Financial Performance Q1 FY27

  • Revenue from operations: ₹461.93 crores (compared to ₹528.29 crores in Q1 FY26), representing a degrowth of 12.56%
  • EBITDA: ₹55.01 crores
  • Profit after tax: ₹36.30 crores
  • Volume decline: Approximately 12.7% year-on-year
  • Geographic revenue contribution: North 36%, East 9%, West 37%, South 18%
  • Product category contribution: Insecticides 25%, Fungicides 14%, Herbicides 42%, Others 19%

Operational Highlights

Monsoon Impact: The quarter was significantly impacted by delayed monsoon onset with 40% rainfall shortfall in June, reducing to 15% shortfall by end-July. Key agricultural states including Rajasthan, Gujarat, Madhya Pradesh, and Maharashtra were worst affected, leading to postponed sowing activities and reduced product demand.

Product Performance:

  • Fungicides grew 11% YoY driven by specific Japanese products Nissodium and Conika in horticulture crops
  • Herbicides declined approximately 25% due to impacted soybean and cotton markets
  • Innovation Turnover Index from products launched in last 3 years: 11.56%

Manufacturing Facilities Update

Dahej Plant:

  • Q1 FY27 revenue: ₹26 crores (vs. ₹16 crores in previous year)
  • Q1 FY27 EBITDA: less than ₹1 crore (vs. negative ₹3 crores previous year)
  • FY27 revenue guidance: ₹65 crores
  • FY27 EBITDA expectation: negative ₹4-5 crores

Nagpur Plant:

  • Land acquired at Butibori industrial area, Nagpur, Maharashtra
  • Total estimated project outlay: ₹200 crores
  • Proposed capacity: 23,000 metric tons per annum
  • Plant type: Automated formulation unit (not technical synthesis)
  • Expected commissioning: Q4 FY2028 (April 2028)
  • Benefits: CGST benefits from Maharashtra Government

Bayer Products Acquisition

  • Acquired Iprovalicarb and Triadimenol variants from Bayer for global markets
  • Established customers in various international markets with business commenced
  • Executive Director of International Business traveling to U.S. and Brazil markets
  • India market revenue from Bayer products expected mainly in Q2 (grape season)
  • Royalty income in Q1: ₹4 crores (significantly lower YoY)

New Product Launches

  • Planning to launch five new products in upcoming months
  • Product mix: One Liquid Fertilizer, three Fungicides, one Herbicide
  • Two biological products already introduced, third expected by August end
  • Two more nutrition biological category products planned for FY27

Dividend and Capital Return

  • Final dividend of 100% (₹2 per equity share of face value ₹2) declared at 41st AGM
  • Previously completed buyback of 5 lakh equity shares at ₹1,400 per share, absorbing ₹70 crores

GST Notice Update

  • GST notice received regarding categorization of certain molecules
  • Appointed Lakshmikumaran as consultant
  • Management confident of favorable outcome as molecules categorized under 5% GST rate

Market Conditions and Outlook

  • Industry faced challenges from elevated raw material and logistics costs
  • Price increases attempted in initial months but unsustainable due to weak demand
  • Management guides for modest single-digit revenue growth for FY27
  • Expects stronger momentum in Q2 and Q3
  • Biological products regulation expected to favor organized players over unorganized sector

Distribution Network

  • Reaches over 10 million farmers across India
  • Distribution through approximately 6,500 distributors and over 80,000 retailers
  • Supported by 4 manufacturing facilities and 41 warehouses
  • Partnerships with 10 multinational agrochemical innovators from Japan, Europe, and U.S.