Captain Polyplas - Captain Polyplas

📊 BSE: 536974 🏢 Plastic Products - Industrial 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company reported a total income of INR 289.77 Cr in FY25, a slight decrease of 1.02% from INR 297.70 Cr in FY24. However, Q2 FY26 saw a 48% YoY revenue growth driven by both micro-irrigation and solar EPC. The solar EPC segment's contribution increased from <10% in Q2 FY25 to 15% in Q2 FY26, with a long-term target for solar to reach 50% of total revenue by FY28.

Geographic Revenue Split

Operations are currently 100% concentrated in India. The company is strategically expanding its footprint from its base in Gujarat into Rajasthan, Madhya Pradesh, and Maharashtra to tap into underserved agricultural markets.

Profitability Margins

Profit After Tax (PAT) increased by 82.96% YoY to INR 30.38 Cr in FY25 from INR 16.60 Cr in FY24. Net profit margins improved significantly from 5.58% in FY24 to 10.48% in FY25. Return on Equity (ROE) improved by 24.44% to reach 25.40%.

EBITDA Margin

EBITDA for FY25 stood at INR 35 Cr with a 12% margin. In Q2 FY26, EBITDA grew 23% YoY with a margin of 12.4%. Margins in the solar EPC rooftop segment are currently lower than micro-irrigation, which caused some compression as the mix shifted, but the new Ahmedabad plant is expected to boost micro-irrigation EBITDA margins by 1% to 1.5%.

Capital Expenditure

The company is constructing a new 70,000 sq. ft. factory near Ahmedabad on a 3,30,000 sq. ft. land parcel. Construction commenced on March 31, 2024, with expected completion in Q3 FY26. The capex is funded through a mix of internal accruals and non-meaningful debt due to the small scale of the investment.

Credit Rating & Borrowing

The Debt-Equity ratio improved significantly by 58.97%, dropping from 1.10 in FY24 to 0.45 in FY25. Debt Service Coverage Ratio (DSCR) stands at 2.07, up 3% YoY, indicating strong ability to service obligations.

⚙️ Operational Drivers

Raw Materials

Polymers (Polyethylene/Polypropylene) used for manufacturing pipes and irrigation components. The company acts as a channel partner for Indian Oil Corporation Ltd (IOCL) for polymer products.

Import Sources

The company sources polymers domestically through its partnership with IOCL in Gujarat, while specialized micro-irrigation technology is imported from Israel.

Key Suppliers

Indian Oil Corporation Ltd (IOCL) is a primary strategic partner for polymer procurement and marketing.

Capacity Expansion

Current micro-irrigation capacity has a revenue potential of INR 400 Crores. The new Ahmedabad facility (70,000 sq. ft.) will enhance production capacity and operational efficiency by Q3 FY26 to meet rising demand.

Raw Material Costs

Raw material price fluctuations and Rupee volatility are cited as major risks. Fluctuations in polymer prices directly impact the cost of manufacturing drip and sprinkler systems, which can squeeze margins if not passed on to customers.

Manufacturing Efficiency

The upcoming Ahmedabad plant is designed to improve operational efficiency and profitability by absorbing in-house demand currently met through outsourcing, leading to a projected 100-150 bps margin improvement.

Logistics & Distribution

The company maintains a robust marketing and distribution infrastructure with a focus on direct touch with farmers to provide quality services and knowledge.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth will be achieved by expanding the Solar EPC vertical to 50% of revenue by FY28, leveraging PM-KUSUM empanelments in Maharashtra and Gujarat. Additionally, the company is targeting 25% growth in micro-irrigation through the new Ahmedabad plant and geographic expansion into Rajasthan and Madhya Pradesh.

Products & Services

Drip irrigation systems, sprinkler irrigation systems, solar pumps, solar rooftop EPC services, PVC pipes, and polymer marketing services.

Brand Portfolio

Captain Polyplast, Captain Group.

New Products/Services

Expansion into solar pumps under the PM-KUSUM scheme and high-margin components from the new Ahmedabad plant are expected to be primary revenue drivers.

Market Expansion

Planned expansion into Rajasthan, Madhya Pradesh, and Maharashtra to tap into large, underserved agricultural markets for both irrigation and solar segments.

Strategic Alliances

Channel partner for Indian Oil Corporation Ltd (IOCL) for polymer products in Gujarat; technology collaboration with Israeli companies for micro-irrigation products.

🌍 External Factors

Industry Trends

The industry is benefiting from a GST reduction from 12% to 5% on drip irrigation and solar equipment, improving affordability. There is a strong shift toward solar-powered agricultural solutions (PM-KUSUM) and water-efficient farming.

Competitive Landscape

Competes with global leaders like Netafim, national players like Mahindra EPC, and various regional players across different states.

Competitive Moat

The moat is built on a 28-year track record, Israeli technology integration, and a dual-service model (product + service). Sustainability is driven by the essential nature of water conservation and renewable energy in Indian agriculture.

Macro Economic Sensitivity

Highly sensitive to agricultural output and government fiscal policy regarding farm subsidies and renewable energy incentives.

Consumer Behavior

Farmers are increasingly adopting micro-irrigation and solar pumps due to government incentives and the need for improved productivity and lower operational costs.

Geopolitical Risks

Dependency on Israeli technology partners for product differentiation could be impacted by regional geopolitical stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the PM-KUSUM scheme guidelines for solar pumps and the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) for irrigation. GST rates on core products were recently reduced to 5%.

Taxation Policy Impact

The company's Profit Before Tax was INR 38.30 Cr and Profit After Tax was INR 30.38 Cr in FY25, implying an effective tax rate of approximately 20.7%.

Legal Contingencies

No specific pending court cases or labor disputes with material values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the working capital cycle in the micro-irrigation business, which is heavily dependent on government subsidy timelines, potentially impacting operating cash flows.