Dharmaj Crop Guard Limited – Investor Presentation Summary

Key Operational Highlights

  • Sales Team (On-Ground Marketing & B2B) reached 328 in Q2FY27, up from 313 in Q1FY27.
  • 200+ dealers & distributors onboarded.
  • 20,500+ retail touchpoints supported by 5,500+ dealers & distributors.
  • 15 sales team members added.

Key drivers of operational performance: Dealer meets, field days, product demonstrations in both new & existing markets.

Segment-wise Performance

  • Institutional Formulations registered growth of 2% YOY in Q2FY27 and 3% YOY in H1FY27.
  • Branded Formulations grew 5% YOY in Q2FY27 and 2% YOY in H1FY27.
  • Technicals business registered a 27% YOY decline in Q2FY27 and a 20% YOY decline in H1FY27.
  • Export revenue was flat YOY in Q2FY27, while H1FY27 exports grew 50% YOY.

Explanation of significant changes in segment performance: The main headwind was in the Technicals business, affected by the West Asia crisis impacting both input pricing and demand patterns. Formulations remained resilient.

Financial Highlights

Revenue: Rs. 7,167 Mn (H1FY27)

EBITDA (Excluding OI & EI): Rs. 816 Mn (H1FY27)

PAT: Rs. 513 Mn (H1FY27)

EPS: Rs. 15.19 (H1FY27)

Margins: Gross Profit Margin 23% (H1FY27), EBITDA Margin 11.4% (H1FY27), PAT Margin 7% (H1FY27)

YoY/QoQ comparison: H1FY27 Revenue was flat YoY (0% growth). H1FY27 PAT was up 3% YoY. Q2FY27 Revenue declined 4% YoY. Q2FY27 PAT declined 24% YoY.

Drivers of financial performance: Margin compression in Q2FY27 was due to higher input costs flowing through from purchases made after the West Asia crisis, coupled with tepid margins in the Technicals business.

Key Risks: Weak monsoon (seasonal rainfall at 87% of long period average, fourth lowest since 2001), lower water reservoir levels potentially affecting the Rabi season.

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot (H1FY27)

Net Debt/Equity: Not Specified (Total Borrowings: Rs. 1,190 Mn; Total Equity: Rs. 5,005 Mn)

Reserves: Not Specified

Current Assets/Liabilities: Current Assets Rs. 6,039 Mn; Current Liabilities Rs. 3,751 Mn

Working Capital/Leverage Metrics: Trade Receivables Rs. 4,099 Mn; Inventories Rs. 1,740 Mn; Trade Payables Rs. 2,560 Mn

Financial Health Insights: Not Specified

Capex & Cash Flow Health

Capital Expenditure: Not Specified (Capital work-in-progress stood at Rs. 117 Mn)

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: New Formulations facility at Kerala GIDC, Ahmedabad, dedicated to Herbicides manufacturing.

Strategic & R&D Initiatives

Investments in Innovation: New Herbicides formulations facility at Kerala GIDC, Ahmedabad.

Expected impact on growth: Not Specified

Strategic Rationale: Not Specified

Product Registration Activity: Cumulatively 52 technical registrations received & 11 additional awaited. Cumulatively 132 export market registrations received & 176 additional awaited.

Recently launched products: Insecticides product launch in B2C portfolio.

Industry Trends & Business Environment

Macro/Industry Trends: The 2026 monsoon has been one of the weakest in over a decade, with seasonal rainfall at 87% of its long period average (fourth lowest since 2001, weakest since 2015). The West Asia crisis has affected input pricing and demand patterns.

Impact on Company: The weak monsoon weighed on industry performance. The West Asia crisis led to higher input costs and impacted the Technicals business.

Management Commentary & Growth Outlook

Strategic Outlook: "We maintain a cautiously optimistic outlook for the second half of the financial year." Focus in H2FY27 will be to push higher exports while sustaining resilience in the domestic business.

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Challenges to the domestic Rabi season may persist due to the weak monsoon and lower water reservoir levels.