Mahindra EPC Irrigation Limited has announced its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, following the board meeting held on January 16, 2026, as previously scheduled.

Q3FY26 Financial Performance

The company demonstrated strong operational performance during the third quarter, with revenue from operations reaching ₹93.47 crores compared to ₹81.45 crores in the corresponding quarter of the previous year.

Nine-Month Performance Overview

For the nine months ended December 31, 2025, the company showed substantial improvement across key financial parameters compared to the same period in the previous year.

Exceptional Items and Labour Code Impact

The company reported exceptional items worth ₹2.00 crores during the quarter, attributed to the implementation of new Labour Codes notified by the Government of India on November 21, 2025. These codes consolidate 29 existing labour laws and have resulted in an estimated incremental impact on retiral benefits.

Board Decisions and Appointments

During the board meeting, directors approved the reappointment of Mr. K N Vaidyanathan as Internal Auditor with effect from April 1, 2026, until May 5, 2026.

Regulatory Compliance

The financial results were prepared in accordance with Indian Accounting Standards (Ind AS) and approved by the Board of Directors following review by the Audit Committee. The unaudited results underwent limited review by statutory auditors B S R & Co. LLP, who expressed an unmodified review conclusion.

The board meeting commenced at 3:20 PM and concluded at 4:40 PM on January 16, 2026, with the results being uploaded on the company's website at www.mahindrairrigation.com in compliance with SEBI regulations.

Mahindra EPC Irrigation Limited has demonstrated resilience and strategic agility in the face of challenging market conditions, reporting a significant turnaround in its financial performance for the first half of fiscal year 2026 (H1 FY26).

Key Financial Highlights

All figures in Rs. crores

Overcoming Industry Headwinds

The company's performance is particularly noteworthy given the industry-wide challenges posed by excessive rainfall, which negatively impacted micro-irrigation demand and installation. Despite these headwinds, Mahindra EPC Irrigation not only grew its revenue but also managed to turn a profit, showcasing the effectiveness of its strategic initiatives.

Diversification Strategy

A key factor in the company's improved performance has been its successful diversification strategy:

This significant shift in revenue mix demonstrates the company's ability to adapt to market conditions and reduce its dependence on subsidy-driven business.

Strategic Focus Areas

1. Irrigation Projects: The company has expanded its presence in non-subsidy segments, including irrigation projects, which have contributed to the diversified revenue stream.

2. Key Opportunity States: Mahindra EPC Irrigation has maintained a focused approach on states offering growth opportunities, likely helping to mitigate the impact of regional challenges.

3. Improved Commercial Discipline: The turnaround from a loss to profit suggests enhanced operational efficiency and cost management.

Outlook

While the company has shown impressive growth and profitability improvement, investors should consider the following factors:

1. Monsoon Dependency: The micro-irrigation industry remains susceptible to monsoon patterns, which can impact short-term demand.

2. Government Policies: As a significant portion of the business still relies on subsidies, changes in government policies could affect future performance.

3. Diversification Benefits: The increased contribution from non-subsidy business may provide more stability to revenues and potentially improve margins in the long term.

Mahindra EPC Irrigation's ability to grow and turn profitable in a challenging environment demonstrates its resilience and adaptability. The company's strategic shift towards a more balanced revenue mix positions it well for sustainable growth in the evolving agricultural sector.