Dhanuka Agritech (507717) Q1 25/26 earnings summary

Executive summary

• Revenue from operations grew 7% year-over-year to INR 528.29 crores in Q1 FY26, with EBITDA at INR 83.19 crores and PAT at INR 55.5 crores.

• Growth was subdued due to delayed and uneven monsoon, high channel inventory, and muted herbicide demand in key crops like soybean and cotton.

• New product launches included Dinkar (herbicide for paddy) and Melody range (acquired from Bayer AG), with strong farmer response and further launches planned for H2 FY26.

• Final dividend of INR 2 per share declared; buyback of 500,000 shares at INR 2,000 per share completed, absorbing INR 100 crores.

• Board approved unaudited financial results for Q1 FY26, with no material misstatements found.

Financial highlights

• Revenue from operations: INR 528.29 crores (Q1 FY26) vs INR 493.58 crores (Q1 FY25), up 7%.

• EBITDA: INR 83.19 crores (Q1 FY26) vs INR 71.72 crores (Q1 FY25); EBITDA margin improved to 15.75% from 14.53%.

• PAT: INR 55.5 crores (Q1 FY26) vs INR 48.89 crores (Q1 FY25); PAT margin rose to 10.51% from 9.91%.

• Basic EPS up 14.77% year-over-year to INR 12.31.

• Gross profit margin improved to 36.03% from 34.66% year-over-year.

Outlook and guidance

• Management reiterates double-digit revenue growth guidance for FY26, though at the lower end.

• EBITDA margin expected to decline by around 100 basis points for the year; EBITDA anticipated to remain in line with FY25.

• Capacity utilization at technical plant expected to be around 60% for the year; Dahej plant revenue guidance at INR 55-65 crores.

• Results may vary period to period due to dependence on monsoon, pest infestation, and crop patterns.

• Anticipates improved demand in Q2 due to better rainfall and increased fungicide and insecticide consumption.