Key Financial Figures

Q1 FY27 Financial Performance (vs. Q1 FY26):

  • Revenue: ₹1,022 crore (vs. ₹957 crore) - 7% growth
  • EBITDA: ₹184 crore (vs. ₹150 crore) - 23% growth
  • Profit After Tax: ₹125 crore (vs. ₹95 crore) - 31% growth
  • Exceptional Items: Profit on sale of property ₹2 crore
  • Cash and Liquid Balance: ₹309 crore as of June 30, 2026

Segment-wise Performance:

Crop Care Segment:

  • Revenue: ₹697 crore (vs. ₹652 crore) - 7% growth
  • Volume growth: 2%, Price growth: 5%
  • Domestic (B2C): ₹534 crore (vs. ₹449 crore) - 19% growth, driven by 16% volume growth
  • Crop Protection: ₹455 crore (vs. ₹386 crore) - 18% growth
  • Soil & Plant Health: ₹62 crore (vs. ₹56 crore) - 10% growth, driven by 13% price growth
  • Exports: ₹110 crore (vs. ₹152 crore) - 28% decline, with 35% volume degrowth
  • Reasons: Lower demand for pendimethalin in Europe, competitive Chinese pricing affecting Acephate, Pendi CS & Hexaconazole, port congestion/logistical challenges
  • CSM (Contract Synthesis and Manufacturing): ₹24 crore (vs. ₹8 crore) - 191% growth, driven by rebound in PEKK sales volumes
  • Total B2B Revenue: ₹163 crore (vs. ₹203 crore) - 19% decline

Seeds Business:

  • Revenue: ₹325 crore (vs. ₹305 crore) - 6% growth, driven by price growth
  • EBITDA margin improved from 26% to 30% due to favorable product mix (higher margin rice, maize, millet vs. government price-controlled cotton)

Operational and Business Highlights

Industry Context:

  • Weak demand environment and sustained pricing pressure in Indian agrochemical space
  • Supply chain remained fragile with volatility in raw materials availability, freight, and logistics
  • Middle East conflict impacted feedstock, energy, and freight costs, compressing margins
  • El Niño conditions led to below-normal monsoon rainfall (15% below normal as of July 8, 2026)
  • Cumulative rainfall deficit and lagging kharif sowing deferred placements
  • Kharif sowing significantly lagging with overall acreage 23% lower YoY (rice -25%, cotton -35%, oilseeds -53%)

New Launches & Initiatives:

  • Crop Care: Launched 4 new products - Balwan (Herbicide), Prodim Ultra (Herbicide), Kengen (Insecticide), and Aquafert Ginger & Turmeric (SPH)
  • Seeds Business: Launched 2 new cotton hybrids for North India, Herbicide Tolerant Direct Seed Rice in Dhaanya brand, promoted short duration Bajra due to delayed rains (total 9 products across Cotton, Millet and Paddy)
  • Digital Initiatives: Anubandh Edge retailer platform crossed 56,000 registrations, Farmers QR Code/Reward Schemes, Sampark+ for farmer demand signals
  • Innovation: Idea2Impact platform received ~40 applications, with 2 in pilot stage

Management Commentary:

  • Formulation capacity utilization increased in Q1FY27 compared to Q1FY26
  • Inventory levels remain elevated compared to same quarter last year
  • Collection cycles remain smooth
  • Focus on expanding customer base and product portfolio while optimizing go-to-market strategy
  • Emphasis on increasing R&D output and global collaborations
  • Target to deliver consistent 15%+ EBITDA margins

Outlook:

  • Agrochemicals expected to grow 6-8% in India for FY27
  • Seeds likely to grow mid-to-high single digits (excluding cotton)
  • Cotton expected to see significant decline due to reduced acreage and illegal HTBT cotton spread
  • Global crop protection market estimated at $70-80 billion in CY2026, expected 4.5-6.5% CAGR
  • Recovery remains uneven with US demand supportive, Brazil weak, China driving pricing pressure

Capital Structure Impact

No material changes to capital structure disclosed. Healthy cash position of ₹309 crore maintained.

Forward-looking Statements

Management indicated forward-looking statements involve risks and uncertainties. The outlook remains conditional on evolution of Middle East conflict, monsoon progression, and commodity price movements.