Godrej Agrovet reported a strong Q3 FY26 performance with consolidated revenues up 11% YoY and PBT (before exceptional items) rising 23% YoY. Key drivers included stellar growth in Vegetable Oil, robust Animal Feed volumes, and a turnaround in Astec LifeSciences. Management detailed strategic shifts, particularly doubling down on the branded retail focus within Foods and outlining the pipeline for crop protection product diversification.
Q3 FY26 Consolidated Financial Highlights
Godrej Agrovet delivered a strong performance in Quarter 3 Fiscal Year 2026. Consolidated revenues increased by 11% year-on-year. Profitability accelerated sharply, reflected by a 23% year-on-year increase in profit before tax before exceptional items. For the 9 months ending December 31, 2025, consolidated revenues reached INR7,900 crores, marking a 9% YoY increase, while PBT grew 17% YoY to INR482 crores.
Segment Performance Deep Dive
The Animal Feed segment showed strong, volume-led growth, with volumes up 12% YoY in Q3. Cattle feed volumes specifically grew by 21%, with underlying EBIT per metric ton improving to INR2,020 from INR1,937 in the previous year’s corresponding quarter.
The Vegetable Oil business delivered stellar results with segment revenue up 27% YoY, driven by improved Fresh Fruit Bunch arrivals and a better oil extraction ratio, which reached an all-time high of 21% in the quarter.
Astec LifeSciences registered a significant recovery, with revenues growing 33% YoY due to robust volume growth in enterprise and CDMO segments. The EBITDA for the quarter turned positive at INR5 crores, a sharp improvement from the prior period’s loss.
Creamline Dairy saw a 3% YoY revenue growth, though EBITDA declined to INR11 crores due to higher milk procurement costs.
Godrej Foods saw revenues of INR215 crores, with EBITDA growing 51% YoY to INR17 crores. The strategic shift towards value-added offerings is evident, with branded salience rising to 81% in Q3 from 77% last year.
Strategic Outlook and Value Creation
Regarding the ongoing strategic review, management indicated they are at the “fag end” of the deep strategy work focused on portfolio choices. Clear choices regarding business priorities are expected to be communicated to the Street towards early April.
For Astec LifeSciences, management is targeting revenue growth of about 20% for the full year FY26, with an EBITDA breakeven target confirmed to be on track for FY26. For the next year, the target is revenue growth of about 15%, led by the CDMO business.
In Crop Protection, management noted the impact of unseasonal rains but expects a healthy growth pace, excluding a one-time co-marketing base effect impacting Q4. The business is diversifying, having recently launched Ashitaka (maize herbicide) and planning to launch Takai (multi-crop insecticide) shortly, alongside two in-house products slated for FY27.
The Animal Feed strategy is shifting focus to areas with greater brand ability and premiumization potential, specifically signaling a continued emphasis on the cattle feed subsegment, which currently contributes about 54% of volume.
Concerning the Dairy business, management is focusing on its core, aiming to be a full-fledged branded retail player over a 5-year period, reducing its exposure to the live bird trading component.
Finally, the group’s new pet food plant is ready and slated to be commissioned within a month or so.
Source: BSE
