NATHBIOGENNSENovember 14, 2025

Nath Bio-Genes (India) Limited

8,333words
161turns
11analyst exchanges
6executives
Management on call
Satish Kagliwal
MANAGING DIRECTOR –
Devinder Khurana
EXECUTIVE VICE
Amol Gupta
CHIEF FINANCIAL OFFICER –
Harish Pandey
SALES LEAD – NATH BIO-
Venkatesh Kulkarni
RESEARCH LEAD –
Deepika Sharma
GO INDIA ADVISORS LLP
Key numbers — 35 extracted
rs,
in our products. At a time when climate unpredictability is posing serious challenges to our farmers, seed industry's role becomes even more critical. When our farmers are struggling to protect thei
6%
ghlights for H1 FY '26. As MD sir has informed you that cotton reported a steady growth of around 6% Y-o-Y in volume, reaching 1.11 million packets, while the growth in value is almost 26.3%, suppor
1.11 million
sir has informed you that cotton reported a steady growth of around 6% Y-o-Y in volume, reaching 1.11 million packets, while the growth in value is almost 26.3%, supported by healthy demand for our premium p
26.3%
of around 6% Y-o-Y in volume, reaching 1.11 million packets, while the growth in value is almost 26.3%, supported by healthy demand for our premium products like Sanket, RANA and strong channel presen
10%
iver. Paddy delivered a steady growth, a nominal growth in volume, but the value growth is almost 10%, highlighting the success in the strategy of the company for promoting hybrid paddy. The bajra sh
7.3%
nsoon in the key area for bajra. Maize, a major crop even during this H1 shows a strong growth of 7.3% in quantity Y-o-Y. Also, the vegetable seeds continue to be our fastest-growing segment, deliveri
25%
ty Y-o-Y. Also, the vegetable seeds continue to be our fastest-growing segment, delivering almost 25% Y- o-Y value growth. driven by expanding market reach and strong farmer demand, these segments r
3.7%
h and strong farmer demand, these segments remain margin accretive. Nonetheless, the PNS posted 3.7% Y-o-Y growth in volume with 5.29% growth in value, encouraged by steady momentum in Win-Chi-Win,
5.29%
segments remain margin accretive. Nonetheless, the PNS posted 3.7% Y-o-Y growth in volume with 5.29% growth in value, encouraged by steady momentum in Win-Chi-Win, WINPro GOLii, and WINpro, reflecti
15.9%
portfolio and consistent market performance. On the financial front, H1 FY '26 revenue growth was 15.9% Y-o-Y and it reaches to INR3,199 million, while gross profit increased 21.3% Y-o-Y, supported by
INR3,199 million
t performance. On the financial front, H1 FY '26 revenue growth was 15.9% Y-o-Y and it reaches to INR3,199 million, while gross profit increased 21.3% Y-o-Y, supported by richer product mix and improved margins.
21.3%
revenue growth was 15.9% Y-o-Y and it reaches to INR3,199 million, while gross profit increased 21.3% Y-o-Y, supported by richer product mix and improved margins. EBITDA rose by 5.7% Y-o-Y and PAT fo
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Guidance — 20 items
Satish Kagliwal
opening
“Through our extensive product evaluation process, we have identified several promising hybrids across key crops that have shown superior performance and will be introduced commercially in coming seasons.”
Amol Gupta
opening
“The receivables will be recovered in the -- during the due course of the business and the inventory will obviously come down by the sales in FY '26.”
Devinder Khurana
qa
“Vegetable, some part of mustard and nutrient supplement will be the basic contributors in H2.”
Majid Ahamed
qa
“So what are the steps are you taking to improve the operational efficiency in the coming quarters -- in lean quarters like quarter 2 going forward?”
Majid Ahamed
qa
“So what type of seeds or different things that you're trying to bring in the market to ensure there is an evenness among other quarters going forward, like any kind of initiatives are you trying to do that?”
Majid Ahamed
qa
“So my question is that going forward to ensure that we have a steady growth, like even apart from Q1, what type of steps or what type of strategic initiatives the company is taking, sir?”
Satish Kagliwal
qa
“So we believe that every year, there will be a significant improvement in the product portfolio, product basket will improve, and that should result into much higher value.”
Satish Kagliwal
qa
“So it's the next 3 to 4 years' time, you will see a significant change the way we are going forward.”
Majid Ahamed
qa
“How do you expect the working capital levels to trend for the rest of FY '26, sir?”
Majid Ahamed
qa
“Sir, how do you expect working capital levels to trend for the rest of FY '26?”
Risks & concerns — 12 flagged
Bajra saw a moderate decline due to lower acreages and softer rural sentiment, though the overall portfolio impact remained limited.
— Satish Kagliwal
The bajra shows some decline trend, primarily due to the lower acreage and uneven monsoon in the key area for bajra.
— Amol Gupta
First is what caused the decline in bajra volumes?
— Prathna
So it was -- so it's not a major decline.
— Harish Pandey
It's hardly 5% or 6% decline in the bajra market.
— Harish Pandey
Bajra continues to be uncertain crop all around because it goes into areas where rainfall is not sure all around.
— Satish Kagliwal
See, the tariff is allowing the -- let's say, there is a pressure to allow GM corn, mainly GM corn or let's say, GM soya, seed, not our seeds, but the grain into the country.
— Satish Kagliwal
So since India has not permitted GM cultivation here, there has been resistance from our government not to permit that kind of a thing, but there is a pressure.
— Satish Kagliwal
We are ---see whatever decline in the traditional cotton sale or organized sector sales, I think we, along with other 2, 3 small companies, we have only grown.
— Harish Pandey
For abiotic stress, we have some spots wherein we conduct trials on no spray, no irrigation basis to understand how the products perform under these stress conditions, which is -- and we also have a very specialized program on heat tolerance because Nath Bio-Genes considers heat tolerance as a trait of global importance and we are working on that.
— Venkatesh Kulkarni
What happens in the share market is not our concern.
— Devinder Khurana
This is what my concern because I am an individual investor so...
— Rajesh
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Q&A — 11 exchanges
Q
Sir, my first question is what were the main contributors for the 21.3% Y-o-Y growth in gross profit, sir?
Devinder Khurana
Rice and cotton, and maize to a certain extent. Okay, sir. With cotton and paddy contributing 74% of revenue, how do you see the mix evolving in the future? We have been trying to make Kharif and Rabi as 60-40. However, with the demand being generated for our cotton products on the entire country as well as also of the paddy hybrids getting us good results. So we find that our cotton paddy portfolio is still rising and rising well. So maybe it would be still 70-30 H1, H2, a little more tilted towards H1 side. Vegetable, some part of mustard and nutrient supplement will be the basic contributor
Q
I just have a couple of questions. First is what caused the decline in bajra volumes? And when do you expect improvement?
Devinder Khurana
The decline in bajra was marginal. It was not -- decline is a big word. But I will let Mr. Harish Pandey, who is the Marketing Chief, to apprise you on what happened into the bajra market this year. Bajra market has declined last year because of several issues. Number one was the rainfall, the timing of the rainfall, the rainfall received very early in some markets, some market has not received rainfall till July 15 or 20, right? So it was -- so it's not a major decline. It's hardly 5% or 6% decline in the bajra market. And in future, the way government is focusing on bajra crop, right, defini
Q
Okay. How has the extended monsoon impacted seed demand? And do you see any shift in farmer cropping pattern? Also, do we see any bad debts because of this extended monsoon and uneven monsoon?
Devinder Khurana
Let us divide this in 2 parts. One is how is the monsoon going to affect the company as well as the nation as a whole. Chief demand, yes. So I would request MD, sir, to please address this, sir? Yes. Okay. See since you have asked a very wide big question, the answer is not that easy also. But let's say, we have to be prepared for a monsoon like this. We always are prepared. So we are ready with different plan 1, plan B. So crop shift, if it takes place, which normally takes place, we are ready to take on that kind of a thing, number one. Number two, there is no question of bad debt because we
Q
So I just wanted to understand, have you seen any cost increases in the cost of production for cotton, especially this season or over the last 2, 3 years, sir, if you could quantify that for me?
Devinder Khurana
Quantification, we can do. But if you go through our cost of production, vis-a-vis the quantities, you'll be able to find out. But the cost of production in India has been on the rise for, I don't know, I think, for so many years now. Every year, it rises and our top line in cotton at least is controlled by the government. So the margins reduce. We are lucky that cotton is not my only mainstay. So we are able to get other -- better margins from other crops, and we are able to do well as far as the bottom line is concerned. But cost of production is definitely increasing, and it increases const
Q
Sir, I wanted to ask in the paddy segment, can you please share the mix of the hybrid versus the non-hybrid paddy for H1?
Devinder Khurana
I don't have the data here, but you can say it is around -- you see quantity-wise, it will be, say, 40-60 and value-wise, it will be 60-40. Hybrid net quantities give you better prices and in Rs. more quantities give you lesser price. Okay. Got it. Also, additionally, if you can throw some light on the vegetable segment going forward? Light in what sense, ma'am? Like the growth of the vegetable segment, how do you see that? Okay. Pandey ji say that. Okay. So like vegetable sales, if you see the kind of rainfall received across the country from Assam to Punjab, Punjab to Coimbatore, right? So e
Q
Congratulations on the results, sir. I just had a couple of questions. So I wanted to ask, how do you view industry's long-term demand fundamentals over the next 2 to 3 years, considering that GM might enter into Indian markets?
Devinder Khurana
I think we just touched this issue on GM. Dr. Kulkarni touched and I touched it. Just to summarize it. See, the tariff is allowing the -- let's say, there is a pressure to allow GM corn, mainly GM corn or let's say, GM soya, seed, not our seeds, but the grain into the country. Now there is a separate system for permitting GM seed cultivation in the country. So far, the authority, GEAC has permitted only cotton to be cultivated with the GM crop in the country. And the last approval for GM trait was in 2006. There has been not even a new trait in cotton allowed since 2006. So that's a different
Q
Congratulations for a good set of numbers. Sir, I had 3 questions. Like one was like about Aurangabad land, like what is the market value of the land and what is the company's plan to use this land? And second is about the patents, like what are the patents the company holds? And the third was about the debt, like any material write-offs or write-backs in the last 2 to 3 years?
Devinder Khurana
Can you just go a little slowly because you put all the 3 questions in jet speed? Yes, First is... Make is one by one, I'll answer all 3 in one shot. Yes, the first question is related to Aurangabad land, like what is the market value and what is the company's plan to... Let me answer that -- we are -- let me answer that. Thank you. We are in the process of seed and seed cultivation. Aurangabad land is not for sale. It is with us. It is going to continue with us. It is only appreciated and valued not to be put to any other use. Second question? Second question about debtors, like any material
Q
So first question was what is the growth outlook for the Plant Nutrition Solutions segment?
Amol Gupta
Yes. I will request Harish Ji to... Okay. So PSN growth is expected because the kind of rainfall as we received, it is giving the positivity among the farmer community. So they will go for the best product in the market. And our PNS product like Win-Chi-Win is giving the good yield support to the farmers. By applying our product, farmers are getting benefited. So definitely, the sales of PNS will go up in this next 5, 6 months. Okay. And how has the competition intensity evolved in cotton this season? And do you see market share gains for your leading brands? Cotton? Market share you're asking
Q
I have generalized questions, sir, so kindly bear with me. Firstly, could you quantify your revenues in the coming 2 quarters, second half of this year?
Devinder Khurana
Quantify? Any range would you like to give, revenue we could secure. I can -- we can only give you a guideline on what might happen over year-to-year over last year, which I gave in the last time also. We are expecting around 15% upward. Now what happens in Q2 is balanced on what has already happened in Q1 -- sorry, H1. So 15% growth we are expecting, sir? Upper limit. That's like not more than 15% you're saying? Yes. We have 6 months to make sales. Can anybody predict the exact number and exact percentage, boss? No, sir, you don't get offended. The simple question is the management must be ha
Q
I would like to hear from management because most of the investor since from corona, so there is no wealth generated. So what we can expect? Because if we even put FD, it will get double in 8 years, but it's more than 5 years, and there is no wealth generated for the investors. So I would like to understand from our Tiger, Khurana, so how he is going to take it further because he used to talk more. But as part of investors, no one is happy.
Devinder Khurana
Are you making this question personally, young man? Please don't do it. Yes, of course maybe for every... No you don't have a right to make it personal. Don't do it. I'm a long-term investor. I have a right to ask, okay? And... You have a right to ask. I will answer your question. Please don't make it personal. I just made that statement. Just stay within the protocol, ask a question. And as management, we will answer that. Okay. Go ahead... Thank you very much. Okay. Now you are saying that what is the company doing for enhancing the wealth of the investors because you are a very, very long-t
Dr
Q
Okay. I'll take this one, please. I'm Dr. Khurana, Executive Vice President of the company, and I have been here for quite some time as my last said that. At the outset, let me thank every investor that has been with the company for last so many years. Every company has its ups and downs. We have -- we had ups, then we had downs around the COVID period, and we are up again. Secondly, the company is putting in all our efforts and burning midnight oils to ensure that our products are well accepted into the market, which is evidently evident in the top line enhancement irrespective of the fact th
Management
Speaking time
Devinder Khurana
54
Harish Pandey
15
Moderator
13
Satish Kagliwal
10
Subhash Singh
10
Majid Ahamed
9
Prathna
8
Deepesh Sancheti
7
Dhruv Saraf
6
Amit Agicha
6
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Opening remarks
Deepika Sharma
Thank you, Amshadh. Good afternoon, everyone, and welcome to the Q2 and H1 FY '26 Earnings Call of Nath-Bio-Genes Limited. We have on the call Mr. Satish Kagliwal, Managing Director; Dr. Devinder Khurana, Executive Vice President; Mr. Amol Gupta, Chief Financial Officer; Mr. Harish Pandey, Sales Lead; Dr. Venkatesh Kulkarni, Research Lead. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risks that the company faces. May I now request the management to take us through the financials and the business outlook, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Satish Kagliwal
Thank you, Deepika, and a very good afternoon to all the investors present. I extend you all a warm welcome to our Q2 and first half of financial year '26 Earnings Conference Call. I'm Satish Kagliwal, MD of the company. Friends, the first half of financial year '26 has been a period that truly tested the resilience of Indian agriculture and also reaffirmed the strength of Nath Bio-Genes. Despite uneven monsoons, erratic rainfall and evolving market dynamics, our teams on the ground have continued to deliver consistent results and strengthen farmer trust in our products. At a time when climate unpredictability is posing serious challenges to our farmers, seed industry's role becomes even more critical. When our farmers are struggling to protect their livelihoods against nature's vagaries, we see it as our responsibility, not just an opportunity to empower them, empower the farmers with seed and technology that can withstand these uncertainties and still deliver good yield. This sense o
Amol Gupta
Thank you, MD, sir, and good afternoon, everyone. Thank you for joining us today for H1 FY '26 earnings call. Our earnings presentation has been uploaded on the stock exchanges and the company website. And I hope you have had the chance to review it. Before we move into the detailed financials, let me briefly take you through the key operational highlights for H1 FY '26. As MD sir has informed you that cotton reported a steady growth of around 6% Y-o-Y in volume, reaching 1.11 million packets, while the growth in value is almost 26.3%, supported by healthy demand for our premium products like Sanket, RANA and strong channel presence and the efforts of the team on the field. We hope it will continue to remain our key revenue driver. Paddy delivered a steady growth, a nominal growth in volume, but the value growth is almost 10%, highlighting the success in the strategy of the company for promoting hybrid paddy. The bajra shows some decline trend, primarily due to the lower acreage and un
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