Company Overview

Dharmaj Crop Guard Limited (BSE: 543687 | NSE: DHARMAJ) filed its Integrated Annual Report for FY 2025-26 pursuant to SEBI Listing Regulations Regulation 34(1), covering the period ended March 31, 2026.

Financial Performance

Revenue & Profitability:

  • Revenue from Operations: ₹11,379.65 million (20% growth YoY from ₹9,510.44 million)
  • Total Income: ₹11,463.55 million (including Other Income of ₹83.90 million)
  • EBITDA: ₹1,088.80 million (34% growth YoY)
  • Profit Before Tax: ₹725.40 million (58% growth YoY)
  • Profit After Tax: ₹547.03 million (57% growth YoY)
  • Earnings Per Share: ₹16.19 (up from ₹10.31 in FY25)

Margin Performance:

  • Gross Profit Margin: 23% (89 bps improvement)
  • EBITDA Margin: 9% (97 bps improvement)
  • PAT Margin: 4.8% (112 bps improvement)

Balance Sheet Position:

  • Total Assets: ₹8,414.63 million (up from ₹7,334.15 million)
  • Net Worth: ₹4,491.11 million (up from ₹3,944.22 million)
  • Total Borrowings: ₹1,319.05 million (secured facilities from SBI and HDFC Bank)
  • Debt-to-Equity Ratio: 0.29 (stable)
  • Current Ratio: 1.55 (slight improvement)

Operational Highlights

Business Vertical Performance:

  • Domestic Institutional Formulations: ₹5,832 million (15% growth) - 51% of revenue
  • Branded Formulations: ₹1,979 million (3% growth) - 17% of revenue
  • Export Institutional: ₹834 million (58% growth) - 7% of revenue
  • Domestic Active Ingredients: ₹2,734 million (37% growth) - 24% of revenue

Manufacturing & Expansion:

  • Formulations Capacity: 25,500 TPA across all major formulation types
  • Active Ingredients Capacity: 8,000 TPA at Saykha facility
  • Achieved profitability breakeven at Active Ingredients unit in Saykha
  • Commissioned dedicated Herbicides Formulations unit at Kerala GIDC, Ahmedabad
  • Capital Expenditure: ₹201.91 million additions during FY26
  • Government Grants: ₹46.84 million interest subsidy under Aatmanirbhar Gujarat Scheme

Strategic Initiatives:

  • Appointed Rohit Sharma as brand ambassador in February 2026 to build pan-India presence
  • Geographic expansion to 24 states with 19,300+ retail touchpoints and 5,300+ dealers
  • 150 export registrations in pipeline against 123 already secured

Corporate Structure & Governance

Share Capital & Ownership:

  • Authorized Capital: 35,000,000 equity shares of ₹10 each (₹350 million)
  • Issued, Subscribed & Paid-up: 33,797,296 equity shares
  • Promoter Holding: 70.41% with major promoters including Rameshbhai R Talavia (26.67%) and Jamankumar H Talavia (24.45%)

Board & Committees:

  • Total Directors: 7 (3 Executive, 4 Independent including 1 Woman Director)
  • Board changes during year with resignations and new appointments
  • Committees: Audit, Nomination & Remuneration, Stakeholders' Relationship, and CSR Committees properly constituted

Credit Rating:

  • CARE Ratings: CARE A- (Stable) for long-term bank facilities and CARE A2+ for short-term bank facilities

Regulatory Compliance & Risks

Contingent Liabilities:

  • GST Demand: ₹67.48 million under dispute with Commissioner of Central Tax (Appeals)
  • Patent Infringement Litigation: ₹20.20 million pending before Delhi High Court

Other Compliance Matters:

  • MSME Dues: Outstanding principal ₹418.11 million and interest ₹0.57 million
  • CSR Expenditure: ₹9.83 million spent through Dharmaj Foundation
  • Related Party Transactions: All in ordinary course of business at arm's length basis

Forward Outlook & Corporate Actions

Growth Strategy:

  • Expects overall topline growth in line with FY26 performance across all verticals
  • Plans to increase utilization at Saykha facility and raise captive consumption
  • Monitoring risks from West Asia situation including input cost volatility and currency movements

Corporate Actions:

  • No dividend recommended for FY26 to conserve resources for growth initiatives
  • 12th AGM scheduled for September 24, 2026 through Video Conferencing
  • Mr. Rameshbhai R. Talavia retires by rotation and offers himself for re-appointment

Risk Factors:

  • Foreign Currency Risk: Exposure of USD 9.00 million with sensitivity of ₹28.64 million for 5% rate change
  • Interest Rate Risk: Sensitivity of ₹9.91 million for 100 bp change in interest rates
  • Credit Risk: Trade receivables of ₹2,807.28 million with provision for expected credit loss