Dhanuka Agritech LimitedQ2 FY27 Results & Financial Update
Dhanuka Agritech Limited: Q2 FY27 consolidated results and company financials – revenue ₹657.51 Cr, PAT ₹109.22 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 Q2 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
Dhanuka Agritech reported consolidated revenue from operations of Rs. 657.51 crore for the second quarter of financial year 2027, marking an increase of 9.91% compared to Rs. 598.25 crore in the corresponding period of the previous year. The top-line expansion was supported by healthy channel inventory liquidation and steady demand during the autumn farming cycle.
Profitability growth outpaced revenue gains during the quarter. Profit After Tax (PAT) expanded 16.23% year-on-year to Rs. 109.22 crore, compared to Rs. 93.97 crore in Q2 FY26. Profit Before Tax (PBT) rose 16.27% to Rs. 146.47 crore from Rs. 125.97 crore, driven by operating leverage and disciplined expense management.
Operating performance reflected an EBITDA of Rs. 152.97 crore, representing an 11.88% increase over Rs. 136.73 crore reported in Q2 FY26. The EBITDA margin improved slightly to 23.27% from 22.85% in the year-ago quarter, benefiting from favorable product mix contributions despite sector-wide cost pressures.
Gross profit for the quarter advanced 6.62% to Rs. 270.77 crore from Rs. 253.95 crore. Gross profit margin moderated to 41.18% from 42.45% in Q2 FY26, reflecting persistently high raw material procurement costs experienced across the broader agrochemical industry.
Operating expenses demonstrated disciplined cost control. Employee benefit expenses stood at Rs. 53.04 crore (up 10.85% year-on-year), while other expenses decreased by 6.63% to Rs. 64.76 crore. Finance costs remained minimal at Rs. 0.76 crore, reflecting low debt utilization.
Management noted that the broader agrochemical sector in India faced headwinds during the quarter due to an erratic and uneven monsoon characterized by a 13% deficiency and regional rainfall variations. While dry weather adversely impacted the herbicide segment, Dhanuka's diversified geographic presence and growth in insecticides enabled resilient performance.
01 · Business model
What does Dhanuka Agritech do?
Dhanuka Agritech Limited operates as a leading Indian agrochemical enterprise engaged in the manufacture and distribution of crop protection products, spanning insecticides, fungicides, herbicides, and plant growth regulators. The company maintains an extensive domestic footprint supported by 41 warehouses, catering to approximately 6,500 distributors and over 80,000 retailers to reach more than 10 million farmers across India.
The operational model relies on strong technical tie-ups with major global innovators from the United States, Japan, and Europe, bringing advanced formulations and novel chemistries to Indian farmlands. Dhanuka operates manufacturing facilities, including a key technical synthesis plant located at Dahej in Gujarat, backed by dedicated research and development laboratories focusing on applied chemistry, formulation development, and process technology.
The product portfolio encompasses over 300 registrations across various crop protection categories, with a strategic emphasis on margin-accretive specialty molecules and new introductions. The company conducts extensive farmer education initiatives, such as van campaigns and regional meetings, to support product adoption and sustainable farming practices.
02 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q2 FY27 |
|---|---|
| Revenue from operations | ₹657.51 Cr |
| Total income | ₹666.68 Cr |
| Profit before tax | ₹146.47 Cr |
| Profit after tax | ₹109.22 Cr |
| EPS | ₹24.43 |
03 · Why it moved
Why the quarter looked the way it did
What drove revenue
Revenue expansion was supported by steady demand during the autumn farming cycle and healthy channel inventory liquidation across key agricultural regions.
A diversified geographic footprint allowed the company to capture demand from regions with adequate water resource availability, offsetting dry-weather pressures in moisture-deficient zones.
Growth in the insecticides segment compensated for weather-induced disruptions in the herbicide category, which suffered from below-normal rainfall.
What drove margins
Cost of goods sold (COGS) increased by 12.33% to Rs. 386.74 crore, leading to a contraction in gross profit margin from 42.45% to 41.18% due to persistently high raw material procurement costs across the industry.
EBITDA margin expanded by 42 basis points year-on-year to 23.27% from 22.85%, aided by a 6.63% reduction in other expenses which offset higher employee benefit outlays.
Other income grew by 45.09% year-on-year to Rs. 9.17 crore, supporting profitability growth at the PBT and PAT levels.
04 · Demand, customers & order book
Where demand is coming from
The company services its customer base through 41 warehouses, approximately 6,500 distributors, and over 80,000 retailers, reaching more than 10 million farmers pan-India.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
For Q2 FY27, Insecticides accounted for 47% of revenue (vs 46% in Q2 FY26), Fungicides contributed 25% (vs 29%), Herbicides represented 8% (vs 9%), and Others formed 20% (vs 16%).
Geography and market mix
Revenue distribution across zones in Q2 FY27 stood at 31% from the North region (vs 28% in Q2 FY26), 29% from the South (vs 32%), 12% from the East (vs 13%), and 28% from the West (vs 27%).
06 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
The Dahej manufacturing facility is projected to reach 70.75% capacity utilization by the end of financial year 2027.
Projects, capex and execution
Management announced plans to undertake capacity expansion within the Dahej manufacturing unit, which will also commence manufacturing products acquired from Bayer AG.
07 · Strategy & new businesses
How the company is trying to change its growth mix
The acquisition of Bayer AG’s renowned fungicide brands marks a key milestone in expanding Dhanuka's footprint into 20+ international markets and integrating technical manufacturing at the Dahej facility.
The company maintains a focus on margin-accretive 9(3) products and plans to launch several new products, including 'me-too' formulations, across all segments over the next two years.
08 · Reported developments
What changed operationally
PAT grew 16.23% year-on-year to Rs. 109.22 crore despite a challenging operating environment characterized by deficient monsoon rainfall.
09 · Pressure points & risks
What is not going smoothly
India's agrochemical sector experienced a weak earnings season due to a sharp 13% decline in monsoon rainfall and regional variations, which disrupted farming cycles and severely impacted herbicide sales.
10 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Capital allocation & funding
Finance costs for Q2 FY27 were reported at a minimal Rs. 0.76 crore, reflecting negligible debt reliance.
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 2027.
Management anticipates an EBITDA margin decline of approximately 125 basis points for the full financial year 2027.
12 · Beyond the numbers
What changed beyond the numbers
Reported update
CropLife India Conference
Dhanuka management attended CropLife India’s National Conference 2026 themed around Artificial Intelligence for agriculture transformation, driving efficiency, sustainability, and farmers' prosperity.
Reported update
Innovation Turnover Index
New molecules accounted for 12.84% of total revenue in H1 FY27, compared to 16.14% in H1 FY26 and 13.93% for the full year FY26.
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 the manufacture and distribution of crop protection products, spanning insecticides, fungicides, herbicides, and plant growth regulators. The company maintains an extensive domestic footprint supported by 41 warehouses, catering to approximately 6,500 distributors and over 80,000 retailers to reach more than 10 million farmers across India.
What is the clearest takeaway from Q2 FY27?
Dhanuka Agritech reported consolidated revenue from operations of Rs. 657.51 crore for the second quarter of financial year 2027, marking an increase of 9.91% compared to Rs. 598.25 crore in the corresponding period of the previous year. The top-line expansion was supported by healthy channel inventory liquidation and steady demand during the autumn farming cycle.
What drove revenue or demand?
Revenue expansion was supported by steady demand during the autumn farming cycle and healthy channel inventory liquidation across key agricultural regions.
What mattered most for margins or profitability?
Cost of goods sold (COGS) increased by 12.33% to Rs. 386.74 crore, leading to a contraction in gross profit margin from 42.45% to 41.18% due to persistently high raw material procurement costs across the industry.
What changed operationally beyond the headline numbers?
The Dahej manufacturing facility is projected to reach 70.75% capacity utilization by the end of financial year 2027.
What is management guiding or targeting from here?
Management expects lower single-digit growth in revenue from operations for the full financial year 2027.
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
Dahej Plant Capacity Expansion: Track the execution and progress of capacity expansion at the Dahej manufacturing facility and the commencement of production for acquired Bayer AG fungicide brands.
- 02
Annual Guidance Tracking: Monitor full-year performance against management guidance of lower single-digit revenue growth and an expected EBITDA margin moderation of approximately 125 bps for FY27.
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