This article first appeared on GuruFocus .
Release Date: May 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Dharmaj Crop Guard Ltd ( BOM:543687 ) reported a 20% year-on-year revenue growth for FY26, reaching 1,138 crores.
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The company's EBITDA grew by 34% year-on-year, reaching 101 crores, with net profit increasing by 57% to 55 crores.
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The domestic active ingredient business saw a significant growth of 37% year-on-year, surpassing internal capacity utilization targets.
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The company achieved a PBT-level breakeven at its technical plant, a key strategic objective for FY26.
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Dharmaj Crop Guard Ltd ( BOM:543687 ) is planning to expand its herbicide facility, which is expected to support long-term growth and improve capacity utilization.
Negative Points
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The branded formulation vertical experienced muted growth, with only a 3% increase due to erratic monsoon patterns affecting demand.
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The company's cash conversion cycle extended to 87 days from 67 days in FY25, largely due to increased inventory levels.
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There was continued pressure on technical realizations throughout the year, with a meaningful recovery only beginning after February 2026.
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The geopolitical situation in West Asia has impacted key raw material availability, posing a risk to production continuity.
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The company's gross debt-to-equity ratio remained unchanged at 0.29, indicating a reliance on debt for inventory buildup.
Q & A Highlights
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Warning! GuruFocus has detected 4 Warning Signs with BOM:543687.
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Q: Can you provide insights on the B2B versus B2C business split and its impact on margins? A: The B2B segment has seen growth, while the B2C segment has been relatively stable. The B2B business is expected to continue growing, and the company is focusing on improving margins through better product mix and increased capacity utilization. (Respondent: CFO)
Q: What are the expectations for the new herbicide plant in terms of capacity and profitability? A: The new herbicide facility is expected to be operational by Q3 FY27. It will help in increasing capacity and improving margins. The plant is anticipated to reach profitability quickly due to existing expertise and market demand. (Respondent: CEO)
Q: How is the company addressing the challenges posed by geopolitical uncertainties and raw material price fluctuations? A: The company has pre-planned strategies to mitigate the impact of raw material price fluctuations. They have secured additional inventory to ensure production continuity and are monitoring the situation closely to adjust pricing strategies as needed. (Respondent: CEO)
Q: What is the outlook for the branded formulation segment, and how does the company plan to drive growth in this area? A: The branded formulation segment faced challenges due to erratic monsoon patterns, but the company expects growth to normalize in FY27. Efforts are being made to enhance brand visibility and expand into new states to drive growth. (Respondent: CEO)
Q: Can you elaborate on the expected financial performance and margin improvements for FY27? A: The company anticipates an 18-20% top-line growth for FY27, with improvements in EBITDA margins expected to reach double digits. This will be driven by increased capacity utilization and a better product mix. (Respondent: CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
