Dhanuka Agritech (507717) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue rose 9.91% YoY; EBITDA increased 11.88% and PAT 16.23%, despite subdued sector conditions from uneven monsoon rainfall and high input costs.

• Distribution reach included 10 million+ farmers, around 6,500 distributors, 80,000 retailers, four manufacturing units and 41 warehouses.

• Standalone and consolidated results matched; auditors’ limited reviews found nothing indicating material misstatement or non-compliance with disclosure requirements.

Financial highlights

• Q2 revenue from operations was ₹65,751.37 lakh vs ₹59,824.81 lakh YoY; total income was ₹66,668.37 lakh vs ₹60,456.55 lakh.

• Q2 EBITDA was ₹152.97 crore vs ₹136.73 crore; PAT was ₹10,922.24 lakh vs ₹9,396.55 lakh YoY.

• H1 revenue from operations was ₹1,11,944.18 lakh vs ₹1,12,653.62 lakh; net profit was ₹14,552.68 lakh vs ₹14,946.89 lakh.

• H1 profit before tax was ₹19,504.11 lakh vs ₹20,051.81 lakh; total expenses were ₹94,243.35 lakh vs ₹94,037.93 lakh.

Outlook and guidance

• FY27 revenue from operations guidance is lower single-digit growth; EBITDA margin is expected to decline ~125 bps.

• Q3 and Q4 outlook remains subdued; South and East are seen as relatively better prospects as returning monsoon rainfall may support demand.

• Q2’s 10% growth was not presented as an indication of growth in the next two quarters.

• Dahej plant capacity utilization is expected to reach 70.75% by FY27 year-end, prompting planned capacity expansion within the unit.