Dharmaj Crop Guard Reports 11.5% Revenue Growth but 17.6% Profit Decline in Q2 FY26

Dharmaj Crop Guard Limited reported mixed financial results for the quarter ended September 2025. Consolidated revenue from operations rose 11.5% year-over-year to ₹3.47 billion, driven by growth in its active ingredients segment.

Despite top-line growth, net profit declined 17.6% to ₹173.3 million from the previous year's comparable quarter. The decrease in profitability was primarily due to margin compression caused by higher operating expenses, employee benefits, and finance costs related to scaling up new facility operations.

The company’s EBITDA also contracted, with the margin shrinking to 9.17%, down from 11.08% year-over-year. Management reports ongoing progress in ramping up new production units, particularly at Sayakha, alongside plans to incorporate a fully owned subsidiary in Brazil to strengthen international presence.

Dharmaj Crop Guard’s outlook remains cautiously optimistic, with expectations of a rebound in formulations demand in the upcoming Rabi season. The company continues focusing on expanding market reach and product innovation amid challenging macroeconomic variables.

Key Highlights:

Consolidated revenue: ₹3.47 billion, up 11.5% YoY

Net profit: ₹173.3 million, down 17.6% YoY

EBITDA margin contracted to 9.17% from 11.08%

Increased operating expenses and finance costs pressured profits

New facility ramp-up underway at Sayakha unit

Plans to establish wholly-owned subsidiary in Brazil

Optimism on formulations growth in upcoming Rabi season

Dharmaj Crop Guard is strategically positioned to navigate short-term challenges and capture longer-term growth opportunities in agrochemicals.

Sources: ScanX Trade, Moneycontrol, Economic Times