Dhanuka Agritech (507717) Q3 25/26 earnings summary

Executive summary

• Q3 FY 2026 saw weak agrochemical demand due to adverse weather, low crop prices, and reduced farmer spending, resulting in a year-over-year decline in revenue and profitability.

• Commercialization of the second product at the Dahej plant was achieved, with plans to reach 80% capacity utilization and EBITDA positivity in FY 2027.

• Maintained pan-India presence, reaching over 10 million farmers with a diverse product portfolio and strong distribution network.

• Focused on innovation, with two research centers and international collaborations to introduce new chemistries and products.

• Board approved unaudited financial results for the quarter and nine months ended December 31, 2025, and appointed Mr. Sanjiv Goel as Additional and Independent Director.

Financial highlights

• Revenue from operations for Q3 FY 2026 was INR 409.92 crore, down from INR 445.27 crore in Q3 FY 2025.

• EBITDA for Q3 FY 2026 was INR 58.66 crore, with margin at 14.31%, down from 16.97% in the prior year.

• Profit after tax stood at INR 40 crore, down from INR 55.04 crore year-over-year, with PAT margin at 9.76%.

• Basic EPS for the quarter was 8.87.

• Cash and liquid investments exceeded INR 250 crore as of the reporting period.

Outlook and guidance

• Q4 has started well, with strong demand in South and East India for paddy and wheat herbicides; a good Rabi harvest is expected.

• Full-year revenue is expected to be flattish, with Q4 growth but no significant annual increase.

• Gross margins are expected to normalize to around 38% in the long term as net economic benefit phases out.

• Double-digit CAGR growth is targeted over the next three to five years, supported by new product launches and market expansion.

• Company continues to monitor regulatory changes, especially new labour codes, for future financial impact.