Mahindra EPC Irrigation Limited has informed the Exchange about Transcript
MAHEPC · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Mahindra EPC Irrigation reported its highest ever revenue of INR 315.8 crores in FY26, up 14.8% from INR 275.1 crores in FY25, significantly outperforming the industry growth of 6-7%. PBT improved to INR 16.99 crores from INR 10.7 crores. However, Q4 saw margin pressure due to a sharp 58-59% surge in raw material prices (PE pipe grades) in March 2026 driven by geopolitical tensions. The company has strategically grown its non-subsidy business from just 3% of revenue in FY20 to 35% in FY26, with projects contributing about 25% of total revenue. Receivables remain high at INR 217 crores, with 80-90% from the subsidy business due to delayed state fund releases. The management highlighted early signs of industry inflection with the government targeting 2 million hectares annually and GST reduction from 12% to 5%.
The company outperformed industry peers in FY26, but raw material volatility and high receivables remain key concerns. The shift toward non-subsidy business (35% now vs 95% subsidy previously) is a positive structural change for cash flow management, though investors questioned the timeline for achieving better cash generation given five years of negative free cash flow.