Jain Irrigation Systems (500219) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue rose 10.1% YoY to ₹1,576.66 crore; EBITDA increased 4.2% to ₹207.5 crore, while margin eased to 13.2%. Reported PAT was ₹18.01 crore and adjusted PAT ₹39.5 crore.

• Agro Processing and overseas Plastics led growth; improved collections supported cash generation and debt servicing.

• Results improved from a weak Q1, with positive growth across businesses, stronger cash conversion and a shorter working-capital cycle.

Financial highlights

• H1 FY27 consolidated revenue was ₹3,085.03 crore, up 3.6%; EBITDA was ₹371.9 crore, down 7.3%, with a 12.1% margin. Adjusted PAT was ₹42.7 crore and reported PAT ₹0.21 crore.

• Standalone Q2 revenue rose 4.9% to ₹725.09 crore; EBITDA was ₹97.2 crore and reported PAT was a ₹14.46 crore loss.

• Standalone H1 revenue fell 11.5% to ₹1,424.41 crore; EBITDA was ₹181.5 crore and reported PAT was a ₹28.40 crore loss.

• Q2 consolidated profit before tax was ₹17.92 crore versus ₹17.79 crore YoY; basic and diluted EPS were ₹0.23 each.

Outlook and guidance

• H2 outlook is at least flattish YoY for now; stronger growth depends on monsoon conditions and any easing in polymer prices that revives deferred demand.

• EBITDA margin recovery is expected in H2 as Hi-Tech Agri and domestic Piping recover and operating efficiencies improve; Agro Processing and overseas businesses are expected to remain supportive.

• FY27 piping revenue is expected to grow 8%-10%, with H2 demand expected to improve in non-agriculture pipe applications.

• Further working-capital improvement is expected over ~12 months, with a stronger balance sheet entering FY28; H2 remains challenging, but positive performance is expected.

• Medium-term margin aims are 12% for Plastics and 18%-19% for Hi-Tech MI; lower polymer prices could lift utilization and margins by 1%-2%.