Dhanuka Agritech Ltd

New Product Launch Details

• Wetcit Neo is a novel spray adjuvant for India; reduces surface tension and improves spray coverage.
• Fujita is a premium systemic fungicide (Isoprothiolane 40% EC) for rice blast control in India.

Dhanuka Agritech Ltd trading window closed from 01 October 2026 till 48 hours after the declaration of Un-audited Financial Results for the Quarter and Half year Ending September 30, 2026.

Product Launch Details

• POLIN (20% SC) is a new-generation fungicide with DHODHI mode of action (FRAC 52), developed with Nippon Soda.
• Provides preventive protection against Leaf & Neck Blast with translaminar and systemic action.
• Catered to the domestic Indian market.
• Launched in collaboration with Nippon Soda, Japan.

Ratings & Action

• Long-term bank facilities ₹30 crore reaffirmed at CARE AA; Stable.
• Long-term/short-term facilities ₹33 crore reaffirmed at CARE AA; Stable / CARE A1+.
• Total facilities ₹63 crore.
• Rating action based on FY26 and Q1FY27 performance.

Lenders & Limits

• Fund-based limits ₹30 crore from HSBC and HDFC.
• Non-fund-based limits ₹33 crore; LC upto 180 days, BG upto 15 months.

Agency & Date

• Agency: CARE Ratings Limited (CareEdge Ratings).
• Press release dated 16 September 2026.

Rationale & Outlook

• Based on FY26 audited results and Q1FY27 performance.
• Outlook: Stable; rating reaffirmed.

ESOP listing approvals

• NSE and BSE granted in-principle approvals to list up to 50,000 equity shares of ₹2 under ESOP 2026.
• Listing subject to allotment and credit to beneficiaries' accounts or dispatch of share certificates.
• Requires statutory approvals and compliance with SEBI, RBI, MCA, and other authorities.
• Must comply with SEBI LODR, Companies Act 1956/2013, and applicable laws.
• The exchange can withdraw the in-principle approval if information is incomplete or misleading.
• Approval for listing and trading will be issued subject to the stated compliances.
• In-principle approvals are dated 16 September 2026 from NSE and BSE.

Subsidiary incorporation

• Dhanuka Agritech Europe Private Limited incorporated in Ireland as a wholly owned subsidiary.
• Incorporation approved by Ireland CRO; effective August 26, 2026.
• Subscribed for 100 ordinary shares at EUR 1 each for cash.
• The subsidiary is 100% owned by Dhanuka Agritech Limited.

Overview and rationale

• Purpose: establish agrochemical operations and allied activities in Europe.
• Regulatory approvals: Ireland Companies Registration Office approved the incorporation.
• Turnover: Nil at completion as operations have not commenced.

Death of General Manager Export

• Raghunath Duvvuri, General Manager - Export, ceased due to demise on 13 August 2026.
• Reason for cessation: Demise; no other material reasons stated.
• Relationship with other directors: Not Applicable.

Financial Performance

• Q1 FY27 revenue: Rs 461.93 crore, down 12.56% YoY from Rs 528.29 crore.
• Q1 FY27 EBITDA: Rs 55.01 crore; PAT: Rs 36.30 crore.
• Innovation turnover index last year was about 13.89%.
• Final dividend: Rs 2 per share; Buyback 5 lakh shares at Rs 1,400; Rs 70 crore.

Operating Update

• Zone mix: North 36%, West 37%, South 18%, East 9%.
• Product mix: Insecticides 25%, Fungicides 14%, Herbicides 42%, Others 19%.
• Dahej Q1 revenue: Rs 26 crore; FY26 revenue was Rs 16 crore.
• Dahej FY27 revenue guidance around Rs 65 crore; EBITDA unlikely to breakeven (negative Rs 4–5 crore).
• India Bayer revenue booked in previous year; international expansion ongoing with Brazil/Europe; distributors appointed.
• Verdor and MYCORe SUPER launched; five new products planned (Liquid Fertilizer, three Fungicides, one Herbicide).
• GST notice: Lakshmikumaran appointed; current circular 5% GST; outcome expected.

Balance Sheet and Cash Flow

• Company remains debt-free.
• Balance sheet and cash generation remain strong.

Capex and Projects

• Nagpur land acquired for a 23,000 MT/yr formulation plant.
• Capex up to Rs 200 crore; commissioning by Apr 2028.
• Nagpur plant to be highly automated to reduce labor dependency.
• Dahej capex timing to be communicated later.

Guidance and Outlook

• FY27 top-line growth guidance cut; expect better Q2 and Q3.
• CAPEX for 2027-28 includes about Rs 100 crore for Nagpur; Dahej timing later.

Q&A Highlights

• Q1/Q2 outlook: monsoon variability dampened near-term demand; expect late-year recovery.
• Bayer revenue discussed; not disclosed for FY27; exploring inorganic growth opportunities.
• Biostimulants: two launched; third expected by August end; market-share capture potential discussed.
• Dahej revenue run-rate: Q1 Rs 26 crore; full-year guidance around Rs 65 crore; EBITDA negative Rs 4–5 crore likely.
• Sowing impact: rainfall shortfall moderated by July progress; hedges and regional demand variability noted.
• Nagpur expansion: 23,000 MT/yr formulation plant; commissioning targeted for Q4 FY2028; CGST benefits cited.

Risks and Watchpoints

• Monsoon variability continues to influence demand and pricing dynamics.
• Dahej plant breakeven remains challenging; targeted EBITDA around negative Rs 4–5 crore.

Meeting Details

• Date: 3 August 2026; Analysts/Investors Call.
• Mode: audio recording of a virtual group call.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Discuss the unaudited quarter ended June 30, 2026 results.

Availability

• Audio recording of the call is available.
• Board approved the June 30, 2026 results on 3 August 2026.

Business Overview

• Indian agrochemical company focused on novel chemistries and product development.
• Pan-India presence with 4 manufacturing units and 41 warehouses.
• 6,500 distributors and 80,000 retailers supported by 2 R&D centers.

Key Operational Highlights

• Nagpur land acquired for new plant; capex up to ₹200 crore; 23,000 MT/year; operation by Apr 2028.
• Plan to launch five new products: 1 liquid fertilizer, 3 fungicides, 1 herbicide.
• Acquisition of Bayer fungicide brands expands international footprint; access to 20+ markets.
• Share buyback completed: 5 lakh shares at ₹1,400; Rs 70 crore.
• Final dividend of ₹2 per share approved (100%) at AGM.
• Board approved ESOP plan to strengthen leadership and growth.

Financial Performance

• Q1 FY2026-27 revenue ₹461.93 cr; YoY decline 12.56%.
• Q1 EBITDA ₹55.01 cr; EBITDA margin 11.91%.
• Q1 PAT ₹36.30 cr; PAT margin 7.86%.
• Gross profit ₹162.43 cr; gross margin 35.16%.
• FY26 revenue ₹2019.79 cr; YoY change −0.75%.
• FY26-27 guidance: revenue growth in low single digits; EBITDA decline ~200 bps.
• Basic EPS ₹8.06.

Governance & Leadership

• Final dividend of ₹2 per share approved; 100% payout.
• Share buyback completed; 5 lakh shares; Rs 70 crore.
• ESOP plan approved by Board.