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Best Agrolife (539660) investor relations material
Best Agrolife Q2 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q2 and H1 FY26 revenue declined sharply year-over-year due to erratic and excessive rainfall, impacting agrochemical demand, especially in key regions, but operational discipline, inventory control, and a focus on patented products improved resilience and revenue mix.
Patented products now contribute 51% of branded sales, up from 38% in Q2 FY25, supporting margin resilience and improved quality of revenue.
Operational stabilization led to a 24% year-over-year reduction in inventory and a 13% decrease in operating expenses in Q2 FY26.
Management implemented a revised sales return policy and reduced pre-season order placements, leading to lower sales returns and improved financial discipline.
Strategic restructuring across regional operations improved sales team productivity and reduced OPEX.
Financial highlights
Q2 FY26 revenue was ₹516.8 crore, down 30.8% YoY from ₹746.6 crore, with gross margin at ₹169.6 crore, EBITDA at ₹77.5 crore (margin 15%), and PAT at ₹38.9 crore (margin 7.56%).
H1 FY26 revenue was ₹898.1 crore (down from ₹1,265.9 crore YoY), EBITDA margin was 13.7%, and diluted EPS for H1 was 24.89 (down from 49.03 YoY).
Inventory reduced by ₹207 crore YoY to ₹666 crore, and OPEX was cut by 13% YoY in Q2 and 11% in H1.
Standalone Q2 FY26 revenue was ₹365.16 crore; profit for the period was ₹38.33 crore.
Debt to equity ratio at 0.89; net debt to equity at 0.44 as of H1 FY26.
Outlook and guidance
Management expects volume growth to recover in H2 FY26, driven by improved farmer sentiment, strong demand for wheat and potato crop solutions, and a positive Rabi season outlook due to ample groundwater and full reservoirs.
FY26 turnover is guided at around ₹1,500 crore, with targeted EBITDA margin of 13%-14%.
Anticipates significantly lower sales returns in Q3 FY26 due to revised sales return policy and in-season order placement.
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