Godrej Agrovet Q1 FY27: Growth Held Up, Margins Tested, Strategy Reset Takes Center Stage

Consolidated sales were INR 2,852 crore (up 10 percent YoY). EBITDA excluding non-recurring and exceptional items was INR 259 crore (down 8 percent YoY) and PAT was INR 126 crore (down 15 percent YoY).

Animal Nutrition reported segment revenue of INR 1,302 crore. Oil Palm reported segment revenue (excluding trading revenues) of INR 591 crore. Creamline Dairy reported revenue of INR 465 crore. Crop Care reported segment revenue of INR 271 crore and Godrej Foods reported revenue of INR 188 crore.

Management attributed the decline to significantly delayed monsoon and slower kharif sowing following a very dry June, which reduced volumes of key products, predominantly the in-house cotton herbicide, leading to lower revenue and margin contraction.

The company stated capex is expected to continue at INR 300 to 350 crore per year, funded through internal accruals.

Management indicated an outlook of high single digit to early double digit FFB volume growth over a 4 to 5 year horizon, while noting weather variability. Management also said downstream value addition, when fully scaled, could add about 200 bps to overall EBITDA profile.

Astec reported revenues of INR 83 crore (down 9.2 percent YoY) and continued at EBITDA break-even versus an EBITDA loss of INR 11 crore in Q1 FY26. Management stated full year revenue growth is expected to be more than 20 percent.

Average net working capital improved to INR 665 crore in Q1FY27 from INR 878 crore in Q1FY26. NWC days reduced to 21 days from 31 days over the same period.