Dharmaj Crop Guard has reported a steady start to FY27, with consolidated revenue rising 5% year-on-year to Rs. 3,841 million in the first quarter, despite delayed monsoon activity and challenging market conditions.

 

The agrochemicals company reported EBITDA of Rs. 573 million, up 13% year-on-year, while profit after tax (PAT) rose 17% to Rs. 381 million. EBITDA margin improved to 14.9% in Q1FY27 from 13.8% in the year-ago quarter.

 

Commenting on the results, Jamankumar Talavia, Whole Time Director, said: "Dharmaj has delivered a healthy start to FY27 in what has been a challenging operating environment. The quarter was marked by the El Nino effect and a slow start to the monsoon season. The monsoon onset was delayed across several key agricultural regions, which postponed Kharif sowing activity and led to a reduction in product demand through the quarter. 

 

"It is in this context, and on a larger base of Q1FY26, that we have been able to deliver revenue growth of 5% YOY. This performance reflects disciplined execution by our teams amid challenging market conditions.

 

"On top of this revenue growth, the Company has been able to maintain robust profitability. EBITDA margins for Q1FY27 stood at 14.9%, compared to 13.8% in Q1FY26. This has been driven by a better product mix within our Domestic Branded Formulations vertical, and partially aided by price realisations during the quarter."

 

Dharmaj’s Export business emerged as the strongest growth driver during the quarter, with revenue jumping 116% year-on-year, albeit on a smaller Q1FY26 base. The company said the recovery seen through FY26 has continued into the current financial year and expects the vertical to gain further scale.

 

The Domestic Branded Formulations business remained broadly flat year-on-year. However, the company highlighted a shift towards a higher share of value-added products, which helped improve profitability despite weaker demand conditions caused by the delayed monsoon.

 

The Active Ingredients business, meanwhile, recorded a 14% year-on-year decline in revenue. Dharmaj attributed the weakness to the ongoing West Asia crisis and related macroeconomic headwinds affecting input availability and demand in the Technicals market.

 

The company said it is continuing to align Active Ingredients production with the captive requirements of its Formulations business, a strategy it expects to support blended profitability and improve capacity utilisation.

 

Dharmaj also said construction of its new Formulations facility at Kerala GIDC, Ahmedabad, remains on track. The facility will be dedicated to herbicide manufacturing, a segment the company expects to become an increasingly important part of its product mix.

 

The new plant is also expected to free up capacity at the existing facility and improve throughput during the peak Kharif season.

 

Dharmaj said it remains confident of achieving its annual growth target, with Branded Formulations, the scale-up of Active Ingredients and a recovery in Exports forming the core pillars of its growth strategy for the remainder of FY27.

 

"Looking ahead, we reaffirm on our annual growth target and expect to build on this momentum as we proceed through the rest of the year. This confidence rests on three pillars: the strength of our Branded Formulations business, the scale-up of our Active Ingredients business, and a resurgence in our Exports vertical. 

 

"The organisation remains fully geared to navigate the near-term challenges while staying focused on sustainable long-term growth," the Whole Time Director said.