Godrej Agrovet (GODREJAGRO) Q2 25/26 earnings summary

Executive summary

• H1 FY26 consolidated revenue grew 8% year-on-year to ₹5,182 crore, with EBITDA up 7% and profit before tax up 8%; Q2 FY26 revenue rose 5% year-on-year, but EBITDA declined 6% and PAT fell 12% due to non-recurring items and margin pressures.

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

• Management is conducting a strategy refresh to drive portfolio choices, diversify growth pillars, and focus on value-added products, with a new FY2030 vision expected by March.

• Strong performance in Animal Feed and Vegetable Oil segments offset by weakness in Crop Protection and Dairy.

Financial highlights

• H1 FY26 consolidated revenue was ₹5,182 crore, up from ₹4,799.50 crore year-over-year; PAT for H1 FY26 stood at ₹233.17 crore, with basic EPS at ₹13.16.

• H1 FY26 EBITDA margin was 9.7%, stable year-over-year; PAT margin at 4.5%; Q2 FY26 EBITDA margin declined to 8.6% from 9.6% a year ago.

• Animal Feed saw strong volume growth, especially 18% year-on-year in cattle feed, but revenue was flat due to lower realizations from softening commodity prices; margins improved by 70 bps year-on-year.

• Vegetable Oil revenue grew 41% year-on-year in Q2 and 65% in H1, with margins expanding to 22.4%, driven by higher crude palm oil and kernel oil realizations and improved extraction ratios.

• Stand-alone Crop Protection revenue declined 30% year-on-year in Q2 and 9% in H1, segment results dropped 62% due to excessive rainfall and lower acreages, compressing margins to 23.3% from 43.1%.

Outlook and guidance

• Focus on operational efficiencies, cost management, and premiumization in value-added products.

• Crop Protection outlook for H2 remains moderate to soft due to continued weather challenges and reduced chili acreage; diversification into maize and new products is underway.

• Animal Feed expected to maintain strong double-digit volume growth, especially in cattle feed, with underlying EBIT guidance of INR 1,900-2,000 per metric ton.

• Oil Palm business expected to continue mid-teens growth for the year, with oil extraction ratio at an all-time high of 19% in H1 and 19.8% in Q2.

• Continued investments in ESG initiatives and climate action commitments.