Godrej Agrovet Q1 FY27 Results (NSE: GODREJAGRO)
Signal: Margin pressure
The read
The key inflection is a second consecutive quarter of YoY operating-margin contraction: consolidated EBITDA margin fell 200bps to 8.9% after a 100bps decline in Q4FY26, with raw-material cost rising to 72.0% of revenue from 66.8%; Vegetable Oil growth is strong, but Crop Care deterioration and weak consolidated profit conversion keep the trajectory mixed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,855.22 Cr | +9.2% | +22.4% |
| EBIT | ₹198.29 Cr | N/A | |
| Net profit | ₹134.5 Cr | -9.0% | |
| EPS | ₹6.99 | -16.3% | |
| EBIT margin | 8.9% |
P&L walk
Revenue increased to ₹2855.22 crore, +9.2% YoY, but gross margin compressed to 26.5% from 29.7% as raw-material cost rose to 72.0% of revenue from 66.8%; EBITDA margin consequently fell to 8.9% from 10.9%, while PAT declined to ₹134.50 crore from ₹160.52 crore attributable to owners.
Segments
Vegetable Oil was the main earnings accelerator, with revenue up 24.1% YoY to ₹619.24 crore and segment result up 14.7% to ₹99.61 crore, while Crop Care dragged with revenue down 13.3% and result down 35.1%; Dairy moved from ₹4.31 crore profit to a ₹1.90 crore loss.
Key positives
- Revenue increased 9.2% YoY to ₹2855.22 crore, with Animal Nutrition revenue up 12.6% to ₹1302.09 crore and Vegetable Oil revenue up 24.1% to ₹619.24 crore.
- Other expenses grew 5.4% YoY to ₹307.21 crore, slower than revenue growth of 9.2%, while finance costs declined 16.1% to ₹29.79 crore.
- Vegetable Oil segment result increased 14.7% YoY to ₹99.61 crore despite the broader margin decline.
- EPS declined 16.3% YoY to ₹6.99, broadly tracking the 16.2% decline in owner PAT and showing no material dilution signal.
Key concerns
- Gross margin compressed approximately 320bps to 26.5% as raw-material cost increased to 72.0% of revenue from 66.8%; the filing does not disclose the driver, indicating that higher input costs were not fully absorbed through pricing or mix.
- Consolidated EBITDA margin declined 200bps YoY to 8.9%, and owner PAT fell 16.2% to ₹134.50 crore despite 9.2% revenue growth.
- Crop Care segment revenue declined 13.3% to ₹349.02 crore and segment result fell 35.1% to ₹75.55 crore, while Dairy moved into a ₹1.90 crore loss.
- Standalone PAT of ₹183.60 crore materially exceeded consolidated PAT of ₹134.50 crore, primarily because standalone other income included a ₹49.70 crore joint-venture dividend that was eliminated on consolidation.
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