1. At a Glance
Once the poster child of agri-tech dreams and debt nightmares, Jain Irrigation has been slimming its borrowings, bulking up its retail focus, and trying to irrigate its P&L with something other than red ink. FY24 saw ₹5,847 crore in sales, ₹27.9 crore in profit, and an OPM steady at ~12–13%. The debt has come down from ₹7,000+ crore to ₹4,040 crore in two years — still hefty, but no longer Himalayan. Q1 FY26? Revenue up 4.6%, PAT down 8.5%, and a ₹135 crore solar pump order to keep the pumps (and hopes) running.
2. Introduction
Picture a company that makes everything from micro-irrigation systems to mango pulp, from plastic pipes to tissue-culture bananas. Now imagine that same company also being in the dehydrated onions business and renewable energy pumps. Welcome to Jain Irrigation — part agri-tech innovator, part FMCG processor, part plastics manufacturer, part financier… and part debt restructuring case study.
The last few years have been a survival trek: lenders’ inter-creditor agreements, conversion of debt to NCDs, equity infusions, and the sale/merger of the international irrigation business to Rivulis — cutting ₹2,800 crore off the debt mountain. Now, they’re focusing on retail farmers, reducing government project dependence, and pushing into urban piping to escape monsoon mood swings.
3. Business Model (WTF Do They Even Do?)
Three core divisions:
- Hi-tech Agri Inputs (33% FY24):Drip/sprinkler irrigation, solar agri pumps, integrated projects, tissue culture plants.
- Plastic Division (39% FY24):PVC, PE pipes, plastic sheets — largest polyethylene pipe producer in India.
- Agro Processing (28% FY24):Dehydrated onions, processed fruits, mango pulp — through Jain Farm Fresh Foods Ltd.
Geography:India ~63%, Europe 22%, North America 11%, others 4%.USP:Global scale manufacturing (19 plants, 126+ countries)
with a distribution network touching 10 million farmers.
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,546 | 1,478 | 1,749 | 4.59% | -11.6% |
| EBITDA (₹ Cr) | 201 | 178 | 223 | 12.9% | -9.9% |
| PAT (₹ Cr) | 11.2 | 12.2 | 28.0 | -8.5% | -60.0% |
| EPS (₹) | 0.19 | 0.20 | 0.43 | -5% | -55.8% |
Commentary:Seasonal Q1 softness in agro processing; plastics and irrigation held up margins. PAT volatility remains a feature, not a bug.
5. Valuation (Fair Value RANGE only)
Method 1: P/E
- TTM EPS: ₹0.49
- Industry P/E: ~26
- Applying 20–25x (due to high debt, low ROE): ₹10–₹12 (current ₹49 = hope premium).
Method 2: EV/EBITDA
- EV: ₹7,447 Cr
- EBITDA (TTM): ₹756 Cr
- EV/EBITDA: ~9.8x — not outrageous for industrial products.
Method 3: Asset-based
- Book value: ₹83.7; applying 0.6–0.8x P/B → ₹50–₹67.
Educational FV Range:₹30–₹55.This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- ₹135 Cr Solar Pump Order:5,438 pumps under PM-KUSUM Phase II in Maharashtra.
- Award:TOI Ecopreneur Award 2025 for biodiversity & water conservation.
- Receivables Focus:Targeting ₹600–₹800
