Kriti Industries India Limited faced significant challenges in Q3 FY26 as extended rainfall across its key markets severely impacted agricultural pipe demand, leading to a substantial decline in financial performance. The company's consolidated revenue dropped 35% year-on-year to ₹135.79 crores during the quarter ended December 31, 2025.

Financial Performance Overview

Despite the revenue decline, the company demonstrated operational resilience by achieving EBITDA profitability during the quarter. The financial metrics highlight both the challenges faced and areas of improvement:

For the nine-month period ending December 2025, the company's performance reflected the sustained impact of adverse weather conditions:

Weather Impact on Agricultural Segment

The company's agricultural pipe business, which forms a significant portion of its revenue, experienced a sharp decline due to unprecedented weather conditions. Agricultural sales dropped 30% in Q3 and 17% for the nine-month period on a year-on-year basis. Chairman and Managing Director Shiv Singh Mehta explained that heavy and extended rains from May through October significantly reduced irrigation requirements, as most needs were met through natural rainfall.

The company's primary markets in Central India, including Madhya Pradesh, Rajasthan, and Maharashtra, were particularly affected by the sustained rainfall. Management noted that the impact was more severe for Kriti Industries compared to competitors due to its concentrated presence in these weather-affected regions.

Market Position and Strategy

Despite the challenging conditions, management expressed confidence in maintaining market share within their core territories. The company operates as a predominant brand in its key markets, enjoying strong brand recognition and distribution networks. Management indicated they have maintained or slightly improved market share during the period, ensuring adequate pipe availability despite reduced overall demand.

The company continues to focus on expanding its distribution network while maintaining its strategy of limiting industrial product exposure to ₹100-150 crores maximum. This approach aims to reduce dependency on EPC contractors and their associated payment cycle challenges.

Recovery Outlook and Future Plans

Management expressed optimism for Q4 FY26 recovery, citing several positive factors. Raw material prices have reached more affordable levels, making pipes more accessible to farmers. Additionally, adequate water levels in water bodies following the extended rainfall period are expected to support increased agricultural activity and corresponding pipe demand in the coming crop seasons.

The company maintains its long-term revenue target of reaching ₹1,000 crores by FY28-29, with management expressing intentions to potentially achieve this milestone earlier. However, they emphasized a cautious approach to capacity expansion, preferring to observe market recovery for one to two quarters before making significant investment decisions.

Building Products Segment

The building products division, including CPVC pipes, also faced challenges during the period as dealers engaged in this segment were similarly impacted by weather conditions. However, management reported early signs of recovery in recent months following implementation of revised strategies. The company expects quarter-on-quarter improvement in building materials performance going forward.

Kriti Industries (India) Limited has filed its earnings presentation for Q3/9M-FY26 under Regulation 30 of SEBI listing regulations on February 7, 2026. The company submitted the comprehensive presentation to both BSE Limited and National Stock Exchange of India Limited, providing detailed financial highlights and operational performance metrics.

Regulatory Filing Details

The company filed the earnings presentation under reference KIIL/SE/2025-26 dated February 7, 2026, addressing both major stock exchanges where its shares are listed. Company Secretary and Compliance Officer Aditi Randhar digitally signed the filing, which has also been placed on the company's website for investor access.

Q3FY26 Financial Performance

The earnings presentation reveals that Kriti Industries reported consolidated operational income of ₹1,358 Mn for Q3FY26, representing a 35.3% decline from ₹2,099 Mn in Q3FY25. The company achieved an EBITDA of ₹56 Mn with a margin of 4.12%, marking a significant improvement from the negative EBITDA of ₹14 Mn in the corresponding previous quarter.

Nine Months Performance Overview

For the nine months ended December 31, 2025, the company reported consolidated operational income of ₹4,456 Mn compared to ₹5,844 Mn in 9M-FY25, reflecting a 23.8% decline. EBITDA for the period stood at ₹166 Mn with a margin of 3.73%, while the company reported a net loss of ₹29 Mn.

Operational Highlights

The presentation shows total sales volumes of 13,992 MT for Q3FY26, reflecting a 29% decline compared to the same period last year. The Agriculture segment contributed 11,790 MT with a 29% year-on-year decline, while Building Products delivered 2,041 MT, showing a 10% decline. The Industrial Solutions segment recorded volumes of 161 MT, reflecting a sharp year-on-year decline.

Segmental Revenue Distribution

For 9M-FY26, the Agriculture segment dominated with 79% of total revenue, followed by Building Products at 13%, Industrial Solutions at 7%, and Micro-Irrigation at 1%. The company operates through a strong distribution network of 490 dealers across 16 high-growth states in India, with retail sales accounting for over 85% of revenues.

Manufacturing and Market Position

Kriti Industries operates from its state-of-the-art facility at Pithampur, Madhya Pradesh, which is the largest single-location polymer pipe manufacturing plant in India with a total capacity of 1,49,400 TPA. The facility features 25 extrusion lines for PVC pipes, 16 extrusion lines for HDPE & Drip, and 30 injection moulding machines, serving multiple sectors including agriculture, industrial solutions, building products, and micro-irrigation.