Godrej Agrovet has reported double-digit revenue growth for the first quarter of FY27, driven by strong performances in its animal nutrition, oil palm and dairy businesses, although rising input costs and inflationary pressures weighed on profitability.

 

The company reported consolidated sales of Rs. 2,852 crore for the quarter ended June 30, 2026, up from Rs. 2,603 crore in the corresponding period last year. Profit before tax, excluding non-recurring items and the share of profit from its joint venture, stood at Rs. 172 crore, compared with Rs. 188 crore a year earlier.

 

The quarter was marked by delayed monsoon conditions, slower kharif sowing and geopolitical tensions that pushed up input costs across several businesses.

 

Commenting on the performance, Sunil Kataria, Chief Executive Officer & Managing Director, Godrej Agrovet Limited, said: "Godrej Agrovet Limited delivered a resilient performance in Q1 FY27, with consolidated sales reporting double-digit growth despite operating in a challenging environment marked by delayed monsoon conditions and geopolitical tensions that led to inflationary pressures. 

 

"While profitability was impacted by temporary cost headwinds in select businesses, we remain confident of our ability to navigate these challenges through operational excellence and focused cost management.

 

"The quarter was characterized by robust volume-led growth across majority of our businesses. Animal Nutrition delivered another standout quarter, with ~15% growth in cattle feed volumes and improved realizations driving strong revenue momentum, while disciplined execution across sourcing, cost management and operating leverage translated to margin expansion. Our Bangladesh joint venture, ACI Godrej Agrovet, also returned to a strong growth path, delivering healthy volume and profitability growth."

 

He added: 'The Oil Palm business continued to deliver strong performance, with improved realizations and enhanced oil extraction efficiency driving robust growth in both revenue and profitability, while Fresh Fruit Bunch (FFB) volumes remained resilient against a high base despite delayed monsoon conditions.

 

"Astec LifeSciences continued to make strong progress on its turnaround journey, achieving another quarter of EBITDA break-even and significantly reducing losses, driven by improved volumes, better realizations, and higher capacity utilization."

 

The Crop Care business, as per the management, was impacted by a significantly delayed monsoon, slower kharif sowings following one of the driest June in over a decade, affecting volumes of in-house cotton herbicide.

 

"However, strong market traction and continued scale-up of Ashitaka (a new Maize herbicide) reaffirmed the strength of our innovation-led portfolio diversification efforts, helping to partially mitigate the impact even as lower cotton herbicide volumes weighed on margins. 

 

"The Dairy business continued to strengthen its value-added portfolio, delivering healthy revenue growth backed by strong volume growth and increasing the share of value-added products from 42% to 49% of sales. 

 

"However, industry-wide milk inflation and war impact on other inputs impacted profitability. In Godrej Foods, branded volumes continued to grow strongly in line with our strategic direction and the business maintained stable revenues. Profitability was affected by higher input costs and inflationary pressure from geopolitical disruptions," the CEO said.

 

"The significant improvement in net working capital over the past two years reflects our disciplined focus on capital allocation, cash generation and value creation. As we progress through FY27, we remain focused on building a customer and market centric organization with sharp execution focus to build a stronger higher return portfolio."

 

Among business segments, Animal Nutrition remained the key growth driver, with cattle feed volumes rising about 15% year-on-year, supported by better realizations, disciplined sourcing and operating leverage that lifted margins.

 

The Oil Palm business also delivered strong growth as improved realizations and higher oil extraction efficiency boosted both revenue and profitability, while fresh fruit bunch volumes held steady despite a high base.

 

Crop Care, however, came under pressure after delayed monsoon rains and sluggish kharif sowing reduced demand for the company's in-house cotton herbicide. The impact was partly offset by growing market acceptance of newly launched products, including maize herbicide Ashitaka and paddy insecticide Takai.

 

Astec LifeSciences continued its turnaround, reporting another quarter of EBITDA break-even and a sharp reduction in losses, supported by improved volumes, better realizations and higher capacity utilization, despite a marginal decline in revenue due to product mix.

 

The Dairy business recorded healthy revenue growth as value-added products increased their contribution to sales from 42% to 49%. However, elevated milk procurement costs and inflation in other inputs squeezed margins.

 

Godrej Foods maintained stable revenue as stronger branded sales offset a deliberate reduction in live bird volumes, although profitability was impacted by higher input costs linked to geopolitical disruptions.