Jain Irrigation Systems (500219) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue was nearly flat year-over-year at ₹13,608 million (INR 1,360 crore), marking a recovery from prior quarters, with EBITDA up 2.9% YoY and margin improvement to 12.9%.

• Hi-Tech Agri division grew 19%-20% in Q3, offsetting a similar decline in the Plastic division, which faced seasonal and demand-related challenges.

• Export business saw notable growth, helping offset weak domestic demand, with further export expansion expected.

• Cash flow from operations was strong at INR 218 crore for the quarter and INR 560 crore for the nine months, aiding debt reduction.

• Unaudited standalone and consolidated financial results for Q3 and 9M FY25 were approved, with an unqualified review report.

Financial highlights

• Q3 FY25 consolidated revenue: ₹13,608 million (+0.2% YoY); EBITDA: ₹1,758 million (+2.9% YoY); PAT: -₹12 million.

• Standalone Q3 FY25 revenue: ₹7,997 million (-0.7% YoY); EBITDA: ₹1,298 million (+13.3% YoY); PAT: ₹106 million.

• Cash flow from operations reached INR 218 crore in Q3 and INR 560 crore for the nine months.

• Net receivables reduced by INR 120 crore in Q3, with further reductions expected in Q4.

• Debt reduced by INR 225 crore in the first nine months, with further reduction plans.

Outlook and guidance

• Q4 is expected to show significant positive growth, recovering losses from the first half of FY25.

• FY25 revenue and earnings are projected to be at par with FY24, with a strong rebound anticipated in FY26.

• Management targets high-teen revenue growth and 20% EBITDA growth for FY26, leveraging underutilized capacity.

• Anticipates strong performance in piping, solar systems, and international sales in coming quarters.

• Focus remains on improving retail sales, cash flow, and operating margins.