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Earnings Call Transcript

Dhanuka Agritech Earnings Call Transcript: Key Takeaways

Revenue declined 12.56% YoY as delayed monsoons in key agricultural regions crippled herbicide demand. Management slashed guidance, projecting only single-digit growth for FY27 while facing margin pressure from high costs.

Guidance and delivery
Management target Revenue 9.0% FY27
Highlights
Revenue growthRevenue fell 12.56% YoY due to delayed monsoons affecting herbicide demand.
MarginsEBITDA and PAT under pressure from weak demand and competitive pricing.
Demand visibilityLow for Q2; heavily dependent on late-season rainfall and reservoir levels.
Management confidenceBalanced but cautious; admitted significant Q1 underperformance and cyclical challenges.

Growth

Growth is poor; revenue fell to ₹461.93 Cr. Performance is primarily volume-led but hit by cyclical headwinds.

Outlook

Guided single-digit growth for FY27. New ₹200 Cr Nagpur formulation plant expected operational by April 2028.

Risks

Subdued monsoon impact on Q2 visibility; high raw material costs and stiff pricing competition in domestic markets.

Last quarter's promises, checked

Delivered

  • Guided low double-digit revenue growth → delivered 9.0% growth (= MISS)
  • Guided 25% higher buyback price vs market → delivered ₹1,400 buyback (= BEAT)

Partly delivered

  • Guided EBITDA margin decline of 100 bps → delivered expansion in Q4 due to GST refund (= BEAT)

Missed

  • Guided 25-26% revenue from 9-3 products → delivered 26% (= BEAT)
  • Guided Dahej revenue ₹65 Cr for FY26 → delivered ₹50 Cr (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: DHANUKA. Summary written with AI assistance from the document.

Read the document ↗

Dhanuka Agritech Ltd: key numbers

Share price
₹964.35
Market cap
₹4,347 Cr
Revenue (annual)
₹2,020 Cr
Net profit (annual)
₹287.2 Cr
Promoter holding
69.81%+0.10% QoQ
FII holding
1.64%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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