Jain Irrigation Systems Limited (JISLDVREQS.NS) Q3 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Jain Irrigation Systems Q3 FY '26 Earnings Conference Call hosted by DRChoksey Finserv Private Limited. [Operator Instructions] Please note that, this conference is being recorded. I hand the conference over to Ms. Bhavya Sharma from DRChoksey Finserv Private Limited. Thank you, and over to you, Ms. Sharma.

Thank you. Good afternoon, everyone, and welcome to Jain Irrigation Systems Limited earnings call to discuss the Q3 FY '26 results. Today, we have on call Mr. Anil Jain, CEO and MD; and Mr. Bipeen Valame, Chief Financial Officer. We must remind you that the discussion on today's call may include certain forward-looking statements that may involve known and unknown risks, uncertainties and other factors and must therefore be viewed in conjunction with the risks that the company faces. Future results, performance or achievements may differ significantly from what is expressed and implied by such forward-looking statements. Please note the results and presentation are available on the exchange and our company's website. Now, I request Mr. Anil Jain to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for questions. Thank you, and over to you, sir.

Thank you, and I would like to welcome everybody. Today, we are discussing the quarter 3 results for Jain Irrigation Company in terms of our business in India as well as business of our subsidiary, which is food processing and the overseas plastic business, which we have globally speaking. Overall, company has done quite well in terms of revenue, growing almost at 17%, 17.4% to close to INR 1,600 crores in terms of this quarter. And when we look at where did this 17% growth came from, the Hi-tech business, which covers the drip irrigation and tissue culture, that grew also close to 16% from INR 540 crores to INR 625 crores. The plastic business, which includes the pipes business in India and the plastic sheet business overseas, it grew 18% from INR 391 crores to INR 462 crores. And Agro Processing, which is local in India as well as overseas business, processing of the fruits and vegetables and spices grew also 18.5% from INR 430 crores to INR 509 crores. So, this was a quarter where we had all-round growth across all the 3 strong segments of the business of the company. And every business has registered growth in high-teens. And this is in line with our expectations. But first half, we had -- the plastic business was not doing that well, especially in India because of the lower prices of the resin, which resulted into lower prices of the pipe being as a product and also extended rainy season, which created seasonal challenges in terms of demand, and that has now started to picking up, and that's where you see this kind of revenue growth, which we have achieved. In this revenue growth, which we achieved across different segments, what was more heartening to see that the retail sales, the sales where we sell through our dealers this quarter were up across the piping and irrigation segments and tissue culture were almost up 24%. So overall growth might seem lower at 17%, but retail sales grew very well at 24%. And that is what our focus is going forward as well that as we bring down the project sales as we complete the projects, et cetera, over next 12 months, it would almost be negligible. The retail sale is what is going to fuel the growth for the company. And that already automatically means better balance sheet because retail sales mean very efficient optimum working capital cycle with low receivables and fast-moving inventory turns. So, we will remain focused on that, and this quarter was a good validation of that effort. Even though overall retail sales in the first 9 months are up 14% only, and that is because I talked about the piping sales, which were lower for a period of time. This particular quarter, we were a little bit -- had some challenge on export business where our exports were reduced this particular quarter, quarter-to-quarter comparison from the last same year quarter exports were lower by 34%. Otherwise, this overall performance would have been even more robust. In terms of the retail product, which we sell, the volume growth was also positive, even though in single digit, about 8% to 9%. And the value growth you have seen more has come also because of the product mix. So that has really helped us. While this growth has come from different, different businesses, which we have, what has helped the growth in Hi-Tech division also is the growth in the solar pump business, which we achieved during this quarter. So, I would say that was quite helpful. PVC pipe kind of became equal to the same period despite the lower revenue prices. PE pipe, we had significant growth. So that's the product line-wise. So, all in all, I think as we look forward to -- apart from what has happened in last quarter, but what's happening in the current quarter and next quarter, we expect continued strong revenue growth going forward. And we should be able to meet the number we had about more than -- I think we have talked about more than 15% overall revenue growth for the company. For first 9 months, including December quarter, revenue growth for company is about 13.5%. And in the current quarter, we will definitely grow more than 15%. So, we think we should then average it out around 15% growth for the whole year as was projected and discussed by us earlier in terms of what are our goals. In terms of -- when we look at beyond the business in terms of the profitability and earnings, I think EBITDA this year is slightly lower than the last year same period. And it is approximately, I think, 10.5% as against 12.9% same period last year. And -- but in absolute amount, it is lower by 4% from INR 175 crores to about INR 168 crores, a small amount. Within that, I think in High-Tech division, EBITDA was higher than the same period last year. Reduction was in plastic business, which I talked about. The resin prices were low, and the prices kept up -- so it impacted the inventory as prices came down during the quarter. And then in Agro Processing, there was a seasonality issue that usually we have a certain amount of production of the, for example, dried onions and bananas, et cetera. But availability due to the erratic weather was very limited. So, we couldn't produce much of either onions or bananas in terms of processing. So fixed cost absorption didn't happen. And that is one of the reasons the earnings were lower in Agro Processing division. But when I look at for the overall 9-month basis, I think we are quite good on the earnings, while revenues have grown 13.5%. The EBITDA for the 9 months has grown by 15% from INR 493 crores to INR 569 crores. So, I think we are staying good on a 9-month basis to our overall revenue growth of 15% plus for the target for the whole year, and EBITDA to be higher than 15% growth. EBITDA is already at 15% for the first 9 months. And fourth quarter being a stronger quarter, we should be able to do better overall in revenue and earnings with better absorption of fixed costs, better product mix, more profitable products being sold in the quarter. Already 1 month is over in the current quarter. The signs are, as we see, overall quarter looks good. It may not be as robust as we anticipated because continued seasonality issues but definitely in line with our estimates in terms of budget because we have been working on that, if this doesn't happen, what else could happen. So, with those plan B in place, we think we'll meet our original numbers as we move along. Now, when we talk about this during this quarter in terms of overall business, during this particular quarter, our inventories has come down at stand-alone India level almost by INR 100 crores. So that has helped in terms of the cash flow level by improving working capital. Overall, in terms of the debt, debt is almost, I think, similar level than last quarter. It has not changed much in totality. Even though, if you look at working capital cycle in terms of days sales outstanding, it has improved. So, let's say, last year, our net working capital cycle was 196 days, and it has come down to 181 days. So, it is an improvement of 15 days, which is quite good. Even compared to September, which was about 200 days net working cycle, it is down to 181 days, primarily driven by, I think, better level of inventory. And even in terms of receivables compared to September, we are in a better level scenario. So -- good revenue growth in line. Earnings, while this particular quarter were somewhat compromised due to lack of production in certain businesses. But I think for the whole year, we should be on our target. Company is having positive cash flow from the operations post working capital changes, as has been over the last, I think, 8 quarters or so. And that is allowing us to make necessary investment where required as well as the service the debt. In -- apart from our traditional business, normal business, during this quarter, we have also invested in our food processing subsidiary for the beverage lines, which we talked about, which we have been working on the last 2 quarters. That will go into commercial production as we speak already in the current month. And Phase 2 should come up in the later part of the year, by the end of this calendar year. So that is moving on in line with the overall project implementation plan, and that should add a substantial revenue in the food division, food processing subsidiary next year and thereafter. And that looks quite good in the way it is moving forward. Our business, because it is domestic and export business, both does get impacted by what happens around the world. And it is heartening to note that recent signing of the FTAs by Government of India, with counterparty EU and as well as the U.S. should be helpful to us, especially to Europe, as and when that gets done, it is still down the line -- down the road, maybe a few quarters. But some of our exports, for example, dried onion, et cetera, would get now a preferential access with almost no duties. While currently, we were paying significant amount of duties and that was a disadvantage compared to our competition from places like Egypt in that particular business. And even the currently announced U.S. deal would mean lower duties on the plastic sheets, which we export to U.S.A. So, all in all, some of the developments over the last couple of weeks should be positive for our business. And also the resins, which we buy are usually priced based on the international raw materials. And while up to December resin prices were going down, in January, they have gone up, right, over 2x or 3x. And -- but rupee appreciating from INR 90 to INR 92 -- closer to INR 92 to INR 90 might help reduce arrest that those increases, which in general would mean good demand in totality. So that's, I think -- so general situation is positive in terms of geopolitical scenarios. And company now, I think March quarter as well as June quarter should show much better results than what we already have, even though current results have been quite okay. So, we continue to remain focused on 3 or 4 things. One is, of course, maintaining revenue growth. And within that revenue growth, trying to capture more and more of the retail market, improving our market share into existing areas like Western and Southern India, but at the same time, opening up newer markets or doing additional business into North and Northeast zones where we have been traditionally not present. We think next year exports also should come back quite strongly. And exports we are doing very well for the last 2 years. They were one of the 30%, 40% growth they were providing us. In terms of underlying trends, we expect that with the good rains, even though they were extended and created a demand problem in Q3, this should be good for the irrigation business in this and next quarter. And as farmers make more money, that should generally help going forward. In terms of the resin prices, which were going down, now have stabilized or started inching up. That should help the revenue growth into the piping segment, which we talked about, and that should also do well. In terms of food processing business, I think demand for underlying products like dried onions or the fruit pulp remains good for us. And startup -- starting commercial production of the beverage unit will start filling revenues across -- already some revenues will come in February and March, but real big impact, one will start filling only in the next fiscal year. Overall, company has done reasonably well considering all the circumstances. And I think we would always urge everybody to look at our annual results rather than individual quarterly results, which does get impacted quite a lot by so many seasonality factors being agriculture-oriented businesses. But I think for the whole year, we should maintain 15% plus revenue growth, 15% plus EBITDA growth compared to the same period last year. And '27, I think -- and we'll talk more about '27 when we talk about the March results. But internally, we are working to be more ambitious. And while current year, our targets have been around 15% plus, next year, the idea would be to be closer to 18% to 20% rather than 15% to 17% in terms of revenue and earnings growth. That's what we are committed to. That's what we are working to. And we are looking forward to continued momentum. I think overall, India is in a good position. And across our ecosystems, we find things are positive. So that's what we are looking for. And I would like to thank you for listening patiently to this update on overall company's businesses and different, different segments. And we would now happy to take questions, if any. Thank you.

[Operator Instructions] Our first question comes from the line of Praneet, an individual investor.

So my first question is regarding the taking the Food division public. Could you give us some update on what's happening with Herring the RHP and what's the process? And could you also give some insight into the structures of the JVs for the bottling division and the tomato puree division because we have not received any update regarding that?

So, second question first on the food processing side. The bottling beverage unit, which we have is a part of the main company, Jain Farm Fresh, which is there. So it is inside the main company. There is no particular JV there. It is more of a collaborative approach with the contract [Technical Difficulty].

Sorry to interrupt you, sir. Your voice is breaking. Yes, sir, go ahead.

Sorry for that. The tomato processing JV, we have recently signed. It would be a 51%, 49% JV with a Japanese company. And we are in process of setting up what needs to be done. And -- but the actual revenue will start coming only from next January, January '27. There, together, we are acquiring in that JV, one of the existing units, and we are going to expand it and all of that. And that would give us as one single crop, mostly tomato. And idea eventually in Phase 2 is to do also value-added products in that JV. In terms of your first question related to the public IPO of the food business, we are still in -- I think we are working with the investment bankers about the likely approach to the market. And I think when we talk sometimes in March, post March results, we should be able to give you ample clarity in terms of precise how exactly it is moving forward. But we are moving in that direction that the business needs to get that process done for one value monetization, but also to get the growth capital. And we are in touch, as I said, with the investment bankers to what is the best way to go about it. And we are in consultation with our private equity shareholder, we would be able to take a final call during this month and next month, and we can talk a little bit more early next year.

Understood. And coming to the Plastics division, I understand we had a substantial degrowth in EBITDA. So could you tell me how much was a result of an inventory loss versus lack of capacity utilization? Could you give us some more idea why exactly degrowth happened in EBITDA terms?

So I think, when you look at EBITDA terms, an absolute amount, right, the EBITDA last year in third quarter was INR 42 crores. This year, it came down to INR 33 crores. So about a loss of about 20% in absolute amounts. And percentage-wise, it came down from 10.8% to 7.2% in this particular quarter. About half of that, I will attribute towards loss of inventory and half of that with less volume growth, which should have taken place because seasonally, it will start. But up to November, it was raining. So season did not really start. But at the same time, I want to bring to your attention that, if you look at the overall 9 months, I think EBITDA of Plastic division has come down by only about INR 15 crores from as against INR 148 crores to INR 133 crores and margin as against 10.9% to 9.4%. So I think in the current quarter, with the higher level of growth where we already started seeing demand and better margins as prices have started going up, we think what you have seen this negativity in the current quarter will be more than made up. And for the whole year, I think we should have more earnings than the year before and more revenue growth than the year before.

Understood. And regarding the working capital days, I understand we had a great improvement because of growing retail business and everything. Could you also give a perspective on what's happening with the receivables side of it in terms of the projects each state-wise? And you also mentioned that solar also has driven a lot of the growth. And despite that, we have grown -- we have reduced our working capital. Could you explain what's happening in terms of the receivable cycle of solar business separately and the government receivables both?

Yes. So I think when you look at overall government receivables and solar, solar, as you know, that we have recently started doing again, right? In between for 2 or 3 years, we have not done the solar agri pump business, but we have started doing that now. And in terms of the project, overall net receivables, it's the amount of the revenue which we have and versus collection which we have. So overall receivables, if you look at consol level, have almost remained at the same level compared to earlier, while in individual divisions, things have changed. Structurally speaking, I think this is better, right? You saw that on DSO basis, we improved 15, 20 days compared to the earlier period, which is quite positive. And that is partially coming from one, higher sales of retail because that they have a much lower footprint of working capital. So that helps in the overall. And in projects in government, it's a steady state, right? I think we still need to recover a large amounts from Karnataka, Maharashtra, Madhya Pradesh and Rajasthan, 4 states in terms of the projects. And everywhere funds are coming, right? It's not that everything is blocked, but the pace is not what we would like it to be. But internally, as we are completing all the last milestone of these projects, I think over next 1 year or so, current outstanding, which are on the books significantly should come down. I mean in current quarter, fourth quarter, I think we are expecting a reduction to the tune of about INR 125 crores or so from government projects alone on net basis. So, we'll have some billing, but on a net basis, we should reduce this INR 125 crores. But next fiscal year, I think the reduction should be close to INR 350 crores to INR 400 crores due to the government projects.

Got it. So I understand retail...

Sorry to interrupt you, Praneet, please rejoin the queue for questions as there are participants waiting in the queue. [Operator Instructions] Our next question comes from the line of Ankit Bansal from AB Investments.

Sir, I want to know, sir, your net profit loss, any -- what is the reason, sir?

Two issues primarily. This new labor code, which has come, so we had to take one book entry for almost INR 23 crores. That is one reason. And one of our earlier closed subsidiary in Europe got liquidated. So there was a goodwill write-off. So both are noncash items. Together between both of them, there was about a reduction of by INR 38 crores. So that is where actually on a PAT basis, you see negative. But if I really see adjusted PAT, I think if you remove these 2 events, which are noncash and not linked to this quarter, these would be overall adjusted PAT is profitable this quarter to the tune of about INR 16 crores and for the 9 months, INR 81 crores.

Okay. Sir, next question will be, sir, how is the low inflation affecting your business like with high inflation, what is the difference? Can you please help us understand?

So I think overall in pricing in our irrigation business has been very stable. Tissue culture business, pricing has been stable. And those businesses have done well. They are earning 17%, 18% EBITDA. So that's all going good. Our revenue is also growing very nicely. The plastic business, which is mostly piping in India, that suffered due to significant reduction in the raw material prices between, let's say, July, August through December. So whatever inventory we had also got impacted. It's same for the entire industry. And now those price erosion has stopped and prices have started going up in the current quarter. So that should help going forward. And due to -- I discussed that the whole piping -- overall, I think, again, there was a slowdown because of continued rains in agriculture markets. And now that the rains have stopped and so on, demand has started growing. So better actual volume demand, better capacity utilization and improving raw material prices together should improve the results of the Plastic Piping division, which was soft in first 9 months.

Okay. Sir, my...

Sorry to interrupt you, Mr. Bansal, can you please rejoin the queue for more questions? Our next question comes from the line of Ronak Ostwal from Arihant Capital Markets Limited.

Sir, what would be your EBITDA going ahead?

Hello.

Yes, sir. Sir, what would be your EBITDA margin range going ahead?

I think our EBITDA margin for first 9 months average consol across all product lines is at 12.4%. Current quarter, typically, fourth quarter has much higher level of EBITDA margin because again, better product mix and better fixed cost absorption. So overall, I think we are targeting for the current year, EBITDA margin should be 13% plus for the whole year.

We can expect for FY '25?

I did not get your question. There is some background noise.

Sir, for the current -- for next financial year, what would be the margins?

I think the idea would be to improve the margin next year from 13 -- the idea was that as we -- I talked about, right, that this year, revenue is growing 15% and next year, we would like to grow 18% plus. So, as we move that to 18% growth in revenue, I think the earnings from 13% should move at least to 14% or 14.5%.

Okay, sir. Got it. And sir, what is the current status of Jal Jeevan Mission like are we waiting to see any disbursement from government side?

Yes. So, I think current quarter, I think we should get overall about INR 150 crores plus for the government projects from the government. On net basis, about INR 125 crores. But next year, especially, right, we expect a significant chunk, about INR 350 crores to INR 400 crores to come through.

And sir, what would be our percentage of revenue from government business?

That is keep going down. I think, let's say, current year out of overall -- when we think of overall business of the company, INR 6,500 crores, INR 7,000 crores, already the government project business this year itself would be only about 3%, 3.5%. So next year, maybe it is -- when you look at the whole company, the government would be maybe less than 1% or so. So it's not much. It is coming out of the legacy. Earlier, this used to be 15%, 20%, right? But we have consciously brought it down and increased the retail business. So now it is not significant.

[Operator Instructions] Our next question is from the line of Ravi Kumar from [ Balra Investments ].

Mr. Jain, the question is relating to Jain Farm Fresh. I know you answered, but there was a disturbance. I could not -- I mean, I think most of us could not get it. The nature of the bottling what we are doing, right? I think if you can give a little color to it, are we doing our own products bottling? And how many lines are -- will be there by, say, March 31st? And I mean, a little bit more color will this -- are we just doing for a fruit juices? Or if you can give a little bit more color to that, it would be great.

Sure. Thank you. I think that's a good question. So, we will -- by this March, I think we will have full 2 lines operating. And these are large lines, right? They are in size of about 600-plus bottles per minute type of capacity lines. So -- but full benefit will get only next fiscal year because that's -- the first line is starting as we speak now and second line should start in the next few weeks. These lines are capable of filling various types of beverages. And that means it could be cola, it could be energy drink, it could be juices or a combination of such. That's the second part. In terms of [Technical Difficulty].

Sorry, we can't hear you. We could not hear.

Hello, sir?

Yes. Can you hear me?

Yes.

Now we can hear you. We lost you for the last half minute.

Okay. So I was saying that we would be -- this is in a model where we will be giving the full revenue in terms of -- we'll be charging full revenue to the customers buying materials from them. And we expect -- as a manufacturing, we expect this to be profitable from day 1 kind of business. In addition, we should get some kind of government benefits because this is a kind of a large-scale project in terms of overall investment, which we are still working on with the government. So, I think sometimes in next time we speak, right, by then the government benefits would also be in place, we should be able to talk a little bit more in terms of detail, but business is starting. And this is Phase 1. We have understanding that sometimes over next 1 year, there would be additional 3 more lines, which will be there. So that would further increase the business. So in between. And in those 3 lines, there would be ability also to do dairy if required. So, it would be all beverages, all nonalcoholic beverages, we would be able to fill in across these lines.

So these are not our brands. We are bottling from someone else?

Yes, yes, yes.

Okay. My second question is relating to the -- I mean, we saw -- I saw a news article regarding the biochar project, right? I mean, how much gung-ho is Jain Irrigation or it is just one of the things like solar and other? Is it a revenue line, which we can expect or materially it doesn't impact?

It doesn't materially impact. It is at a conceptual stage now. I think by the time it gets done, it would be somewhere down the line after a period of time. It won't have any revenue impact for FY '27.

Our next question comes from the line of [ Sumit Kumar from Magadh Securities ].

As per investor presentation, it is mentioned that long-term debt repaid during the period is offset by financing for the beverages project in subsidiary, right? So how long debt has been taken for the new project? And how long -- how much debt has been repaid in this quarter?

So, in fact, in the presentation -- investor presentation, you see that out of the term loan at Jain Irrigation level, which were right now outstanding is only INR 60 crores, so that should get paid in the current year.

INR 85 crores?

Approximately INR 60 crores or so. Some of the additional debt, which we have taken in long term in food subsidiary for the beverage project was approximately INR 110 crores. And that's a kind of a 10-year term loan, 10 or 12 years. So, it gets repaid over a very long period of time. And there was some change in the -- our overseas plastic business in terms of different location due to the local regulatory law and zoning laws. And that is why we had to take some additional debt there. But on overall, if you see the debt outstanding at INR 1,662 crores, which we have in long term, that has not changed much from the earlier period. And in fact, in current quarter, there will be further reduction of the term debt. And all in all, if I look at the balance sheet and the debt story, company would continue to maintain working capital, but term debt, expect the part, which is linked to substantial growth in, for example, in food business into this beverage unit and so on into our traditional businesses, irrigation, the plastic pipes or tissue culture. The business is generating enough cash flow to provide for maintenance CapEx, growth CapEx, plus servicing of the debt.

Sir, the debt is not getting reduced quarter-on-quarter. And in the financial year '27, there is outstanding, which has to be paid. It is INR 993 crores. So how do you project -- how do you see that such huge amount of debt would be paid because the old legacy receivables are also not coming. And is it that the company is planning for some additional loan or some incubation of assets?

I think overall, as per our underlying business plan and the budget for the next year, we should generate enough internal accruals to pay for the repayment of the debt, especially in the Jain Irrigation, the debt, which is about INR 688 crores, which is falling due in second half of the next year. It is not immediately. It is due in the second half. Over the last 3, 3.5 years since our restructuring, company has repaid more than INR 1,300 crores of debt. So, while this particular year, you don't see reduction in the debt, but we have repaid about INR 1,300 crores to the banks and most of that money came through internal accruals in terms of cash -- positive cash flow generation. So, we think for the coming year as well as per our FY '27 internal budget, we should have adequate cash flow to repay most of it. Now some of the -- which is not linked to restructuring, some other debt may get refinanced because we are also investing into the new equipment or new capacities for the beverage project. But all in all, I think company should have generate enough cash flows, internal accruals to honor the debt and which we have done over the last, again, 3.5 years, 4 years almost.

Sir, by which time we would see positive price because....

Sorry to interrupt you, Mr. Kumar. Can you please rejoin the queue for more question?

Just a follow-up question, ma'am.

I'm sorry, I couldn't hear.

Sir, by which time...

The line for the current participant seems to be disconnected. Shall we move on to the next participant, sir?

Yes, please.

The next question is from the line of [ Parag Khare from ELX Consultants. ]

Congrats for the good set of top line. Sir, as you mentioned, INR 688 crores due unsustainable debt next year. So, I think out of the INR 200 crores or maybe somewhere close to that is due in September and I think remaining in March '27. So, as we start unwinding this unsustainable debt, so whatever this INR 17 crores or INR 19 crores every quarter, which we are paying, which is notional, not as an outgo, how would that affect the P&L? Would it be coming back? Would that the reversal will happen on that?

No. On this, if you refer to this investor presentation, there is this impact of a fee, right? So, what happens is when you pay the debt, there is a certain impact which is coming on to the P&L, which is there, which at last time was INR 169 crores as of March '25. But by December, what is left is only INR 105 crores. So, as we pay off this debt, it goes down substantially. What is left by March '27 would be a very nominal amount for the INR 140 crores debt which remains to be paid in FY '28.

Okay. And as per the credit rating agency document, I think we have realized almost INR 450 crores in our escrow account. So, the shortfall is still around INR 250 crores. So, do we have any fallback plan or a plan B ready in case if we don't get the receivables from government, maybe some early monetization of some land parcels, which we have, anything of that on the table?

Yes. So, 2 things. One, we have already prepaid whatever we had recovered that has been prepaid to the banks because originally, this unsustainable amount was INR 1,300 crores. So, about INR 500-odd crores have been fully paid to the banks, and this is remaining. Second, in terms of plan B, as you said, I think our budget is showing us that there should be surplus next year after payment of this about INR 200 crores to INR 300 crores. That is one. Second, about the land parcels. So, we have some land in Southern India, which we are already working along with the banks to get additional funds in place. So, all in all, we feel fairly comfortable because, as I said, in last 3 years, right, 3, 3.5 years, we have repaid INR 1,300 crores. So, this year is a little bit more, but it should be okay because a lot of projects we have now -- we have now completed what you call the projects, right? The last milestone has been completed. And in early last 3 years, every quarter, we had repayments of the term loans and FITL, et cetera. And they're all getting extinguished by March. So that should also be cash flow available going forward. So next year, cash flows, right, to honor the debt [Technical difficulty].

Sorry to interrupt. Sir, your voice is breaking.

As we have now completed the last milestones on various projects or we are in -- literally, we have -- some projects are 95%, 96% done. We should start getting those funds the next year, plus whatever surplus we will generate from the rest of the business. So, we feel fairly comfortable that this would get done.

Our next question is from the line of Siddhant from Sanshi Fund.

So just wanted to understand this -- you mentioned 15% growth for the entire year, and we've grown 13% in 9 months. So, what are you -- what growth are you envisaging for quarter 4?

I think the fourth quarter will have to be about 18% to 20% overall revenue growth for us to average out around 15% for the whole year.

Sorry, you're saying?

Our internal target for the fourth quarter is about 20% growth, which should mean for the whole year will be about 15%.

Okay. Understood. And considering Jan is done, are we on path to achieve that?

Yes, yes. So even in the third quarter, right, we grew 17.5%, right? Even though average for 9 months came down to 13.5%. So, it is doable.

Yes. So basically, second half is stronger for us.

Yes, yes. always it has been historical.

And in terms of the tariff change and all of that, do we have any clarity from your US customers?

I think some of these events have just last 48 hours, right?

Correct.

So, I think one will have to wait. And to be honest, we have still not seen any document from the U.S. government. So, when they applied duties, et cetera, there were custom notifications, which clearly notified how much duty is being laid and so on. So, nothing has come out in yesterday. So, I think we have to wait maybe give a couple of more days for that to happen.

Our next question comes from the line of [ Digish Pandit ] from Latin Madanlal Securities (sic) [ Latin Manharlal Securities ].

Can you please give me some idea on the fundraising plan? What are the latest updates of the September 2025, the QIP of INR 500 crores?

I think while we took the approval from the shareholders to -- that particular resolution stays valid for 1 year. So, we have not acted upon that resolution as of now because I think where we are in overall cycle of business, business is doing well, right? Even that additional infusion, we could raise -- we could do this quarter, 17% growth in revenue. And current quarter, we are planning 20% -- so -- and we feel positive momentum in the underlying business. So, I think we might wait for some more time to go ahead and implement on that resolution.

Ladies and gentlemen, we take that as the last question for today. I would now like to hand the conference over to management for closing comments.

Thank you, and thank you for a good set of questions from all investors, participants in the market. Overall, as I said, the momentum is good. We had a really very good quarter in terms of revenue growth despite various challenges, which have continued. This quarter, next quarter, they look quite good. I think with the new FTA signed, globally speaking, because we are a global business, that should help us in Europe as well as U.S. going forward. Because there was a lot of rain, farmers have good amount of water levels. So that should be good for drip irrigation business. In PVC piping business, the resin prices, which kept going down, which impacted inventory and volume both have started coming up over the last 3 weeks. So that should help going forward. So, all in all, I think we are looking forward to a good current quarter. We should meet our annual forecasted numbers in terms of revenue and EBITDA. But next year looks quite good. And beyond the operating -- current operating businesses, next year would be -- would add good revenue from new projects like the beverage unit, which we have established under -- for contract manufacturing. And overall, underlying, we feel very positive that structurally company is moving in a quite good way. And in terms of the government project receivable, et cetera, we are also expecting a very strong outcomes over next few quarters to take care of the debt, the repayments, which are falling due next year. But I think we feel very comfortable that there are lots of options out there for us to work upon to ensure that happens. But the underlying business itself, because most of this is falling due in the second half of the year, we would have by then generated enough internal accruals to take care of that debt. And at the same time, we are also financing growth in each business. For example, our tissue culture business, we are seeing opportunity to double our capacities. We talked about food processing already 2 new projects, which we have done. Piping, the demand is coming back. So, all in all, this looks good, the revenue on the EBITDA. And ultimately, by next year, once we pay off this debt, even net earnings level, things will start becoming better. And even now when we talk of the PAT, right, there is this adjusted PAT because some of these non-cash interest, which is linked to these NCDs keep adding, for example, for first 9 months, it's already about INR 50 crores, INR 60 crores. Otherwise, that should get added to our normalized PAT level. So overall company will remain profitable for the year, growing nicely and setting a platform for explosive growth from '27, '28 onwards. Thank you again.

Thank you, sir. On behalf of Jain Irrigation Systems, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.