Summary
Captain Polyplast Limited - Q3 FY 2026 Earnings Call Summary Tuesday, February 10, 2026 12:00 PM
Event Participants
Executives 1 Ritesh Khichadia (Whole-Time Director)
Analysts 5 Arvind Singh (Oaklane Capital), Mahesh Seth (VY Capital), Nivedita Jain (Individual Investor), Pooja Mishra (JK Capital), Vidhi Purohit (HNI)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income | ₹127 crores | +40% YoY; Highest ever quarterly revenue driven by volume growth in MIS and Solar EPC segments. |
| EBITDA | ₹16.13 crores | +35% YoY; Reflects strong execution intensity in solar water pumps. |
| EBITDA Margin | 12.68% | -47 bps YoY; Slight compression due to competitive pricing in the solar rooftop segment. |
| Net Profit | ₹9.47 crores | +41% YoY; Consistent with revenue growth; 9M FY26 PAT stands at ₹18 crores. |
| EPS | ₹1.59 | +41% YoY; Basic and diluted earnings per share for the quarter. |
| Order Book (Solar Pumps) | 1,500 pumps | Total order value of ₹35.86 crores for 1,300 of these; 60% executed as of Feb 2026. |
Geographic & Segment Commentary
- Micro-Irrigation Systems (MIS): This core segment contributed 90% of FY25 revenue. The company maintains a presence in 17 states with manufacturing hubs in Rajkot (Gujarat) and Kurnool (Andhra Pradesh). Strategic focus remains on gaining market share in existing geographies to achieve a 25% CAGR over the next three years.
- Solar EPC: Currently 10% of revenue, but targeted to reach 50% by FY29. The segment includes solar water pumps (PM KUSUM) and solar rooftop (PM Surya Ghar). Growth is being driven by aggressive state empanelment beyond Gujarat and Maharashtra.
Company-Specific & Strategic Commentary
- Manufacturing Expansion: Setting up a new plant in Ahmedabad with a ₹10 crore capex budget (50% incurred). The facility will manufacture high-margin accessories (valves, fittings) currently outsourced, expected to improve MIS margins by 150 bps by FY28.
- Vertical Integration: Moving from an outsourced model for MIS components to in-house production to capture 5%–10% of additional value chain margins.
- Technology Adoption: Imported drip-line manufacturing technology from Israel to ensure global product quality standards for the heart of the MIS systems.
- Policy Tailwinds: Benefiting from a GST reduction (12% to 5%) on micro-irrigation and solar products, improving farmer affordability and demand.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue CAGR (MIS) | 25% for next 3 years | Driven by volume growth and market share gains in 17 states. |
| Business Mix | 50:50 (MIS vs Solar) by FY29 | Strategic shift to scale Solar EPC (pumps and rooftop) to match core MIS revenue. |
| Margin Improvement | +150 bps in MIS by FY28 | Attributed to the operationalization and full utilization of the Ahmedabad plant. |
| Asset Utilization | Full capacity by FY28 | Timeline for the Ahmedabad unit to reach peak production efficiency. |
Risks & Constraints
| Risk | Context |
|---|---|
| Competition in Rooftop Solar | The retail solar rooftop market is highly competitive with many local players, resulting in high single-digit operating margins. |
| Regulatory Dependencies | Growth in both segments is heavily tied to government schemes like PM KUSUM and “Per Drop More Crop,” making them sensitive to budgetary allocations. |
| Margin Dilution | As the business mix shifts toward retail solar rooftop, overall blended margins may face pressure compared to the high-margin solar pump tenders. |
Q&A Highlights
Segment Growth & Mix
- Question: What is the long-term growth outlook and business mix? (Vidhi Purohit)
- Answer: Management is targeting a 25% CAGR for MIS and aims to shift the revenue mix from the current 90/10 (MIS/Solar) to 50/50 within three years (Ritesh Khichadia).
Ahmedabad Plant Impact
- Question: What is the operational status and margin profile of the new Ahmedabad unit? (Nivedita Jain)
- Answer: The plant starts operations next month. It will focus on in-house production of valves and fittings, adding ~150 bps to MIS margins as it ramps up to full utilization by FY28 (Ritesh Khichadia).
Solar EPC Dynamics
- Question: Is there margin pressure in the solar segment? (Pooja Mishra)
- Answer: Solar pump margins are higher due to tender-driven pricing. However, solar rooftop is a competitive retail market where operating margins remain in the high single digits (Ritesh Khichadia).
Execution & Order Book
- Question: How much of the solar pump order book has been executed? (Arvind Singh)
- Answer: Of the 1,500 pump orders won since September 2025, 60% are already executed, with the remainder slated for completion in Q4 FY26 (Ritesh Khichadia).
Key Takeaway
Captain Polyplast delivered a record-breaking performance in Q3 FY26, with total income growing 40% YoY to ₹127 crores and PAT rising 41% to ₹9.47 crores. The company is undergoing a strategic transformation, aiming to evolve from an irrigation-heavy business to a balanced 50:50 mix between Micro-Irrigation (MIS) and Solar EPC by FY29. Management is investing ₹10 crores in a new Ahmedabad facility to internalize the production of high-margin components, which is expected to lift segment margins by 150 bps by FY28. While solar pump execution is accelerating with 1,500 active orders, the retail rooftop segment remains a competitive, lower-margin area. The forward outlook remains positive, supported by a 25% CAGR target in MIS and significant government budgetary tailwinds for the PM KUSUM and Per Drop More Crop schemes.
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