Agrochemicals company Best Agrolife announced Q1FY26 results Gross margin improved to 29% from 25%, driven by a superior product mix and cost discipline. EBITDA margin rose to 12%, up 140 bps YoY. PAT margin increased to 5%, up from 4% in Q1FY25. Sales returns significantly reduced, improving profitability and inventory hygiene. Revenue stood at Rs 381 crore, compared to Rs 519 crore in Q1FY25 due to deferred placements. PAT remained steady at Rs 20 crore, despite lower topline. Operating Expenses reduced due to strategic regional restructuring. Vimal Kumar, Managing Director, Best Agrolife, said: “This monsoon we observed a mixed season with most parts of India witnessing normal to above normal rainfall with the exception of Telangana and Maharashtra. In certain regions this variability impacted sowing activity. Despite these regular climatic variations, this is a fair year for agriculture. We are pleased to report that our newly launched patented products are performing well in their debut season. This quarter we have taken multiple steps to strengthen our sales performance from the ground up. Given our path to a disciplined approach in sales, we are reducing inventories and improving margins. As per our expectation, we have seen a margin improvement on a lower base of Q1 revenue numbers when compared QoQ. We view this in alignment with our strategic decision to implement revised sales policies with the aim to increase profitability, reduce excess placements, and reduce inventory levels across the value chain. Despite delayed monsoons affecting sowing in key regions, our newly launched patented products—Shot Down, Fetagen, and Best Man (along with Hustler, Suflex, and Executive under the Sudarshan Farm brand)—delivered good first-season performance. Field-level feedback has been positive. Shot Down and Hustler alone have already covered over 5 lakh acres, a strong testament to the trust we’ve earned among farmers and trade partners. Demand for Fetagen and Suflex continues to accelerate in paddy, sugarcane, and vegetable segments. We remain confident that our strong product portfolio, enhanced margins, and disciplined in-season execution will help sustain momentum through the remainder of the Kharif season.” Result PDF
Conference Call with Best Agrolife Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
Agrochemicals company Best Agrolife announced Q2FY25 results Financial Highlights: Q2FY25 Revenue from Operations declined by 8% YoY to Rs 746.6 crore in Q2FY25 compared to Rs 811.2 crore in Q2FY24 due to lesser sprays on account of continuous rains and a strategic higher focus on branded sales. Branded sales contributed 65% to the overall revenue as compared to 53% in Q2FY24. Q2FY25 EBITDA was at Rs 147.1 crore compared to Rs 144.1 crore in Q2FY24. EBITDA margin stood at 19.7% with an increase of 193 Bps on YoY basis, mainly on account of stability in raw material prices & higher sales of branded products. Q2FY25 PAT stood at Rs 94.7 crore compared to Rs 94.9 crore in Q2 FY24. As on Q2FY25, the Net Debt to equity has improved to 0.59 as compared to 0.90 as on FY24. Business Highlights: The Company was granted a patent for its novel ternary pesticide formulation that integrates lsoprothiolane, Pymetrozine, and Trifloxystrobin; as well as one for its fungicide formulation that combines Trifloxystrobin and Valifenalate. Best Agrolife received a patent for innovative insecticide formulation 'Nemagen' that combines Chlorantraniliprole, Novaluron, and Emamectin Benzoate. The Company received regulatory approval for Nemagen, an insecticide formulation called to target resistant pests causing major crop damage. Vimal Kumar, Managing Director, Best Agrolife said: "We are pleased to announce that Best Agrolife Ltd. has delivered a strong performance in Q2FY25, capitalizing on fovorable market conditions and executing our strategic shift toward branded sales. Our commitment to enhancing brand visibility and expanding our morket presence has yielded positive results, contributing significantly to both topline ond bottomline growth. During H1FY25, we secured three key patents for our innovotive formulations, reinforcing our leadership in the crop protection segment. Our branded products continued to perform exceptionolly well across regions, driving overall revenue growth. As a result of these efforts, we saw a substantial improvement in profitability, with our margins expanding from 26% to 34% YoY. Due to our effective working capital management, we have seen a significant improvement in cash flow from operating activities, rising from 15 crores in H1FY24 to <725 crores in H1FY25, reflecting our ongoing focus on optimizing financial performance. A notable achievement has been the effective manogement of sales returns-a chollenge we faced in the previous fiscal year. By optimizing our supply chain to better align with channel demand, we successfully reduced sales returns, which are expected to remain significontly lower than last year. Furthermore, we have now fully liquidated our high-cost inventory, positioning us for a more agile and responsive appraoch to future market dynamics. Although seosonal conditions were generally more fovorable compared to last year, some regions experienced excessive and continuous roinfall, which resulted in fewer crop sprays. However, the overall impact of above-average rainfall has been largely positive, particularly in key agricultural regions. lndia's water reservoirs are currently at 88% of total capacity-14% above normal levels-creating a strong foundation for the upcoming Rabi seoson. ln regions such as Maharashtra, Karnataka, Andhra Pradesh, and Telangana, where live water storage levels exceed 90%, we anticipate robust agricultural activity, setting the stoge for a highly productive second half of the fiscal year. Looking ahead, we are excited about our strong product pipeline for Q3 and Q4FY25. ln the upcoming quarter, we plan to launch our patented herbicide 'Shot Down' alongside a new insecticide. Additionally, two more cutting-edge insecticides are slated for release in Q4, further strengthening our product portfolio and market competitiveness. As we move forward, Best Agrolife remains committed to leveraging innovotion, expanding brand presence, and maintaining fiinancial discipline to drive sustainable growth in the coming quorters." Result PDF