Mahindra EPC Irrigation Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Mahindra EPC Irrigation Ltd filed with BSE on 29 Apr 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Mahindra EPC Irrigation reported its highest ever FY26 revenue of INR315.8 crores, up 14.8% over FY25, and improved full-year PBT to INR16.99 crores from INR10.7 crores in FY25, despite a sharp rise in raw material prices in March 2026. Management attributed the growth to diversification into shorter-collection-cycle non-subsidy revenue streams, improved product and state mix, and cost controls, while noting Q4 FY26 PBT declined to INR6.4 crores from INR9.4 crores in the prior year Q4 due to the raw material price spike and revenue skew toward March. Management also discussed rising receivables driven by delayed state fund releases and outlined ongoing efforts to grow the non-subsidy business, currently at 35% of revenue versus 3% in FY20.
Numbers mentioned
Revenue: INR315.8 crores (FY26)
p. 6
“your company registered a growth of 14.8% with INR315.8 crores revenue versus FY25 revenue of INR275.1 crores”
Ramesh Ramachandran, page 6 of the filed PDF · View the filing
Revenue growth: 14.8% (FY26 vs FY25)
p. 6
“your company registered a growth of 14.8% with INR315.8 crores revenue versus FY25 revenue of INR275.1 crores”
Ramesh Ramachandran, page 6 of the filed PDF · View the filing
Q4 revenue growth: about 11% (Q4 FY26)
p. 6
“your company registered a Q4 growth of about 11%”
Ramesh Ramachandran, page 6 of the filed PDF · View the filing
PBT: INR 16.99 crores (FY26)
p. 6
“your company significantly improved bottom line and delivered a PBT of INR 16.99 crores for FY26 versus INR10.7 crores in FY25”
Ramesh Ramachandran, page 6 of the filed PDF · View the filing
Q4 PBT: INR6.4 crores (Q4 FY26)
p. 6
“the company registered a INR6.4 crores PBT versus INR9.4 crores last Q4”
Ramesh Ramachandran, page 6 of the filed PDF · View the filing
Material cost saving: 1% of revenue (FY26)
p. 6
“we delivered a material cost saving of 1% expressed as a percentage of revenue”
Ramesh Ramachandran, page 6 of the filed PDF · View the filing
Q4 material cost increase: 2% versus last Q4 (Q4 FY26)
p. 6
“our material cost did go up by 2% versus last Q4 because of the steep surge in raw material prices in March versus February”
Ramesh Ramachandran, page 6 of the filed PDF · View the filing
Non-subsidy business contribution: 35% (FY26)
p. 9
“we reached a 35% contribution of non-subsidy business for FY26 from a mere 3% in FY20”
Ramesh Ramachandran, page 9 of the filed PDF · View the filing
UP state growth: about 28% (FY26 vs prior year)
p. 9
“we've grown by about 28% in the FY 26 versus last year”
Ramesh Ramachandran, page 9 of the filed PDF · View the filing
Manpower cost CAGR: 5.3% (last 4 years)
p. 8
“manpower cost in the last 4 years has gone up only at a compounded growth rate of 5.3% versus a 14% revenue growth despite inflation”
Ramesh Ramachandran, page 8 of the filed PDF · View the filing
4-year revenue CAGR: 14% (last 4 years)
p. 8
“your company has shown consistent growth better than industry both on the top line as well as the bottom line, with a 14% compounded annual growth in the last 4 years and solid bottom line improvement”
Ramesh Ramachandran, page 8 of the filed PDF · View the filing
Share of receivables from subsidy business: 80% to 90%
p. 13
“about 80% to 90% of it comes from the subsidy business”
Ramesh Ramachandran, page 13 of the filed PDF · View the filing
Project business share of total revenue: about a quarter (FY26)
p. 16
“So it would be about a quarter of our total business”
Ramesh Ramachandran, page 16 of the filed PDF · View the filing
Opening project pipeline: INR54 crores (FY27)
p. 17
“There is definitely visibility for the INR55 crores, it's actually INR54 crores”
Ramesh Ramachandran, page 17 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Raw material prices — Q1 FY27
stated conditionally by Ramesh Ramachandran
p. 7
“we see reason to be cautious on this front for Q1 FY27”
Ramesh Ramachandran, page 7 of the filed PDF · View the filing
Order book pipeline — another INR20 crores upside on top of INR55 crores · FY27
stated conditionally by Ramesh Ramachandran
p. 16
“we see a further upside so that is very clear to us that INR55 crores and then we see a possible upside of another INR20 crores on top of that as we start the year”
Ramesh Ramachandran, page 16 of the filed PDF · View the filing
Project size
stated as an aspiration by Ramesh Ramachandran
p. 16
“we are preparing for maybe not a significant increase in the size of projects that we manage, but for a sort of step-up from where we are”
Ramesh Ramachandran, page 16 of the filed PDF · View the filing
EBITDA margin outlook — FY27
stated as an aspiration by Ramesh Ramachandran
p. 10
“we don't tend to give outlooks”
Ramesh Ramachandran, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said raw material price volatility is a risk for FY27 and outlined mitigation through product and market mix, procurement timing, and industry representations for price increases.
Answered by Ramesh Ramachandran
Asked by Disha Chordiya: What is the expected raw material price increase for the rest of the year and its impact on EBITDA margins?
p. 10
“we definitely see the volatility in raw material prices as one of the risks for FY27”
Ramesh Ramachandran, page 10 of the filed PDF · View the filing
Management attributed it mainly to a higher mix of projects revenue in Q4, which carries higher variable expenses but lower raw material costs.
Answered by Ramesh Ramachandran
Asked by Disha Chordiya: What caused the jump in other expenses?
p. 11
“a large part of our other expenses is really the fact that the mix of business in Q4 was towards projects”
Ramesh Ramachandran, page 11 of the filed PDF · View the filing
Management said cash flow pressure is driven by receivables build-up in certain states and that improving collections and balancing the revenue mix should help going forward.
Answered by Ramesh Ramachandran
Asked by Aditya Shah: Why has free cash flow been negative over the past several years and how will this be addressed?
p. 12
“The pressure on cash flows, as you know, in this industry is almost entirely due to receivables”
Ramesh Ramachandran, page 12 of the filed PDF · View the filing
Management said the large majority of receivables come from the subsidy business.
Answered by Ramesh Ramachandran
Asked by Aditya Shah: How much of the INR217 crores trade receivables is attributed to non-subsidy business?
p. 13
“about 80% to 90% of it comes from the subsidy business. So it is predominantly coming from our subsidy business”
Ramesh Ramachandran, page 13 of the filed PDF · View the filing
Management said capex plans exist annually, focused on productivity improvement and capacity expansion for current product lines with quick payback expectations.
Answered by Ramesh Ramachandran
Asked by Milan Shah: Are there any capex plans for FY27?
p. 14
“Most of our capex plans are focused on improving productivity and on capacity expansion they're focused on current product lines, and we choose them carefully”
Ramesh Ramachandran, page 14 of the filed PDF · View the filing
Management said the increase was due to contractual alignment of employee benefits in anticipation of the new labor code, not hiring or variable pay increases.
Answered by Ramesh Ramachandran
Asked by Rajan Shah: Why did employee costs rise 20% this quarter?
p. 15
“It is largely attributed to the labor code, the new labor code”
Ramesh Ramachandran, page 15 of the filed PDF · View the filing
Management said the impact would play out more in the second half of the year and depends on the interplay of groundwater availability and rainfall uncertainty.
Answered by Ramesh Ramachandran
Asked by Rajan Shah: Will a below-normal monsoon affect demand for micro irrigation?
p. 15
“we see the impact play out more in the second half of the year, and it's something obviously that we will watch very carefully”
Ramesh Ramachandran, page 15 of the filed PDF · View the filing
Management said discussions are ongoing at multiple levels but a timeline is difficult to predict.
Answered by Ramesh Ramachandran
Asked by Rajan Shah: When can the industry expect government action on price hikes for subsidy products?
p. 16
“Difficult to call, a point in time when the discussions will conclude, but I can assure you that this is something which is a top priority for pretty much everybody who is operating in this industry including us”
Ramesh Ramachandran, page 16 of the filed PDF · View the filing
Management said the opening pipeline stands at about INR54 crores with a possible further upside of INR20 crores.
Answered by Ramesh Ramachandran
Asked by Rajan Shah: What is the current order book position for the project business?
p. 16
“So this year we have an opening pipeline of about INR55 crores”
Ramesh Ramachandran, page 16 of the filed PDF · View the filing
Risks flagged
Volatility in raw material prices
p. 10
“we definitely see the volatility in raw material prices as one of the risks for FY27”
Ramesh Ramachandran, page 10 of the filed PDF · View the filing
Geopolitical events affecting raw material prices are unpredictable
p. 7
“geopolitical events are difficult to predict and hence, we see reason to be cautious on this front for Q1 FY27”
Ramesh Ramachandran, page 7 of the filed PDF · View the filing
Delayed fund releases by state governments causing high receivables
p. 7
“key states took longer time to release the state mandatory funds and the state top-up funds”
Ramesh Ramachandran, page 7 of the filed PDF · View the filing
Short-term demand volatility due to election cycles and policy changes
p. 4
“short-term demand can be volatile and impacted by election cycles, example, in fiscal 2025, and it can also be impacted by agricultural policy changes”
Ramesh Ramachandran, page 4 of the filed PDF · View the filing
Below-normal monsoon prediction for FY27
p. 15
“this year there is a prediction of below-normal monsoon. They are talking about 90% to 92% of normal monsoon”
Rajan Shah, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.