Dharmaj Crop Guard Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Dharmaj Crop Guard Ltd filed with BSE on 03 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Dharmaj Crop Guard reported FY26 revenue of Rs. 1138 crores, up 20% year-on-year, with Q4 FY26 revenue at Rs. 234 crores, up 11% year-on-year. Full-year EBITDA grew 34% to Rs. 101 crores and net profit grew 57% to Rs. 55 crores, while the technical plant achieved PBT-level breakeven during the year. Management attributed muted growth in the branded formulation business to an uneven monsoon and elevated channel inventories, and outlined a new herbicide facility expected to be commissioned in Q3 FY27.
Numbers mentioned
Revenue: Rs. 1138 crores (FY26)
p. 4
“We are pleased to report that for the full year FY’26, Dharmaj recorded revenue of Rs. 1138 crores reflecting a 20% year-on-year growth.”
Ramesh Talavia, page 4 of the filed PDF · View the filing
Revenue: Rs. 234 crores (Q4 FY26)
p. 4
“For Q4 FY’26, revenue came in at Rs. 234 crores registering 11% year-on-year growth, even against relatively stronger Q4 FY’25 base.”
Ramesh Talavia, page 4 of the filed PDF · View the filing
EBITDA: Rs. 101 crores, up 34% YoY (FY26)
p. 4
“At the profitability level, EBITDA for the full year stood at Rs. 101 crores registering a growth of 34% year-on-year, while net profit stood at Rs. 55 crores up to 57% year-on-year.”
Ramesh Talavia, page 4 of the filed PDF · View the filing
Domestic active ingredient business growth: 37% year-on-year (FY26)
p. 5
“Our domestic active ingredient business grew 37% yearon-year for FY’26 and we operated ahead our own internal capacity utilization target through the year.”
Ramesh Talavia, page 5 of the filed PDF · View the filing
Domestic institutional segment growth: 15% year-on-year (FY26)
p. 5
“Within formulation, our domestic institutional segment delivered healthy growth of 15% year-on-year for FY’26, supported by consistent performance across the year.”
Ramesh Talavia, page 5 of the filed PDF · View the filing
Branded formulation growth: 3% (FY26)
p. 5
“Our branded formulation, vertical, however was muted coming in 3% growth for the year.”
Ramesh Talavia, page 5 of the filed PDF · View the filing
EBITDA margin: 9% (FY26)
p. 7
“Our full-year EBITDA margin stood at 9% compared to 8% in FY’25, supported by higher scale into operating leverage and moved to PBT level break even at the technical front.”
Vikas Agarwal, page 7 of the filed PDF · View the filing
Return on capital employed: 18% (FY26)
p. 7
“Return on capital employed improved to 18% from 13% in the prior year.”
Vikas Agarwal, page 7 of the filed PDF · View the filing
Return on equity: 12% (FY26)
p. 7
“Return on equity improved to 12% from 9%.”
Vikas Agarwal, page 7 of the filed PDF · View the filing
Closing inventory: 2074 million (FY26)
p. 7
“On the working capital front, the closing inventory stood at 2074 million, up significantly from 1385 million last year.”
Vikas Agarwal, page 7 of the filed PDF · View the filing
Cash conversion cycle: 87 days (FY26)
p. 8
“Our cash conversion cycle extended to 87 days from 67 days in FY’25.”
Vikas Agarwal, page 8 of the filed PDF · View the filing
Net block: 3097 million (FY26)
p. 8
“On the asset side, net block stood at 3097 million, With fixed assets turns, improving to 4x from 3x as utilization of the capacity created by our greenfield investment continues to improve.”
Vikas Agarwal, page 8 of the filed PDF · View the filing
Gross debt-to-equity ratio: 0.29x (FY26)
p. 8
“Our gross debt-to-equity ratio stood at 0.29x as of 31st March 2026, unchanged from last year, supported by a net worth of 4491 million against 3944 million a year ago.”
Vikas Agarwal, page 8 of the filed PDF · View the filing
Technical plant EBITDA margin: 5% (FY26)
p. 15
“So, last year, we have a GP margin of 19%. In current year, we have a GP margin of 22%. And EBITDA is around 5%, which was negative last year.”
Vikas Agarwal, page 15 of the filed PDF · View the filing
Technical plant capacity utilization: 65% to 70% (FY26)
p. 11
“Our technical plant's capacity utilization is around 65% to 70%. And next year, we will improve that, by adding product mix.”
Ramesh Talavia, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Overall revenue growth — 18% to 20% · FY27
stated firmly by Ramesh Talavia
p. 6
“As I look at FY’27, our growth outlook is positive with an expected 18% to 20% overall top-line growth.”
Ramesh Talavia, page 6 of the filed PDF · View the filing
Herbicide facility commissioning — Q3 FY27 · FY27
stated firmly by Ramesh Talavia
p. 6
“Our new dedicated herbicide facility near our formulation site in Kerala GIDC, Ahmedabad is progressing in line with plans and is expected to be commissioned in Q3 FY’27.”
Ramesh Talavia, page 6 of the filed PDF · View the filing
CAPEX — Rs. 50 crores · FY27
stated firmly by Ramesh Talavia
p. 12
“In the current year, we will have around Rs. 50 crores CAPEX, in unit 3rd and unit 2, in small units combining together.”
Ramesh Talavia, page 12 of the filed PDF · View the filing
Branded formulation growth — 20% to 25%
stated conditionally by Ramesh Talavia
p. 10
“So, if there is a regular monsoon this year, then our growth will be managed by 20% to 25% on an average of the brand.”
Ramesh Talavia, page 10 of the filed PDF · View the filing
Technical plant EBITDA margin — 8% to 10% · two to three years
stated as an aspiration by Ramesh Talavia
p. 21
“At the optimum level, we can make 8% to 10% EBITDA.”
Ramesh Talavia, page 21 of the filed PDF · View the filing
Overall EBITDA margin — 0.5% to 0.75% improvement · FY27
stated conditionally by Ramesh Talavia
p. 22
“In FY’27, our EBITDA margin which is currently at 9%. There will be 0.5% to 0.75% improvement in that.”
Ramesh Talavia, page 22 of the filed PDF · View the filing
Technical plant capacity utilization — around 75% · FY27
stated firmly by Vikas Agarwal
p. 17
“Going forward, this time, our capacity utilization was 70%. It was 65% to 70%. And next year, it will be around 75%.”
Vikas Agarwal, page 17 of the filed PDF · View the filing
Employee expenses growth — 5% to 8% · FY27
stated conditionally by Vikas Agarwal
p. 17
“That will grow around 5%. It will grow between 5% to 8%. Around 5%.”
Vikas Agarwal, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said monsoon disruption hurt consumption and expects growth to normalize with preparations already underway including a new brand ambassador.
Answered by Ramesh Talavia
Asked by Praneet: What happened in the branded formulation (B2C) segment this year and what is the B2B/B2C split forecast?
p. 10
“Last year, I told the reason that due to the rain in August-September, because of the monsoon, we were not able to grow.”
Ramesh Talavia, page 10 of the filed PDF · View the filing
Management said current EBITDA margin is around 5% and could reach up to 10% in four to five years with roughly 75 basis points of improvement annually.
Answered by Ramesh Talavia
Asked by Praneet: What is the current technical plant EBITDA margin and path to peak margin?
p. 12
“It can be up to 10%, but it will take time, it will take four, five years, only then we will reach to 10%, only technicals.”
Ramesh Talavia, page 12 of the filed PDF · View the filing
Management said gross margin improved to 22% from 19% and EBITDA moved to around 5% from negative last year.
Answered by Vikas Agarwal
Asked by Rajat Sethia: What were the gross margin and EBITDA figures for the active ingredient (technical) business this year versus last year?
p. 15
“So, last year, we have a GP margin of 19%. In current year, we have a GP margin of 22%. And EBITDA is around 5%, which was negative last year.”
Vikas Agarwal, page 15 of the filed PDF · View the filing
Management said no impact has been seen so far in Q1 and outcomes depend on monsoon timing and distribution.
Answered by Ramesh Talavia
Asked by Sanjay Ladha: How is demand looking in H1 FY27 given El Nino and geopolitical concerns on raw materials?
p. 19
“So far, we have not seen any such impact in Q1.”
Ramesh Talavia, page 19 of the filed PDF · View the filing
Management said export margins are similar to domestic institutional sales and growth will continue this year, with some shipment disruption limited to Iran and Iraq.
Answered by Ramesh Talavia
Asked by Disha: What is the export segment margin profile and outlook amid geopolitical tensions?
p. 21
“In export, the margin is parallel to the domestic institutional sales. The GP margin is 15% to 20% and the EBITDA margin is 10% to 12%.”
Ramesh Talavia, page 21 of the filed PDF · View the filing
Management said the impact would be negligible since alternative products are available.
Answered by Ramesh Talavia
Asked by Nitin Prajapati: Will the Andhra Pradesh state ban on paraquat herbicide affect Dharmaj?
p. 22
“The state government of Andhra Pradesh has banned paraquat. We will not have a volumetric effect.”
Ramesh Talavia, page 22 of the filed PDF · View the filing
Management said the spend relates to separating the herbicide facility location and would support growth for the next three years.
Answered by Ramesh Talavia
Asked by Yogansh Jaswani: What is the Rs. 50 crores CAPEX for and what growth timeline will it support?
p. 25
“Yes, it will be a benefit for the next three years for our growth part.”
Ramesh Talavia, page 25 of the filed PDF · View the filing
Risks flagged
Uneven and erratic monsoon disrupting agrochemical demand
p. 5
“This was mainly on account of erratic and uneven nature of monsoon towards the latter part of Q2 particularly in late August and September, which resulted in a subdued agrochemical demand across the country.”
Ramesh Talavia, page 5 of the filed PDF · View the filing
West Asia crisis disrupting raw material availability and pricing
p. 4
“and more recently the emerging disruption from West Asia crisis and its impact on key raw metal availability.”
Ramesh Talavia, page 4 of the filed PDF · View the filing
Elevated channel inventory affecting Rabi season demand
p. 5
“The Rabi season that followed was also muted across the country affected by lower-than-expected pest attacks and elevated industry channel inventories that had built up from the stronger Q1.”
Ramesh Talavia, page 5 of the filed PDF · View the filing
Pressure on technical realizations for much of the year
p. 5
“Through most of FY’26, realization demand under pressure and a meaningful recovery only began to emerge after February’26.”
Ramesh Talavia, page 5 of the filed PDF · View the filing
Shipment disruption in Iran and Iraq due to geopolitical issues
p. 21
“Like our business in Iran and Iraq, there is a little disturbance and material is not going.”
Ramesh Talavia, page 21 of the filed PDF · View the filing
Possible dry spell affecting the kharif season
p. 18
“If there is excess dry spell, then there can be a problem.”
Ramesh Talavia, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.