Financial Performance Q2 FY27

Revenue: Increased by 13% year-on-year to ₹1,052 crores in Q2 FY27 from ₹929 crores in Q2 FY26.

Business Segment Breakdown:

  • Agrochemical business grew by 5% year-on-year to ₹840 crores.
  • Non-agrochemical business grew by 68% year-on-year to ₹212 crores.

Profitability:

  • Gross Margin stood at 35.9%, an increase of 140 basis points from 34.5% in Q2 FY26.
  • EBITDA grew by 18% to ₹164 crores with an EBITDA margin of 15.6%, an increase of 70 basis points from 15.0%.
  • Forex loss stood at ₹0.4 crores compared to a loss of ₹6.1 crores in Q2 FY26.
  • PBT stood at ₹107 crores, an increase of 25% year-on-year. On a like-to-like basis, PBT prior to forex grew by 17% year-on-year to ₹108 crores.
  • PAT stood at ₹92 crores versus ₹74 crores last year, an increase of 23% year-on-year.

Revenue Growth Drivers (Q2): The 13% revenue growth was attributed to increased prices, positive forex impact, and an improved product mix contributing 18.3%, offset by a volume degrowth of 5.1%.

Financial Performance H1 FY27

Revenue: Stood at ₹2,125 crores in H1 FY27 versus ₹1,914 crores in H1 FY26, an increase of 11% year-on-year.

Business Segment Breakdown:

  • Agrochemical business grew by 6% year-on-year to ₹1,755 crores.
  • Non-agrochemical business grew by 40% year-on-year to ₹371 crores.

Profitability:

  • Gross Margin stood at 36.3%, an increase of 130 basis points from 35.0% in H1 FY26.
  • EBITDA grew by 22% to ₹343 crores with an EBITDA margin of 16.1%, an increase of 140 basis points from 14.7%.
  • Forex gain stood at ₹7.1 crores compared to a gain of ₹67 crores in H1 FY26.
  • PBT stood at ₹226 crores versus ₹255 crores last year. On a like-to-like basis, PBT prior to forex grew by 16% year-on-year to ₹219 crores.
  • PAT stood at ₹180 crores versus ₹217 crores last year.

Revenue Growth Drivers (H1): The 11% revenue growth was attributed to increased prices, positive forex impact, and an improved product mix contributing 14.5%, offset by a volume degrowth of 3.5%.

Balance Sheet & Key Metrics

Liquidity: The company remains debt-free. Cash, bank, and liquid investments stood at ₹846 crores as on 30th September 2026.

Working Capital: Working capital days stood at 70 days as of 30th September 2026, showing an improvement of 28 days compared to March 2026.

Returns: ROCE stood at 25.9% and ROE stood at 20.1%.

Operational & Regional Highlights

Product Registrations: Total product registrations stood at 3,044 as on 30th September 2026. An additional 946 applications for product registrations are in the pipeline.

Regional Breakdown of Registrations (as of 30th Sept 2026):

  • Europe: 1,701
  • NAFTA: 333
  • LATAM: 760
  • Rest of World: 250

Pipeline Registrations (946 total):

  • Europe: 548
  • NAFTA: 103
  • LATAM: 155
  • Rest of World: 140

Regional Performance:

  • NAFTA: Revenue from the region grew about 30% year-on-year with significantly better margins. Gross margin for the region was around 40%.
  • LATAM: Agrochemical revenue was up by over 80%.
  • Europe: The largest market saw a slight moderation due to extended heat and drought conditions in parts of Central and Eastern Europe, leading to cautious distributor restocking. Gross margin for the region was 41%.
  • Rest of World: Gross margin was 31%.

Non-Agrochemical Business: The strong 68% growth in Q2 was primarily driven by conveyor belts and rubber belts used for transportation and material handling.

Management Guidance & Commentary

FY27 Outlook: Management maintained its revenue growth guidance of 10% to 15% for FY27.

Margin Outlook: EBITDA margins are expected to improve through the year and remain between 18% to 20% for FY27, supported by a better product mix and operating leverage in the second half.

Capex Plans: For FY27, the company aims to increase product registrations with a planned capex of ₹550 crores to ₹600 crores. Capex of ₹419 crores was already spent in H1 FY27.

H2 Expectations: Management expects a recovery in Europe in the second half, which is seasonally stronger. They also expect gross margins to hold or go up and believe the high margins in NAFTA are sustainable.

Q&A Highlights

Volume Degrowth: Attributed to abnormal weather conditions in Europe in H1, with normalization expected in H2.

Capex & Registrations: The high H1 capex included significant spending on data compensation for registrations in the US, which was unpredictable. The registration process is described as unpredictable and subject to last-minute changes by authorities.

B2C Strategy: The company is making attempts to grow B2C sales, but scaling is expected to be slow as it requires more manpower and involves smaller quantities across widespread geographies.

Logistics & Forex: Logistics disruptions (Red Sea, Hormuz) are causing longer shipping times and increased freight costs but are not significantly affecting performance or the ability to supply. The company has limited control over forex rates but has not been badly affected.

Pricing Environment: The pricing environment is improving but is still below pre-COVID levels. The company can pass on tariff increases to customers due to the registered nature of its products.

Amortization: Increased depreciation and amortization expense (~₹100 crores per quarter) is a leading indicator for future revenue growth from newly capitalized product registrations.