Godrej Agrovet Limited hosted its Q2 FY27 earnings conference call on November 6, 2026. The company reported a consolidated revenue growth of 17% year-on-year, reaching INR2,995 crores. The management discussed performance across segments including Animal Nutrition, Oil Palm, Crop Care, Dairy, and Foods, highlighting challenges like El Niño and input cost inflation, while also outlining strategic initiatives and future outlook for growth.
Godrej Agrovet Q2 FY27 Earnings Conference Call Highlights
Godrej Agrovet Limited held its Q2 FY27 Earnings Conference Call on November 6, 2026, with management providing an update on the company’s performance and strategic direction. The call commenced with a brief on the financial results and an outlook for the future.
Financial Performance
The company announced a 17% year-on-year growth in consolidated revenue for the second quarter, reaching INR2,995 crores. This growth was driven by higher realisations and volume increases, particularly in the Animal Nutrition, Oil Palm, and B2C Food segments. EBITDA remained stable at INR222 crores with a margin of 7.4%. Profit before tax saw a 5% increase to INR131 crores, and Profit After Tax (PAT) grew by 22% to INR103 crores. For the first half of FY27, consolidated revenue grew 13% to INR5,847 crores, with H1 PAT at INR231 crores.
Segmental Performance and Outlook
Animal Nutrition delivered a strong quarter with revenue growth of 14% and segment profit growth of 32%. Oil Palm revenue increased by 28%, supported by higher realisations and a 14% growth in Fresh Fruit Bunch volumes. The company also inaugurated India’s first integrated oil palm complex in Telangana during H1. Crop Care was impacted by El Niño, leading to a decline in profitability, though diversification into newer segments offered some mitigation.
Astec LifeSciences experienced a challenging environment with weak enterprise demand and elevated input costs affecting EBITDA. Dairy revenue grew 6%, driven by calibrated pricing and value-added products. Godrej Foods saw a 50% growth in its B2C segment, with salience increasing to 38%.
The company’s Bangladesh joint venture, ACI Godrej Agrovet, also reported strong volume, revenue, and profit growth. Working capital management remained strong, with net working capital improving to 21 days from 32 days the previous year.
Sustainability Initiatives
On sustainability, renewable energy now accounts for 79.3% of the portfolio, and scope one and two emissions have reduced by 11.1%. Godrej Agrovet retained its CDP A- leadership rating.
Challenges and Future Strategy
Management acknowledged the challenging operating environment, including the intensified El Niño event, below-normal monsoon, and geopolitical volatility impacting input costs. Despite these headwinds, the company remains confident due to its diversified portfolio and disciplined execution. The focus remains on transformation, operational excellence, and creating long-term value.
Q&A Session Highlights
During the Q&A, discussions covered the impact of weather on oil palm plantations and extraction ratios, with management expressing confidence in achieving double-digit growth in fresh fruit bunch arrivals. The commissioning of the PKO derivatives plant is expected to contribute to margin expansion in FY28. The company is strategically shifting focus in animal feed towards cattle and layer feed, de-prioritizing broiler feed. In the food business, a strong focus on B2C and new product pipelines, including frozen chicken and momos, is driving growth. The ACI Godrej joint venture in Bangladesh is showing significant growth across all segments, despite commodity inflation.
Regarding dairy, management anticipates no immediate respite in pricing due to El Niño’s impact on cattle productivity and structural shifts towards value-added products. The debt levels have seen a modest increase due to proactive inventory management to benefit from better prices.
Source: BSE
