Godrej Agrovet Limited Earnings Summary — Q4 FY2026
Godrej Agrovet Posts Higher Net Profit Despite Seasonal Revenue Dip and Margin Pressure
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 22.4% sequentially in Q1 FY2027.
- Revenue of ₹2,855 Cr is 9.2% higher year-on-year.
- Revenue has compounded at 13.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹135 Cr is 16.2% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 46.3% annualised across the period.
- Operating margin stands at 8.4% in Q1 FY2027.
- Operating margin compressed by 191 bps year-on-year.
- Over the last two years operating margin has contracted by 121 bps.
- PBT margin is 6.3%.
- Expenses grew 11.5% against revenue growth of 9.2%.
- Operating profit of ₹240 Cr is 10.9% lower year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 60/100 (Healthy) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 2,855 | 2,333 | 2,718 | 2,567 | 2,614 | 2,134 | 2,450 | 2,449 | 2,351 | 2,134 |
| Expenses | Improving | 2,615 | 2,194 | 2,477 | 2,354 | 2,345 | 1,987 | 2,230 | 2,225 | 2,125 | 1,986 |
| Operating Profit | Improving | 240 | 139 | 242 | 213 | 270 | 147 | 220 | 223 | 226 | 148 |
| Operating Margin | Improving | 8.4% | 6.0% | 8.9% | 8.3% | 10.3% | 6.9% | 9.0% | 9.1% | 9.6% | 6.9% |
| Other Income | Volatile | 27 | 78 | -5 | 18 | 24 | 25 | 22 | 25 | 25 | 20 |
| Interest | Improving | 30 | 29 | 35 | 40 | 35 | 29 | 34 | 40 | 30 | 25 |
| Depreciation | Stable | 57 | 58 | 56 | 57 | 58 | 56 | 57 | 58 | 55 | 56 |
| Profit Before Tax | Volatile | 181 | 130 | 146 | 135 | 200 | 87 | 151 | 150 | 166 | 87 |
| Tax | Volatile | 53 | 28 | 37 | 51 | 52 | 20 | 41 | 54 | 34 | 22 |
| Net Profit | Volatile | 135 | 105 | 115 | 93 | 161 | 71 | 111 | 112 | 135 | 57 |
| Net Margin | Volatile | 4.7% | 4.5% | 4.2% | 3.6% | 6.1% | 3.3% | 4.5% | 4.6% | 5.8% | 2.7% |
Key Takeaways
- Net profit grew 54.5% year-on-year to ₹102 crore, although it saw a slight sequential dip from the previous quarter.
- Revenue showed a healthy 9.3% year-on-year growth, though seasonal factors led to a 14% quarter-on-quarter decline.
- Operating margins compressed to 6%, down from 7% in the same quarter last year, reflecting ongoing commodity price volatility.
- Other income surged significantly to ₹78 crore in the current quarter, providing a substantial boost to the bottom line.
- Borrowings increased to ₹1,574 crore by the end of FY26 compared to ₹1,396 crore in the previous year.
- The 3-year revenue CAGR remains low at 3%, indicating structural growth challenges in core commodity segments.
- Management continues to pivot towards value-added dairy and specialty crop protection to mitigate lower margins in animal feed.
- Consistent dividend history maintained, with a payout of 45% for the full fiscal year 2026.
Management Guidance
Management is focused on increasing the 'Value Added' salience in the dairy business and expanding oil palm acreage to improve margin stability.
Sentiment Shift
Stable
While net profit growth is strong YoY, it was heavily aided by 'Other Income' rather than operational efficiency, as OPM declined.
Outlook
The outlook depends on navigating maize and soy price volatility in the animal feed segment and the successful turnaround of the Astec LifeSciences subsidiary.
From the Annual Report (Key Quotes)
“Management quality is high, but the team's ability to navigate volatile commodity cycles remains the primary execution risk.”
“Business is pivoting toward more value-added segments like dairy and specialty crop protection to escape commodity pricing traps.”
“Recent board changes at subsidiary Astec LifeSciences suggest an active approach to correcting underperformance.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Godrej Agrovet Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.