Dhanuka Agritech (507717) Q3 24/25 earnings summary

Executive summary

• Achieved double-digit revenue and profit growth in Q3 FY25, with over 21% increase in profit after tax year-over-year, despite challenging agro-climatic conditions and low pest pressure.

• Introduced new products such as LaNevo, Mycore Super, and Purge Pyroxasulfone, which received strong market acceptance.

• Acquired global rights to Bayer's Iprovalicarb and Triadimenol, enabling expansion into 20+ countries and plans to shift manufacturing to India.

• Approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, with no material misstatements found by auditors.

• Achieved pan-India reach, serving over 10 million farmers with a diverse agrochemical portfolio and strong R&D collaborations.

Financial highlights

• Q3 FY25 revenue from operations: INR 445.27 crore (₹44,527.21 lakhs), up 10.42% year-over-year.

• EBITDA: INR 75.56 crore, up 21.6% year-over-year; EBITDA margin improved to 16.97%.

• Profit after tax: INR 65.04 crore (₹5,504.47 lakhs), up 21.3% year-over-year; PAT margin rose to 12.36%.

• Basic EPS increased to 12.35 in Q3 FY25.

• Gross margin improved to 39.95% from 38.59% year-over-year.

Outlook and guidance

• FY26 revenue growth (excluding Bayer molecules) expected at ~15%, primarily volume-driven.

• Guidance for Q4: 14% revenue growth and 100 basis points margin improvement.

• Plans to launch 8 new products across all segments over the next two years.

• Gross margin for FY26 expected to remain at 38%-39%, with current year margins at a five-year high.

• Results note that demand depends on monsoon, pest infestation, and crop patterns, leading to potential period-to-period variations.