Dhanuka Agritech Q1 FY27 Results (NSE: DHANUKA)
Signal: Revenue declined
The read
Q1FY27 revenues and profits fell sharply YoY, but this is largely a base effect from an unusually strong Q1FY26 (revenue ₹52,828.81 lakh). The EBITDA margin of 13.8% is within historical Q1 range (12-15%) though slightly below last year's 15% (excluding prior Q1FY26's 17.3%). The key new developments are the completion of a ₹70 Cr buyback (5 lakh shares at ₹1,400) and announcement of a ₹200 Cr capex for a Nagpur plant, signalling confidence in long-term demand. The stock's P/E of 15.9x is below industry average of 22x, suggesting the market has already discounted near-term weakness. The low leverage (D/E 0.02) and clean earnings quality (other income 18% of PBT) provide support.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹461.93 Cr | -12.6% | -4.4% |
| EBIT | ₹49.39 Cr | -34.9% | |
| Net profit | ₹36.3 Cr | -34.6% | |
| EPS | ₹8.06 | -34.5% | |
| EBIT margin | 13.8% |
P&L walk
Revenue declined 12.6% YoY and 4.4% QoQ to ₹46,192.81 lakh, primarily on base effect from strong Q1FY26; EBITDA margin contracted 344bps YoY to 13.8% as raw material cost % rose 0.9pp and other expenses % rose 1.8pp while fixed costs remained stable; PAT fell 34.6% YoY to ₹3,630.44 lakh; EPS declined 34.5% to ₹8.06, slightly cushioned by the buyback-induced share count reduction.
Key positives
- Completed buyback of 5,00,000 shares (1.11% of equity) at ₹1,400, returning ₹70 Cr to shareholders and reducing capital base.
- Announced ₹200 Cr capex for a nagpur manufacturing unit, expected by Mar/Apr 2028, supporting long-term capacity and logistics.
- Net debt negligible (D/E 0.02) and finance cost down 37.5% YoY to ₹81.47 lakh.
- EPS decline slightly cushioned by share reduction; clean earnings quality with no exceptional items.
Key concerns
- Revenue declined 12.6% YoY to ₹46,192.81 lakh, the lowest Q1 since Q1FY24 (₹36,900 lakh) on an absolute basis.
- EBITDA margin contracted 344bps YoY to 13.8% as raw material cost % and other expenses % rose.
- Other expenses % of revenue increased 1.8pp to 13.2%, indicating fixed cost pressure on a lower revenue base.
- Seasonal weakness typical for Q1 but the extent of year-on-year decline highlights vulnerability to monsoon and pest cycles.
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