Financial Performance Q2FY27

  • Revenue from Operations: Rs 907.3 crore, down 2% YoY (Q2FY26: Rs 929.8 crore)
  • Gross Profit: Rs 369.1 crore, down 8% YoY; Gross Profit Margin at 40.7%, down 240 bps YoY
  • EBITDA: Rs 185.8 crore, down 15% YoY; EBITDA Margin at 20.5%, down 297 bps YoY
  • Profit Before Tax (PBT): Rs 210.2 crore, down 12% YoY; PBT Margin at 23.2%, down 242 bps YoY
  • Net Profit: Rs 157.4 crore, down 11% YoY; Net Profit Margin at 17.3%, down 177 bps YoY
  • Other Income: Rs 43.6 crore
  • Depreciation: Rs 17.3 crore
  • Interest: Rs 1.9 crore
  • Exceptional Items: Nil for Q2FY27

Financial Performance H1FY27

  • Revenue from Operations: Rs 1,970.7 crore, down 1% YoY (H1FY26: Rs 1,986.6 crore)
  • Gross Profit: Rs 785.8 crore, down 2% YoY; Gross Profit Margin at 39.9%, down 54 bps YoY
  • EBITDA: Rs 419.1 crore, down 4% YoY; EBITDA Margin at 21.3%, down 74 bps YoY
  • Profit Before Tax (PBT): Rs 498.4 crore, up 4% YoY; PBT Margin at 25.3%, up 121 bps YoY
  • Net Profit: Rs 371.9 crore, up 5% YoY; Net Profit Margin at 18.9%, up 96 bps YoY
  • Exceptional Items: H1FY27 includes a gain of Rs 26.9 crore from an insurance claim received in Q1FY27 for business interruption from a FY23 fire incident at the Bhavnagar plant.

Operational and Market Context

The Indian agrochemical industry faced a challenging operating environment in H1FY27 due to delayed monsoon onset, prolonged dry spells, and a 13% rainfall deficit, impacting crop sowing and agrochemical consumption. Weak seasonal demand affected offtake across key product categories, particularly insecticides, herbicides, and fungicides.

Business Segment Performance

  • Domestic Business: Q2 revenue grew 2% YoY to Rs 774 crore.
  • Exports: Q2 revenue declined 23% YoY to Rs 127 crore.
  • H1 Revenue Breakdown: Domestic business contributed 79%, Exports 13%, and Animal Nutrition Division (AND) & Environmental Health Division (EHD) contributed 8%.
  • Growth in Metal Phosphides and AND & EHD partially offset weakness across other product categories.

Margin Analysis

Q2FY27 margins were impacted by the absorption of higher-cost inventory procured during April–June 2026. The inventory-cost mismatch substantially normalized by the end of Q2. On a cumulative H1FY27 basis, the margin profile remained broadly comparable to historical levels.

Product Launches and Initiatives

The company strengthened its portfolio with the launch of:

  • Topgrain: A biostimulant, first global launch from affiliate Sumitomo Bio-rational Company, USA.
  • Helibex: Launched during Q2FY27.

Focused initiatives across key products supported growth in select high-priority molecules.

Capital Expenditure

Capital expenditure is progressing as planned, with production expected to commence within previously communicated timelines. The board has approved:

  • Herbicide intermediate plant at Dahej: Capex of ~Rs 150 crore, estimated commercialization in Q2 FY2028-29.
  • Fitment for additional products at Tarapur: Capex of ~Rs 10 crore to manufacture two additional molecules (one fungicide, one herbicide) primarily for supply to the parent company, estimated commercialization in Q4 FY2027-28.

Balance Sheet Position (as of September 30, 2026)

  • Total Assets: Rs 4,979.5 crore (Mar-26: Rs 4,474.2 crore)
  • Non-Current Assets: Rs 1,516.9 crore
  • Current Assets: Rs 3,462.6 crore
  • Inventory: Rs 747.1 crore
  • Trade Receivables: Rs 886.9 crore
  • Cash, Cash Equivalents & Liquid Investments: ~Rs 2,523 crore
  • Total Equity: Rs 3,700.7 crore
  • Equity Share Capital: Rs 499.1 crore
  • Non-Current Liabilities: Rs 89.6 crore
  • Current Liabilities: Rs 1,189.2 crore
  • Trade Payables: Rs 450.5 crore

Working Capital

  • Net Working Capital: Rs 617.0 crore
  • Inventory Days: 115 days (Sep-25: 95 days)
  • Trade Receivables Days: 82 days
  • Trade Payables Days: 70 days
  • Net Working Capital Days: 76 days (Sep-25: 55 days)

The increase in inventory days was primarily due to price increases and softer inventory liquidation during Q2FY27. The company has initiated corrective measures to progressively normalize inventory levels during H2FY27.

Cash Flow (H1FY27)

  • Cash Generated from Operations: Rs 536.0 crore
  • Net Cash from Operating Activities: Rs 446.8 crore
  • Net Cash from Investing Activities: -Rs 384.7 crore
  • Net Cash from Financing Activities: -Rs 78.9 crore
  • Net Decrease in Cash and Equivalents: Rs 16.8 crore
  • Cash & Equivalents at period end: Rs 52.1 crore

Outlook

H2FY27 is expected to remain challenging amid lower reservoir levels, the extended El Nino impact, and potential constraints on crop acreages. The company remains focused on navigating near-term challenges through disciplined execution, differentiated products, targeted resource deployment, and dynamic pricing.

Corporate and Management Overview

The presentation highlighted the company's vision, growth journey (14x growth in the last 15 years), diversified portfolio, strong distribution network (~40,000 dealers, ~600 sales team, 60 depots), manufacturing facilities, R&D capabilities, and safety records. The board of directors and management team were also detailed, including Chairman Chetan Shantilal Shah and Managing Director Dr. Suresh Ramachandran.