1,411% Net Profit Growth: Mahindra Group stock jumps 5% after announcing robust Q3 results

Synopsis: A micro cap stock that is part of the Indian conglomerate- Mahindra and Mahindra, saw its stock surge by around 5 percent, soon after the company announced its result with QoQ profit growth of 1411 percent.

A microcap stock in the business of Micro Irrigation Systems announced its Q3 and 9M FY26 result which stated that the company’s 9MFY26 profits have successfully surpassed the company’s FY25’s profit by about 10 percent following which the firms shares saw a surge of upto 5 percent.

With a market cap of Rs 363 Cr, Mahindra EPC Irrigation Ltd saw its stock hit an intraday high of Rs 137 which is 4.7 percent higher than the previous close of Rs 131. The company’s stock has given a compounded return of 39 percent in the past 3 years.

The Q3FY26 Result

In the latest quarterly result Mahindra EPC Irrigation Ltd has seen its revenue from operations increase by 15 percent YoY, from Rs 81.4 Cr in Q3FY25 to Rs 93.4 Cr in Q3FY26, while the QoQ growth stands at 86 percent going from Rs 50Cr in Q2FY26.  The net profits grew by 2.3 percent going from Rs 6.3 Cr in Q3FY25 to Rs 6.5 Cr in Q3FY26, while the QoQ growth stood at 1411 percent from Rs. 43 Lakhs in Q2FY26.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 16 percent YoY, from Rs 176 Cr in 9MFY25 to Rs 205 Cr in 9MFY26. The net profits for the same period grew by 722 percent going from Rs 96 Lakh in 9MFY25 to Rs 7.9 Cr. The Rs. 7.9 Crore has surpassed the previous fiscal years PAT of Rs 7.2 Cr by almost 10 percent.

The company has a 3 year profit CAGR of 44 percent, while the sales CAGR for the same period of time is at only 9 percent. Moreover, the company is trading at a discount when you consider its PE of just 23 as the industry PE stands at 31.

Apart from the P&L numbers the company has also been able to increase its operating profit margin (OPM) successfully. As of September 2025 the OPM stood at just 2.7 percent but as of Q3FY26 the margins rose by 847 bps to become 11.19 percent.

Reason for this Robust Performance

Even though the company has witnessed a double and even triple digit growth in certain of its P&L numbers, it is important to understand that as the company being in an agricultural space, the company is prone to witness seasonality business changes this would be due to weather changes and delayed monsoon, and as these factors could affect the farmers this effect ripples down to even the companies in this industry space,.

Therefore, it is common for companies like this to witness high growth numbers around the end of the month quarter when compared to the other two completed quarters for the fiscal year. Apart from seasonality factors, any kind of negative return on the overall sector could also be the reason for a poor performance in the first and the second quarter.

Mahindra EPC Irrigation Ltd, headquartered in Nashik, Maharashtra, was incorporated in 1986 and operates in micro-irrigation systems such as drip and sprinklers, along with agricultural pumps, greenhouses, and landscape products. The company is part of the Mahindra Group, as a subsidiary of Mahindra & Mahindra Ltd.

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