Dhanuka Agritech Ltd

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.

SAR 2026 appreciation calculation

• Clarifies SAR 2026 appreciation calculation: FMV on exercise date minus Exercise Price multiplied by SARs.
• Appreciation Amount = (FMV on exercise date − Exercise Price) × number of SARs.
• Exercise Price shall not be less than the grant-date closing market price when higher grant-date volume occurs.
• Issued in response to proxy advisory firms' clarifications.

Meeting Details

• Date and time: 3 August 2026, 3:30 PM IST; group conference call; mode: virtual.
• Hosted by Antique Stock Broking Limited for 1QFY27 post-results discussion.

Participants

• Management represented by Chairman, Managing Director, and Chief Financial Officer.

Purpose

• Discuss quarterly results for quarter ended 30 June 2026.

Meeting Details

• Date: 3 August 2026; Time/venue not disclosed.

Key Agenda Items

• Consider and approve financial results for the quarter ended 30 June 2026.

Other Notes

• Trading window closed from 1 July 2026 until 48 hours after results declaration.

Dematerialisation status

• Dematerialisation requests received for quarter ended 30-Jun-2026 were confirmed to depositories; securities listed on exchanges.
• Securities dematerialised have been listed on the exchanges where the earlier issued securities are listed.
• Physical dematerialisation certificates were mutilated and cancelled, with depository name substituted as registered owner within 15 days.

Dividend proposal

• Board recommends 100% final dividend of ₹2 per share for FY2025-26, subject to AGM approval.

Key payout dates

• Record date for dividend: 17 July 2026.
• Last date to submit tax documents: 27 July 2026.
• Dividend paid after AGM approval on 3 August 2026.

Tax withholding framework

• TDS deducted at source on the final dividend.
• Resident: 10% TDS with PAN; 20% without PAN.
• Non-residents: 20% or DTAA rate, based on documents.
• Nil TDS possible for resident individuals if annual dividend ≤ ₹10,000.
• Form 121 applicable if dividend exceeds ₹10,000; details required.

AGM notice and AR access

• 41st AGM of Dhanuka Agritech scheduled for 3 Aug 2026 at 11:00 IST via VC/OAVM.
• Integrated AR FY2025-26 accessible via link and on NSDL/BSE/NSE portals.
• Record date for final dividend: 17 July 2026.
• Last date for TDS exemption forms: 27 July 2026.
• e-Voting period from 31 July to 2 August 2026.
• Shareholders without registered emails should update on their RTA/DP.
• Integrated AR accessible on company website at www.dhanuka.com.

Overview

• Main activities: agrochemicals manufacturing and wholesale trading.
• Reporting boundary: standalone BRSR for FY 2025-26.
• Turnover split: 88.14% manufacturing, 11.86% trading.
• Exports approx. 1.15% of turnover; international markets in 4 countries.

Key ESG Risks & Opportunities

• Agricultural innovation/opportunity: R&D with international partnerships to boost productivity.
• Occupational health and safety: ISO 45001 and risk-based safety programs.
• Operational safety/emergency preparedness: PPE, SOPs, drills, and regulator engagement.
• Waste management: hazardous waste controls, recycling, ZLD, and EPR compliance.
• Diversity & inclusion: plan to raise women representation in board/workforce.
• Local communities: CSR programs and community employment opportunities.
• Business ethics: Whistle-blower policy and anti-bribery controls to mitigate governance risk.
• Water management: grassroots conservation programs and ZLD across facilities.

Governance & Policy Highlights

• Board oversight for BRSR; no separate sustainability committee.
• Policies: Code of Conduct, Whistle-blower, Risk Management, Related Party Transactions.
• Assurance: no external independent assurance; internal reviews annually; board every 2–3 years.
• Certifications: ISO 9001/14001/45001; alignment with NGRBC.
• Policy web link: https://www.dhanuka.com/policies
• No material penalties or enforcement actions reported.

Social Responsibility & Workforce

• Total employees 1,217; permanent 1,105; contractors 112; workers 1.
• Board women representation: 1 of 10 directors (10%).
• Turnover: permanent male 28%, female 38%.
• Well-being: health/accident insurance coverage 100% for permanent employees.
• LTIFR: 0; total recordable injuries: 1; no fatalities.
• CSR focus: schools in Rajasthan, Dhanuka Waiting Hall at AllMS, water projects.

Environmental Performance

• Total energy: 47,502.4 Gj; renewables 2,854.4 Gj; non-renewables 44,648 Gj.
• Renewable energy share ~6% of total energy consumption.
• Water withdrawal 43,646 kl; consumption 41,450 kl; groundwater 25,735 kl; third‑party water 17,911 kl.
• ZLD implemented at all four plants; 100% STP water reused at several sites.
• GHG emissions: Scope 1 2,830 MT CO2e; Scope 2 3,179 MT CO2e.
• Waste: hazardous waste 1,413 MT; plastics recycled 46 MT; 623.9 MT reused.

Stakeholder Engagement & Complaints

• Key stakeholder groups: farmers, employees, investors, suppliers, government, local communities.
• Engagement channels: AGMs, town halls, farmer meets, vendor conferences, and regulator briefings.
• Customer complaints: 141 filed in current year; 155 in prior year.
• Value chain partner complaints: 3 filed in current year; 0 prior year.
• Inputs from stakeholders influence policy updates (water, waste, risk controls).

Other Notable Metrics

• Net-zero by 2040; 10% renewable energy by 2030; water neutrality by 2030; 90% waste recycling; zero landfill by 2030.
• Women representation target: 10–15% in workforce/board by 2030.
• Acquired Bayer rights for Iprovalicarb and Triadimenol; coverage in 20+ countries.
• Cybersecurity policy in place; 0 data breaches; QR labels to verify product authenticity.
• Awareness programs for value chain partners: 115,278 sessions; 100% coverage by value of business.