Godrej Agrovet (GODREJAGRO) Q1 25/26 earnings summary

Executive summary

• Reported strong Q1 FY26 performance with 11% revenue growth year-over-year to INR 2,614 crore and 25% profit growth, driven by robust volumes and operational efficiencies, especially in vegetable oils and reduced losses in Astec LifeSciences.

• Standalone and consolidated unaudited financial results for Q1 FY26 approved, with investor presentation released.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, with limited review reports carrying unmodified opinions from auditors.

• Leadership transition announced: Sunil Kataria to succeed Balram S. Yadav as CEO and MD.

Financial highlights

• Consolidated revenue from operations rose to INR 2,614 crore in Q1 FY26 from INR 2,351 crore in Q1 FY25.

• EBITDA increased 19.6% year-over-year to ₹282 crore; EBITDA margin improved to 10.8%.

• Profit after tax grew 13% year-over-year to ₹149 crore; PAT margin at 5.7%.

• Animal Feed segment saw 8% volume growth but flat revenue and margins due to lower realizations.

• Vegetable oil segment revenue and margins improved significantly, aided by a 50% increase in fresh fruit bunch arrivals and better oil extraction ratios.

• Astec LifeSciences revenue up 31% year-over-year, with improved volumes and lower raw material costs.

• Dairy segment revenues flat; milk volumes up 2% but margins compressed due to higher procurement prices and increased ad spend.

• Poultry and processed foods segment revenue and margins declined due to lower volumes and muted realizations in livestock.

• ACI Godrej JV in Bangladesh saw a 20% revenue decline year-over-year due to challenging macro conditions.

Outlook and guidance

• Maintains early teens top-line growth guidance for FY26, with profit growth expectations unchanged.

• Crop Protection domestic business targets 30% revenue growth for the year, with margin guidance at 28%-30% (down from last year's outlier 40%+).

• Astec LifeSciences expects EBITDA breakeven for FY26 and targets INR 500 crore turnover, with CDMO business aiming for over INR 300 crore revenue (65% of total sales).

• Dairy segment aims to maintain 6%-7% EBITDA margins (including media spend) and increase value-added product salience to 50% in two years.

• Board and auditors expressed no material misstatements or concerns, indicating confidence in ongoing business performance.