Dhanuka Agritech Limited profit rises 16% to Rs 109 crore

Dhanuka Agritech Limited reported standalone profit after tax of Rs 109.22 crore for the quarter ended September 30, 2026, a 16.2% increase from Rs 93.97 crore a year earlier. Revenue from operations rose 9.9% to Rs 657.51 crore, while first-half revenue and profit remained below the corresponding 2025 period.

How did Dhanuka Agritech perform in the September 2026 quarter?

Dhanuka Agritech’s September-quarter revenue from operations increased to Rs 657.51 crore from Rs 598.25 crore in the quarter ended September 30, 2025, and from Rs 461.93 crore in the June 2026 quarter. Total income, which includes other income, rose 10.3% year on year to Rs 666.68 crore, with other income increasing to Rs 9.17 crore from Rs 6.32 crore.

Dhanuka Agritech’s profit after tax increased to Rs 109.22 crore from Rs 93.97 crore, and basic and diluted earnings per share rose to Rs 24.43 from Rs 20.85. The company reported no exceptional items for either September quarter. The September 2026 result also exceeded the June-quarter profit after tax of Rs 36.30 crore.

Why did Dhanuka Agritech’s profit rise faster than revenue?

Dhanuka Agritech’s profit rose faster than revenue because total expenses increased 8.7% to Rs 520.22 crore, below the 10.3% increase in total income to Rs 666.68 crore. The difference between total income and total expenses was Rs 146.47 crore in the September 2026 quarter, compared with Rs 125.07 crore a year earlier.

Cost of materials consumed declined to Rs 326.07 crore from Rs 343.89 crore, while other expenses fell to Rs 64.76 crore from Rs 69.36 crore. These reductions were partly offset by stock-in-trade purchases rising to Rs 17.81 crore from Rs 1.25 crore and inventory changes becoming an expense of Rs 42.86 crore, compared with a Rs 0.84 crore credit a year earlier. Employee benefit expense increased to Rs 53.04 crore from Rs 47.85 crore.

Why were Dhanuka Agritech’s first-half results lower year on year?

Dhanuka Agritech reported revenue from operations of Rs 1,119.44 crore for the six months ended September 30, 2026, down 0.6% from Rs 1,126.54 crore in the corresponding 2025 period. Profit after tax declined 3.5% to Rs 145.53 crore from Rs 149.47 crore, showing that the stronger September quarter did not fully offset the June-quarter result.

Total expenses for the half year rose marginally to Rs 942.43 crore from Rs 940.38 crore, while total income edged down to Rs 1,137.47 crore from Rs 1,140.90 crore. Cost of materials consumed fell to Rs 613.20 crore from Rs 705.35 crore, but inventory changes were an expense of Rs 40.80 crore, compared with a Rs 51.66 crore credit in the prior-year half year. Dhanuka Agritech has one reportable business segment, agro chemicals.

What do Dhanuka Agritech’s receivables and cash flows show?

Dhanuka Agritech’s trade receivables increased to Rs 691.93 crore at September 30, 2026, from Rs 440.62 crore at March 31, 2026, an increase of Rs 251.31 crore. The cash-flow statement recorded a Rs 253.12 crore use of cash from higher trade receivables during the six months ended September 30, 2026, broadly matching the balance-sheet movement.

Net cash from operating activities nevertheless increased to Rs 81.50 crore from Rs 39.82 crore in the prior-year half year. Operating profit before working-capital changes declined to Rs 212.11 crore from Rs 224.57 crore, but cash generated from operations before tax rose to Rs 117.25 crore from Rs 76.02 crore. Net direct taxes paid were Rs 35.75 crore, compared with Rs 36.20 crore a year earlier.

Inventories declined to Rs 493.56 crore at September 30 from Rs 516.82 crore at March 31, while current assets rose to Rs 1,628.04 crore from Rs 1,517.34 crore, led by receivables. Cash and cash equivalents were Rs 4.72 crore at September 30, compared with Rs 18.93 crore at March 31. Trade payables to creditors other than micro and small enterprises fell to Rs 146.16 crore from Rs 192.73 crore.

What shareholder and capital actions did Dhanuka Agritech report?

Dhanuka Agritech bought back and extinguished 500,000 fully paid equity shares during the six months ended September 30, 2026. The shares, representing 1.11% of issued and paid-up equity share capital, were repurchased at Rs 1,400 each for Rs 70 crore and extinguished on June 20, 2026. Paid-up share capital declined to Rs 8.92 crore at September 30 from Rs 9.02 crore at March 31.

Financing activities used Rs 85.20 crore of cash in the half year, compared with Rs 55.43 crore a year earlier. This included the Rs 70 crore buyback, Rs 0.63 crore of buyback expenses, Rs 8.92 crore in dividend payments, Rs 3.05 crore in lease-principal payments and Rs 1.58 crore in interest paid. Investing activities used Rs 10.51 crore, including Rs 32.29 crore spent on property, plant and equipment, intangible assets and capital work in progress.

Conclusion

Dhanuka Agritech’s September-quarter profit growth of 16.2% exceeded its 9.9% revenue increase as total expenses grew more slowly than total income. The half-year comparison was different: revenue declined 0.6% and profit after tax fell 3.5%, while receivables increased by Rs 251.31 crore from the March-end balance.

The next results will show whether the September-quarter improvement continues amid Dhanuka Agritech’s disclosed dependence on monsoon conditions, pest infestation and crop patterns. The next reporting period will also provide an update on receivables collection after the Rs 253.12 crore first-half working-capital cash outflow and on cash balances following the June 2026 buyback.