Dharmaj Crop Guard Limited reported largely steady financial performance for the first half of FY27, navigating one of the weakest monsoon seasons in more than a decade, even as pressure on its Technicals business and higher input costs weighed on second-quarter margins.

The agrochemicals company reported revenue from operations of Rs 716.7 crore in H1FY27, marginally higher than Rs 714.6 crore in the corresponding period last year. Profit after tax (PAT) increased 3% year-on-year to Rs 51.3 crore, while EBITDA margin remained broadly stable at 11.4%, compared with 11.5% in H1FY26.

For Q2FY27, revenue declined 4% year-on-year to Rs 332.6 crore, primarily due to weaker sales in the Technicals division. EBITDA fell 24% to Rs 24.3 crore, while PAT declined 24% to Rs 13.3 crore, reflecting mounting cost pressures and subdued margins.

The performance comes against the backdrop of a severely deficient monsoon. According to the India Meteorological Department (IMD), seasonal rainfall stood at 87% of the long-period average, making it the fourth-lowest since 2001 and the weakest since 2015.

Commenting on the performance, Ramesh Talavia, Chairman and Managing Director of Dharmaj Crop Guard, said: "The 2026 m onsoon has been one of the weakest in over a decade. In our previous commentary, we discussed how the El Nino effect and a slow start to the monsoon season had weighed on industry performance in the first quarter.

"The second quarter saw this pattern continue, with uneven and weak rainfall across July to September. As per the IMD, seasonal rainfall over the country stood at 87% of its long period average, the fourth lowest since 2001 and the weakest since 2015."

The Technicals division remained the biggest pressure point during the quarter, with revenue declining 27% year-on-year in Q2FY27 and 20% in H1FY27. The company attributed the weakness to disruptions in input pricing and demand patterns following the West Asia crisis.

Higher input costs also compressed Q2 margins as purchases made after the outbreak of the crisis began flowing through the company's cost structure. Dharmaj said it was working to pass on the increased costs to end customers and expects margins in the Technicals business to improve over the coming quarters.

Despite the challenging operating environment, Dharmaj's Formulations business continued to demonstrate resilience.

Institutional Formulations recorded year-on-year growth of 2% in Q2FY27 and 3% in H1FY27. Branded Formulations grew 5% during the quarter and 2% in the first half.

The exports business also maintained its recovery momentum. While export revenue remained flat year-on-year in Q2FY27, exports grew 50% in H1FY27, building on the improvement witnessed during FY26.

The performance highlights the contribution of Formulations and exports in cushioning the impact of weakness in the Technicals division and subdued domestic agricultural demand.

Looking ahead, Dharmaj Crop Guard has maintained a cautiously optimistic outlook for the second half of FY27, while flagging potential challenges to the domestic Rabi season arising from deficient rainfall and lower reservoir levels.

The company plans to prioritise export growth while protecting its domestic business performance, as it navigates the uncertain agricultural and input-cost environment.