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Mahindra EPC Q4 Profit Dips 23% Despite Revenue Growth

Mahindra EPC Irrigation Limited reported a 23.36% decline in its consolidated net profit for the fourth quarter of FY26. While revenue from operations grew by over 11%, a sharper 15.5% rise in total expenses significantly impacted profitability. The company also announced several key board appointments, including the reappointment of Ramesh Ramachandran as managing director. Shares of the company closed higher on the day of the announcement.

Key Points: Mahindra EPC Irrigation Q4 Profit Falls 23%, Expenses Rise

  • Q4 net profit down 23%
  • Revenue up 11.6% YoY
  • Total expenses surge 15.5%
  • Key board appointments approved
2 min read

Mahindra EPC Irrigation's Q4 net profit falls 23 pc

Mahindra EPC Irrigation reports a 23% drop in Q4 net profit to Rs 4.79 crore, as rising expenses offset an 11.6% revenue increase.

"Profit before tax also saw a sharp fall of 64.36 per cent - Company Filing"

Mumbai, April 21

Mahindra EPC Irrigation Limited, a subsidiary of Mahindra and Mahindra Limited, on Tuesday reported a 23.36 per cent decline in its fourth quarter profit.

The company posted a consolidated net profit of Rs 4.79 crore for Q4 FY26, down from Rs 6.25 crore in the same quarter previous financial year (Q4 FY25), according to its stock exchange filing.

Profit before tax also saw a sharp fall of 64.36 per cent to Rs 3.36 crore, compared with Rs 6.36 crore in Q4 FY25.

However, revenue from operations rose 11.58 per cent year-on-year (YoY) to Rs 107 crore during the quarter, up from Rs 95.89 crore a year ago, the report said.

The increase in revenue was accompanied by a rise in expenses, which impacted profitability.

Total expenses climbed 15.5 per cent to Rs 101.64 crore in Q4 FY26 from Rs 88 crore in the corresponding period last year.

The cost of materials consumed stood at Rs 40.63 crore, marking an 8.12 per cent increase, while employee benefit expenses rose 18.89 per cent to Rs 9.88 crore.

Mahindra EPC Irrigation operates in the micro-irrigation segment, offering products such as drip and sprinkler systems, agricultural pumps, greenhouses, and landscape solutions.

The company focuses on improving farm productivity through efficient water management solutions.

For the full financial year ended March 31, 2026, the company reported a net profit of Rs 12.69 crore and revenue of Rs 315.79 crore.

On the corporate front, the board has approved several key appointments, subject to shareholder approval at the upcoming annual general meeting.

Shriprakash Shukla has been appointed as a non-executive, non-independent director and will retire by rotation, while not seeking reappointment due to superannuation.

The board also approved the reappointment of Ramesh Ramachandran as managing director for a period of three years starting September 15, 2026.

In addition, Dr. Purvi Mehta and Balram Singh Yadav have been appointed as additional non-executive independent directors for a term of five years from April 21, 2026, to April 20, 2031.

Shares of the company ended 1.76 per cent higher at Rs 128.17 on the BSE on April 21.

- IANS

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Reader Comments

P
Priya S
As a farmer's daughter, I know how important drip irrigation is for water conservation. It's disappointing to see a company in this space struggling with profits. Maybe they are investing heavily in R&D or expansion? The full year profit is still positive, so let's hope this quarter is a blip. 🤞
A
Aman W
Stock price went up despite poor results? That's the market for you, sometimes illogical. Maybe investors are betting on the new management team. Reappointing the MD for 3 more years shows some continuity at least.
S
Sarah B
The PBT fall of 64% is very alarming, much worse than the net profit decline. There might be some one-off tax credits or other items helping the bottom line. Investors should look at the cash flow statement for a clearer picture. The core business of water management is solid for the long term in India.
K
Karthik V
With climate change and water scarcity, companies like Mahindra EPC Irrigation are more important than ever. The government is also pushing for micro-irrigation. Short-term profit pressures are okay if they are building capacity for the future. Hope the new independent directors guide them well.
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Nikhil C
Respectfully, a 23% drop in profit when revenue is growing is not a good sign. It points to management not being able to handle scale. The Mahindra brand is strong, but this subsidiary needs to pull up its socks. Cost of materials and employee benefits need to be scrutinized closely.

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