Dhanuka Agritech Limited – Investor Presentation Summary

Key Operational Highlights

  • Pan-India presence serving over 10 million farmers through 6,500+ distributors and 80,000+ retailers.
  • Four manufacturing units and 41 warehouses across India.
  • Two research and technology centers focused on applied chemistry and process technology innovation.
  • Key drivers: Diversified geographic footprint capturing demand from regions with available water resources; Growth in insecticides segment despite challenging monsoon conditions.

Segment-wise Performance

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Financial Highlights

Revenue: Rs. 657.51 Crores (Q2 FY2027) vs Rs. 598.25 Crores (Q2 FY2026), up 9.91% YoY.

EBITDA: Rs. 152.97 Crores (Q2 FY2027) vs Rs. 136.73 Crores (Q2 FY2026), up 11.88% YoY.

PAT: Rs. 109.22 Crores (Q2 FY2027) vs Rs. 93.97 Crores (Q2 FY2026), up 16.23% YoY.

EPS: Rs. 24.43 (Q2 FY2027) vs Rs. 20.85 (Q2 FY2026), up 17.12% YoY.

Margins: Gross Margin at 41.18% (Q2 FY2027) vs 42.45% (Q2 FY2026); EBITDA Margin at 23.27% (Q2 FY2027) vs 22.85% (Q2 FY2026); PAT Margin at 16.61% (Q2 FY2027) vs 15.71% (Q2 FY2026).

Drivers of financial performance: Higher revenue growth and lower other expenses (down 6.63% YoY).

Key Risks: Erratic and uneven monsoon rainfall (13% deficient), persistently high raw material procurement costs, compressed volumes and margins across the industry.

Geographical Revenue Split

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Balance Sheet Snapshot

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Capex & Cash Flow Health

Capital Expenditure: Dahej Plant expected to reach 70.75% capacity utilization by FY2027 end, with capacity expansion planned within the unit.

Investment Rationale: Capacity expansion and commencement of manufacturing products acquired from Bayer AG.

Strategic & R&D Initiatives

Investments in Innovation: Synthesis plant at Dahej supported by fully equipped R&D Lab with 30 chemists; Focus on margin accretive "9(3) product" portfolio; Target to launch several new products across all segments including "me-too" over next two years.

Strategic Rationale: Expanding into global markets through acquisition of Bayer AG's fungicide brands, providing access to 20+ international markets; Enhancing focus on innovation and research through dedicated technology centers.

Industry Trends & Business Environment

Macro/Industry Trends: Agrochemical sector experiencing weak and highly subdued earnings season due to erratic monsoon rainfall and high raw material costs; Monsoon rainfall was lower by 13% with significant regional variations; Weather disturbance disrupted traditional farming cycles and delayed crop-care applications.

Impact on Company: Performance of herbicides was significantly impacted while insecticides segment grew; Diversified geographic footprint helped capture demand from regions with water availability.

Management Commentary & Growth Outlook

Strategic Outlook: "Transforming India through Agriculture"; Sustainable business growth must go hand in hand with farmer prosperity and national food security; Continued engagement with Agriculture Universities and Krishi Vigyan Kendra's for farmer education.

FY Guidance: Revenue From Operations: Lower Single Digit Growth; EBITDA: Expecting decline approx. 125bps.

Risks and Opportunities: Challenges from monsoon variability and input costs; Opportunities from global expansion and new product launches.