Agrochemicals company Dharmaj Crop Guard announced Q1FY26 results Revenue: Rs 3,674 million, change 44% YoY. EBITDA: Rs 507 million, change 88% YoY. PAT: Rs 326 million, change 116% YoY. Rameshbhai Talavia, Chairman & Managing Director, said: “Dharmaj has commenced FY26 on a strong footing, delivering robust top-line growth of 44% YoY in the first quarter. This performance was supported by favourable market conditions, particularly a good start to the domestic Kharif season, aided by early rains and healthy rainfall levels across most parts of the country as of early August. According to the India Meteorological Department, above-average rainfall is expected for the remainder of the season in August and September. Our core Formulations business has continued to be the bedrock of our performance and sustained healthy momentum across both Branded and Institutional verticals, achieving notable YoY sales growth of 35% and 38%, respectively. The Domestic Active Ingredients segment, which we view as our new growth engine, also posted a standout performance with 62% YoY growth over the previous year, driven by higher capacity utilisation at our Sayakha Technical plant. Export sales, which had witnessed a slowdown in FY25, rebounded strongly in Q1, supported by improved conditions in key markets. Profitability during the quarter was aided by the healthy contribution from higher-margin Branded Formulations and by positive operating leverage from strong sales growth. EBITDA margins stood at 14% in Q1FY26, compared to 11% in Q1FY25. Additionally, gross margins in Active Ingredients have also observed some improvement in the current quarter. We remain confident that these will strengthen further as the industry demand environment improves and as export markets continue recovering, though the pace of recovery will remain contingent on broader sector dynamics. Active Ingredients continues to be a potential margin improvement lever for Dharmaj. In the interim, our internal strategy at Sayakha Technical plant remains focused on new product commercialisations, enhancing the product mix for improved realisations, increasing captive consumption to optimise margins, and ramping up capacity utilisation by leveraging both domestic & export opportunities. With the most important quarter of the year ahead, we are well-positioned to capitalise on the ongoing Kharif season and remain committed to sustaining our growth momentum across both Formulations and Active Ingredients.” Result PDF
Agrochemicals company Dharmaj Crop Guard announced Q2FY25 results Revenue: Rs 3113 million with growth 21% YoY. EBITDA: Rs 345 million with growth 4% YoY. PAT: Rs 210 million with growth 18% YoY. Rameshbhai Talavia, Chairman and Managing Director, said: “Dharmaj has demonstrated continued strong performance in Q2FY25, with Revenue from Operations showing a robust 21% growth , primarily driven by the Active Ingredients vertical. This growth underscores the Company's ability to capitalize on market opportunities in this segment. The formulations business remained flattish year –over year due to a few factors. Firstly, significantly higher rainfall in August and September across major geographies disturbed the usual insecticide spraying schedule towards end of sea son, leading to slower business momentum across industry. Further, dampened demand towards the end of sea son resulted in a price contraction of ~10% across the board in September. This correction came after promising price trends for Agrochemicals from April to August. These factors contributed to a marginal decrease in B2Band B2C sales during Q2. However, it's noteworthy that volume growth in formulations was still achieved, offset by lower realizations. Operations at Unit 2 in Sayakha are progressing as expected, with a 12% QOQ growth. Unit 2 at Sayakha has been able to register Rs 1,180 million in sales in the first - half of FY25. Production activities are being gradually ramped up, and the performance in H1FY25 has been satisfactory. Overall, the Company ha s achieved an impressive 37% top - line growth in H1FY25, with a higher contribution coming from the Active Ingredients segment. There is a fillip to higher falls a s well. The abundant rainfall across the country has led to record reservoir levels, which bodes well for a strong Rabi season. Dharmaj anticipates recovering some of the lost momentum in the formulations business during the Kharif season in the upcoming Rabi season. On the profitability front, while Gross Margins remained healthy and in line with Q1, there was some compression in EBITDA margins YoY due to; higher Operating Expenses associated with Unit 2 operations, increased Employee Benefit expenses resulting from annual appraisals in July and new hirings and higher Depreciation & Finance Costs. These factors led to a decrease in PAT on a YoY basis. However, it's important to note that the costs associated with Unit 2 are expected to normalize a s revenues from the unit increase. Operationally, our efforts to further build our extensive market presence are ongoing, we continue to add retail touchpoints and have also launched 4 new products on the Brand Formulations front. The outlook for the upcoming Rabi season remains positive, supported by expectations of bumper sowing. The company is making concentrated efforts to ramp up production at Unit 2, positioning it as a key growth engine for future expansion.” Result PDF