Dhanuka Agritech (507717) Q2 25/26 earnings summary

Executive summary

• Revenue from operations in Q2 FY26 was INR 598.25 crores, down from INR 654.28 crores in Q2 FY25, mainly due to adverse weather impacting agrochemical demand and delayed crop cycles.

• EBITDA for Q2 FY26 stood at INR 136.73 crores versus INR 159.58 crores YoY; profit after tax was INR 93.97 crores, down from INR 117.52 crores.

• The herbicide segment was most affected, with lower sales due to erratic rainfall and limited application windows.

• Biostimulant sales were halted due to regulatory changes, impacting revenue by over INR 20 crores in Q2.

• New product launches included ipflufenoquin for paddy and a new biostimulant, Vardh; trial production of a second product started at Dahej plant.

Financial highlights

• Q2 FY26 revenue: INR 598.25 crores (down 8.6% YoY); EBITDA: INR 136.73 crores; PAT: INR 93.97 crores.

• Gross profit margin remained stable at 42.45% (vs 42.18% last year); EBITDA margin at 22.85%; PAT margin at 15.71%.

• Basic EPS for Q2 FY26 was INR 20.85, down from INR 25.83 YoY.

• Dahej plant sales were INR 22 crores with a nominal EBITDA loss of INR 46 lakhs in Q2.

• Royalty income in Q2 was INR 4.5 crores; H1 royalty from Bayer products reached INR 13.5 crores.

Outlook and guidance

• FY26 revenue expected to be flattish, with H2 growth of 2–3% anticipated due to a slow start in October and continued biostimulant impact.

• Biostimulant sales expected to remain impacted in Q3 and Q4, with normalization likely from Q1 next year.

• Bayer product revenue guidance revised down to INR 40 crores for FY26 due to export registration delays.

• Gross margin expected to remain stable YoY; EBITDA margin to decline by about 100 basis points.

• Dahej plant on track for revenue targets in FY26; EBITDA break-even targeted for FY27.