Summary
Kriti Industries (India) Limited - Q3 FY26 Earnings Call Summary Tuesday, February 10, 2026 4:00 PM
Event Participants
Executives 2 Rajesh Sisodia (CFO), Shiv Singh Mehta (Chairman and Managing Director)
Analysts 6 Aman Metha (Individual Investor), Devansh Jain (Eternal Capital), Harsh Mittal (Individual Investor), Heli Shah (Individual Investor), Praneeth (Individual Investor), Tanish Jhaveri (Boring AMC)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue (Quarter) | ₹135.79 crores | -35% YoY; Impacted by heavy and extended rainfall in Central India (MP, Rajasthan, Maharashtra). |
| Revenue (9 Months) | ₹445.58 crores | -24% YoY; Reflects significant volume de-growth in the Agriculture segment due to monsoon duration. |
| EBITDA (Quarter) | ₹6.00 crores | Improved from -₹1.40 crores YoY; Margin recovery despite lower top-line due to stabilizing RM prices. |
| EBITDA (9 Months) | ₹17.82 crores | 3.73% margin; Impacted by volatile material cycles earlier in the fiscal year. |
| Net Loss (Quarter) | ₹2.51 crores | Includes an exceptional item of ₹0.77 crores related to the new labor code. |
| PBT (9 Months) | -₹5.98 crores | Driven by higher interest costs and lower absorption of fixed costs on reduced volumes. |
Geographic & Segment Commentary
- Agriculture Segment: Sales de-grew by 30% in Q3 and 17% in the 9-month period. Performance was severely hampered by extended rainfall in core markets (MP, Maharashtra, Rajasthan) which reduced irrigation demand; however, management noted market share remains stable or slightly improved.
- Building Products (BP): Management reported seeing “green shoots” and positive movement in the last two months following a new strategy. While previously impacted by overlapping dealerships with the Agri segment, the company expects quarter-on-quarter improvements in CPVC and building materials.
- Industrial Segment: The company is intentionally limiting exposure to this segment due to poor payment cycles from EPC contractors. Management has capped this business at ₹100–150 crores and will not pursue aggressive expansion here.
Company-Specific & Strategic Commentary
- Multi-locational Strategy: Currently operating from a single plant with a depot/C&F model. Management will evaluate setting up new local plants only after quantitative volumes in new territories justify the investment, likely in 1-2 quarters.
- Distribution Expansion: Continuous focus on expanding the distributor network to penetrate deeper into retail markets where brand presence is strong.
- Raw Material Sourcing: Approximately 60% of PVC resin is imported, with the remaining 40% sourced domestically through regular contracts.
- Warrant Cancellation: Management attributed the recent cancellation of warrants to the decline in share prices, which likely influenced subscriber decisions.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Target | ₹1,000 crores by FY28-29 | Management aims to cross this milestone and potentially grow faster than this timeline. |
| Volume Growth | 7% + | Industry standard is 7%; Kriti expects to outperform the industry average as demand recovers in Q4. |
| EBITDA Margin | 10% Target | Immediate goal is to inch closer to a 10% margin before targeting double-digits. |
Risks & Constraints
| Risk | Context |
|---|---|
| Climate Dependency | Heavy/extended rains directly impact Agri-pipe demand as irrigation needs are met naturally. Recent performance was significantly de-risked by weather patterns. |
| Raw Material Volatility | PVC resin prices have been highly volatile over the last 3 years; while currently stabilizing, recent price hikes by local producers pose a margin risk. |
| Working Capital/Credit | Industrial/EPC segment exposure carries risks of deteriorating payment cycles, though management is actively limiting this exposure. |
Q&A Highlights
Demand Recovery & Raw Materials
- Question: What is the outlook on demand and PVC price trends? (Tanish Jhaveri)
- Answer: Prices have bottomed out and local producers have increased prices three times recently. With full water bodies and affordable pipe prices, demand is expected to be much stronger going forward (Shiv Mehta).
Market Share & Geography
- Question: Are competitors like Supreme taking market share? (Praneeth)
- Answer: The de-growth was geographic (Central India) rather than competitive. Kriti is a predominant brand in MP/Rajasthan/Maharashtra and has maintained or slightly improved share (Shiv Mehta).
Capacity Expansion
- Question: Are there plans to increase capacity soon? (Devansh Jain)
- Answer: Following a “bad run” in the last 2-3 quarters, the company will observe the market for another 1-2 quarters before finalizing any expansion plans (Shiv Mehta).
CFO Transitions
- Question: Why has there been frequent turnover in the CFO position? (Praneeth)
- Answer: Previous CFOs left for better opportunities; current CFO Rajesh Sisodia has been with the company for 4 years and was previously associated with the firm as well (Shiv Mehta).
Key Takeaway
Kriti Industries faced a challenging Q3 FY26, with revenue declining 35% YoY to ₹135.79 crores, primarily driven by an extended monsoon that suppressed demand in its core Central Indian agricultural markets. Despite the top-line pressure, the company returned to a positive EBITDA of ₹6 crores for the quarter, aided by stabilizing raw material costs and a strategic shift away from low-margin Industrial EPC contracts. Management is now pivoting focus toward the Building Products segment and retail distribution, where “green shoots” are emerging. Looking ahead, the company targets reaching the ₹1,000 crore revenue mark by FY28-29 and aims to restore EBITDA margins toward 10% as demand normalizes. While the cancellation of warrants and geographic concentration remain watch points, management expresses confidence in a Q4 recovery supported by rising PVC prices and high reservoir levels.
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