R M Drip & Sprinklers Systems Announces Strategic Entry into Smart Irrigation Automation Starting March 2026

R M Drip and Sprinklers Systems Limited (NSE: RMDRIP) has announced a significant strategic pivot with its entry into the smart irrigation automation sector, scheduled to commence in March 2026. By partnering with an advanced farm automation technology firm, the company is transitioning from a traditional hardware-oriented manufacturer into an integrated provider of IoT-based digital agriculture solutions. This move is timed to capitalise on a rapidly expanding market; the Indian irrigation automation sector is projected to grow from USD 252 million in 2024 to USD 899 million by 2030, representing a robust CAGR of 24.1 per cent. This evolution allows the company to move beyond simple equipment sales toward a sophisticated hardware-plus-software platform.

The strategic initiative introduces diversified revenue streams, including mobile applications, data analytics and subscription-based services. R M Drip expects this segment to contribute approximately 5 per cent of total revenue in FY27, with a projected growth rate of 30 per cent thereafter. To ensure a successful nationwide rollout, the company will leverage its extensive network of over 1,000 dealer and retail touchpoints. This expansion is further bolstered by favourable government subsidies and national priorities focused on water conservation and Solar-integrated irrigation, which are expected to accelerate farmer adoption across India’s primary agricultural belts.

Looking toward the next decade, the company is aligning itself with the "Phase 2" national roadmap (2023–2028), which emphasises the integration of micro-irrigation with solar power and automation. In the near term, growth will be driven by rising demand in greenhouse and polyhouse farming, while the medium-term outlook focuses on incorporating AI and predictive analytics into a comprehensive digital farm management platform. This proactive approach to innovation not only strengthens R M Drip’s market position but also enhances long-term revenue visibility and margin profiles, keeping the company at the forefront of India’s evolving agricultural technology landscape.

About the Company

R M Drip and Sprinklers Systems Limited has established itself as a cornerstone of India’s micro-irrigation landscape, providing a comprehensive suite of drip and sprinkler systems, pipes and filtration products. The company leverages three fully automated manufacturing facilities in Nashik, Maharashtra, which boast a collective annual capacity of approximately 22,000 metric tonnes. This strategic production hub supports a robust distribution network of over 1,000 dealer touchpoints and six company-owned outlets, driving a dominant market presence in Maharashtra, Karnataka and Madhya Pradesh while fuelling expansion across the rest of the country.

Financially, the company is capitalising on the national shift toward water-efficient modern farming and enhanced agricultural infrastructure. In FY25, R M Drip reported a strong performance with revenue from operations reaching Rs 13,119.10 lakh. Its operational efficiency is highlighted by an EBITDA of Rs 3,590.90 lakh at a 27.37 per cent margin, ultimately resulting in a PAT of Rs 2,407.97 lakh. With a healthy PAT margin of 18.35 per cent, the company remains well-positioned to scale its operations within India’s high-growth irrigation sector.

Disclaimer: The article is for informational purposes only and not investment advice.