GODREJAGRONSEQ2 FY'26November 12, 2025

Godrej Agrovet Limited

10,302words
120turns
13analyst exchanges
5executives
Management on call
Nadir Godrej
CHAIRMAN – GODREJ AGROVET LIMITED
Sunil Kataria
- CHIEF EXECUTIVE OFFICER
S. Varadaraj
- CHIEF FINANCIAL OFFICER – GODREJ AGROVET LIMITED
Arijit Mukherjee
- CHIEF OPERATING
Nitesh Dhoot
- ANAND RATHI
Key numbers — 40 extracted
INR2,567 crore
n the business update for quarter 2 fiscal year '26. For quarter 2 fiscal year '26, revenues were INR2,567 crores, 5% year-on-year growth, while the PBT was flat at INR125 crores when compared with quarter 2 fi
5%
date for quarter 2 fiscal year '26. For quarter 2 fiscal year '26, revenues were INR2,567 crores, 5% year-on-year growth, while the PBT was flat at INR125 crores when compared with quarter 2 fiscal
INR125 crore
fiscal year '26, revenues were INR2,567 crores, 5% year-on-year growth, while the PBT was flat at INR125 crores when compared with quarter 2 fiscal year '25 PBT, excluding nonrecurring items. In half 1 fiscal
INR5,182 crore
urring items. In half 1 fiscal year '26, Godrej Agrovet Limited reported consolidated revenues of INR5,182 crores, marking an 8% year-on-year growth. Profit before tax stood at INR313 crores, up 14% year-on-yea
8%
al year '26, Godrej Agrovet Limited reported consolidated revenues of INR5,182 crores, marking an 8% year-on-year growth. Profit before tax stood at INR313 crores, up 14% year-on-year, excluding non
INR313 crore
idated revenues of INR5,182 crores, marking an 8% year-on-year growth. Profit before tax stood at INR313 crores, up 14% year-on-year, excluding nonrecurring items. Coming to the financial and business highl
14%
INR5,182 crores, marking an 8% year-on-year growth. Profit before tax stood at INR313 crores, up 14% year-on-year, excluding nonrecurring items. Coming to the financial and business highlights of
18%
ss segments. During quarter 2 fiscal year '26, Animal Feed delivered strong volume growth, led by 18% year-on-year growth in cattle feed, though revenue remained flat due to lower realizations on acc
70 basis point
to lower realizations on account of softening commodity prices. Underlying margins improved by 70 basis points year-on-year. Vegetable oil posted stellar growth with revenue up 41% year-on-year and margins e
41%
ins improved by 70 basis points year-on-year. Vegetable oil posted stellar growth with revenue up 41% year-on-year and margins expanding to 22.4% driven by higher crude palm oil and palm kernel oil r
22.4%
ar. Vegetable oil posted stellar growth with revenue up 41% year-on-year and margins expanding to 22.4% driven by higher crude palm oil and palm kernel oil realizations and higher oil extraction ratio.
30%
higher oil extraction ratio. Stand-alone Crop Protection segment faced a sharp revenue decline of 30% year-on-year and a 62% drop in segment results due to excessive rainfall and lower acreages compr
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Guidance — 20 items
Sunil Kataria
qa
“Now going forward, I would say it's a bit of a fingers crossed picture, which we would like to take a look forward.”
Sunil Kataria
qa
“There are some of the pieces that we are putting forward, which I think will pan out starting quarter 4 later towards definitely next year very well.”
Probal Sen
qa
“And how should we look at this business going forward?”
Arijit Mukherjee
qa
“In this financial year, generally, the demand has shifted towards H2 because this will be a change in the cropping pattern.”
Abhijit Akella
qa
“Just in the context of how the first half has panned out and how we see things at this point in time, would you like to share any thoughts regarding what sort of numbers we could actually expect from an updated perspective?”
Sunil Kataria
qa
“So Abhijit, obviously, one of the biggest changes, I guess, maybe since I have not been in the background of the first quarter, but that's what the guidance which you would have got, obviously, because that's something I think the team set out to do.”
Sunil Kataria
qa
“So that is one big ticket item which is going to deviate from our initial forecast.”
Sunil Kataria
qa
“So I think that really waters down from the earlier guidance that we gave.”
Abhijit Akella
qa
“And what should we expect going forward?”
Abhijit Akella
qa
“So what should we expect from a full year perspective?”
Risks & concerns — 13 flagged
Stand-alone Crop Protection segment faced a sharp revenue decline of 30% year-on-year and a 62% drop in segment results due to excessive rainfall and lower acreages compressing margins to 23.3% from 43.1%.
— Nadir Godrej
Astec LifeSciences saw revenue fall 25% year-on-year on cautious contract manufacturing demand, though the enterprise category grew 15% year-on-year and the EBITDA improved on better volumes and margins.
— Nadir Godrej
So that's something we are being very, very cautious.
— Sunil Kataria
Just your thoughts quickly on what has driven the CDMO decline?
— Probal Sen
And in terms of the volume, does second half might see a degrowth or basically a decline, not a degrowth decline versus H1.
— Hardik Solanki
We've seen in the past from whatever history I've seen is what happened a couple of years back that some of these enterprise pricing can be so volatile that it cannot be in our hands.
— Sunil Kataria
The first thing challenge of ability to handle more molecules have increased.
— Arijit Mukherjee
Plus because of the R&D, the back-end support in terms of the new development execution, the other challenge that we have added.
— Arijit Mukherjee
So this is going to be a little bit of a challenge in the future.
— Nadir Godrej
And I think the points which you put on the table are pretty valid concern.
— Sunil Kataria
We will like to plough back money back into growth and into fuelling growth, which is a concern that you're putting on the table.
— Sunil Kataria
So despite 2.5 years of operation, just 12 molecules in the pipeline looks slightly weak.
— Jignesh Kamani
And reason for the 7% kind of decline in the first half where the industry has grown by around double digit.
— Jignesh Kamani
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Q&A — 13 exchanges
Q
Thank you for the opportunity, very good afternoon, gentlemen. Two or three questions; firstly, on the Crop Protection segment, I think this is something that was stated earlier as well that the excess rainfall has caused damage in terms of the area covered. But just wanted to get your understanding on what H2 is shaping up. Can we actually see some reversal in these trends? Or do you see the rainfall impact extending over the next couple of quarters as well in terms of the stand-alone Crop Protection business? That is my first question.
Sunil Kataria
Hi Probal, this is Sunil Kataria here. So very clearly, what we have seen in the quarter 2 has been a very, very uneven in both time as well as geography kind of a rainfall panning out. And that's definitely had a pretty strong negative impact on the quarter 2 performance of the Crop Protection business, and that's translating into the results that you're seeing. So what has happened is because of this excessive rain, obviously the window for spraying opportunities of the Crop Protection products that got really narrowed down, and that's one thing which happened. Secondly, what we have also se
Q
Yes, good afternoon. Thank you so much for taking my questions. So when we started the year, we had kind of guided to revenue and earnings growth of about 16% to 18% for fiscal '26. Just in the context of how the first half has panned out and how we see things at this point in time, would you like to share any thoughts regarding what sort of numbers we could actually expect from an updated perspective?
Sunil Kataria
Yes. So Abhijit, obviously, one of the biggest changes, I guess, maybe since I have not been in the background of the first quarter, but that's what the guidance which you would have got, obviously, because that's something I think the team set out to do. I think the biggest change event in this whole scheme of things as we set out stand in the mid of the year, I think is the big one is the changes in the external factors of the Crop Protection business because I think nobody in the industry, what I understand, forget us or across the entire industry would have anticipated this kind of a weath
Q
Thank you for the opportunity. I have 2 questions. First, coming towards the palm oil segment. So what was the oil extraction ratio for this quarter? And secondly, if you look at the volume, we have seen a healthy volume of 9% growth on a year-on-year basis. But just want to understand how the second half would look like. Basically, if you talk about the second half of last year, it has the growth has slowed down. So similar pattern can be seen for this second half as well.
Sunil Kataria
Okay. So I think this is one business of ours, which obviously is the star performer of the year and along with obviously Animal Feeds business as well. But we are seeing a lot of offshoots happening, which are paying off now for us, I think, over the years of work, which could turn out to be pretty strong multiple pillars of growth going forward for us. So first, as of now, the way the oil extraction ratio is our first half oil extraction ratio is 19-odd percent, and which is an all-time high that we have seen over last so many years. So that is a mix, I would say, of a couple of things. I th
Q
Now, I would like to know where do we drop out if you can tell us that. We are talking about the oil palm operational efficiencies. So maybe just to recap, I think there's a lot of groundwork which has happened in terms of all operational parameters of our OPB business. And I think the good operational work, while there's definitely been a support of good monsoons leading to a very good harvesting of the food bunches. But I think a lot of work and credit would go to the operational work on the ground. And I see that operational efficiencies going forward also continuing. So I think our OER rat
Hardik Solanki
Sorry sir. First let's talk about the Q1 FY '26, OER ratio was 20.8 and you said the average is around 19%, right? So the OER for the Q2 has dropped sharply, is it? No, no, no, it was not 20.8% in the first quarter. No, no, no. In fact, the second quarter has improved for us. Subramanian Varadaraj: Yes. So this is what Q2 is 19.49%. Q1 was actually Q1 FY '26 was 18.3%. Okay. Okay. And in terms of the volume, does second half might see a degrowth or basically a decline, not a degrowth decline versus H1. No, no, no. Okay. See, first of all, what happens is the ratio is broadly 65-35 broadly. Tha
Q
Yes, hi, sir. Thanks for the opportunity My first question is about Astec LifeSciences. So since Astec operates 2 segments, enterprise and CDMO, so could you provide a sense of the margin differential between the 2? And could you walk through the major drivers of margin expansion in the business in the upcoming quarters?
Arijit Mukherjee
So generally, if you see CDMO marginally varies between 30%, 31% and enterprise this year is coming to around 15%. To a larger extent, margin is driven, one is in terms of process efficiencies, which we are bringing in, some process controls in terms of cost controls, those. And in general overall, there is a price revision because of most of the old inventory is moving out, both the demand and the overall prices are slowly increasing in the market. So at least this year, we are seeing until now the H1 enterprise businesses, both the margin and the demand position has become stable. CDMO's mar
Q
Hello. Am I audible?
Management
Q
Hi. First of all, I would like to welcome Mr. Kataria as this is the first time we are interacting with him. So welcome, sir.
Sunil Kataria
Thank you. I'll just move to my questions quickly. I'll start with Astec. So just continuing to the previous participant's question, so broadly, as far as I understand, our guidance as per last quarter was that we do this year, we'll try to cross INR500 crores turnover and EBITDA breakeven on a full year basis. So we are maintaining that guidance, right, sir? Yes, we are maintaining that. Yes. I think we will be very close to that number on top line, and we are working towards breaking even on EBITDA. So I mean we don't see I mean, give or take a little bit on revenue here and there, but I mea
Q
Okay, I'll do that. Thank you.
Management
Q
Yes. Am I audible? My question is to Mr. Nadir Godrej. Is Mr. Godrej on the line?
Nadir Godrej
Yes, I'm on the line. Sir, I am a big fan of the Godrej Group actually, and I have held on to many shares of your company. And I also was an initial investor in Godrej Agrovet when it came out with IPO about 8 years back, sir. Sir, 8 years back, our company reported a top line of INR5,000 crores and a profit of about INR250 crores. Net profit margin was 5%. Now we are eighth year after the IPO. And sir, our revenue has just doubled. Normally, I have seen over the past 20, 25 years, Godrej Group normally grows at about 15% plus, whether it's Godrej Consumer in the initial years, Godrej Properti
Q
Yes, hi. Just to know more qualitative aspect on the Astec R&D center. So how many scientists are working right now? And if you talk about how many clients have visited in the last 1, 1.5 years and kind of how many inquiries we have received just because when I visited the center almost 1.5 years ago, when I interacted with your team, I was told that almost 30-plus global company has visited, flow of inquiry was very healthy. But when you talk about right now, we are working on 12 number of molecules, it looks very low despite R&D center started in April '23. So despite 2.5 years of operation,
Arijit Mukherjee
So let me first put in the infrastructure there. If you see the infrastructure, we have almost 60 fume hoods. So 60 fume hoods means almost in a normal scale, you can do 100 reactions at any time in the R&D center. Other than that, it is supported by other process safety labs, other QA labs. So infrastructure-wise if you roughly say that it will be 100 steps. And currently, for any of the chemistries worldwide, a reaction normally takes around 8 steps. So if we are doing around, say, 12 molecules, it means we are involving around 96 steps in the reaction. So occupancy-wise, we will be in terms
Q
Yes. Second question on the Crop Protection. So if you take about the first half segment, we declined around 7%, while if you take about entire majority of the industry grew by around 10% to 12%. You alluded that some of the products where we were the monopoly has 2 or 3 more, I can say, partner available. So in that context, are you how hopeful of you can say growth for the entire year? And what are the drivers you're seeing because the number of new products introduced in first half?
Management
Q
Yes. Just on the Crop Protection side. So if you take about the first half, we declined by around 7%. Majority of the industry witnessed double-digit growth in the first half. And you and you all did it this in the first one quarter, some of the products witnessed 2 or 3 more new competitors and hence, our market share has declined. So in that context, how hopeful of your growth in the Crop Protection? And how many products you introduced in the first half? And can you give some color about the opportunity size in the new product launch?
Sunil Kataria
Just a second. So the question is how many products have we rolled out in the first half? Yes, in terms of production and... Sorry, carry on. And reason for the 7% kind of decline in the first half where the industry has grown by around double digit. Okay. I think, first of all, I mean, I wouldn't be able to comment on the industry, but whatever results that we are seeing on the agrochem industry across, I think the pattern is pretty similar across because everybody seems to have got impacted by... I'm not talking about second quarter, I completely agree. So I think it also depends a lot on wh
Q
Thank you. I hope we have been able to answer all your questions. If you have any further questions or would like to know more about the company, we would be happy to be of assistance. Stay safe and stay healthy. Thank you once again for taking the time to join us on this call.
Management
Speaking time
Sunil Kataria
33
Moderator
15
Arijit Mukherjee
12
Jignesh Kamani
11
Nadir Godrej
8
Shravan Vora
8
Shubham Jain
7
Probal Sen
6
Abhijit Akella
6
Hardik Solanki
6
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Opening remarks
Nitesh Dhoot
Thank you, Sarthak. Good afternoon, everyone, and thank you for joining us on the Godrej Agrovet Q2 FY '26 Earnings Conference Call. From the company, we have with us Mr. Nadir Godrej, Chairman; Mr. Sunil Kataria, Chief Executive Officer and Managing Director; Mr. S. Varadaraj, Chief Financial Officer; and Mr. Arijit Mukherjee, Chief Operating Officer, Astec LifeSciences. We would like to begin the call with brief opening remarks from the management, following which we'll open the forum for an interactive question-and-answer session. Before we start, I would like to point out that some statements made in today's call may be forward-looking, and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. I would now like to invite Mr. Nadir Godrej to make the initial remarks. Over to you, sir.
Nadir Godrej
Thank you. Good afternoon, everyone. I welcome you all to the Godrej Agrovet earnings call. Now I will comment on the business update for quarter 2 fiscal year '26. For quarter 2 fiscal year '26, revenues were INR2,567 crores, 5% year-on-year growth, while the PBT was flat at INR125 crores when compared with quarter 2 fiscal year '25 PBT, excluding nonrecurring items. In half 1 fiscal year '26, Godrej Agrovet Limited reported consolidated revenues of INR5,182 crores, marking an 8% year-on-year growth. Profit before tax stood at INR313 crores, up 14% year-on-year, excluding nonrecurring items. Coming to the financial and business highlights of each of our business segments. During quarter 2 fiscal year '26, Animal Feed delivered strong volume growth, led by 18% year-on-year growth in cattle feed, though revenue remained flat due to lower realizations on account of softening commodity prices. Underlying margins improved by 70 basis points year-on-year. Vegetable oil posted stellar growth
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