DHARMAJ - Dharmaj Crop Guard Limited Share Price

For the second quarter (Q2) and first half (H1) of the financial year 2026, Dharmaj Crop Guard Limited reported a revenue of INR 347 crores for Q2, reflecting a 12% year-on-year growth, and INR 715 crores for H1, with a robust 26% year-on-year growth. The company attributed the sequential dip in Q2 revenue to an early onset of the monsoon, which led to some Kharif season sales being booked in Q1. Despite weather-related challenges affecting demand, management expressed optimism about the Rabi season, predicting a growth in demand due to favorable moisture and reservoir levels.

Management aims for an overall growth of 20% to 25% for the financial year, maintaining an EBITDA margin improvement of approximately 1% to 1.5% over last year. For the active ingredient segment, there is a targeted revenue of INR 250-260 crores, with expectations for further increases in FY27 to around INR 300-310 crores. The company expects to maintain an EBITDA positivity for its Sayakha facility throughout FY26.

Additionally, Dharmaj expects its export institutional business to sustain growth, predicting a 51% year-on-year increase as challenges from previous years subside. The company also plans to utilize its existing capacity more efficiently, with technical plant utilization projected to reach 70% in FY27.

Management noted the receipt of an interest subsidy amounting to approximately INR 3.53 crores, further enhancing financial stability. Overall, the leadership is confident in overcoming cyclical challenges and achieving their ambitious growth objectives while navigating the unpredictable agricultural environment.

Question: In H2, how is Dharmaj expecting to perform and is there any update to your previous guidance?

Answer: We are confident about our growth in H2, as last year's Rabi season was relatively lower. This year, we are highly optimistic about growing our business in that period. We maintain our earlier guidance of 22% to 25% growth for the entire year.

Question: What is the progress on the registration of the Brazil subsidiary, and where do you see your export pie in two to three years?

Answer: The registration for our Brazil subsidiary is currently on hold. We expect the registration process to take about a year. Once approved, we will promptly start the subsidiary and engage in business. We hope to see significant growth in exports once we penetrate new markets.

Question: Can you discuss the volume growth registered in formulation and technical segments?

Answer: In H1, we registered an overall volume growth of about 30% to 35%. The breakdown is approximately 30% for technical products and around 35% for formulations, indicating strong demand in both segments.

Question: How is the ongoing Rabi season progressing, and what's the current capacity utilization at the Saykha plant?

Answer: This Rabi season looks very promising. With good rainfall, we expect our business to grow compared to last year. Currently, Saykha plant's capacity utilization is around 65%, and we anticipate it will exceed 70% by FY'27.

Question: What are your expectations for pricing trends over the next six months in both formulations and technicals?

Answer: We are optimistic for the Rabi season's pricing environment. While some products may see slight price declines, overall, we expect our branded business and B2B formulations to remain stable, with anticipated growth around 20% to 25% compared to last year.