Godrej Agrovet FY26: Crossing INR10,000 crore revenue, with Oil Palm and Animal Nutrition doing the heavy lifting

Godrej Agrovet closed FY26 with a clear milestone. Consolidated revenue crossed INR10,000 crore for the first time, reaching INR10,233 crore, up 9.1 percent year-on-year. Profitability also improved, with profit before tax (excluding non-recurring and exceptional items) rising 17.2 percent to INR569 crore. PAT (excluding non-recurring items) grew 13.9 percent to INR440 crore.

Q4 FY26 continued the same rhythm. Revenue rose 9.3 percent year-on-year to INR2,333 crore. PBT excluding non-recurring items increased 16.8 percent to INR87 crore and PAT excluding non-recurring items rose 11.3 percent to INR74 crore. Reported numbers were higher due to a profit on sale of land.

Behind the headline growth, the year was defined by a strong Oil Palm performance, sustained volume-led execution in Animal Nutrition, and a sharp turnaround in Astec. At the same time, Crop Care and Creamline Dairy were impacted by weather, channel inventory, and elevated milk procurement costs.

FY26 financials: steady growth, better earnings quality

The company presented both reported and underlying performance. For FY26, consolidated EBITDA excluding non-recurring items was INR936 crore, up 10.8 percent, with EBITDA margin broadly stable at 9.1 percent. Reported EBITDA was INR969 crore.

The gap between reported and underlying results mainly came from non-recurring items such as profit on sale of land (INR34 crore impact on EBITDA and PBT), and in FY26, some tax-related true-ups and accounting impacts.

Segment mix: Animal Nutrition leads revenue, Oil Palm leads profits

FY26 segment revenue mix shows the scale of Animal Nutrition. It contributed 46.43 percent of consolidated segment revenues. Oil Palm contributed 18.77 percent and Dairy 14.93 percent. Crop Care was 11.17 percent, and Poultry and processed food (largely Godrej Foods) was 7.22 percent.

The profit pool looks different. Oil Palm contributed 40.12 percent of consolidated segment PBIT, while Animal Nutrition contributed 36.08 percent. Crop Care still contributed 18.62 percent despite its downcycle, while Dairy’s PBIT contribution was just 2.05 percent.

This gap between revenue contribution and PBIT contribution is important because it explains why margin and cash outcomes are being increasingly shaped by Oil Palm and Animal Nutrition.

Animal Nutrition: volume-led growth with better margins

Animal Nutrition delivered strong volume growth across the year. FY26 sales volume rose 11.6 percent to 16,46,545 tons. Revenue grew to INR4,941 crore. Underlying segment result was INR348 crore, up 19.6 percent, with margin improving to 7.0 percent.

Management described the FY26 revenue growth as predominantly volume-driven and ahead of industry growth. Cattle feed volumes grew about 18 percent in FY26, and management highlighted accelerated momentum in Q4 with broad-based growth. Q4 volumes rose 15.2 percent year-on-year, with cattle feed volumes up sharply.

On the call, management also noted a profit contribution linked to pet food manufacturing arrangements, accounted as other income due to transaction structure. They positioned it as an adjacency and an incremental income stream.

Oil Palm: landmark year, with value-added expansion next

Oil Palm delivered one of the strongest years in the company’s recent history. FY26 segment revenue (excluding trading) rose 42.4 percent to INR1,908 crore. Segment result (excluding trading margin) rose 67.9 percent to INR384 crore, with segment margin expanding to 20.1 percent.

Management attributed performance to double-digit volume growth, peak oil recovery performance, supportive pricing, and operational efficiency. The company highlighted higher fresh fruit bunch growth and improved oil extraction ratio.

The management commentary also acknowledged commodity sensitivity. Palm oil prices were discussed as correlated to crude oil prices due to biodiesel linkages. Management indicated that pricing outlook is being handled quarter-to-quarter given geopolitical uncertainty.

To reduce reliance on commodity pricing, the company discussed a push into more value-added products. Management indicated a specialty fats refinery rollout in May and suggested a meaningful ramp-up from the second half of the year. Over the longer term, the company stated an aspiration to move towards 50 to 55 percent of the portfolio being value-added by FY31.

Crop Care and Dairy: tough year, with recovery plans

Crop Care had a difficult FY26 on profitability. Revenue was INR772 crore, up only 1.0 percent. Segment result fell 27.2 percent to INR224 crore, and margins dropped to 29.1 percent.

Management cited multiple drivers: extreme weather events and unseasonal rains, sharp acreage declines in key crops, regulatory disruptions, and channel inventory build-up. Q4 was also affected by reduced in-house product volumes in the co-marketing channel due to inventory build-up.

Recovery plans were communicated through both the presentation and call. Management expects recovery from inventory normalization and new product launches, including Takai and Ashitaka, along with a sharper focus on priority crops and differentiated offerings. On the call, management indicated FY27 is expected to be a recovery year for the segment, with full recovery visibility expected from Q2 due to base effects.

Creamline Dairy (Godrej Jersey) saw FY26 revenue remain flat at INR1,589 crore, while EBITDA fell 33.0 percent to INR53 crore. Management attributed the margin pressure to elevated milk procurement prices, noting early traction from growth initiatives, with value-added product salience in Q4 rising to about 40 percent from about 38 percent last year.

Management indicated on the call that procurement prices are expected to cool down gradually from Q2.

Astec and Godrej Foods: turnaround and portfolio shift

Astec LifeSciences delivered a sharp reduction in losses. FY26 revenue rose 17.5 percent to INR448 crore. EBITDA moved to breakeven at INR1 crore, compared to a loss of INR61 crore in FY25.

Management attributed improvement to higher volumes, better realizations, and better capacity utilization across Enterprise and CDMO businesses. On the call, the company also discussed governance and leadership strengthening at Astec and stated that it is evaluating an optimal future structure, with more clarity expected over the next two to three quarters.

Godrej Foods’ FY26 revenue declined 7.0 percent to INR768 crore, reflecting the business’s conscious reduction in exposure to the volatile live-bird category. Despite the revenue decline, EBITDA held steady at about INR50 crore and margins improved to 6.5 percent. Branded revenue salience was stated as above 80 percent, with branded volumes growing about 9 percent.

On the call, management also discussed new category entries including momos and frozen chicken.

Capital allocation and cash discipline

FY26 working capital improvement was a highlight. Average net working capital reduced to INR686 crore, down from INR988 crore in FY25. Net working capital days reduced to 25 from 39. This translated into a higher average ROCE of 20 percent.

For FY27, management indicated capex of close to INR400 crore, with 75 to 80 percent being growth capex. The call also indicated that about half of capex is expected to be deployed towards the oil palm business. Management also suggested that after capex, the company expects a cash surplus of around INR100 to INR125 crore.

Takeaways from FY26

FY26 showed two clear strengths: the company’s ability to grow revenue through volumes and its ability to convert operational improvements into higher returns on capital. Oil Palm and Animal Nutrition are increasingly shaping the profit profile, while Astec’s turnaround is reducing a long-standing drag.

The near-term watchpoints remain Crop Care recovery and Dairy margin normalization. Management’s FY27 commentary suggests confidence in volume-driven growth and a recovery trajectory in weaker segments, while continuing to invest in high-growth areas like oil palm expansion and value-added downstream capacity.