1. At a Glance
Captain Polyplast Ltd — where Gujarati entrepreneurship meets German engineering precision and Israeli drip innovation — just delivered another decent quarter that makes its micro-irrigation peers sweat (and that too without sprinklers). The Rajkot-based company reportedQ2 FY26 consolidated sales of ₹79.73 croreand anet profit of ₹4.24 crore, clockingYoY growth of 49.7% in salesand38.1% in PAT. With amarket cap of ₹449 crore, aP/E ratio of 22, and aROE of 15.4%, this midcap star is quietly irrigating investors’ patience — one drip at a time.
At ₹74.9 per share, the company trades at roughly2.6 times book value— not bad for a player straddlingthree business verticals: micro-irrigation systems, solar EPC, and polymer distribution. While competitors are busy fighting over rural subsidy paperwork, Captain Polyplast is busy getting₹8.17 crore solar pump ordersfromMSEDCLand expanding its manufacturing base toAhmedabad. Still, despitea debt-to-equity of 0.48, acurrent ratio of 2.08, and a steadyOPM around 10–11%, the company hasn’t shared any dividends — maybe because all its cash is still “flowing” through its irrigation pipes.
But let’s face it: a 38% quarterly profit jump while building a 70,000 sq. ft. factory is not bad at all. Time to dive into the pipes and pumps of Captain Polyplast — a company whose cash flow may be thin, but whose ambition is anything but.
2. Introduction
You’ve heard of companies that sell dreams. Captain Polyplast sellswater-saving dreams— literally drop by drop. Born in 1997, this Rajkot-headquartered enterprise started as a humble pipe maker and now sits at the intersection of agriculture, renewable energy, and petrochemicals.
The desi twist? It’s part farmer’s friend, part solar warrior, and part polymer middleman — a unique business blend that’s as complex as explaining the PM-KUSUM subsidy to your bank manager.
Micro-irrigation, its core business, forms the lifeblood of India’s “Per Drop More Crop” campaign. Captain’s German-Israeli-backed technology ensures every sugarcane root and cotton plant gets its fair share of hydration without flooding the field (or the balance sheet). Add to that a growingsolar EPC segment, riding on government schemes likePM Surya GharandPM-KUSUM, and you have a sustainable cocktail that’s both bright and wet.
But wait, there’s more! The company also acts as apolymer distributor for IOCL, supplying resins to small plastic makers — meaning when a farmer irrigates with Captain’s drip pipe, there’s a decent chance the pipe itself began its life as raw material sold by Captain. A vertically integrated Gujarati efficiency loop — powered by sunshine and subsidies.
In the last five years, the company’ssales have grown at 9% CAGRandprofits at 8% CAGR, with a 3-year profit growth ofnearly 90%. While cash conversion cycles remain long (those237 debtor dayslook scary), Captain’s consistency and government order wins make it a fascinating case study of how regional industrial SMEs are becoming national solar-water hybrids.
3. Business Model – WTF Do They Even Do?
Let’s decode this desi drip-tech juggernaut.
Captain Polyplast operates acrossthree main business lines:
1. Micro Irrigation Systems:This is the backbone of the company. Thinkdrip emitters, inline pipes, and sprinkler systems— all designed to deliver precision irrigation to India’s farms. With acapacity of 170 million meters of driplines, Captain’s pipes have probably delivered more hydration than your local municipal board.
2. Solar EPC Services:The newer kid on the block, but growing fast. Captain installsrooftop and ground-mounted solar systems, including solar water pumps underPM-KUSUM and Surya Ghar Yojana. This segment already contributes about10% of revenuesand could double to20% by FY26. Withempanelment in six statesand back-to-back government orders (₹8.17 crore from Maharashtra in Nov 2025, ₹5.97 crore in Aug 2024), this is Captain’s sunshine story.
3. Polymer Distribution:Through its partnership withIndian Oil Corporation (IOCL), Captain acts as a polymer reseller in Gujarat — a steady-margin business that keeps factory utilization humming even when irrigation season dries up.
Together, these verticals create a rare mix of cyclical (agriculture), semi-stable (polymer), and high-growth (solar) revenue streams. The company’sdual plants at Shapar (Rajkot)andKurnool (AP)— with a third70,000 sq. ft. Ahmedabad unitunder construction — give it the geographical muscle to cater north
to south India.
The best part? All of this is powered by1,100 KW of captive solar and wind energy. A green company that literally runs on sunlight while selling sunlight — very meta.
4. Financials Overview
Quarterly Results – Q2 FY26 (₹ in Crores)
| Metric | Latest Qtr (Sep 2025) | YoY Qtr (Sep 2024) | Prev Qtr (Jun 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 79.73 | 53.26 | 69.74 | 49.7% | 14.3% |
| EBITDA | 7.89 | 5.84 | 7.30 | 35.1% | 8.1% |
| PAT | 4.24 | 3.20 | 4.30 | 32.5% | -1.4% |
| EPS (₹) | 0.71 | 0.58 | 0.72 | 22.4% | -1.4% |
The quarter tells a story of stability: strong topline, consistent margins, slightly soft QoQ profit but overall robust YoY momentum.
At anannualized EPS of ₹2.84, theP/E stands near 26x, still cheaper than big boys likeAstral (76x)andSupreme (50x). The company’sEBITDA marginhovering around10%shows operational discipline in an industry notorious for subsidy delays and farmer credit chaos.
The only major leak? Debtor days at237, meaning your payment arrives roughly when the next monsoon does.
5. Valuation Discussion – Fair Value Range Only
Let’s put some numbers to the desi engineering charm.
a) P/E Method:Industry median P/E = ~23.5xCaptain’s TTM EPS = ₹3.53→ Fair Value Range = ₹3.53 × (20x–25x) =₹70.6 – ₹88.3 per share
b) EV/EBITDA Method:EV = ₹531 croreEBITDA (TTM) = ₹36 croreEV/EBITDA = 14.75x (approx)Industry average ~16x→ Fair EV Range = 13x–16x → Equity Value range =₹72 – ₹90 per share
c) DCF (simplified educational):Assume 10% growth for 5 years, discount rate 12%, terminal growth 3%.→ Implied intrinsic range =₹68 – ₹85
Fair Value Range (Educational Only): ₹68 – ₹90 per shareThis fair value range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Captain Polyplast has been on agovernment-order-winning spreelike a Bollywood underdog suddenly signing sequels.
- Nov 2025:₹8.17 crore order fromMSEDCLfor 300 off-grid solar pump systems — installation due in 60 days.
- Aug 2024:₹5.97 crore order under PM-KUSUM B in Maharashtra.
- Jul 2024:LOA received for solar pump supply in Gujarat.
- Mar 2024:Empaneled for solar pumps in Himachal Pradesh and rooftop plants under PM Surya Ghar Yojana.
- Apr 2024:Construction began for70,000 sq. ft. Ahmedabad plant.
- Jan 2025:₹34.56 crore preferential issue through48
