Best Agrolife (539660) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 sales declined year-over-year due to erratic and excessive rainfall, floods, and lower pest pressure, disrupting cropping cycles and reducing demand for crop protection products in key regions.

• High inventory of generics and increased price competition pressured margins and reduced sales of patented and specialty products.

• Despite challenges, new patented products Bestman/Best ManTM and Fetagen/FetagenTM saw strong adoption, each treating over 400,000 acres in their first year.

• Management focused on operational efficiency, cost optimization, inventory reduction, and receivables management to improve productivity, margins, and strengthen the balance sheet.

Financial highlights

• Q3 FY26 revenue from operations was ₹202.9 crore, down 26% year-over-year from ₹274.1 crore; 9M FY26 revenue was ₹1,101 crore (down from ₹1,540 crore in 9M FY25).

• Q3 FY26 gross margin was ₹65 crore (down from ₹89 crore), with gross margin percentage stable at 70%; 9M FY26 gross margin improved to ~31%.

• Q3 FY26 EBITDA was ₹3.8 crore (margin 1.9%), improving from a loss of ₹5.8 crore (margin -2.1%) in Q3 FY25.

• Q3 FY26 PAT loss narrowed to ₹12.7 crore from ₹24.2 crore YoY; 9M FY26 PAT at ₹46.1 crore (down from ₹91.8 crore prior year), PAT margin at 4.2%.

• Diluted EPS improved to -0.36 in Q3 FY26 from -0.68 in Q3 FY25.

Outlook and guidance

• Management expects FY26 revenue to close between ₹1,300-1,400 crore, with annualized EBITDA margin around 12%.

• Growth is expected to return from FY27, targeting ₹1,600-1,800 crore revenue and 16-20% EBITDA margin over the next two years.

• Three additional patented combinations are planned for launch in the next 3–9 months.

• Q4 is expected to be at least break-even or slightly profitable, with no major losses anticipated.