Dhanuka Agritech reported challenging Q3 FY26 results, with revenue at ₹409.92 crores (down from ₹445.27 crores YoY) and EBITDA at ₹58.66 crores (down from ₹75.56 crores YoY). Management attributed the weak quarter to industry-wide volume decline driven by poor weather and low crop prices, impacting farmer spending. Despite this, management assured stakeholders that the difficult phase is over, projecting a return to double-digit CAGR based on strategic focus areas like innovation and international expansion.
Q3 FY26 Performance Review
Dhanuka Agritech hosted a conference call on February 5, 2026, to discuss the Un-Audited Financial Results for the Quarter and Nine Months ended December 31, 2025. Chairman M. K. Dhanuka acknowledged that the last two quarters have been a ‘blemish’ but assured stakeholders of a turnaround.
Key Financial Figures (Q3 FY’26 vs Q3 FY’25)
- Revenue from Operations: ₹409.92 crores vs. ₹445.27 crores.
- EBITDA: ₹58.66 crores vs. ₹75.56 crores.
- Profit After Tax: ₹40 crores vs. ₹55.04 crores.
The management noted that demand was weak due to stressed drivers, weather issues, and low crop prices, particularly impacting sales in South and West India.
Business Strategy and Growth Drivers
Dhanuka remains focused on transforming Indian agriculture through innovation, leveraging two research and technology centers for new product and formulation development. The company has a pan-India presence reaching over 10 million farmers, supported by 4 manufacturing units and 41 warehouses.
The company highlighted the commercialization of a second product from the Dahej plant in Q3 FY’26, aiming for Dahej operations to become EBITDA positive in FY’27 with 80% capacity utilization. Furthermore, the plan for MPP-2 is nearing conclusion.
Geographic and Product Mix (Q3 FY’25-26)
Zone-wise turnover share:
- North India: 25%
- East India: 11%
- West India: 30%
- South India: 34%
Product category share:
- Insecticides: 28%
- Fungicides: 21%
- Herbicides: 37%
Q4 Outlook and Bayer Product Transition
Management stated that Q4 has started well, with good prospects for South Indian paddy, East Indian paddy, and wheat herbicide consumption extending into early Q4. While it is too early to finalize Kharif plans, the outlook post-Rabi harvest is bright.
Regarding the Bayer molecules, the net economic benefit for 9 months was ₹19.5 crores (₹6 crores in Q3). This benefit is expected to discontinue entirely starting in FY’27 as Dhanuka assumes full control. Technical sales for the next year are expected to grow by 10%-20%.
Regulatory Environment and Long-Term View
The proposed Draft Pesticide Management Bill (PMB) is viewed favorably, expected to benefit organized players by bringing tough rules against spurious products and providing a larger market space for compliant companies.
For the medium-to-long term (3 to 5 years), management is confident in achieving a healthy double-digit growth rate, citing India’s low agrochemical consumption per hectare compared to the world average and favorable macroeconomic tailwinds in agriculture.
New Product Pipeline
For FY’27, Dhanuka has lined up three new launches: two fungicides (both first-time 9(3) introductions) and one specialty offering for enhancing spray efficiency. These fungicides are expected to target high-value crops like grapes, potato, tomato, and chilli.
Source: BSE
