Transcript - Q1 FY27 Investor Conference Call (Earnings Call)

Regd. Office: Jain Plastic Park, P.O.Box: 72, N.H.No. 53, Jalgaon – 425 001. India. Tel: +91-257-2258011; Fax: +91-257-2258111; E-mail: jisl@jains.com; Visit us at: www.jains.com CIN: L29120MH1986PLC042028 JISL/SEC/2026/08/B-2/B-6 August 11, 2026 To, To, BSE Ltd., National Stock Exchange of India Ltd., Corporate Relationship Department, Exchange Plaza, C-1, Block G, 1st Floor, New Trading Wing, Rotunda Bandra Kurla Complex, Building, P. J. Tower, Dalal Street, Bandra (East), Mumbai - 400 001 Mumbai - 400 051 Email: corp.relations@bseindia.com Email : cc@nse.co.in Ref: Code No. 500219 (BSE) & JISLJALEQS (NSE) for Ordinary Equity Shares Code No. 570004 (BSE) & JISLDVREQS (NSE) for DVR Equity Shares Sub: Transcript – Q1 FY27 Investor Conference Call (Earnings Call) Dear Sir/Madam, Please find enclosed herewith transcript of Q1FY27 Investor Conference Call (Earnings Call) held on August 10, 2026 at 04:30 PM IST. Please take the above on record and acknowledge. Yours faithfully, For Jain Irrigation Systems Limited, A. V. Ghodgaonkar Company Secretary Encl: a/a Jain Irrigation Systems Limited Q1 FY 2027 Earnings Call August 10, 2026 Moderator: Ladies and gentlemen, good day and welcome to Jain Irrigation Systems Limited Q1 FY27 Earnings Conference Call. Today, we have on the call Mr. Anil Jain – CEO and MD, and Mr. Bipeen Valame – CFO. As a reminder, all participants’ 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 “*” and then “0” on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anil Jain to take us through the Company's “Business Outlook” and “Financial Highlights”, after which we will open the floor for questions. Thank you and over to you, sir. Anil Jain: Thank you. Good afternoon to all the listeners on the call and thank you for joining our call. This call is about the Q1 Results for Jain Irrigation. Today, we also had an Annual General Meeting followed by the Board and in the Board, the Results were approved. As we spoke, I think sometime in May, it was anticipated that the 1st Quarter will be a muted quarter. So, as a company, overall, Page 1 of 25 our revenue has been about 2.5% less than the same period last year at about Rs. 1,500 crores. Within different segments, I think Hi-Tech segment registered a degrowth, while plastic was almost similar to last year’s same period, and Agro-Processing registered significant growth due to additional beverage business and some growth in our overseas market. So, while overall revenue has remained similar, there was a reduction in EBITDA because especially standalone India business, we had less fixed-cost absorption because of lower volume due to volatility linked to raw material prices and demand postponement, and that has resulted into lower EBITDA, especially in the Hi-Tech division. In fact, plastic division has improved its EBITDA, and Agro-Processing also had seasonality issues to register lower EBITDA, and impact on the forex side was negative compared to the similar period last year. So, all in all, reduction in EBITDA temporarily in this quarter, but we believe we should be able to catch up in the second half of the current fiscal year to cover what is lost. In terms of when I look at the margins, Hi-Tech division delivered about a 14.4% margin versus similar period at 16.6, so approximately 2% reduction, and plastic, in fact, improved by about a percent or so from 10 to 11, and Agro-Processing also came down by 3%. So, post all of these changes in the margin profile of the company, adjusted PAT after adjusting the non-cash NCD interest unwinding, adjusted PAT at about Rs. 3 crores versus last year's Rs. 30 crores, but companies still remained profitable. So, overall, when we look at this quarter, the revenue, we have been able to almost maintain at similar levels. Page 2 of 25 EBITDA margins are down by about 2% or so, but mostly linked to unabsorbed fixed costs, which can be captured in the second half, and adjusted PAT has remained profitable. We had, in April, month of April when we were there, we felt that situation was going to be much worse, but I think May and June, we did better. July continues to be remaining good. So, things are definitely improving than how the year started, especially due to volatility linked into the business. Now, while this is consolidated on a standalone basis, again, majority of the de-growth this quarter particularly came from standalone business, and while overseas console business and business of food business company has done well. If we, and even on standalone basis, on adjusted PAT basis, company has remained profitable and also having good cash. If I look at cash flow statement, the EBITDA of Rs. 164 crores, almost about 78% of EBITDA, we have been able to convert into cash flow. That is quite a positive sign in terms of management of the working capital, which we have done. So, I think that's a big plus, and this was possible due to further improvement in working capital cycle. If we look at console as an entire company basis, net working capital last year this time, June ‘25, was about 210 days, and this year it has come down to 183 days. So, that's a significant improvement during our last one year. And even on a standalone basis, it has come down from 296 days to 283 days. Page 3 of 25 So, that's a big improvement. If I just compare it with March ‘26, also it was 186 days, and now it is 183. So, that's an improvement. Now, and this is despite all the volatility which was out there. In terms of business potential, in terms of looking forward in the remaining three quarters, 2nd Quarter typically also remains muted because of the rainy season. But the good news is there was a fear that a huge amount of this super-El Niño will emerge, and that would have a disaster in terms of total rainfall but we have seen good level of rain in July. That would mean the farmers got adequate moisture into their soil for the crops to sustain themselves, and it is expected over the next couple of weeks some good rain will continue in the country. So, by and large, there was a big deficit in June because of the delayed onset of monsoon. That was kind of covered partly into July, and we hope also into August. So, the news about the monsoon and the weather and the climate change is not as bad as it was forecasted. So, I think that's a positive thing as far as we are concerned. For the Rabi crop and for the next year's summer business, this would be very positive. Majority of dams in the country have water levels filled up to now two-thirds, 67%, and by the end of the monsoon if they do hit 85%, that means adequate water availability for irrigation the next hot summer also, which is positive. So, the reduction in the revenue in the June was partially caused by postponement and the purchase decision by customers due to very high prices. Page 4 of 25 And second, it was also because of the delayed onset of monsoon. So, farmers were not ready to sow their crop, and of course, then they couldn't also take the irrigation systems as well as pipes. But since then, as I said, July has been better. We have registered already positive revenue growth in July as against April to June, significant revenue growth here. And August and September also seem to be good, but especially we think with the kind of negotiations we are doing also with the institutional customers for larger diameter pipes, we see a lot more kind of surplus demand coming through. Now, subject to a little bit more stability on the geopolitical events, where oil stabilizes and the polymer prices come down a little bit more than where they are, I think that would give that trigger momentum for the growth into the business. So, reasonable quarter, but far more needs to be done in the [Showing first 8,000 characters — download PDF for full document]