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, impacting crop cycles and reducing demand for crop protection products, especially in key regions like North, West, and Central India.

• High inventory of generics at the trade level led to increased price competition and softer market conditions, affecting both patented and specialty products.

• Despite challenges, newly launched patented products Bestman/Best ManTM and Fetagen/FetagenTM received strong market acceptance, each treating over 400,000 acres in their first year.

• Management focused on operational efficiency, cost optimization, inventory reduction, and digital initiatives to improve productivity and profitability.

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.

• Gross margin for Q3 FY26 was ₹65 crore (down from ₹89 crore), with margin percentage stable at 70%; 9M FY26 gross margin improved to ~31% from ~30% in 9M FY25.

• 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 in Q3 FY25; 9M FY26 PAT at ₹46.1 crore (down from ₹91.8 crore), PAT margin at 4.2%.

• Inventory reduced by 23-24% year-over-year to ₹589 crore as of Dec 31, 2025; OPEX (excluding finance & depreciation) down 36% YoY in Q3 FY26.

Outlook and guidance

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

• Management expects growth to return in FY27, targeting ₹1,600-1,800 crore revenue and EBITDA margin of 16-17%, with a longer-term goal of 20%.

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

• Q4 FY26 is expected to avoid losses, with a focus on maintaining profitability despite softer demand.