retail sales, which grew 24% during the quarter across piping, irrigation segments, and tissue culture. Management emphasized this shift toward retail business as crucial for improving working capital efficiency and reducing receivables.

"Retail sales mean very efficient, optimum working capital cycle with low receivables and fast moving inventory turns," explained CEO Anil Jain during the call.

Working Capital and Operational Improvements

The company demonstrated significant operational efficiency improvements during Q3FY26. Inventory levels decreased by approximately ₹100 crore at the standalone India level, contributing to better cash flow generation.

Profitability and Margin Analysis

For the nine-month period, EBITDA grew 15% from ₹493 crore to ₹569 crore, despite Q3 facing some margin pressures. The Hi-Tech division maintained strong EBITDA performance, while the Plastic division experienced temporary margin compression due to resin price volatility.

Management expects Q4FY26 to deliver stronger results with better fixed cost absorption and improved product mix, targeting overall EBITDA margins of 13% plus for the full year.

Future Growth Initiatives

Several growth drivers were discussed during the call, including the commercial launch of beverage production lines in the food processing subsidiary. The facility features two large-capacity lines capable of producing 600+ bottles per minute for various beverages including cola, energy drinks, and juices.

Debt Management and Financial Outlook

Management addressed debt repayment strategies, noting that ₹688 crore of unsustainable debt is due in the second half of FY27. The company has already repaid over ₹1,300 crore of debt in the past 3.5 years through internal accruals and expects to generate sufficient cash flows for upcoming obligations.

Growth Targets and Market Outlook

For FY26, the company maintains its target of 15% plus revenue growth and 15% plus EBITDA growth. Looking ahead to FY27, management expressed ambitious plans to achieve 18-20% revenue and earnings growth, up from the current 15-17% range.

The recent signing of FTAs by the Government of India with EU and US is expected to benefit exports, particularly dried onions to Europe and plastic sheets to the US, through preferential duty access.

Jain Irrigation Systems Limited has delivered strong revenue growth in Q3 despite facing profitability challenges. The company reported revenue of ₹16 billion compared to ₹13.6 billion in the corresponding quarter of the previous year, marking a robust 17.6% year-over-year growth. However, the irrigation systems manufacturer also posted a consolidated net loss of ₹419 million for Q3, compared to a net profit of ₹10 million in the same period last year.

Q3 Financial Performance Analysis

The latest quarterly results present a mixed picture, with strong top-line growth offset by operational challenges. While revenue expansion demonstrates the company's market traction, EBITDA declined to ₹1.68 billion from ₹1.75 billion in the previous year. The EBITDA margin compressed significantly to 10.5% from 12.9%, indicating pressure on operational efficiency despite higher sales volumes.

Upcoming Earnings Conference Call

The company has scheduled its quarterly earnings conference call for Q3 FY26 on February 4, 2026, to discuss these results with investors and analysts. The earnings conference call will provide management an opportunity to address the revenue growth momentum and margin compression challenges with stakeholders.

Management Participation

The company's senior leadership will represent Jain Irrigation Systems during the conference call, ensuring comprehensive coverage of the revenue growth drivers and operational challenges affecting profitability metrics.