Jain Irrigation Q2 FY27 Results (NSE: JISLJALEQS)
Signal: Slipped to loss
The read
The trajectory has weakened after Q2FY26's 14% margin: revenue grew 5.3% YoY to ₹1,508.37 crore, but gross margin compressed 233bps to 44.8% and EBITDA margin fell 217bps to 10.90%, making the ₹17.80 crore PAT loss primarily an operating-margin and finance-cost problem rather than a revenue problem.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,508.37 Cr | +5.3% | +5.3% |
| Net profit | ₹-17.8 Cr | -216.0% | |
| EPS | ₹-0.2 | -195.2% | |
| EBIT margin | 10.90% |
P&L walk
Revenue increased to ₹1,508.37 crore, +5.3% YoY and +5.3% QoQ, but gross margin compressed to 44.8% from 47.1% as raw-material cost rose to 61.4% of revenue from 56.0%; EBITDA margin fell to 10.90%, while ₹110.56 crore finance cost pushed PAT to a ₹17.80 crore loss.
Segments
Plastic Division was the strongest growth contributor, with revenue of ₹519.85 crore, +17.6% YoY, while its segment result fell to ₹30.82 crore from ₹36.97 crore; Hi-tech Agri Input Products improved to ₹56.08 crore result from ₹54.13 crore and Agro Processing rose to ₹47.33 crore from ₹39.27 crore.
Key positives
- Consolidated revenue increased 5.3% YoY to ₹1,508.37 crore, with Plastic Division revenue up 17.6% YoY to ₹519.85 crore.
- Operating cash flow rose to ₹334.60 crore in H1FY27 from ₹152.22 crore in H1FY26, supported by a ₹121.79 crore reduction in trade receivables during the half.
- Agro Processing segment result increased to ₹47.33 crore from ₹39.27 crore, while Hi-tech Agri Input Products result rose to ₹56.08 crore from ₹54.13 crore.
Key concerns
- Gross margin compressed 233bps YoY to 44.8% as raw-material cost increased to 61.4% of revenue from 56.0%; the filing does not disclose the cause.
- EBITDA margin fell to 10.90% from 13.07%, below the stated FY27 consolidated guidance of ~12.5%.
- Finance costs of ₹110.56 crore, including ₹20.93 crore of non-cash NCD/ECB unwinding, contributed to the ₹17.80 crore consolidated PAT loss.
- Plastic Division revenue grew 17.6% YoY but segment result declined 16.6% to ₹30.82 crore, indicating weaker conversion despite top-line growth.
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