1. At a Glance
Revenue grew 4.6% YoY to ₹1,546 Cr, but PAT barely dripped at ₹11 Cr. Margins at 13%—better than nothing. The stock at ₹52 is cheaper than a Starbucks latte, yet the P/E is 133, making it feel like buying that latte at the airport.
2. Introduction with Hook
Imagine running the world’s second-largest micro-irrigation company but still needing a financial IV drip. Jain Irrigation is that farmer’s friend who promises rain but shows up with a leaky pipe. Two spicy stats:
- Borrowings: ₹3,999 Cr (almost as heavy as your EMIs).
- Promoter pledge: 44.6% (more tied up than your earphones).
3. Business Model (WTF Do They Even Do?)
They sell everything from micro-irrigation systems to mango pulp—basically farming meets FMCG with a side of pipes.
- Micro-Irrigation = core business, global #2.
- PVC & HDPE Pipes = Indian leader.
- Tissue culture bananas = they literally grow money trees.
Punchline: “They make farmers rich, except themselves.”
4. Financials Overview
Q1 FY26 Snapshot:
- Revenue: ₹1,546 Cr (YoY +4.6%)
- PAT: ₹11 Cr (YoY -8.5%)
- OPM: 13%
- EPS: ₹0.20
Commentary: Profit growth is as slow as government paperwork.
5. Valuation
At P/E 133, this is no bargain bin.
- P/E based FV: 25x FY26E EPS → ₹20–₹30
- EV/EBITDA method: 8x → ₹30–₹40
Fair Value Range: ₹20–₹40
If you pay ₹50+, you also probably pay for branded water at 5-star hotels.
6. What’s Cooking – News, Triggers, Drama
- Preferential allotments galore in 2025, promoter stake nudged up to 25.9%.
- ICRA upgraded credit rating to BBB- (stable, not sexy).
- MoUs for smart farming and tissue culture coffee plants—buzzwords galore.
- Barclays-Hurun award for global impact—because awards are cheaper than cash.
7. Balance Sheet
| Assets | ₹11,449 Cr |
|---|---|
| Liabilities | ₹6,000 Cr+ |
| Net Worth | ₹5,620 Cr |
| Borrowings | ₹3,999 Cr |
Debt isn’t Titanic-level; it’s more like Noah’s Ark—still floating but barely.
8. Cash Flow – Sab Number Game Hai
| FY23 | FY24 | FY25 |
|---|---|---|
| Ops | ₹45 Cr | ₹535 Cr |
| Investing | ₹3,138 Cr | -₹314 Cr |
| Financing | -₹3,365 Cr | -₹251 Cr |
Operations are decent, but financing sucks cash out like a vampire.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 0.46% |
| ROCE | 4.95% |
| PAT Margin | 0.4% |
| D/E | 0.7 |
| P/E | 133 |
ROE flatter than a dosa, ROCE low, and P/E makes no sense—clearly a stress case.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹5,690 Cr | ₹564 Cr | ₹832 Cr |
| FY24 | ₹6,084 Cr | ₹784 Cr | ₹43 Cr |
| FY25 | ₹5,779 Cr | ₹717 Cr | ₹26 Cr |
PAT collapsed harder than crypto in 2022.
11. Peer Comparison
| Peer | Rev (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| Supreme Inds | 10,419 | 890 | 61.6 |
| Astral | 5,832 | 519 | 74.6 |
| Time Technoplast | 5,457 | 388 | 26.2 |
| Jain Irrigation | 5,847 | 25 | 133 |
Looks like the drunk uncle at the party—lots of stories, no real cash.
12. Miscellaneous – Shareholding, Promoters
- Promoters: 25.94% (low confidence).
- Pledged: 44.6% (ouch).
- Public: 61% (retail bagholders unite).
- FIIs: 5.5% (still watching).
Promoters diluted and pledged—classic soap opera finance.
13. EduInvesting Verdict™
Jain Irrigation is an agri-giant with great tech and products but debt and low profits choke growth. Valuation is absurd given fundamentals.
Final word: “A thirsty stock in need of rain, not just a drip.”
Written by EduInvesting Team | 26 July 2025
Tags: Jain Irrigation, Q1 FY26, Agri-Tech, EduInvesting Premium
