Godrej Agrovet (GODREJAGRO) Q1 26/27 earnings summary

Executive summary

• Consolidated sales reached ₹2,855.22 crore in Q1 FY27, up 10% year-over-year despite delayed monsoon and inflationary pressures from geopolitical tensions.

• EBITDA declined 8% year-over-year to ₹259 crore, with margins compressing to 9.1% from 10.8%.

• Profit after tax attributable to owners was ₹134.50 crore, down from ₹160.52 crore in Q1 FY26, reflecting margin pressures and higher costs.

• Strategic focus on value creation through portfolio streamlining, capital allocation to high-ROCE businesses, and innovation-led growth.

• Board approved the appointment of a new CFO, Mr. Ravishankar A., effective October 1, 2026.

Financial highlights

• Animal nutrition revenue grew 12.6% year-over-year, with 15% cattle feed volume growth and segment results up 29%.

• Oil palm revenue increased 28.9%, segment results up 14.4%, driven by higher CPO/PKO realizations and improved extraction efficiency.

• Crop care revenue declined 16.2%–17.2% due to lower volumes and delayed monsoon; segment margin contracted.

• Dairy revenue grew 11.4%, with value-added products rising from 42% to 49% of sales; profitability affected by high milk procurement costs.

• Bangladesh JV delivered double-digit growth in volume, revenue, and PBT.

• Astec LifeSciences moved from EBITDA loss in Q1 FY26 to breakeven, with margin expansion.

• Net working capital days improved to 21 from 31 year-over-year, supporting ROCE.

Outlook and guidance

• Oil palm FFB volume expected to grow high single to early double digits CAGR over 4-5 years, supported by area expansion and maturing plantations.

• Downstream integration in oil palm (specialty fats, B2B food ingredients) to add ~200 bps to EBITDA profile.

• CapEx for oil palm and specialty fats covered under ₹300–350 crore annual guidance, targeting IRR of 16-18%.

• Crop care recovery expected in H2, with new products and favorable weather; full-year guidance to be reassessed after Q2.

• Astec LifeSciences now guides for >20% revenue growth for FY27, with CDMO salience at 50-52%.

• Overall double-digit consolidated growth targeted for FY27, with more precise guidance after Q2.

• Continued focus on high-margin, high-ROCE segments with capex funded by internal accruals.