Godrej Agrovet Limited announced its financial results for the quarter and half-year ended September 30, 2026. The company reported a robust 17% revenue growth in Q2 FY27, driven by pricing and premiumization strategies. Despite input cost inflation, EBITDA remained flat, while PBT and PAT showed growth of 5% and 22% respectively. The company highlighted sustained earnings resilience through focused interventions across its diverse business segments.
Godrej Agrovet Reports Strong Q2 and H1 FY27 Performance
Godrej Agrovet Limited has released its unaudited financial results for the Quarter and Half Year ended September 30, 2026. The company reported a commendable 17% year-on-year revenue growth in Q2 FY27, primarily attributed to effective pricing strategies and premiumization initiatives. This performance was achieved amidst a highly volatile and challenging operating environment, marked by El Niño impacts and geopolitical volatility-led inflation.
Key Financial Highlights (Q2 FY27)
- Revenue Growth: 17% driven by pricing and premiumization.
- EBITDA Growth: Flat, with an approximate 120 bps margin impact from input cost inflation.
- PBT Growth: 5%, with an approximate 50 bps margin contraction.
- PAT Growth: 22%, showing an improvement of approximately 10 bps.
Half-Yearly Performance (H1 FY27)
For the half-year ended September 30, 2026, the company reported a 13% revenue growth. EBITDA saw a 5% decline (as reported) due to margin compression, with EBITDA margin at 8.1%. Profit before Tax (PBT) declined by 4% as reported, with PBT margin at 5.1%. Profit After Tax (PAT) saw a 1% decline as reported, with PAT margin at 4.0%. These figures exclude non-recurring and exceptional items, showing a slightly different trend in some metrics.
Segmental Performance Overview
Godrej Agrovet’s performance was driven by strong contributions from its various business segments:
- Animal Nutrition: Revenue grew by 14%, with segment margin up 90 bps to 6.7%. Cattle feed volume increased by ~8%, and layer feed by ~15% YoY.
- Oil Palm: Achieved robust revenue growth of 28%, driven by better realizations for CPO and PKO, and a ~14% increase in FFB volumes. Segment margin was 18.2%.
- Crop Care: Demonstrated significant revenue growth of 42%, aided by the strong ramp-up of its new corn herbicide, Ashitaka®. However, profitability was impacted by El Niño’s effect, with segment margin at 12.6%.
- Astec Lifesciences: Revenue saw a marginal decline of ~3% in Q2, primarily due to weak demand in the enterprise segment. EBITDA margin was (26%).
- Creamline Dairy: Revenue grew by 6%, led by pricing and higher Value-Added Products (VAP) salience. Margin was impacted by milk inflation, with EBITDA margin at 1.2%.
- Godrej Foods: Revenue increased by 8%, with B2C volume traction continuing, showing approximately 50% growth YoY.
- ACI-GAVL JV: Reported revenue growth of 32%, driven by volumes across poultry, cattle, and aqua segments. PBT and PAT also saw growth.
Strategic Progress and ESG Update
The company continues to make progress against its long-term strategic priorities. Key initiatives include product premiumization in Animal Nutrition, geographical expansion in Oil Palm, product innovation in Crop Care, and expanding the CDMO portfolio in Astec. Godrej Agrovet also highlighted its ESG initiatives, including significant renewable energy usage in its portfolio (79.3%) and a reduction in Scope 1 & 2 GHG emissions (-11.1%). The company also achieved an ‘A-‘ leadership band in CDP Climate & Forest disclosure and a Gold rating from EcoVadis.
The presentation also detailed the company’s financial position, efficient management of working capital, and new product launches across various segments, showcasing a strategic focus on innovation and market expansion.
Source: BSE
