Dhanuka Agritech (507717) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2026-2027 faced significant challenges from a delayed monsoon, resulting in reduced demand and lower revenue growth across the agrochemical sector.

• Five new products, including a liquid fertilizer, three fungicides, and a herbicide, are planned for launch in the coming months, supported by two research centers.

• Expansion plans include a new Nagpur manufacturing plant with a projected 23,000 MT annual capacity, targeting operational readiness by March/April 2028.

• Shareholders approved a final dividend of INR 2 per share (100%) and a buyback of 500,000 shares at INR 1,400 each, totaling INR 70 crore.

• An Employee Stock Option Plan (ESOP) and a loan of up to INR 15 crore to the Employee Stock Benefits Trust were introduced to foster long-term alignment and growth.

Financial highlights

• Revenue from operations for Q1 FY 2026-2027 was INR 461.93 crore, down 12.56% year-over-year from INR 528.29 crore.

• EBITDA declined 33.9% to INR 55.01 crore, with EBITDA margin dropping to 11.91% from 15.75%.

• Profit after tax for the quarter was INR 36.30 crore, with PAT margin at 7.86% versus 10.51% a year ago.

• Basic and diluted EPS for the quarter stood at INR 8.06, down from INR 12.31 in the prior year quarter.

• Dahej plant revenue increased to INR 26 crore from INR 16 crore last year; EBITDA improved from INR -3 crore to less than INR 1 crore.

Outlook and guidance

• Management expects single-digit growth for FY 2027, with Q2 and Q3 anticipated to show improvement.

• Guidance for Dahej plant revenue is INR 65 crore for the full year, with EBITDA breakeven remaining difficult.

• New Nagpur plant expected to be operational by March/April 2028, improving logistics and market reach in South, East, and Central India.

• EBITDA margin is projected to decline by approximately 200 basis points.