Best Agrolife (539660) investor relations material

Executive summary

• Q1 FY27 saw resilient performance and revenue growth of 4% year-on-year to ₹396 crore, with profit after tax doubling to ₹41 crore, driven by margin expansion, operational efficiencies, and a shift to patented products despite delayed monsoon and subdued demand.

• Key patented products, including new launches like Fluzam™ and Cubax Power Extra™, gained market acceptance and drove growth.

• Strategic focus on branded and patented products, innovation, digital outreach, and farmer engagement underpinned sustainable value creation.

Financial highlights

• Revenue from operations increased 4% year-on-year to ₹396 crore; gross profit rose 32% to ₹146 crore, with gross margin improving to 37% from 29%.

• EBITDA grew 70% year-on-year to ₹78 crore, with EBITDA margin expanding to 20% from 12%.

• PAT more than doubled to ₹41 crore; PAT margin improved to 10% from 5%.

• Operating expenses rose 4%-4.5% year-on-year to ₹92.97 crore.

• Inventory reduced by 6% year-on-year to ₹764 crore, reflecting improved working capital efficiency.

Outlook and guidance

• Management expects improved demand in Q2 as monsoon conditions normalize and sowing increases, with optimism for FY27 supported by new product adoption.

• Patent portfolio contribution to branded sales expected to remain 60%-70% in the near term.

• Revenue CAGR targeted at 10%-15% over the next 3-4 years; sustainable EBITDA margin seen at 13%-14%.

• Q2 anticipated to be strong; Q3 and Q4 performance will depend on rainfall and sales returns.

• Continued focus on product innovation, price increases, and operational efficiency to sustain growth.