Ladies and gentlemen, good day and welcome to Jain Irrigation Systems Limited earnings conference call hosted by DRChoksey FinServ Private Limited . As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Jinali Gala. Thank you, and over to you, ma'am.
Thank you. Good afternoon, everyone, and welcome to Jain Irrigation Systems Limited earnings call to discuss the Q1 FY 2026 results. Today, we have on call Mr. Anil Jain, CEO and Managing Director, and Mr. Bipeen Valame , Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements that may involve known and unknown risks, uncertainties, and other factors and must therefore be viewed in conjunction with the risks that the company faces. Future results, performance, or achievements may differ significantly from what is expressed and implied by such forward-looking statements. Please note the results and presentation are available on the exchange and on our company's website. I now request Mr. Anil Jain to take us through company's business outlook and financial highlights, subsequent to which we will open the floor for the Q&A session. Thank you, and over to you, sir.
Thank you, ma'am. Welcome to everybody and especially thanks for coming onto the call on Saturday. We concluded our board meeting earlier today for the June quarterly results. Overall, I think, in a deflationary environment where on one hand, resin prices have come down quite a lot. On other hand, on the food side, onion or the mango prices were one of the lowest we have seen in the last few years. We have still managed to have a positive revenue growth. I think that augurs well for the second half of the year. We now see that this particular phenomenon of deflationary pricing on commodities, whether plastics or food.
At least on plastics side, it seems to have been arrested over last two, three weeks and indications based on certain scenario planning is that things would be stable to firm going forward in the rest of the year. In terms of food processing, I think, in terms of lower prices of onion or mangoes, that's already factored in. But that would impact the significant growth which we're planning could be lower because revenue prices will be lower. But we have tried to process the higher level of commodities in terms of quantity to try and make up for some of the deflationary pricing on the raw materials. Business overall, I think we have been able to grow EBITDA also. In terms of when you look at business segments, our Hi-Tech Agri segment has managed to have really very good growth rate, closer to 30%.
The plastic came down by approximately 10%, where the domestic demand for piping especially got hit very hard due to early monsoon starting mid-May. We had a positive growth in our overseas plastic sheet business. Overall, as a division, it has come at about still negative 10%. Part of it is again, is deflation and partly less demand. Agro processing for the factors we explained, we almost done same level at what we did last year as a company. In terms of overall profitability, when we look at it EBITDA level, I think in Hi-Tech Agri business, we have been able to improve our EBITDA from about 15.2%- 16.6%. In plastic, EBITDA has slightly come down due to lower revenues, while in agro processing, EBITDA has improved by another 1.6%.
All in all, I think we have gained about 1 percentage point in terms of EBITDA for the overall business for the company. In terms of the timing of the year and seasonality, this quarter, we have consumed for the future growth in the remainder of three quarters. Funds have gone into working capital. In June quarter end, there was substantial increase in the receivables. There was some amount of increase in inventory as well. We think all of this would get pared down between now and December. Already in the month of July, almost 50% of increment in the receivable which we had in the June quarter has been recovered in last four weeks. I think it's a temporary short-term phenomenon.
For the medium-term, that is up to March 2026, we expect it to maintain the trend of continued improvement on working capital in terms of DSOs, days outstanding against sales for both inventory as well as receivables, even though in short-term in the current quarter, they have gone up. The things which, apart from Hi-Tech Agri business doing well, in terms of drip irrigation has done well. Also, the solar pumps, we had a good growth. We crossed INR 50 crore sales in the current quarter. As against same period last year, it was hardly less than INR 2 crore. That was a big plus. Our exports have continued to do well. Overall exports grew in this current quarter from the same period from INR 88 crore to INR 130 crore. Almost registering a 40% growth has come in the exports.
Exports did well, solar pumps did well, drip irrigation overall has done well. Pipe was down, food was even. That is how I will say different business segments have played out in total. When in terms of when you look at the projects, we closed one large project this particular quarter, therefore project revenue was high, and automatically that means higher receivables, because by the time you would get paid against this particular receivable, it would be another two quarters or so. Overall, I think we are moving in the right direction, whereas we had discussed earlier that sometimes over the next 12 months, we expect to close the majority of the project. Between now and next September, most of the overdue funds from the project should be received by the company.
This scale of the revenue of almost INR 1,550 crore which we achieved this quarter, approximately 5% revenue growth, has meant that the gross debt has remained almost same at the same level as last year, for INR 3,590 crore. While net debt has gone up slightly as extra usage of cash has gone into working capital. This was also a quarter where we got the funds coming in towards the equity for the warrants, which we had issued earlier, almost to the tune of INR 150 crore. That has gone into building of the working capital. During this period, we have also paid long-term debt overall, while as because of the increase in working capital and overall balance sheet, long-term debt is constantly going down as required.
In the remainder period of another nine months, approximately another INR 250 crore of long-term debt is due for the repayment, which we should be able to do through internal accruals. In addition, as we start receiving some of the overdue project receivables, we would be able to also pay down 0% NCDs. That would be in addition to INR 250 crore, which is the debt which is falling due for the repayment. In terms of overall scenario, as we are looking at it now, we expect in the remainder of the year, the irrigation business to continue to remain buoyant for us. We expect that based on the good monsoon, pipe demand should come back. We are seeing good flows for the solar pump orders also.
Overall, I think positive sense, which when we spoke about the year in the last con call, we said for the whole year, we are anticipating to manage growth north of 15% in terms of revenue. I think that guidance still remains despite the fact that first quarter we have grown only 5% due to mostly deflationary environment and a little bit of lack of demand because of the early monsoon in the plastic and piping segment. Overall, as a structure, I think we continue to remain strong in the marketplace at 16.6% EBITDA, which I talked about at Hi-Tech. This is one of the strongest years we have had on this division in terms of EBITDA. Our cost basis, cost structure which we have continues to remain very good going forward as well. Product mix is changing.
We are selling more value-added products on micro irrigation, which is allowing us to compete with a lot of small players and still maintain margins while pursuing the growth. Production capacities are at reasonable level. In terms of CapEx, we have done some this quarter, CapEx overall maintenance plus growth CapEx was about INR 44 crore, while depreciation was INR 68 crore. For the rest of the year, maintenance CapEx would be in line with what we have done in earlier years, and we will be doing some growth CapEx as well. Especially, we are seeing a lot of demand for medium-term from the tissue culture planting material division for the urban piping scenario. We still believe that overall CapEx would still remain in line with the overall depreciation for the company. In food business, we have seen some opportunities for contract manufacturing.
We are working on those. I think by the time we speak about those next result meeting, we will emerge with more clarity how that is going to evolve. We have started working on that. We are also seeing newer irrigation opportunities, where some large players are working on this Compressed Biogas and some other things, where they need to grow biomass before creating gas, which requires irrigation. We think that would be an interesting application of our technology and a likely business opportunity in that sector. Exports have been doing very well. We continue to have good export orders and maintain a good level of growth in exports also. Exports positive. Going forward, solar positive.
Drip irrigation, along with the new application, I think would continue to do well because as a country, our energy economy changing. I think water plays a role and irrigation plays a role because a lot of fuel generation people are now talking using the agriculture crops. That's where we can play an important role. The JJM has still not really picked up in the current quarter also. Some places it is there in some states where we are not a direct supplier, but we indirectly supply pipe. It is quite competitive pricing. Some of that business, because it is so competitive, we have let go. What business we could capture, we are staying profitable in that business. I think this is the background. Reasonably good quarter.
Second quarter is slowest quarter, usually, September for us, but we are really looking at a very strong H2 on a reasonable first quarter. If you look at six business product lines we have, drip and sprinkler, doing well. Piping was weak, but should pick up in the second quarter. Plastic sheet has done well, which is our overseas business, primarily. Tissue culture has registered good growth for us. Solar pump is doing very good. Food processing business was even. India business at least will revenue well, but overseas business will continue to grow, especially on the spices side. That's what we are looking at it. We are looking at a growing year, profitable year, with good three to five year growth scenario.
We feel confident and positive that we have all the right, what would you say, ingredients to create a good recipe or right building blocks to build a good journey going forward. Not just in terms of revenue growth, but earnings and positive cash flows also. With that, I would take a break. We would like to invite any questions you may have. Thank you again.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue is set up. The first question is from the line of Nigel Mascarenhas from Everflow Partners. Please go ahead.
Good afternoon, sir. Thank you for the opportunity. A couple of questions from my end. Firstly, what sort of revenue and EBITDA number can we expect to reach at the overall level in the next three years?
Okay. So second question. I will answer both together.
My second question was, out of this, which segment would be leading the growth, and what would the EBITDA margins for each of these three broad segments look like by then, say, three years in the future?
Okay. It is a good question, a broad question, right? It is a link to the future. We need to take it with whatever qualification it would need. Last year, I think overall, we as a company did INR 5,800 crore approximately revenue. We are targeting overall growth in that 15%+. When you take into that means business in three years, in terms of opportunity. The opportunity is that you could, between three to four year type of scenario, you can definitely double the size of the business. If you look at five years, you have a chance to make it 2.5x, 3x . That is the opportunity, because we have recently worked with a large consulting firm as well to look at what is the opportunity out there and whether Jain can win in that opportunity.
The answers to both are very positive. When I look at which segment will grow more, each segment is going to grow, some less and some more. We see piping segment to grow quite a lot, maintain 15%, 17% growth. Definitely. We see irrigation to also maintain a 12%- 14% growth based on a combination of exports and new value-added applications. We expect plastic sheet business, which is overseas, to continue to grow at 8% - 10%, because in that business, in those local economies, as you know, are growing 2%, 3% only. So 8%- 10% growth is quite good from that part of business. Solar pump business, we used to do a lot of solar pumps earlier, and we have recently started again. During restructuring period, we had walked out of that business.
We think that business could grow substantially over next two to three years because the opportunity is quite large under the KUSUM Yojana of the Government of India. Food processing business with additional capacity utilization of spices, some contract manufacturing, also should grow quite well. I think, on an average, we would like to maintain a 15% growth. Some of the other things come and kick in, you could achieve beyond 20% growth. If you do 18% right, compounded over five years, you double the business. If you do 20%, you can double in three and a half years. I think that is the structure we are going. We have good production capacities. Some specific product verticals we might have to invest growth CapEx, but I think normal five or drip, I think, we can grow next two to three years without any serious CapEx.
Only maintenance CapEx will do.
Understand.
That's quite positive.
Understand. Can you throw some color on the EBITDA as well as the overall and segmental numbers as well?
I think overall EBITDA, right? This year we did about 13%. The breakup, if you see, Hi-Tech Agri is 16+, and plastics is 10+, and agro-processing 11.8. When you project this, right? Globally speaking, all food processing companies are about 12%- 13%. I think that's what would be maintained in that business. In plastics, we have been between 10% and 10% historically. But as we utilize better production capacities, higher growth rate, I think we can hit 12%- 14% window there. We are still not there yet. In Hi-Tech Agri, I think we would maintain this 15%- 17%. In extraordinary year, it could go to 18%, 20%, but I think 15%- 17% would be. Overall idea would be to stay between 13%- 15%.
I think 15% EBITDA on control business combined, I think would be a good level, a very good level. 13% we must achieve definitely any year. But I think we'll be inching towards 14% going forward.
Got it, sir. Thank you for the opportunity, and wishing you the best.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Hemal Trivedi, an individual investor. Please go ahead.
Hi, sir. [audio distortion] Can you throw some light on value monetization? We've been kind of hearing it for such a long time now. It's not moving forward. That is my first question on value monetization. The second question is on the EPS, like from investors point of view and from the kind of share price point of view, what matters is kind of EPS. I know that is stagnant from quite a long time now. So what is the plan in order to kind of grow the EPS so that the investors like us can benefit as well? These are my two questions.
Yeah. I think, again, good questions. In terms of value monetization, I think we have recently started working seriously on a food processing company, which is a subsidiary. Depending on, again, preparation, the market, underlying performance, sometimes in 2026, there is a good possibility that you would see value monetization of that business. In terms of EPS, that is something we are working on. As you know, we have gone through almost. We have kind of lost half a decade, right? Between 2020 and 2025. I myself feel that pain and pinch, not just as a shareholder, but as somebody who is responsible for delivering results for shareholders and other stakeholders. I think what work we have done, right? Changed our business model and how it functions. We have stabilized a lot of things, got cleaned up from the restructuring period.
That's behind us now, and we are looking at super growth over next five years. As we solve the balance sheet issues, maybe over next 12 months, I think thereafter, you will start seeing EPS because I think EBITDA has done well, would continue to do well going forward. But still whatever we earn today gets absorbed through the servicing of the debt, depreciation, et cetera. Not much is left for the shareholders. As we go along, I think from FY 2027 onwards, you will start seeing measurable improvement in EPS because that's the ultimate goal.
Thanks. If I can ask one more question, if that is fine.
Sorry to interrupt, Mr. Hemal. May we request you to turn to the question queue for a follow-up?
Sure.
Thank you. The next question is from the line of Amit Agicha from H.G. Hawa. Please go ahead.
Yeah, good afternoon, sir. Thank you for the opportunity. My question was connected to the equity infusion. What portion of the recent equity infusion was from promoter versus institutions, and will there be any further infusions planned?
The current infusion which happened, almost I think out of INR 150 crore, 1/3 came from promoters and the remainder came from the institutions, approximately. In line with the warrants which were issued earlier. As of now, there are no outstanding warrants. But as company is getting on this huge growth path, right? Because as I described, we see all the six businesses firing going forward over the next few years. Might require some additional support on the working capital side. At appropriate time, I think post discussions with our board, we will be informing all the stakeholders of how we plan to raise any additional funds for that purpose. But as of now, the focus is on underlying cash flows, recovering old receivables, continue to repay the debt, long-term debt, and bring it down and improve the EPS.
Yeah, just second point was connected to the balance sheet. As you were saying, long-term debt payment, almost INR 4,000 crore is the balance borrowing from 2014 onwards. And I think so we are also having investments of more than INR 1,200 crore. Is it would be possible to sell off the investment and repay the debt so as to cut down the interest cost?
Yeah. If I look at my debt and we have given the debt, the details in our investor presentation also. And I will just take two minutes of everybody's time. Total debt for the entire group is at about INR 3,500 crore right now. Out of this INR 3,500 crore debt, the long-term debt or term debt is close to INR 1,500 crore. Sorry, about INR 1,500 crore. Now, that INR 1,500 crore has about INR 800 crore debt is 0%. Remaining INR 700 crore rupees debt is at, let's average, 9%-10%. And that is being repaid as we speak. In the next nine months alone, INR 250 crore of that debt is due, which we will be paying. On the term debt, the debt, I think as it stands, the entire INR 1,500 crore, almost by March 2028, all will become zero. In normal course through internal accruals.
In terms of if we do any value monetization. For example, I talked about the food company next year. Any of such opportunity, we can instead of waiting till 2028, we can finish that in before 2027. We are on that path. Rest of the debt, what you see, approximately INR 2,000 crore debt is working capital debt, where about INR 200 crore would be the overall interest in the year. Currently that debt is required because when you see individual nature of businesses, whether food processing or irrigation or pipe, et cetera. Some of them are working capital-intensive businesses, and that debt is required to support the working capital. As far as term debt is concerned, we are very clear that that should go away earlier than later, max three years, maybe 18 months is what our plan is.
My question was connected to investments also. Are we generating more on investments rather than repaying on the cost savings which you do on the debt?
Investments are two, right? One investment is a major investment, is a food processing company. I talked about already IPO next year. Our investment in food processing company, let's say it's about INR 600 crore-INR 700 crore, somewhere around that. We are hoping IPO value INR 3,000 crore- INR 4,000 crore. I think we can definitely get far more than what we invested when we do value monetization. Rest of the investment in the overseas subsidiary, which we did when we reduced our debt by INR 2,000 crore outside India, and we merged our business. Part of that equity is still there, and value monetization of that won't happen now. One has to wait for two, three years, depending on the scenario there or what happens there.
Whatever investment you see on the books, I think in terms of, again, idea is that in next one to two years, through value monetization, that would come in to help reduce the debt.
I appreciate you answering elaborately, sir. All the best for the future.
Sorry?
All the best for the future.
Thank you.
Thank you. Participants who wish to ask questions may please press star and one now. The next question is from the line of Praneet, an individual investor. Please go ahead.
Hello. Thank you for the opportunity. I think we did a great job in terms of generating more EBITDA and all of that. I was curious on the front of, in terms of expansion on the ground for the piping segment and micro irrigation segment. Basically our dealers level has been constant for the last couple of years, and I understand there's churn. How are we able to expand on that front, and what are the strategies? How successful have been the strategies in terms of expanding that particular chance? In the last con call, you mentioned about urban expansion also. Are pipes going into urban territories and all of that. How is that going at the moment?
I think in MIS and Pipe, right, where we sell through the dealers, while number might remain the same, we have kind of weeded out a lot of inefficient dealers and more focused on efficient dealers. Some of the inefficient dealers we have got the new dealers. In the existing areas where we sell quite well, which is like Maharashtra or Southern India and Western India. Where we have added dealers is in Northern India, on Eastern or Northeast parts. I think there, the original business numbers are small, right? For example, this quarter alone, in East we have grown 63% on a smaller number. In Northeast, we have grown 200%, again, on a smaller base. That shows that the work has started there and the dealers have started delivering results. It's a process, right?
Because it is not that just you appoint the dealers and you will have sales. You're changing the concepts of the farmer in terms of how do they go about, right? It has taken us a few decades here to build this dealer base in the existing areas, which we are strengthening to sell more in existing areas. Now that we are into a new era of technology, I think things would move much faster. Earlier, what has taken 20 years, I think can be done now in three to five years. We are very confident that in next three years, for example, the East, Northeast, and North, which is hardly 5% of our sales in past, would become at least 15%- 20%. They would grow that much, 3x or 4x . With a larger growth, including growth in the existing areas.
There we are quite strong, positive. Come 2021, 2022, right, we changed business model. To dealers who used to provide 120 days credit, and we said, "No, no. Now you pay cash in advance, then only I'll supply you." It took a hit, right? Now the business is also back to the same level it was before when we were giving 120 days credit. Having achieved this new business model, and got everybody comfortable with that model, where still everybody makes money and willing to do it, now we are going into the additional growth into existing areas on the new model. Your second question about the urban market. Urban market, we have been working to ensure that we have the new dealer network as well as the complete range which is required, which is different than the, let's say, our existing range, right?
Some additional things are required. You would see when I talk about December and March results, we will be able to share with you more precise details about what gains we have made. It is a tough market because there is a very entrenched large players in that market. Jain has necessary technology and the brand, especially in Tier 2, Tier 3 cities. I think we would succeed much faster, but it is going to take another two to three quarters.
Understood. I was wondering of one more thing, is the tissue culture segment. That has a high EBITDA margin that has been contributing, I feel like, to the incremental EBITDA growth. What are the limitations that can hinder? Because we are projecting a very high growth rate going forward in the next two to three, the three to five years. I was wondering, what are the limitations that might hinder that particular growth? In terms of geography, because it's a bioproduct, is there any limitation in terms of distributing the product across the country, or are we very concentrated in Maharashtra? Can you give an idea about that?
Yeah. Tissue culture is a biotechnology product. You make planting material from the stem of the tree or from the tissue. Our core lab is headquartered here in Maharashtra. You do hardening, semi-hardening. That you can do in the field. You need to have greenhouses and shade houses. We do some work, for example, in our Kurnool facility to cover the Southern India, and we do some work in our Alwar facility, which is in Rajasthan, to cover Northern India. While the core lab will remain here, because you need to secure mother nursery and you need to have all the protocols. The first primary and secondary level of hardening will be done in the field, closer to the market.
In terms of our customer base, today whatever banana plants we sell, most of them are in Western and Southern parts of the country where banana is prominently grown. While pomegranate, we are doing in Western India as well as we have big market in Rajasthan also. Plus now, work we are doing on potato seedlings, there while we are getting them grown, apart from the lab work, field work in Punjab and Haryana, our markets are more into places like Gujarat and U.P. as well. It is becoming a national business. It is not remaining purely regional. You asked a question about what are the likely hurdles in the growth opportunity.
Yes.
We are seeing, for example, banana opportunity is very big because farmers are making more money. Recently there was a news that mango is no more a king, banana has become king, because with the help of our tissue culture, farmers are really making money. As a country, we are exporting INR 4,000 crore, INR 5,000 crore of banana, and that creates more demand for our tissue culture products. We do not see demand as an issue. But it's a bio product, right? It's a tech product. And in the open area with the climate change, there could be things like diseases which will come onto the product, which will not come from our source material, but can come from air, for example, and it can have impact on the farmers.
Some of those risks are inherent to the business or to any agricultural planting material or seed type of business. And we are working to see how do we protect ourselves or our customers from those. It's a medium to long-term issue, structural issue. But apart from that, I think production capacity and how do you ensure that, normally, earlier, farmers used to plant, for example, banana, only two or three months. Now we work with farmers in different regions so that they plant bananas over a 10-month period. Then we can continuously produce every month and supply next month and so on. I think that type of work which we have been doing, fundamental work, changing how the whole agri economy works for that particular product, I think is creating very positive results. And some of the challenges will come.
I would not discount those challenges, but I think we are aware of those working, do as much risk mitigation we can do and still manage growth.
Are we still on the track of reaching 1,000 in the next three to five years?
Yeah.
I'm sorry, just last question. Regarding the agro processing division, I understand that we have various products in which fruits is a major part of it, and from India, I think it's mango. Internationally, how are we seeing overall demand? How is the overall food inflation impacting our capacity? Is it a benefit for us or how is it affecting us, our international production facilities, and how do we predict the growth of international versus Indian agro processing division growths?
India, I think mango is one major, and on the vegetable side, onion is another major product for us. We are seeing when we service China and what is happening with China and mistrust around the world, we are seeing there is a large opportunity for garlic as a product. We are working on it, but again, over next two, three years, it could become a larger product for us. Already this year, I think we are going to do good amount of new garlic work. Garlic we have been doing in past but small. I think it is now getting into some recognizable space. Internationally speaking, our business in U.K. is doing very well. It's growing phenomenally well. The business in, I think even Belgium and Europe is doing reasonably well. The business in U.S. had slowed down because of the whole tariff changes.
People were just being cautious over last few months. We have to wait what happens in Northern America over next quarter or two. Some of this dust will settle down on what happens to Mexico, what happens to imports, exports, et cetera, and then it will become more clear what grows into U.S. The other division which is quite small for us, which structurally should grow globally, is spices. We do quite good in spices in our Belgium and U.K. business, but we have not done much actually out of India. Future growth for India, this business will come from spices as well as garlic, a major growth. International market, I think our European businesses will continue to grow. In our European business today, we are operating only in four countries. Overall E.U . Is 27 countries.
We see growth opportunity there as a combination of vegetable and spices.
Understood. Last question in terms of our capital-
Sorry to interrupt, Mr. Praneet, may we request you return to the question queue for a follow-up question?
Sure. Thank you.
The next question is from the line of Madhur Rathi from Counter Cyclical Investments. Please go ahead.
Sir, thank you for the opportunity. Sir, I joined the call a little late. I wanted to understand regarding the government receivables, and sir, what is the status of that? Because sir, when we spoke to you earlier, sir, we were expected to get it by FY 2024 end, so what is the status of that currently?
Sir, overall I think government receivables, what we received in the current quarter and since then, in fact in July, was almost amount of the sales which we had done. That is what we have been able to cover. Because we were closing a particular project, that's why the billing had gone up as you close the project. But I think we are on track, right? I think what guidance we have given earlier also is that by mid 2026 we should receive most of old government receivables, and that is INR 500 crore-INR 700 crore. I think that will still come through because it all is linked to one, our ability to complete the last milestones, which we are doing one by one. Second is the availability of funds with the state government because these are sanctioned projects, so that should be available.
Some of the state governments delay because they're giving a lot of this free money here and there. They do not pay contractor. You might have been reading newspapers in states like Karnataka or Maharashtra. So there could be some delays due to that. But when I talked about that it is going to take one year plus, somewhere around that time to recover this money, we already factored in some of these delays. So if it happens earlier, well and good, but otherwise over this 12 months, INR 500 crore-INR 700 crore should flow back.
Sir, so how much money did you get in FY 2026 and what is the overall amount that is pending currently?
I think overall amount on the project side is about INR 750 crore, approximately. Out of that, I think about at least INR 350 crore should happen before March 2026.
Got you. Also, on the food processing side, sir, it seems that our tissue culture capability is very strong. There is a company called Hyacinth Food where they do contract manufacturing as well as processing together. Do we have any plans of doing an integrated food processing for our business or you haven't thought on that front yet?
No, we are working on some of those issues. I think more clarity will emerge over the next three, four months. We want to see that our capacities get utilized through the year, and we have built a lot of infrastructure. That infrastructure should get fully utilized. I think some of these integrated contract manufacturing type of scenarios, we are also looking at. We will have more clarity in H2 on that, how it evolves. It is something which is definitely on the cards because it's a very seasonal business, right? You must find way of using the capacities through the year.
Sir, what kind of working capital require-
Sorry to interrupt, Mr. Madhur. May I request you to repeat the question you posed?
I will get back on this. Sir, thank you so much, and all the best.
Thank you.
The next question is from the line of Prashant, an individual investor. Please go ahead.
Hello. Is my voice audible?
Yes, please.
My first question is of the Hi-Tech Agri and the plastic division. If you see quarter-on-quarter, there is a growth in Hi-Tech Agri and in plastic there is a degrowth. Can we further break it down into what has been the volume movement and what has been the price movement? Have we taken any price hike if we see on a YoY or a quarter-on-quarter basis?
I think in terms of Hi-Tech Agri business, Hi-Tech Agri business comprises of three major products, drip and sprinkler. It is also tissue culture. It is a solar pump. Solar pump have grown, drip irrigation and sprinkler irrigation has grown. But the SKUs there are like thousands, right? It is difficult to talk about the volume growth there. In the plastic side, we have a degrowth, which is volume as well as the pricing both. Because pricing, because raw materials came down, and the volume because early monsoon starting from mid-May, we lost almost 20-25 days of the season. That was the reason of the reduction in the plastics volume.
Okay. On the agro processing, how has it been? Because the food inflation is generally sometimes high, sometimes benign. Have we benefited from it? How does this play out for us?
Food, that is a good point you are making. Not only benign, right? Right now, this was a deflationary. Onion prices at wholesale level where we buy white onions, our prices were quite low this season, post-April. Mangoes, I think we saw the lowest price in last five to seven years in this season. Now, that also impacts your sales, right? Because you are selling at lower price because raw material has gone down so much. But overall, I think what that means is that also it will create demand going forward because overall pricing goes down, people are willing to stock more or place more orders for longer seasons. Overall, it should be beneficial. But whether it was aberration that there was so much of supply and therefore prices were down or whether next season again something happens totally opposite to what happened now, one has to see.
Because food goes from inflation, deflation, especially on some select commodities. But right now the environment is quite benign and deflationary, which impacts our overall revenue. But I think going forward, it should help us improve margins.
Okay. My second question is rather an accounting question. If we see the segment results on a consolidated basis, we have unallocated assets of around INR 1,800 crore, which is a large number. Now, I understand there could be some corporate assets and corporate office and the salary of the senior management and executive directors which cannot be allocated. But still INR 1,800 crore of unallocated assets is a large number. What would be the main items in that? Because when we see the segment-wise profitability or ROCE, such a large item in unallocated assets distorts the picture.
Yeah, I think that's a good question. As a company for the R&D which we do and so on, we have large amount of land between what we have here in Maharashtra or in Tamil Nadu, et cetera, and the total land goes into thousands of hectares. The value of that land is something we don't allocate specifically to either drip business or tissue culture business or pipe business because all the businesses get benefit of that particular. So that's the major segment, what you see on the asset side. On the liability side, the loans because they are at corporate level and the investments we have made, for example, investment in food business or overseas business which we have, they remain on balance sheet side unallocable.
But normal expenses or normal assets like Plant building or manufacturing or the people cost, et cetera, they're fully allocated properly to individual divisions. We are very focused on that in measuring each division properly in terms of its P&L, ROCE, et cetera. But some of these, like land, et cetera, that remains unallocated.
Understood, sir. Thanks for the detail. There is a piece of land and where we are doing a project for all the three divisions. But again, some method, let's say if you're doing 10 projects, out of which five projects are for one division and three for another and second for the third. On some basis, if you can allocate the assets to the individual divisions, it would help us as investors also to see how much resources have been used by each division as well as each division would also get to know that, because as of now, since it is unallocated, the divisions feel that they are hardly using capital, whereas the reality is otherwise. I hope you get the gist of what I'm alluding to.
Yeah, I get the gist. We will study this matter. We'll talk to the auditors. We'll study, see what can be done. Again, let's say land, which is valued somewhere around INR 1,500 crore-INR 1,600 crore on the balance sheet approximately. Now, we did not spend that kind of money to acquire that land. What has been money spent over a long period of time might be INR 100 crore-INR 200 crore. So this is five, seven years ago, when the accounting standards were changing, the fair value was land was required to be put and that is how that has come. So it is not that level of physical investment has gone in from the company side there. But we will try and see how we can allocate the land value.
Understood, sir, and wish you all the very best for the coming quarter.
Sure. Thank you.
Thank you. The next question is from the line of Hemal Trivedi, an individual investor. Please go ahead.
Yeah. Thanks. Sir, my follow-up question is, again, two things. One is you mentioned about further equity dilution. My sincere request would be to have a careful reconsideration on equity dilution, because what happens is that equity dilution then adversely impacts the existing investors. I have been invested in 2018 till now, and trust me, still bleeding a lot. Forget about getting a return out of it, but still bleeding. And from 2018, where it was 42 crore issued capital, to now it is 72 crore. Already a lot of equity dilution has happened. So just would suggest to be very mindful on that and your follow-up thoughts on that. The second thing, again, a follow-up question on the finance side of it.
The market cap, if you see, it is only 4,000 crore and having invested since past seven years and very closely monitoring each and every quarter results of Jain Irrigation Systems and knowing its legacy. Trust me, sir, if we manage the finance very well and utilize some of these assets which we are talking about and do the value monetization and the company can become debt-free in virtually one year, one and a half year maximum, and the investors can get a return. But right now, as an investor, I can tell you what the feeling which we get is that the company is doing business for the bank and not for the investors. This is one area where although it is a great turnaround story from debt restriction side of it, but this is really impacting the investors a lot.
I agree with your sentiment. Not only agree with it, I empathize with the sentiment. We do not wish to do raising equity for the sake of equity. Of course, we do not want to run the business to be unpaid employees of the bank. That is clear for us as well. If we do equity, that would be after a thorough serious consideration, only if it can be extremely value accretive. Because we are sitting right now, after going through a painful restructuring period, after changing the business model, bringing down debt from INR 7,000 crore to INR 3,500 crore. We have done all that. Now, I think when you look at all our six major product lines, I think we are sitting on a technology platform, brand equity, ability and intent to have explosive growth over next three to five years.
Now, to kickstart that growth, if equity is required, I think that would be in interest of all the shareholders, because rather than just staying in currently like this, we give it a shot. Because underlying strength company possesses in the marketplace are really very good. We are in leading position, and we need to harness all of that goodwill and good work which we have done in the past to create extraordinary value for the shareholders. Please be assured that any step we take is with very careful choice, and creating value for shareholder is the ultimate thing we want to focus on. Of course, we just don't want to earn EBITDA and pay all that into interest. Repaying any high-cost debt is a part of that story. As I said, we have brought down debt by 50%.
We will further bring it down, and then small amount of whatever debt left will be working capital debt which can be easily sustained by the business. Idea is to continue to work for the shareholders in a right way. But we are coming out of a very painful five-year period, but we are looking forward to very good next five years. Thank you for your support, and thank you for your patience.
Thank you. Wish you all the best.
Thank you. Ladies and gentlemen, due to time constraints, that was the last question for the day. I now hand the conference over to the management for closing comments.
Thank you again to all the participants. I think we have tried to answer all the questions in a comprehensive way. These are, I think, good times. The company is in a strong position going forward. We are looking forward to really a good growth for next three to five years. Again, all businesses seem to be having sweet growth, especially because of, again, our technological strength, our brand strength, and the businesses we are in, that space itself will continue to grow. We have ability to grow in India, we have ability to grow outside India. We have ability to grow adjacencies, backward-forward integration. I think everything is possible, and that's a good thing. But we want to be disciplined financially in terms of balance sheet, bring down the leverage, definitely in terms of debt to EBITDA.
At one time it was six, I think it is down to 3.5 now. The idea is very soon, in next 18 months, take it to less than two. That's where we are working. We again thank you, all our shareholders and all the listeners and analysts and other people, for your support to the company. Thank you again.
Thank you. On behalf of DRChoksey FinServ Private Limited , that concludes this conference. Thank you for joining us, and you may now disconnect your line.