Dhanuka Agritech LimitedQ1 FY27 Results & Financial Update
Dhanuka Agritech Limited: Q1 FY27 standalone results and company financials – revenue ₹461.93 Cr, PAT ₹36.30 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Dhanuka Agritech Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Management noted that the agrochemical sector faced a challenging operating environment during the quarter due to delayed monsoon onset in several key agricultural regions. This delay postponed sowing activities and moderated product demand across domestic markets.
Gross profit for the quarter contracted to Rs. 162.43 crore compared to Rs. 190.34 crore in Q1 FY26, with the gross margin easing slightly to 35.16% from 36.03%. Cost of materials consumed decreased alongside top-line contraction, reflecting lower production volumes.
EBITDA declined to Rs. 55.01 crore from Rs. 83.19 crore in the corresponding quarter last year, driving the EBITDA margin down to 11.91% from 15.75%. Earnings per share for the quarter stood at Rs. 8.06 compared to Rs. 12.31 in Q1 FY26.
During the quarter, the company completed a share buyback of 500,000 fully paid-up equity shares—representing 1.11% of its total paid-up equity share capital—at a price of Rs. 1,400 per share, absorbing an aggregate consideration of Rs. 70.00 crore. The extinguished shares resulted in a reduction of paid-up share capital by Rs. 10 lakh.
The board approved an investment of up to Rs. 200 crore to establish a new pesticide manufacturing unit in Nagpur, Maharashtra. The project is planned to add 23,000 MT per annum of capacity and become operational by March or April 2028.
Additionally, the board approved a loan of up to Rs. 15 crore to the proposed Dhanuka Employee Stock Benefits Trust to acquire equity shares from the open market for administering the Dhanuka Stock Appreciation Rights Plan, 2026.
01 · Business model
What does Dhanuka Agritech do?
Dhanuka Agritech Limited operates as a leading Indian agrochemical enterprise engaged in manufacturing and distributing formulations across insecticides, fungicides, herbicides, and plant growth regulators. The company maintains a pan-India distribution network connecting with over 6,500 distributors and 80,000 retail points.
The operational footprint includes four manufacturing facilities and 41 warehouses spread across key agricultural states. Dhanuka collaborates with major international agrochemical innovators from the United States, Japan, and Europe to introduce advanced crop protection technologies to Indian farmlands.
Research and development activities are supported by specialized laboratories dedicated to applied chemistry, new formulation development, and process technology for generic and late-stage patented products. The company focuses on expanding its specialized '9(3) product' portfolio and new molecule introductions.
02 · Historical context
What shaped the business before this quarter
The tax incentives available to the company's manufacturing unit in Udhampur expired in March 2026, prompting strategic planning for new manufacturing capacity in Maharashtra.
The company previously established an advanced technical synthesis facility in Dahej supported by a dedicated R&D laboratory to strengthen its chemical synthesis and export capabilities.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹461.93 Cr |
| Total income | ₹470.79 Cr |
| Profit before tax | ₹48.57 Cr |
| Profit after tax | ₹36.30 Cr |
| EPS | ₹8.06 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 7.9% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 10.5% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹8.86 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Delayed onset of monsoon rains across key agricultural regions deferred sowing activities, lowering product demand and driving revenue from operations down to Rs. 461.93 crore.
Revenue mix by business segment for Q1 FY27 comprised Herbicides at 42%, Insecticides at 25%, Fungicides at 14%, and Others at 19%.
Geographic revenue distribution for the quarter showed Western markets contributing 37%, Northern markets 36%, Southern markets 18%, and Eastern markets 9%.
What drove margins
Gross profit margin contracted by 87 basis points year-on-year to 35.16% in Q1 FY27, impacted by domestic price competition and softer demand.
EBITDA margin declined by 384 basis points year-on-year to 11.91%, reflecting lower fixed-cost absorption resulting from reduced operational scale during the quarter.
05 · Demand, customers & order book
Where demand is coming from
The company maintains relationships with over 6,500 distributors and 80,000 retailers, servicing more than 10 million farmers across India.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The company continues to operate under a single reportable business segment, Agro Chemicals, as disclosed in the financial results.
Geography and market mix
Geographic revenue shares shifted slightly compared to Q1 FY26, with Northern India moving to 36% (from 31%) and Western India adjusting to 37% (from 41%).
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Dhanuka operates four manufacturing units and 41 warehouses across India, complemented by dedicated R&D facilities focused on applied chemistry and process technology.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Management announced plans to launch five new products in upcoming months, including one liquid fertilizer, three fungicides, and one herbicide.
09 · Reported developments
What changed operationally
The company completed the buyback of 500,000 equity shares at Rs. 1,400 per share, distributing Rs. 70 crore of capital to shareholders.
New molecules accounted for 11.56% of total revenue during Q1 FY27, reflecting ongoing emphasis on specialty and new chemical introductions.
10 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Capital allocation & funding
The proposed Rs. 200 crore capital expenditure for the Nagpur manufacturing plant is planned to be financed through internal accruals and/or debt.
11 · Management guidance & targets
What management is targeting from here
Management expects lower single-digit growth in revenue from operations for the full financial year 2026-27.
Management anticipates an EBITDA margin decline of approximately 200 basis points for FY 2026-27 compared to the previous year.
12 · Beyond the numbers
What changed beyond the numbers
Reported update
Leadership Recognition
Rahul Dhanuka was honored with the CEO of the Year 2026 award at the 17th Agriculture Leadership Award ceremony.
13 · Key Q&A
The quarter, answered directly
What does Dhanuka Agritech do?
Dhanuka Agritech Limited operates as a leading Indian agrochemical enterprise engaged in manufacturing and distributing formulations across insecticides, fungicides, herbicides, and plant growth regulators. The company maintains a pan-India distribution network connecting with over 6,500 distributors and 80,000 retail points.
What is the clearest takeaway from Q1 FY27?
Management noted that the agrochemical sector faced a challenging operating environment during the quarter due to delayed monsoon onset in several key agricultural regions. This delay postponed sowing activities and moderated product demand across domestic markets.
What drove revenue or demand?
Delayed onset of monsoon rains across key agricultural regions deferred sowing activities, lowering product demand and driving revenue from operations down to Rs. 461.93 crore.
What mattered most for margins or profitability?
Gross profit margin contracted by 87 basis points year-on-year to 35.16% in Q1 FY27, impacted by domestic price competition and softer demand.
What changed operationally beyond the headline numbers?
Dhanuka operates four manufacturing units and 41 warehouses across India, complemented by dedicated R&D facilities focused on applied chemistry and process technology.
What is management guiding or targeting from here?
Management expects lower single-digit growth in revenue from operations for the full financial year 2026-27.
14 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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15 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Monsoon Progression and Sowing Recovery: Monitor subsequent quarter volume recovery dependent on normal monsoon distribution and Kharif season crop protection demand.
- 02
Nagpur Plant Project Execution: Track land acquisition progress and construction milestones for the Rs. 200 crore Nagpur manufacturing facility leading toward its 2028 operational target.
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