Godrej Agrovet Q1 FY27 Results (NSE: GODREJAGRO)
Signal: Margin pressure
The read
The quarter shows a mixed trajectory: consolidated revenue accelerated to ₹2855.22 crore, +9.2% YoY, but EBITDA margin contracted 190bps to 8.9% as raw-material intensity rose 520bps to 72.0%; Vegetable Oil growth was not enough to offset weaker Crop Care profitability and the Dairy turnaround into a ₹1.90 crore loss.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,855.22 Cr | +9.2% | +22.4% |
| EBIT | ₹198.29 Cr | -11.4% | |
| Net profit | ₹134.5 Cr | -9.6% | |
| EPS | ₹6.99 | -16.3% | |
| EBIT margin | 8.9% |
P&L walk
Revenue increased to ₹2855.22 crore, +9.2% YoY and +22.4% QoQ, but gross margin compressed to approximately 26.5% from approximately 30.8% YoY as raw-material cost rose to 72.0% of revenue from 66.8%; EBITDA margin fell to 8.9% and PAT declined 9.6% to ₹134.5 crore.
Segments
Vegetable Oil was the main momentum driver, with revenue of ₹619.24 crore, +24.1% YoY, and segment result of ₹99.61 crore, +14.7%, while Crop Care result fell 35.1% to ₹75.55 crore and Dairy moved to a ₹1.90 crore loss from a ₹4.31 crore profit.
Key positives
- Consolidated revenue rose 9.2% YoY to ₹2855.22 crore, with Vegetable Oil revenue increasing 24.1% YoY to ₹619.24 crore.
- Animal Nutrition revenue grew 12.6% YoY to ₹1302.09 crore and segment result rose 29.7% YoY to ₹83.68 crore.
- Finance costs declined 16.1% YoY to ₹29.79 crore, limiting the flow-through from gross-margin pressure.
- Standalone employee benefits expense declined 7.3% YoY to ₹105.33 crore despite 9.9% revenue growth.
Key concerns
- Consolidated gross margin compressed approximately 430bps YoY as raw-material cost increased to 72.0% of revenue from approximately 66.8%; revenue grew 9.2% while cost of materials, purchases and inventory-related costs rose approximately 16.1%.
- Consolidated EBITDA margin fell 190bps YoY to 8.9% and PAT declined 9.6% YoY to ₹134.5 crore.
- Crop Care segment result declined 35.1% YoY to ₹75.55 crore and Dairy moved from a ₹4.31 crore profit to a ₹1.90 crore loss.
- Standalone PAT of ₹183.6 crore included ₹49.7 crore of dividend income from a joint venture, making standalone earnings materially stronger than underlying operating performance.
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