Dhanuka Agritech (507717) Q1 26/27 earnings summary

Executive summary

• Q1 FY 2026-2027 faced significant challenges from delayed monsoon, resulting in reduced demand and lower revenue growth across the agrochemical sector.

• The company maintains a strong balance sheet, robust cash generation, and continues to focus on innovation with two research centers and partnerships with global agrochemical leaders.

• Expansion plans include a new automated manufacturing plant in Nagpur with a projected capacity of 23,000 MT/annum, operational by March/April 2028.

• Shareholders approved a final dividend of INR 2 per share (100%) and a buyback of 500,000 shares at INR 1,400 each, reducing paid-up capital.

• An Employee Stock Option Plan (ESOP) and a loan of up to INR 15 crore to the Employee Stock Benefits Trust were introduced to foster long-term alignment and growth.

Financial highlights

• Revenue from operations for Q1 FY 2026-2027 was INR 461.93 crore, down 12.56% year-over-year from INR 528.29 crore.

• EBITDA stood at INR 55.01 crore, with EBITDA margin at 11.91% (down from 15.75%); profit after tax was INR 36.30 crore, and PAT margin at 7.86%.

• Basic and diluted EPS for the quarter was INR 8.06, versus INR 12.31 in the prior year quarter.

• Dahej plant revenue increased to INR 26 crore from INR 16 crore last year; EBITDA improved from INR -3 crore to less than INR 1 crore.

• Royalty income was INR 4 crore, significantly lower than last year.

Outlook and guidance

• Management expects single-digit growth for FY 2027, with Q2 and Q3 anticipated to be stronger.

• Guidance for Dahej plant revenue is INR 65 crore for the full year, with EBITDA breakeven unlikely.

• New product launches and automation-driven expansion, including the Nagpur plant, are expected to support future growth and improve logistics in South, East, and Central India.