Q1 2027 Dhanuka Agritech Ltd Earnings Call

August 3, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Dhanuka Agritech Q1 FY27 Results Conference Call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: Ladies and gentlemen, good day and welcome to Dhanuka Agritech Limited Q1 FY27 Post Results Conference Call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Manish Mahawar from Antique Stock Broking. Thank you, and over to you, sir.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Manish Mahavar from Antique Stock Broking. Thank you, and over to you, sir.

Speaker #2: Thank you, Sumit. On behalf of Antique Stock Broking, a warm welcome to all the participants on the Q1 FY27 earnings call of Dhanuka Agritech. Today, we have the leadership team represented by Mr. N.

Manish Mahawar: Thank you, Sumit. On behalf of Antique Stock Broking, warm welcome to all the participants on the Q1 FY27 Earnings Call of Dhanuka Agritech. Today, we have leadership team represented by Mr. N.K. Dhanuka, Chairman, Mr. Rahul Dhanuka, Managing Director, and Mr. V.K. Bansal, CFO on the call. Without further ado, I would like to hand over the call to Mr. N.K. Dhanuka for opening remarks. Thank you. Over to you, Mr. Dhanuka.

Speaker #2: K. Dhanuka, Chairman; Mr. Raul Dhanuka, Managing Director; and Mr. V. K. Bansal, CFO, are on the call. Without further ado, I would like to hand over the call to Mr. N.

Speaker #2: K. Dhanuka for opening remarks. Thank you, and over to you, Mr. Dhanuka.

Speaker #3: Thank you, Manish ji. Good afternoon, ladies and gentlemen. Myself, N.K. Dhanuka, Chairman of Dhanuka Agritech Limited, and I welcome you all to the Q1 FY26-27 earnings conference call.

N.K. Dhanuka: Thank you, Manish. Good afternoon, ladies and gentlemen. I am N.K. Dhanuka, Chairman of Dhanuka Agritech Limited, and I welcome you all to the Q1 FY26-27 Earnings Conference Call. I have with me Mr. Rahul Dhanuka, Managing Director, and Mr. V.K. Bansal, CFO of the company. As you are aware, Dhanuka Agritech is among India's leading agrochemical companies with a long-standing commitment towards advancing Indian agriculture through technology-led crop solutions. Over the years, we have built a strong pan-India franchise with deep farmer engagement, a differentiated product portfolio, and a robust distribution network. Today we reach more than 10 million farmers across India through approximately 6,500 distributors and over 80,000 retailers. Supported by 4 manufacturing facilities and 41 warehouses, we continue to strengthen our ability to deliver products efficiently across key agricultural markets.

Mahendra Kumar Dhanuka: Thank you, Manish. Good afternoon, ladies and gentlemen. I am N.K. Dhanuka, Chairman of Dhanuka Agritech Limited, and I welcome you all to the Q1 FY26-27 Earnings Conference Call. I have with me Mr. Rahul Dhanuka, Managing Director, and Mr. V.K. Bansal, CFO of the company. As you are aware, Dhanuka Agritech is among India's leading agrochemical companies with a long-standing commitment towards advancing Indian agriculture through technology-led crop solutions. Over the years, we have built a strong pan-India franchise with deep farmer engagement, a differentiated product portfolio, and a robust distribution network. Today we reach more than 10 million farmers across India through approximately 6,500 distributors and over 80,000 retailers. Supported by 4 manufacturing facilities and 41 warehouses, we continue to strengthen our ability to deliver products efficiently across key agricultural markets.

Speaker #3: I have with me Mr. Raul Dhanuka, Managing Director, and Mr. V. K. Bansal, CFO of the company. As you are aware, Dhanuka Agritech is among India's leading agrochemical companies, with a long-standing commitment towards advancing Indian agriculture through technology-led crop solutions.

Speaker #3: Over the years, we have built a strong pan-India franchise with deep farmer engagement, a differentiated product portfolio, and a robust distribution network. Today, we reach more than 10 million farmers across India through approximately 6,500 distributors and over 80,000 retailers.

Speaker #3: Supported by four manufacturing facilities and 41 warehouses, we continue to strengthen our ability to deliver products efficiently across key agricultural markets. A key differentiator for Dhanuka has been our consistent focus on the introduction of innovative and globally relevant chemistries in the Indian market.

N.K. Dhanuka: The key differentiator for Dhanuka has been our consistent focus on introduction of innovative and globally relevant chemistries in the Indian market. Our partnership with 10 leading multinational agrochemical innovators from Japan, Europe, and the United States continue to provide us access to the advanced technologies in differentiated solutions for Indian farmers. Our 2 R&D centers, supported by NABL accredited laboratories and a strong regulatory and product development team, remain focused on product registration, formulation development, and strengthening our future growth pipeline. The agrochemical industry witnessed a significantly challenging Q1 of FY26-27. Across the sector, revenue growth remained under pressure due to delayed monsoon onset in several key agricultural regions, which postponed sowing activities and led to reduction in product demand from Q1 to the subsequent months. Industry estimates indicated modest revenue growth while profitability remained under pressure, owing to weaker domestic demand and price competition.

Mahendra Kumar Dhanuka: The key differentiator for Dhanuka has been our consistent focus on introduction of innovative and globally relevant chemistries in the Indian market. Our partnership with 10 leading multinational agrochemical innovators from Japan, Europe, and the United States continue to provide us access to the advanced technologies in differentiated solutions for Indian farmers. Our 2 R&D centers, supported by NABL accredited laboratories and a strong regulatory and product development team, remain focused on product registration, formulation development, and strengthening our future growth pipeline. The agrochemical industry witnessed a significantly challenging Q1 of FY26-27. Across the sector, revenue growth remained under pressure due to delayed monsoon onset in several key agricultural regions, which postponed sowing activities and led to reduction in product demand from Q1 to the subsequent months. Industry estimates indicated modest revenue growth while profitability remained under pressure, owing to weaker domestic demand and price competition.

Speaker #3: Our partnership with 10 leading multinational agrochemical innovators from Japan, Europe, and the United States continues to provide us access to advanced technologies and differentiated solutions for Indian farmers.

Speaker #3: Our two R&D centers, supported by NABL-accredited laboratories and a strong regulatory and product development team, remain focused on product registration, formulation development, and strengthening our future growth pipeline.

Speaker #3: The agrochemical industry witnessed a significantly challenging first quarter of FY26-27. Across the sector, revenue growth remained under pressure due to the delayed monsoon onset in several key agricultural regions, which postponed sowing activities and led to a reduction in product demand from the first quarter to the subsequent months.

Speaker #3: Industry estimates indicated modest revenue growth, while profitability remained under pressure owing to weaker domestic demand and price competition. You are well aware that in the month of June, we had a 40% shortfall in the rain, and by the end of July, it came down to a 15% shortfall.

N.K. Dhanuka: You are well aware that in the month of June, we had 40% shortfall in the rain, and by the end of July, it came down to 15% shortfall. Even 1% shortfall in the rainfall impacts the sowing areas and the overall growth of the crops. In addition, the sector continued to face challenges arising from elevated raw material and logistics costs during the quarter. Several companies attempted price increases during the initial months of the season to offset higher costs linked to geopolitical tensions in West Asia. However, weak market demand limited the sustainability of such hikes. Against this backdrop, I would like to share that Dhanuka delivered a subdued operational and financial performance during the quarter. Revenue from operations for Q1 FY26-27 stood at INR 461.93 crores as compared to INR 528.29 crores in Q1 of FY25-26, registering a degrowth of approximately 12.56%.

Mahendra Kumar Dhanuka: You are well aware that in the month of June, we had 40% shortfall in the rain, and by the end of July, it came down to 15% shortfall. Even 1% shortfall in the rainfall impacts the sowing areas and the overall growth of the crops. In addition, the sector continued to face challenges arising from elevated raw material and logistics costs during the quarter. Several companies attempted price increases during the initial months of the season to offset higher costs linked to geopolitical tensions in West Asia. However, weak market demand limited the sustainability of such hikes. Against this backdrop, I would like to share that Dhanuka delivered a subdued operational and financial performance during the quarter. Revenue from operations for Q1 FY26-27 stood at INR 461.93 crores as compared to INR 528.29 crores in Q1 of FY25-26, registering a degrowth of approximately 12.56%.

Speaker #3: So, even a 1% shortfall in the rainfall impacts the sowing areas and the overall growth of the crops. In addition, the sector continued to face significant challenges arising from elevated raw material and logistics costs during the quarter.

Speaker #3: Several companies attempted price increases during the initial months of the season, to offset higher costs linked to geopolitical tensions in West Asia. However, weak market demand limited the sustainability of such hikes.

Speaker #3: Against this backdrop, I would like to share that Dhanuka delivered a subdued operational and financial performance during the quarter. Revenue from operations for Q1 FY26-27 stood at Rs.

Speaker #3: Rs. 461.93 crore, as compared to Rs. 528.29 crore in Q1 of FY25-26, registering a de-growth of approximately 12.56%. EBITDA for the quarter stood at Rs.

N.K. Dhanuka: EBITDA for the quarter stood at INR 55.01 crores, and profit after tax stood at INR 36.30 crores. Our balance sheet and cash generation continue to remain strong, providing us the flexibility to invest for future growth while overcoming the short-term headwinds and turbulence. The zone-wise contribution to turnover for Q1 FY26-27 was, North contributed 36%, East contributed lowest, 9%, West contributed 37%, and South contributed 18%. Product category-wise, share was insecticides contributed 25%, fungicides contributed 14%, herbicides contributed 42%, and others contributed 19%. While the first quarter was impacted by delayed seasonal demand, pricing pressures, and external uncertainties, we believe these are largely cyclical challenges. The long-term growth drivers of the Indian agrochemical industry remain intact, and we remain optimistic about stronger momentum in the coming quarters.

Mahendra Kumar Dhanuka: EBITDA for the quarter stood at INR 55.01 crores, and profit after tax stood at INR 36.30 crores. Our balance sheet and cash generation continue to remain strong, providing us the flexibility to invest for future growth while overcoming the short-term headwinds and turbulence. The zone-wise contribution to turnover for Q1 FY26-27 was, North contributed 36%, East contributed lowest, 9%, West contributed 37%, and South contributed 18%. Product category-wise, share was insecticides contributed 25%, fungicides contributed 14%, herbicides contributed 42%, and others contributed 19%. While the first quarter was impacted by delayed seasonal demand, pricing pressures, and external uncertainties, we believe these are largely cyclical challenges. The long-term growth drivers of the Indian agrochemical industry remain intact, and we remain optimistic about stronger momentum in the coming quarters.

Speaker #3: Rs. 55.01 crores, and profit after tax stood at Rs. 36.30 crores. Our balance sheet and cash generation continued to remain strong, providing us the flexibility to invest for future growth while overcoming the short-term headwinds and turbulence.

Speaker #3: The joint-wise contribution to turnover for Q1, FY26-27 was: North contributed 36%, East contributed the lowest at 9%, West contributed 37%, and South contributed 18%. Product category-wise shares were: insecticides contributed 25%, fungicides contributed 14%, herbicides contributed 42%, and others contributed 19%.

Speaker #3: While the first quarter was impacted by delayed seasonal demand, pricing pressures, and external uncertainties, we believe these are largely cyclical challenges. The long-term growth drivers of the Indian agrochemical industry remain intact, and we remain optimistic about stronger momentum in the coming quarter.

Speaker #3: The shareholders of the company, in the 41st Annual General Meeting held today at 11:00 a.m., considered the final dividend of 100%. That is, Rs.

N.K. Dhanuka: The shareholder of the company in the 41st annual general meeting, held today at 11:00 AM, considered the final dividend of 100%, that is INR 2 per equity share, having face value of INR 2 per share, and the result for the dividend will be declared within due course. The company already rewarded the shareholder with a buyback of 500,000 equity shares at the rate of INR 1,400 per equity share, absorbing INR 70 crores. Further, it is to inform you that the company has acquired land at Nagpur, Maharashtra, for setting up a new manufacturing plant. This is in the Butibori zone of Nagpur, the industrial area. The total estimated outlet for the project is expected to be up to INR 200 crores. The proposed capacity of the plant will be 23,000 metric tons per annum.

Mahendra Kumar Dhanuka: The shareholder of the company in the 41st annual general meeting, held today at 11:00 AM, considered the final dividend of 100%, that is INR 2 per equity share, having face value of INR 2 per share, and the result for the dividend will be declared within due course. The company already rewarded the shareholder with a buyback of 500,000 equity shares at the rate of INR 1,400 per equity share, absorbing INR 70 crores. Further, it is to inform you that the company has acquired land at Nagpur, Maharashtra, for setting up a new manufacturing plant. This is in the Butibori zone of Nagpur, the industrial area. The total estimated outlet for the project is expected to be up to INR 200 crores. The proposed capacity of the plant will be 23,000 metric tons per annum.

Speaker #3: Rs. 2 per equity share, having a face value of Rs. 2 per share, and the result for the dividend will be declared in due course. The company has already rewarded the shareholders with a buyback of Rs.

Speaker #3: 5 lakh equity shares at the rate of Rs. 1,400 per equity share, absorbing Rs. 70 crores. Further, it is to inform you that the company has acquired land at Nagpur, Maharashtra, for setting up a new manufacturing plant.

Speaker #3: This is in the Butiburi zone of Nagpur, the industrial area. The total estimated outlay for the project is expected to be up to Rs.

Speaker #3: Rs 200 crores. The proposed capacity of the plant will be 23,000 metric tons per annum. It is expected that the sales plant will be operational by April 2028.

N.K. Dhanuka: It is expected that the said plant will be operational by April 2028. We are pleased to inform you that in the upcoming months, we are planning to launch five new products consisting of one liquid fertilizer, three fungicides, and one herbicide. At Dhanuka, we continue to believe that sustainable business growth must go hand in hand with farmer prosperity and national food security. Our continued engagement with agriculture universities, Krishi Vigyan Kendras, and other scientific institutions remains an important part of our farmer education and technology dissemination efforts. Thank you very much for your kind attention. We would now like to open the floor for questions. Thank you.

Mahendra Kumar Dhanuka: It is expected that the said plant will be operational by April 2028. We are pleased to inform you that in the upcoming months, we are planning to launch five new products consisting of one liquid fertilizer, three fungicides, and one herbicide. At Dhanuka, we continue to believe that sustainable business growth must go hand in hand with farmer prosperity and national food security. Our continued engagement with agriculture universities, Krishi Vigyan Kendras, and other scientific institutions remains an important part of our farmer education and technology dissemination efforts. Thank you very much for your kind attention. We would now like to open the floor for questions. Thank you.

Speaker #3: We are pleased to inform you that, in the upcoming months, we are planning to launch five new products: one liquid fertilizer, three fungicides, and one herbicide.

Speaker #3: At Dhanuka, we continue to believe that sustainable business growth must go hand in hand with farmer prosperity and national food security. Our continued engagement with agriculture universities, कृषि विज्ञान केंद्र, and other scientific institutions remains an important part of our farmer education and technology dissemination efforts.

Speaker #3: Thank you very much for your kind attention. We would now like to open the floor for questions. Thank you.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

N.K. Dhanuka: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rishabh Shah from Bubble Rock PMS. Please go ahead.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rushabh Shah from Bugle Rock PMS. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rishabh Shah from Bagal Rock PMS.

Speaker #1: Please go ahead.

Rishabh Shah: Hi. My question is about the products which we had acquired from Bayer. Have we expanded our distribution reach in other countries? We had pointers of customers also in five countries, and we were planning for more expansion. You had also mentioned that these are some real challenges which we are facing. Just wanted an update on this one.

Rushabh Shah: Hi. My question is about the products which we had acquired from Bayer. Have we expanded our distribution reach in other countries? We had pointers of customers also in five countries, and we were planning for more expansion. You had also mentioned that these are some real challenges which we are facing. Just wanted an update on this one.

Speaker #2: Hi, sir. My question is about the products which we had acquired from buyers. Have we expanded our distribution reach in other countries? Also, we have appointed some customers in five countries, and we were planning for more expansion.

Speaker #2: And we had also mentioned that these are the real challenges which we are facing. So, just wanted an update on this one.

Speaker #3: So, we have acquired IPRO Valley Carb and its variants, and tried them, in all their variants, from the buyer for global markets. And, as we speak, we have already established some customers in various markets, and already business has started with them.

Rahul Dhanuka: We have acquired Iprovalicarb and its variants and Triadimenol and its variants from Bayer for global markets. As we speak, we have already established some customers in various markets and already business started with them. Whereas in some markets, we are yet to establish our distribution setup, which is ongoing as we speak. Also, as we speak, the Executive Director of International Business, Harsh, is traveling to these markets in US and Brazil, meeting with customers, existing as well as prospective.

Speaker #3: Whereas in some markets, we have yet to establish our distribution setup, which is ongoing as we speak. Also, as we speak, the Executive Director of International Business, Harsh, is traveling to these markets in the US and Brazil, meeting with customers, existing as well as prospective.

Speaker #2: Okay. And so, in terms of revenue, could you please tell us how much these products would contribute to the top line in FY27?

Rishabh Shah: Okay. Sir, in terms of revenue, could you please tell us how much would these products contribute to the top line in FY27?

Rushabh Shah: Okay. Sir, in terms of revenue, could you please tell us how much would these products contribute to the top line in FY27?

Rahul Dhanuka: As of now, we are not sharing the number of how much Triadimenol and Iprovalicarb will be sharing in FY27. Yes, we'll address this query separately.

Speaker #3: As of now, we are not sharing the numbers of how many have tried them and all, and IPRO Valley Carb will be sharing them in FY27.

Speaker #3: But yes, we'll address this query separately.

Speaker #2: Okay. So my next question is about the products we introduced in the last years, like Micro Super and Forador. How much do the new product launches contribute towards the top line?

Rishabh Shah: My next question is the products we introduced in the last years like MycoSuper and Verdor. How much do the new product launches contribute towards the top line? Has that ratio increased over the years? Also, I wanted to know the thought process when you introduce new products, what are the management's internal target for the returns ratios and margins which they would like to command? Does it differ from segment to segment?

Rushabh Shah: My next question is the products we introduced in the last years like MycoSuper and Verdor. How much do the new product launches contribute towards the top line? Has that ratio increased over the years? Also, I wanted to know the thought process when you introduce new products, what are the management's internal target for the returns ratios and margins which they would like to command? Does it differ from segment to segment?

Speaker #2: And has that ratio increased over the years? Also, I wanted to know the thought process when you introduce new products. What are the management's internal targets for the return ratios and margins which they would like to command?

Speaker #2: And does it differ from segment to segment?

Speaker #3: Right. So what we track—our performance on new product introduction—is through the innovation turnover index. And we have maintained a healthy innovation turnover index last year.

Rahul Dhanuka: Right. What we track our performance on new product introduction is through innovation turnover index. We have maintained a healthy innovation turnover index. Last year it was about 13.89%. Verdor, which is a biological bio-nutrition for various crops. We introduced late last year, sometime in September, and we have seen good traction for Verdor in Q1 this year. There was no significant movement last year. MycoSuper was introduced the year before. That was in FY25. MycoSuper was introduced in Q1 FY25. It did really well in FY25. It has done extremely well in FY26 also. This year, Q1 also, MycoSuper has received good traction across the geographies and across cereal crops, pulses, sugarcane, and even horticulture crops.

Speaker #3: It was about 13.89%. And Forador, which is a biological—sorry, not calcium. It’s a biological bionutrition for various crops. We introduced it late last year, sometime in September.

Speaker #3: And we have seen good traction for Forador in the first quarter this year. There was not significant movement last year. Micro Super was introduced the year before.

Speaker #3: That was in FY25. Micro Super was introduced in Q1 FY25. It did really well in FY25. It has done extremely well in FY26 also.

Speaker #3: And this year, Q1 also, Micro Super has received good traction across the geographies and across cereal crops, pulses, sugarcane, and even horticulture crops.

Speaker #2: Okay. And so, just like the second part of my question, what is the thought process when you introduce a new product? And from internal management, let's say targets for the return ratios or the margins which you would like to command—would it differ from segment to segment?

Rishabh Shah: Okay. Just the second part of my question, what is the thought process when you introduce a new product and some internal management, let's say, targets for the returns ratios or the margins which you would like to command? Would it differ from segment to segment?

Rushabh Shah: Okay. Just the second part of my question, what is the thought process when you introduce a new product and some internal management, let's say, targets for the returns ratios or the margins which you would like to command? Would it differ from segment to segment?

Speaker #3: Yes, it differs from segment to segment. Since at Dhanuka, we introduced new patented products also, new chemistries from various Japanese makers, Japanese partners, and their premixes.

Rahul Dhanuka: Yes, it differs from segment to segment since, at Dhanuka, we introduce new patented products also, new chemistries from various J-makers, Japanese partners, and their premixes. They fall in a premium category, and we command a different margin on those products. Nutrition products also mostly have a differentiated and a premium margin. MycoSuper and Verdor both would fall in same category. We introduced various me-too products and co-marketing products also time to time, which would normally fall in a lower margin category as compared to 9(3) products or nutrition. We benchmark a healthy 20% margin minimum for any new introduction, but mostly 9(3) and nutrition would have significantly higher, more than double sometimes.

Speaker #3: They fall in a premium category, and we command a different margin. On those products, nutrition products also mostly have a differentiated and a premium margin.

Speaker #3: Micro, Super, and Forador would both fall in the same category. We introduced various me-too products and co-marketing products from time to time, which would normally fall in a lower margin category as compared to 9(3) products or nutrition.

Speaker #3: We benchmark a healthy 20% margin minimum for any new introduction. But mostly, Q3 and nutrition would have significantly higher—more than double sometimes.

Speaker #2: Okay. And so, my last question.

Rishabh Shah: Okay. My last question.

Rushabh Shah: Okay. My last question.

Rishabh Shah: Sorry to interrupt, Mr. Rishabh. Please rejoin the queue for more questions. Ladies and gentlemen, you are requested to restrict your question to two per participant. The next question is from the line of Umang Shah from Banyan Tree Advisors PMS. Please go ahead. Hello, Umang Shah. Please go ahead.

Operator: Sorry to interrupt, Mr. Rushabh. Please rejoin the queue for more questions. Ladies and gentlemen, you are requested to restrict your question to two per participant. The next question is from the line of Umang Shah from Banyan Tree Advisors PMS. Please go ahead. Hello, Umang Shah. Please go ahead.

Speaker #1: Sorry to interrupt, Mr. Rishabh. Please rejoin the queue for more questions. Ladies and gentlemen, you are requested to restrict your questions to two per participant.

Speaker #1: The next question is from the line of Umang Shah from Banyan Tree Advisors PMS. Please go ahead. Hello, Umang Shah. Please go ahead.

Speaker #2: Hi. Am I audible?

Umang Shah: Hi. Am I audible?

Speaker #3: Yes.

Rahul Dhanuka: Yes.

Speaker #2: Hello. Yeah, yeah. Thank you for taking my question. Sir, my first question is: what is the update on the GST notice that we received a couple of months back?

Umang Shah: Hello. Yeah. Thank you for taking my questions. Sir, my first question was, what is the update on the GST notice that we had received a couple of months back?

Speaker #3: Yeah. You see, we have already appointed Lakshmi Kumar as our consultant. अभी उसका date पड़ेगा, so that is under consideration. It will take a little more time.

Rahul Dhanuka: You see, we have already appointed our Laxmpat Kumar as a consultant. That is under consideration. It will take a little more time.

Vinod Kumar Bansal: You see, we have already appointed our Laxmpat Kumar as a consultant. That is under consideration. It will take a little more time.

Speaker #2: And are we confident that the order is in our favor?

Umang Shah: Are we confident that the order will be in our favor?

Speaker #3: Sure, sure, sure. Now these molecules are categorized under that category of fertilizer. So currently, the SHE, as per the circular rate, is 5%.

Vinod Kumar Bansal: Sure. Now these molecules are categorized under that category of fertilizer. Currently, as per the circle rate is 5%. We are sure we'll win the case absolutely. There's no doubt about it.

Speaker #3: So we are sure we'll win the case, absolutely. There's no doubt about it.

Umang Shah: Okay. Great. That's a relief to hear. The second question was two parts. One was, are we looking to sign more deals in the international market like we did with Bayer? Will it also help feed our Dahej plant capacity?

Speaker #2: Okay. Okay, great. Great. That's a relief to hear. And the second question was in two parts. One was, are we looking to sign more deals in the international market, like we did with buyers?

Speaker #2: And will it also help feed our DH plant capacity?

Speaker #3: Right. Thanks for that question. As you are aware, Dhanuka is a debt-free company. We have a strong balance sheet and have maintained this position for many years.

Rahul Dhanuka: Right. Thanks for that question. As you are aware, Dhanuka is a debt-free company. We have a strong balance sheet and has been like that for many years. Yes, we are scouting out for good inorganic growth opportunities, including product portfolio. Leveraging our capabilities in Dahej plant is always an expanded option. Yet our strength in Indian market access, as well as capabilities to manufacture synthesized products in Dahej altogether are various dimensions across which we explore acquisition.

Speaker #3: So yes, we are scouting out for good inorganic growth opportunities, including portfolio. Leveraging our capabilities in the DH plant is always an expanded option. Yet our strength in the Indian market, market access, as well as capabilities to manufacture synthesized products in DH, altogether are various dimensions across which we explore acquisition.

Speaker #2: Okay. Okay. And sir, just the last four plants, are they going to be formulation plants, or are they going to be technical plants like DH?

Umang Shah: Okay. Sir, this Nagpur plant, is it going to be a formulation plant or is it going to be a technical plant like Dahej?

Speaker #3: This is going to be a formulation unit.

Rahul Dhanuka: This is going to be a formulation unit.

Speaker #2: All right. All right. Thank you so much. I will get back in the queue.

Umang Shah: All right. Thank you so much. I will get back in the queue.

Speaker #1: Thank you. The next question is from the line of Darshita Shah from DSP Asset Managers. Please go ahead.

Umang Shah: Thank you. The next question is from the line of Darshita Shah from DSP Asset Managers. Please go ahead.

Operator: Thank you. The next question is from the line of Darshita Shah from DSP Asset Managers. Please go ahead.

Speaker #4: Hi, sir. My first question is regarding the guidance cut that we have shown in the PPT for FY27. I just wanted your thoughts on why there was such a steep cut, especially on the top-line growth front.

Darshita Shah: Hi, sir. My first question was regarding the guidance cut that we have done in the PPT for FY27. Just wanted your thoughts on why such a steep cut, especially on the top-line growth front.

Speaker #3: So, as you can obviously see, the movement of monsoon and its impact from various angles—I think this is where we estimate our best position to be.

Rahul Dhanuka: As you can obviously see the movement of monsoon and its impact from various angles. I think so this is where we estimate is our best position to be. We are still pretty hopeful of the growth that will come in Q2 and Q3 and yet it is absolutely appropriate that we project a clear picture to our investors.

Speaker #3: We are still pretty hopeful about the growth that will come in Q2 and Q3, and yet it is absolutely appropriate that we project a clear picture to our investors.

Darshita Shah: Got it. It's safe to assume that Q2 so far has also not seen a larger growth given that we had some benefit of the base as well, last year same quarter.

Speaker #4: Got it. But it's safe to assume that the second quarter so far has also not seen significant growth, given that we had some benefit from a lower base in the same quarter last year.

Speaker #3: That's right.

Rahul Dhanuka: That's right.

Speaker #4: All right. Okay. Secondly, on the new facility—the 23,000 tons facility—₹200 crore capex for a formulation unit seems a little high, isn't it?

Darshita Shah: All right. Okay. Secondly, on the new facility, the 23,000 tons facility, INR 200 crore CapEx for a formulation unit seems a little high, isn't it?

Speaker #3: Like, how do you arrive at 'it is high'? I mean.

Rahul Dhanuka: How do you arrive at it is high? I don't get.

Darshita Shah: No, no. Why? For the technical plant we had set up, we had expended roughly about INR 250, 300 odd crore. Usually the thought is that formulation plant about INR 60, 70 odd crore is something that we do and we expect a seven, eight times asset tons on a formulation plant. That's why I just wanted your thoughts on the same.

Speaker #4: No, no. Because, no, no. So why? Because for the technical plant, we had set up — we had expanded roughly about to ₹5,300-odd crores.

Speaker #4: Usually, the thought is that a formulation plant is about ₹60–70 crore or something that we do, and we expect a 7–8 times return in asset terms.

Speaker #4: On a formulation plant. So that's why I just wanted your thoughts on the same.

Speaker #3: We are imagining this plant to be a significantly automated plant, cutting down on labor dependencies and making this plant of global standard in terms of both safety and efficiency.

Rahul Dhanuka: We are imagining this plant to be significantly automated plant, cutting down on labor dependencies, making this plant of global standard in terms of both safety and efficiency.

Speaker #3: So, with that automation in mind, we are expecting, initially, a relatively higher capex.

Rahul Dhanuka: With that automation in mind, we are expecting initially a relatively higher CapEx.

Speaker #4: Okay. But I'm guessing, given that it's a new land, some part of the Rs 200 crore would go for setting up the utilities and everything.

Darshita Shah: Okay. I'm guessing given that it's a new land, some part of the INR 200 crore would go for setting up the utilities and everything.

Rahul Dhanuka: Yes, it will be.

Speaker #4: Got it. Got it. And the asset terms, we should think about it at like 7–8 times.

Darshita Shah: Got it. The asset tons, we should think about it at seven, eight times.

Speaker #3: I think this is probably not the right time for me to comment on the asset terms part. But I think we'll be able to come back and address this once the project details and everything are finalized, which is probably late last Q4.

Rahul Dhanuka: I think so this is probably not the right time for me to come on the asset tons part, but I think so we'll be able to come back and address this towards once the project details and everything are deeply finalized, which is probably late Q4.

Speaker #4: Got it. Okay. Ranjan ji, if you could just give us the split for the DH-side revenue, EBITDA, and bare product revenue and royalty.

Darshita Shah: Got it. Okay. Vensalji, if you could just give us the split for the Dahej site revenue EBITDA and bare product revenue and royalty for Q1.

Speaker #4: For first quarter.

Vinod Kumar Bansal: You see, in terms of Dahej, the turnover last year it was around INR 16 crore. This year is around INR 26 crore. In terms of EBITDA, last year EBITDA was INR -3 crore. This year is less than INR 1 crore.

Speaker #3: You see, in terms of DH, the turnover last year was around ₹16 crore. This year, it's around ₹26 crore. In terms of EBITDA, last year EBITDA was negative ₹3 crore.

Speaker #3: This year, it is less than 1 crore.

Speaker #4: Okay. Also, sorry, could you repeat the revenue number again?

Darshita Shah: Okay. Sir, sorry, could you repeat the revenue number again?

Speaker #3: Revenue is 26 versus 16.

Vinod Kumar Bansal: Revenue is 26 versus 16.

Speaker #4: Okay. Okay. Okay. Got it. And for bare product?

Darshita Shah: Okay. Got it. For bare product?

Speaker #3: Bare product revenue is not actually coming into our books in Q1.

Vinod Kumar Bansal: Bare product revenue is not actually coming in our books in the Q1.

Speaker #4: Okay. And the royalty?

Darshita Shah: Okay. The royalty?

Speaker #3: Royalty is significantly lower compared to last year. It is around ₹4 crore.

Vinod Kumar Bansal: Royalty is significantly lower as compared to last year. It is around INR 4 crores.

Darshita Shah: All right. Okay. Sir, just your thoughts and just one last question. On your thoughts on, do we have any threshold on how much do we plan on expanding on these Bayer products to set up a distribution network in the export markets?

Speaker #4: All right. Okay. So just your thoughts. And just one last question. On your thoughts on do we have any threshold on how much do we plan on expending on these bare products to set up a distribution network in the export markets?

Speaker #3: As of now, not on that front.

Vinod Kumar Bansal: As of now, not on that front.

Speaker #4: All right. Okay. Thank you. Thank you for the opportunity. Thanks. That's all.

Darshita Shah: All right. Okay. Thank you. Thank you for the opportunity. Thanks. That's all.

Speaker #1: Thank you. The next question is from the line of Deesha Chamarya from Tri Nitra Asset Managers. Please go ahead.

Darshita Shah: Thank you. The next question is from the line of Tisha Chamaria from Triany Trade Managers. Please go ahead.

Operator: Thank you. The next question is from the line of Tisha Chamaria from Triany Trade Managers. Please go ahead.

Tisha Chamaria: Hello, am I audible, sir?

Speaker #5: Hello.

Speaker #3: Yeah.

Vinod Kumar Bansal: Yeah.

Speaker #5: Thank you so much for the opportunity. Most of my questions have already been answered, but I do have a few questions from my side. After this harvest season begins, how would you categorize inventory levels at distributors and retailers?

Tisha Chamaria: Thank you so much for the opportunity. Most of my questions are already answered. Still question from my side. After this harvest season began, how would you categorize inventory level at distributors and retailers? Are inventories broadly aligned with the primary sales, or do you see any stocking or destocking trends emerging?

Speaker #5: Are inventories broadly aligned with primary sales, or do you see any stocking or destocking trends emerging?

Speaker #3: And this year, seeking for which window?

Rahul Dhanuka: this you are seeking for which window?

Speaker #5: Correct. This year is Q1, Q2.

Tisha Chamaria: For this year, sir. Q1, Q2.

Speaker #3: Quarter one, quarter two. So, okay. Now, as you are aware, the last financial year ended with a significant increase in prices and a fear of non-availability.

Rahul Dhanuka: Q1, Q2. Okay. As you are aware that last financial year ended with significant increase in prices and a fear of non-availability. There was probably some front-loading in the market in the beginning of the year. The season is progressing, we don't see either way, stocking or destocking happening. Business is progressing on the go as per the market demand, and inventory rotation is happening normally. I don't foresee any stocking or destocking by end of Q2, either way.

Speaker #3: So there was probably some front-loading in the market at the beginning of the year. As the season is progressing, we don't see it going either way.

Speaker #3: Stocking or destocking is happening. Business is progressing. On the go, as per the market demand, and inventory rotation is happening normally. So, I don't foresee any stocking or destocking by end of Q2.

Speaker #3: Either way.

Tisha Chamaria: Okay. Recently we have launched many products, and upcoming also we have many products. Could you please share how much of the Q1 revenue came from products which were launched over last two years or last three years? And what contribution you expect from these products over the next two to three years?

Speaker #5: Okay. And recently, we have launched many products and upcoming also we will have many products. So could you please share how much of the Q1 revenue came from products which were launched over last two years or last three years?

Speaker #5: And what contribution do you expect from these products over the next two to three years?

Speaker #3: I have really not pulled out this part of the data yet. But as per ITI, the concern is around 11.56%, which is the contribution against the last three years' introductions.

Rahul Dhanuka: I've really not pulled out this part of the data.

Vinod Kumar Bansal: As per ITI concerned, is around 11.56%, which is a conclusion against the last three years' introductions.

Tisha Chamaria: Got it. Thank you.

Speaker #5: Got it. Thank you.

Speaker #1: Thank you. The next question is from the line of Prashant—from Elara Securities. Please go ahead.

Tisha Chamaria: Thank you. The next question is from the line of Prashant. Prashant from Elara Securities. Please go ahead.

Operator: Thank you. The next question is from the line of Prashant. Prashant from Elara Securities. Please go ahead.

Speaker #2: Yeah. Thank you for the opportunity. Rahul ji, Q1 was supposed to be a decent quarter, I think. In general, because of the price increase and the industry might have got the benefit of some low-cost inventory that we would have carried for the Kharif season from Q4.

[Company Representative] (Elara Securities): Yeah, thank you for the opportunity. Rahulji, Q1 was supposed to be a decent quarter, I think, in general because of price increase and the industry might have got benefit of some low-cost inventory that we would have carried for the kharif season from Q4. It does not seem to be so. Some more details from you on how Q1 panned out actually and how is the situation in Q2 on ground would be very helpful.

Prashant Biyani: Yeah, thank you for the opportunity. Rahulji, Q1 was supposed to be a decent quarter, I think, in general because of price increase and the industry might have got benefit of some low-cost inventory that we would have carried for the kharif season from Q4. It does not seem to be so. Some more details from you on how Q1 panned out actually and how is the situation in Q2 on ground would be very helpful.

Speaker #2: But it does not seem to be so. So, some more details from you on how Q1 panned out actually, and how the situation is on the ground in Q2, would be very helpful.

Speaker #3: Yeah. So, Q1 for us, and I believe for the industry in general, is herbicide-heavy—weedicide-heavy—for soybean, cotton, and various other crops across large parts of the geography. Especially, these were some of the states which were worst impacted in Q1.

Rahul Dhanuka: Yeah. Q1 for us and I believe industry general is herbicide heavy.

[Company Representative] (Elara Securities): Yeah.

Prashant Biyani: Yeah.

Rahul Dhanuka: Herbicides heavy for soybean, cotton various other crops across large parts of the geography, including . These were some of the states which were worst impacted in one

Speaker #1: Sorry to interrupt, sir. Your voice is not audible. The voice is cracking a little bit.

Rahul Dhanuka: Sorry to interrupt, sir. Your voice is not audible. Your voice is cracking a little bit.

Operator: Sorry to interrupt, sir. Your voice is not audible. Your voice is cracking a little bit.

Speaker #3: I'm sorry. Tell me, Sumit, is it better now?

Rahul Dhanuka: I'm sorry. Tell me, Sumit, is it better now?

Speaker #1: Yes, sir. Please go ahead.

Rahul Dhanuka: Yes, sir. Please go ahead.

Operator: Yes, sir. Please go ahead.

Speaker #3: Thanks. I'll take that part. So Rajasthan, Gujarat, Madhya Pradesh, and Maharashtra import cotton and soybean markets. They took a major beating in terms of rainfall, especially in the month of June.

Rahul Dhanuka: Thanks. I'll repeat that part. Rajasthan, Gujarat, Madhya Pradesh, Maharashtra important cotton and soybean markets. They took a major beating in terms of rainfall, especially in the month of June. In some pockets, farmers had to even go for resowing. That is where herbicides for Dhanuka have taken a hit. That's reflected in our Q1 performance. In terms of South, also the sentiments have not been good. The rainfall has not been good in June as well as in July. Going to Q2, July, while various districts and some pockets have seen excessive rainfall, a large part of the country remains deficit in rainfall. That's how July is moving. Of course, July has done better than June, yet what we see is a difficult quarter.

Speaker #3: And in some pockets, farmers had to even go for re-sowing. That is where herbicides for Dhanuka have taken a hit, and that's how that's reflected in our Q1 performance.

Speaker #3: In terms of the South, the sentiments have not been good. The rainfall has not been good in June as well as in July. Moving to Q2, although various districts and some pockets have seen excessive rainfall, a large part of the country remains deficient in rainfall.

Speaker #3: And that's how July is moving. Of course, July has done better than June, yet what we see is a difficult quarter.

Speaker #2: Okay, sir. Senior revenue breakdown segment-wise: herbicide declining by around 25% is understandable, but in a season of heavy herbicide consumption, fungicide sales are up 11%.

[Company Representative] (Elara Securities): Okay. Sir, seeing your revenue breakdown segment-wise, herbicide declining by around 25% is understandable. In a season of herbicide-heavy consumption-wise, fungicide sales up 11%.

Prashant Biyani: Okay. Sir, seeing your revenue breakdown segment-wise, herbicide declining by around 25% is understandable. In a season of herbicide-heavy consumption-wise, fungicide sales up 11%.

Speaker #3: Fungicide sales are 14%, not 11%.

Rahul Dhanuka: Fungicide sales is 14%, not 11%.

Speaker #2: No, YOI growth.

[Company Representative] (Elara Securities): No, YOY growth.

Prashant Biyani: No, YOY growth.

Rahul Dhanuka: Okay. I didn't get your question.

Speaker #3: Okay, I didn't get your question.

Speaker #2: Sir, fungicide sales were up 11% year-on-year in Q1. Generally, Q1 is a herbicide placement season, and insecticides and fungicides take a backseat. For Q2, sales are generally higher.

[Company Representative] (Elara Securities): Sir, fungicide sales was up 11% year on year in Q1.

Prashant Biyani: Sir, fungicide sales was up 11% year on year in Q1.

[Company Representative] (Elara Securities): Generally, Q1 is a herbicide placement season and insecticide, fungicide takes a back seat for Q2 because the sales are generally higher in Q2.

Prashant Biyani: Generally, Q1 is a herbicide placement season and insecticide, fungicide takes a back seat for Q2 because the sales are generally higher in Q2.

Speaker #2: But why are fungicide sales also up 11% this quarter?

Rahul Dhanuka: Correct.

[Company Representative] (Elara Securities): Why is fungicide sales also up 11% this Q1?

Prashant Biyani: Why is fungicide sales also up 11% this Q1?

Speaker #3: This is very interesting. Some, in a very specific fungicide—a very special Japanese fungicide—has a special traction in the dry season in horticulture crops.

Rahul Dhanuka: This is very interesting. Some in a very specific fungicide, a very special Japanese fungicide has a special traction in dry season in horticulture crops. Now, high horticulture prices, for example, tomato, cucurbits, et cetera, gave traction for these two products. That's why fungicide has grown in Q1. Whereas you are conventionally right, Q2 is a fungicide quarter.

Speaker #3: Now, high horticulture prices—for example, tomato, cucurbits, etc.—gave traction for these two products, and that's why fungicide has grown in Q1. Whereas, you're conventionally right: Q2 is a fungicide quarter.

Speaker #2: So, which molecules would these be? Or which brands?

[Company Representative] (Elara Securities): Sir, which molecules would these be or which brands?

Prashant Biyani: Sir, which molecules would these be or which brands?

Speaker #3: Potassium. Misodium and Conica.

Rahul Dhanuka: Nissodium.

Vinod Kumar Bansal: Nissodium.

Rahul Dhanuka: Conika.

Speaker #4: And genetic.

Speaker #2: Okay. And just one last question for Mr. Bansal. Sir, generally, in a weak quarter, you have, in general, very tight control on costs.

Vinod Kumar Bansal: Conika.

[Company Representative] (Elara Securities): Okay. Just last question from Mr. Bansal. Sir, generally in a weak quarter, in general you have very tight control on cost. This time against a 12% revenue decline, your other expenses are flat. Is there any one-off in this quarter or, we were not able to control it this time?

Prashant Biyani: Okay. Just last question from Mr. Bansal. Sir, generally in a weak quarter, in general you have very tight control on cost. This time against a 12% revenue decline, your other expenses are flat. Is there any one-off in this quarter or, we were not able to control it this time?

Speaker #2: And at this time, against a 12% revenue decline, your other expenses are flat. So is there any one-off in this quarter, or were you not able to control it this time?

Speaker #3: I mean, we are able to control them. We are flat. You see, it's very difficult to, you see, you meant in the expenses, same level.

Rahul Dhanuka: We are able to control that's why we are flat. You see, it's very difficult to maintain the expense at the same level. All the expenses, many expenses are basically incurred in anticipation of the CM. Their planning is done significantly ahead of the CM. Right?

Speaker #3: Because, you see, many expenses are basically incurred in anticipation of the season. Their planning is done significantly ahead of the season, right?

Speaker #2: Yeah.

[Company Representative] (Elara Securities): Yeah.

Prashant Biyani: Yeah.

Speaker #3: So expenses are, you see, because of tight control, flat in terms of percentage or more. But in absolute value, almost the same—similar.

Rahul Dhanuka: Expenses are easy because of flat control, are flat in terms of percentage or more, but in absolute value, almost same. Similar.

Speaker #2: Okay, sir. I'll go back to the queue.

[Company Representative] (Elara Securities): Okay, sir. I'll go back to the queue.

Prashant Biyani: Okay, sir. I'll go back to the queue.

Speaker #1: Thank you. The next question is from the line of Riju from Antique Stock Broking. Please go ahead.

[Company Representative] (Elara Securities): Thank you. The next question is from the line of Riju from Antique Stock Broking. Please go ahead.

Operator: Thank you. The next question is from the line of Riju from Antique Stock Broking. Please go ahead.

Speaker #4: Yeah. Hi, sir. My question is regarding whether you could break up the revenue growth in terms of volume and value.

[Analyst] (Antique Stock Broking): Yeah. Hi, sir. My question is regarding if you could break up the revenue growth in terms of volume, value.

Riju Dalui: Yeah. Hi, sir. My question is regarding if you could break up the revenue growth in terms of volume, value.

Speaker #3: Yeah. You see, in terms of value, volume growth, it is almost similar. Value is negative by 12.56%, and volume is around the same, about 12.7%.

Rahul Dhanuka: Yeah. In terms of value, volume growth, it is almost similar. Value negative by 12.56, and volume is around 12.7 type.

Vinod Kumar Bansal: Yeah. In terms of value, volume growth, it is almost similar. Value negative by 12.56, and volume is around 12.7 type.

Speaker #4: Okay. So the value growth was partially led by the increase in input costs, right?

[Analyst] (Antique Stock Broking): Okay. The value growth was partially led by the increase in the input cost, right?

Riju Dalui: Okay. The value growth was partially led by the increase in the input cost, right?

Speaker #3: It's almost the same—similar. In terms of value and volume, there is hardly any difference.

Rahul Dhanuka: It's almost same. Similar. Value or volume, there's hardly any difference.

Vinod Kumar Bansal: It's almost same. Similar. Value or volume, there's hardly any difference.

Speaker #4: No, sir. So my question was that the price growth that we have seen in this quarter, so that was driven by the price hike.

[Analyst] (Antique Stock Broking): No, sir. My question was that the price growth that we have seen in this quarter, that was driven by the price hike and that is led by the input cost inflation. Is that correct?

Riju Dalui: No, sir. My question was that the price growth that we have seen in this quarter, that was driven by the price hike and that is led by the input cost inflation. Is that correct?

Speaker #4: And that is led by the input cost inflation. Is that correct?

Speaker #3: You see, price hike happened in the month of June. It could not sustain. From the May started declining. And June, significant decline in many molecules.

Rahul Dhanuka: You see, price hike happened in the month of June. It could not sustain. From May, it started declining. In June, significant decline in many molecules. In July, further decline. That was artificial increase, sort of artificial because of artificial shortage in view of war. That was only in April. From May, the things were reversed.

Vinod Kumar Bansal: You see, price hike happened in the month of June. It could not sustain. From May, it started declining. In June, significant decline in many molecules. In July, further decline. That was artificial increase, sort of artificial because of artificial shortage in view of war. That was only in April. From May, the things were reversed.

Speaker #3: In July further decline. That was artificial you see, increase sort of artificial because artificial sort is in view of war. So that was only in April.

Speaker #3: From May, things were reversed.

Speaker #4: Understood. But still, in your books, it is showing that the price growth is over 12%. So, I just wanted to understand: if the price growth was over 12%, then why haven't we got the benefit in terms of low-cost inventory and, vis-à-vis, the gross margin improvement?

[Analyst] (Antique Stock Broking): Understood. Still in your books it is showing that the price growth of over 12%. Just wanted to understand if the price growth of over 12%, then why we haven't got the benefit in terms of the low cost inventory and vis-à-vis the gross margin improvement. That's the point I want to understand.

Riju Dalui: Understood. Still in your books it is showing that the price growth of over 12%. Just wanted to understand if the price growth of over 12%, then why we haven't got the benefit in terms of the low cost inventory and vis-à-vis the gross margin improvement. That's the point I want to understand.

Speaker #4: So that's the point I want to understand.

Speaker #3: You see, the price growth is 12%. No growth in volume.

Rahul Dhanuka: Who says the price growth is 12%? No growth in price.

Vinod Kumar Bansal: Who says the price growth is 12%? No growth in price.

Speaker #4: Okay. I understand.

[Analyst] (Antique Stock Broking): Okay. Understood.

Riju Dalui: Okay. Understood.

Rahul Dhanuka: I'm saying. Yeah.

Vinod Kumar Bansal: I'm saying. Yeah.

Speaker #3: I'm saying. Yeah.

Speaker #4: Understood. And sir, in terms of Bayer revenue, I think last time you had mentioned that the India business Bayer product registration got transferred to Dhanuka's name.

[Analyst] (Antique Stock Broking): Understood, sir. Sir, in terms of Bayer revenue, I think last time you had mentioned that the India business, Bayer product registration got transferred to Dhanuka's name. Just want to understand if we have booked any revenue for that product in India market or like that revenue was nil in this quarter.

Riju Dalui: Understood, sir. Sir, in terms of Bayer revenue, I think last time you had mentioned that the India business, Bayer product registration got transferred to Dhanuka's name. Just want to understand if we have booked any revenue for that product in India market or like that revenue was nil in this quarter.

Speaker #4: So just want to understand, if we have booked any revenue for that product in the India market, whether that revenue was made in this quarter.

Speaker #3: In the India market, the revenue was booked in the previous year itself. It was started from last year.

Rahul Dhanuka: In India market, the revenue was booked in the previous year itself. It was started from the last year.

Vinod Kumar Bansal: In India market, the revenue was booked in the previous year itself. It was started from the last year.

Speaker #4: Okay. So this yeah.

[Analyst] (Antique Stock Broking): Okay.

Riju Dalui: Okay.

Rahul Dhanuka: For it.

Vinod Kumar Bansal: For it.

[Analyst] (Antique Stock Broking): Yeah.

Riju Dalui: Yeah.

Speaker #3: So you see, the business brand is coming in quarter two. Quarter one is a very nominal figure. It's a product for grape, so grape season starts in the second quarter.

Rahul Dhanuka: You see the business name. Product is coming Q2. Q1 is very nominal figure.

Vinod Kumar Bansal: You see the business name. Product is coming Q2. Q1 is very nominal figure.

N.K. Dhanuka: It's a product for grape. Grape season starts in the Q2. Major turnover will come from Bayer product, Iprovalicarb, in the month of September.

Mahendra Kumar Dhanuka: It's a product for grape. Grape season starts in the Q2. Major turnover will come from Bayer product, Iprovalicarb, in the month of September.

Speaker #3: So, major turnover will come from buyer product. It will probably come in the month of September.

Speaker #4: Understood, sir. Understood. Thank you, sir. That's all from my end.

[Analyst] (Antique Stock Broking): Understood, sir. Thank you, sir. That's all from my end.

Riju Dalui: Understood, sir. Thank you, sir. That's all from my end.

Speaker #1: Thank you. The next question is from the line of Arjit Joshi from Novama IE. Please go ahead.

[Analyst] (Antique Stock Broking): Thank you. The next question is from the line of Archit Joshi from Nuvama IE. Please go ahead.

Operator: Thank you. The next question is from the line of Archit Joshi from Nuvama IE. Please go ahead.

Archit Joshi: Hi. Very good evening, sir. Thanks a lot for the opportunity. Sir, I have two questions. First thing, the expansion that we are considering in Nagpur is despite having enough land in Dahej, I would assume. While you have given out the reasons for considering Nagpur as a geography for the new expansion and while having enough land in Dahej. Sir, any plans further for having certain assets coming in place or anything of that sort on the Dahej land piece? Because I think there are just two plants I believe that they are running. The land parcel that you have got in Nagpur, does it have enough room for expansions other than just 23,000 tons of capacity that we are adding? That would be my first one. Thank you.

Speaker #2: Hi, very good evening, sir. Thanks a lot for the opportunity. Sir, I have two questions. First, regarding the expansion that we are considering in Nagpur—this is despite having enough land in The Hedge, I would assume. While you have given the reasons for considering Nagpur as a geography for the new expansion, and while we do have enough land in The Hedge, sir, are there any plans for further development, such as certain assets coming into place or anything of that sort on The Hedge land parcel?

Speaker #2: Because I think there are just two plans, I believe, that they are running. And also, the land parcel that you have got in Nagpur—does it have enough room for expansions, other than this 23,000 tons of capacity that we are adding?

Speaker #2: That would be my first one. Thank you.

Speaker #3: Right. So the hedge we are setting up has been set up as a chemical synthesis facility in a notified chemical zone of GIDC, and this space is committed towards chemical synthesis.

Rahul Dhanuka: Right. Dahej has been set up as a chemical synthesis facility in a notified chemical zone of GIDC, and this space is committed towards chemical synthesis. Chemical synthesis, as you are already aware, is completely different technologically, utilization of facilities and utilities, requirement of technical human resource capabilities is very different. We do not wish to overlap the two in terms of formulation facility overlapping with a chemical synthesis facility. That is why this is being set up outside of the Dahej land in a separate. As you are also aware that formulation facilities are relatively easily scalable. As we set up this facility with automation, this would have further expansion opportunity. At Dhanuka, we have in recent past introduced more and more low-dose, environment-friendly products.

Speaker #3: Chemical synthesis, as you are already aware, is completely different technologically. Utilization of facilities and utilities, as well as the requirement for technically skilled human resources, is very different.

Speaker #3: We do not wish to overlap the two in terms of formulation facility overlapping with a chemical synthesis facility. That's why this is being set up outside of the The Hedge land, in a separate— as you are also aware, formulation facilities are relatively easily scalable.

Speaker #3: As we set up this facility with automation, this will create further opportunities for expansion. At Dhanuka, we have recently introduced more and more low-dose, environment-friendly products.

Speaker #3: So I feel that setting up, providing the farmer with smaller pack sizes of really potent and efficient products, will take a major leap with this facility.

Rahul Dhanuka: I feel that setting up, providing the farmer with smaller pack size of really potent and efficient products will take a major leap with this facility.

Speaker #2: Sir, the Nagpur expansion, does it have more space for commodity or other assets also?

Archit Joshi: Sir, the Nagpur expansion, does it have more space for accommodating other assets also?

Speaker #3: Yes, yes. It has opportunity for scaling up.

Rahul Dhanuka: Yes. It has opportunity for scaling up.

Speaker #2: Got it. Sir, second one—on one of the media interactions, I think Dhanuka G mentioned that this year we will probably have more biological products, which were pretty much absent last year.

Archit Joshi: Got it. Sir, second one. On one of the media interactions, I think Dhanuka Ji mentioned that this year we will probably have more biological products which were pretty much absent in the last year. I think that number was indicated to the extent of around INR 130 odd crore. Now if I just do the math, the single-digit top line growth that you are talking about will roughly bring around INR 100 to 150 odd crore swing on the overall revenues. It seems to be offsetting the incremental revenue coming in from biological. Is it safe to assume that basically we are looking at a flattish year on crop protection volumes for FY27? Is that the right reading?

Speaker #2: And I think that number was indicated to the extent of around 130-odd crores. And now, if I just do the math, the single-digit top-line growth that you are talking about will roughly bring around 100 to 150-odd crores in the overall revenues.

Speaker #2: And it seems to be offsetting the incremental revenue coming in from biological. So, is it safe to assume that basically, we are looking at a flattish year on crop protection volumes for FY27?

Speaker #2: Is that the right reading?

Speaker #3: We are looking at a small, single-digit growth, I would say. Yes.

Rahul Dhanuka: We are looking at a small single-digit growth, I would say. Yes.

Speaker #2: Okay, noted, sir. Thank you. That's it from me. All the best for the next quarter.

Archit Joshi: Okay. Noted, sir. Thank you. That's it from me. All the best for the next quarter.

Speaker #3: Thank you.

Rahul Dhanuka: Thank you.

Speaker #1: Thank you. The next question is from the line of Rohit Nagaraj from 361 Capital. Please go ahead.

Rahul Dhanuka: Thank you. The next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead.

Speaker #2: Yes, thanks for the opportunity. Sir, just continuing with the question on biologicals—how has the progress been during the current quarter, given that in the base quarter last year there was a ban and, as a result, no sales were observed?

Rohit Nagraj: Thanks for the opportunity. Just carrying on the question on biologicals. How has been the progress during the current quarter, given that last year base quarter, there was a ban, and so no sales were observed. How has been the progress during the month of July for Q2? Thank you.

Speaker #2: So, how has the progress been during the month of July or in Q2? Thank you.

Speaker #3: So out of three products, we have already introduced two, and one more is in the pipeline to be introduced pretty soon. So probably by August end, we'll be launching the third one also.

Rahul Dhanuka: Out of three products, we have already introduced two, and one more is in the pipeline to be introduced pretty soon. Probably by August end, we'll be launching the third one also. We have already received all the regulatory approvals and most of the states we have received the sale permission also. We'll be going ahead with that. In addition to that, we'll introduce two more nutrition biological category products in this financial year.

Speaker #3: We have already received all the regulatory approvals, and in most of the states, we have also received the sale permission. So we'll be going ahead with that.

Speaker #3: In addition to that, we'll introduce two more nutrition biological category products in this financial year.

Rohit Nagraj: Sure. The second question is on the Nagpur project. Now, given that this is going to be a formulation facility, I'm sorry, I had missed the earlier part in terms of what is the timeline for the project, and are there any specific benefits from the Maharashtra government to put up this project in Nagpur region? Thank you.

Speaker #2: Sure. The second question is on the Nagpur project. Now, given that this is going to be a formulation facility, I'm sorry, I had missed the earlier part in terms of what is the timeline for the project.

Speaker #2: And are there any specific benefits from the Maharashtra government to put up this project in the Nagpur region? Thank you.

Speaker #3: We are looking at this plant getting commissioned in Q4 FY28. And we have certain CGST benefits from the Maharashtra government also.

Rahul Dhanuka: We are looking at this plant getting commissioned in Q4 FY28. We have certain SGST benefits from the Maharashtra government also.

Vinod Kumar Bansal: We are looking at this plant getting commissioned in Q4 FY28. We have certain SGST benefits from the Maharashtra government also.

Speaker #2: Right. That's it from my side. Thank you, and all the best, sir.

Rohit Nagraj: Right. That's it from my side. Thank you and all the best, sir.

Speaker #3: Thank you.

Rahul Dhanuka: Thank you.

Vinod Kumar Bansal: Thank you.

Speaker #1: Thank you. The next question is from the line of Himanshu from Anantharathi. Please go ahead.

Rahul Dhanuka: Thank you. The next question is from the line of Himanshu from Anand Rathi. Please go ahead.

Operator: Thank you. The next question is from the line of Himanshu from Anand Rathi. Please go ahead.

Speaker #4: Thank you, sir, for taking my question. So again, sir, harping on the capex and no capex basically—so maybe if you can have some sort of quantification in terms of the benefits which you are going to get from that project, number one.

[Analyst] (Anand Rathi): Thank you, sir, for taking my question. Again, sir, harping on the CapEx and no CapEx basically. Maybe if you can have some sort of quantification in terms of the benefits which you are going to get from that project, number one. Secondly, how should one think about the CapEx numbers for 2027, 2028, and 2029?

Himanshu Binani: Thank you, sir, for taking my question. Again, sir, harping on the CapEx and no CapEx basically. Maybe if you can have some sort of quantification in terms of the benefits which you are going to get from that project, number one. Secondly, how should one think about the CapEx numbers for 2027, 2028, and 2029?

Speaker #4: And secondly, how should one think about the capex numbers for '27, '28, and '29?

Speaker #3: CapEx plan for '27, '28 is.

Rahul Dhanuka: CapEx plan for 2027, 2028 is

Vinod Kumar Bansal: CapEx plan for 2027, 2028 is

Speaker #1: Hello, sir.

[Analyst] (Anand Rathi): Hello, sir?

Himanshu Binani: Hello, sir?

Rahul Dhanuka: You see, in terms of this Nagpur, the CapEx would be around INR 100 crore plus, and the rest will communicate it later.

Vinod Kumar Bansal: You see, in terms of this Nagpur, the CapEx would be around INR 100 crore plus, and the rest will communicate it later.

Speaker #3: You see, in terms of this Nagpur, the capex would be around ₹100 crore plus. And the Hedge will communicate it later.

Speaker #4: Okay. And will we incur this in FY28 or FY29?

[Analyst] (Anand Rathi): Okay, this we are going to incur in FY28 or 2029?

Himanshu Binani: Okay, this we are going to incur in FY28 or 2029?

Speaker #3: 27, 28.

Rahul Dhanuka: 2027, 2028.

Vinod Kumar Bansal: 2027, 2028.

Speaker #4: 27, 28, 100 crore. Hello?

[Analyst] (Anand Rathi): 2027, 2028, INR 100 crore. Hello?

Himanshu Binani: 2027, 2028, INR 100 crore. Hello?

Speaker #3: Yeah.

Rahul Dhanuka: Yeah.

Vinod Kumar Bansal: Yeah.

Speaker #4: Got it. And, sir, second question—mainly, if you can again give a breakup of the revenue decline between volume and price for this quarter.

[Analyst] (Anand Rathi): Sir, second question is, largely, if you can again give a breakup of the revenue decline between volume and price for this quarter, as well as for the last quarter, if that is available with you.

Himanshu Binani: Sir, second question is, largely, if you can again give a breakup of the revenue decline between volume and price for this quarter, as well as for the last quarter, if that is available with you.

Speaker #4: As well as for the last quarter that is available with you.

Speaker #3: That is not available with me, but this quarter is almost similar. The top-line negative in terms of value is 12.56. Volume, it is around 12.7.

Rahul Dhanuka: That is not available with me. This quarter is almost similar. The top line negative in terms of value is 12.56. Volume, it is around 12.7.

Vinod Kumar Bansal: That is not available with me. This quarter is almost similar. The top line negative in terms of value is 12.56. Volume, it is around 12.7.

Speaker #4: Okay.

[Analyst] (Anand Rathi): Okay.

Himanshu Binani: Okay.

Speaker #3: So this is early.

Rahul Dhanuka: There is hardly.

Vinod Kumar Bansal: There is hardly.

[Analyst] (Anand Rathi): Sorry, sir?

Himanshu Binani: Sorry, sir?

Speaker #4: Sorry, sir?

Speaker #3: There is hardly any difference between value and volume.

Rahul Dhanuka: There is hardly any difference between value and volume.

Vinod Kumar Bansal: There is hardly any difference between value and volume.

Speaker #4: Okay. Okay. Got it, sir. Got it. Thank you, sir.

[Analyst] (Anand Rathi): Okay. Got it, sir. Thank you, sir.

Himanshu Binani: Okay. Got it, sir. Thank you, sir.

Speaker #3: Thank you.

Rahul Dhanuka: Thank you.

Vinod Kumar Bansal: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star and one on their touch-tone telephone. Reminder: anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Rahul Dhanuka: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star 1 on the touchtone telephone. Reminder, anyone who wishes to ask a question may press star 1 on the touchtone telephone. The next question is from the line of Saurabh Jain from HSBC. Please go ahead.

Operator: Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press star 1 on the touchtone telephone. Reminder, anyone who wishes to ask a question may press star 1 on the touchtone telephone. The next question is from the line of Saurabh Jain from HSBC. Please go ahead.

Speaker #1: The next question is from the line of Saurabh Jain from HSBC. Please go ahead.

Speaker #2: Thank you for the opportunity. Again, on the biostimulant side, when all of these problems started, there were some expectations that the smaller or unorganized players would kind of lose market share to the bigger players, who do business in a more organized way.

Saurabh Jain: Thank you for the opportunity. On the biostimulant side, when all of this problem started, there were some expectations that the smaller or the organized players would kind of lose market share to the bigger players who do business in a more organized way. Now that you are mentioning that most of the products, I mean, all of your products will be back into the game over the next 1 or 2 months, and 2 are already introduced. Are you noticing any trends in terms of the smaller players kind of going away from the market, and is it more possibility for the organized players to capture market share?

Speaker #2: So now that you are mentioning that most of the products—I mean, all of the products—will be back in the game over the next one or two months.

Speaker #2: And two are already introduced. What do you notice? Are you noticing any trends in terms of the smaller players kind of going away from the market, and is it more of a possibility for the organized players to capture market share?

Speaker #3: Right. The design of the regulation is absolutely on track with our forecast that the smaller players and the unorganized players would probably not have enough space to operate.

Rahul Dhanuka: Right. The design of the regulation is absolutely in track with our forecast that the smaller players and the unorganized players would probably not have enough space to operate. Since the government started approving products late last year and many new introductions have happened over time, what is important to see is how it is implemented, how it is executed on ground, both by the central and the state governments. Various state governments are taking a very stringent view of which products and which players they approve to introduce. Which kind of strengthens the point that the smaller and the unorganized player will have relatively lesser room to operate. I think so. It will go in the right direction and favorable direction for us.

Speaker #3: Since the government started approving products late last year and many new introductions have happened over time, what is important to see is how it is implemented and how it is executed on the ground, both by the central and the state governments.

Speaker #3: So, various state governments are taking a very stringent view of which products and which players they approve to introduce, which kind of strengthens the point that the smaller and the unorganized player will have relatively lesser room to operate.

Speaker #3: So, I think it will go in the right direction and a favorable direction for us.

Speaker #2: So already in the Q2, would you expect that the market shares that you or the other organized players have—will they have a larger market share?

Saurabh Jain: Already in the Q2, would you expect that the market shares that you or the other organized players, will they have a larger market share?

Speaker #2: And what is—okay. And what would your expectations be in terms of the kind of revenue you are expecting from the biostimulant category for this financial year?

Rahul Dhanuka: I think so.

Saurabh Jain: What would your expectations in terms of, what kind of revenue you are expecting from the biostimulants category for this financial year?

Speaker #3: Yeah. So, since we are almost reworking the biostimulant category as almost a fallback option, also in terms of how we can leverage that—and in the stress conditions, how can farmers take benefit of these products?

Rahul Dhanuka: Yeah. Since we are almost reworking the biostimulant category as almost a fallback option also in terms of how we can leverage that, and in the stress conditions, how can farmer take benefit of these products? We are kind of reworking that and probably give you more details later.

Speaker #3: We are kind of reworking that and will probably give you more details later.

Speaker #2: Okay, sure. Second question is on the Hedge plant. You mentioned that the revenue in this quarter was ₹26 crore. Is that right?

Saurabh Jain: Okay, sure. Second question is on the Dahej plant. You mentioned that the revenue in this quarter was INR 26 crore. Is that right?

Speaker #3: Yeah, absolutely.

Rahul Dhanuka: Yeah, absolutely.

Speaker #2: So I think last year, we did—it was about ₹50 crore, right? In FY26. And now that we have been ₹25 crore, what would be your guidance on the revenue for the full year FY27?

Saurabh Jain: I think last year we did all was about INR 50 crores, right? In FY26. Now that we have done INR 25 crores, what would be your guidance on the revenue for full year FY27?

Rahul Dhanuka: For Dahej?

Speaker #3: For The Hedge?

Speaker #2: Yes.

Saurabh Jain: Yes.

Speaker #3: Guidance is around 65 crores.

Rahul Dhanuka: Guidance is around INR 65 crores.

Speaker #2: For full year?

Saurabh Jain: For full year?

Speaker #3: For the full year.

Rahul Dhanuka: For the full year.

Speaker #2: Despite you having already done ₹25 crore in Q1 itself?

Saurabh Jain: Despite you having done already INR 25 crore in Q1 itself.

Speaker #3: Yeah, because that is the start of the season. So initially you get the demand from the market. But later on in the year, the demand is not there.

Rahul Dhanuka: Yeah, that is the start of the season, so initially you get the, basically, demand from the market. Later on, in the later part of the year, demand is not there. In the Q3 or Q4, the demand will be less.

Speaker #3: So in the third or fourth quarter, the demand will be less.

Speaker #2: Okay. And are you expecting to be breakeven at the EBITDA level this year on the hedge plant?

Saurabh Jain: Okay. Are you expecting to be breakeven at the EBITDA level in this year on the Dahej plant?

Speaker #3: Yeah. Yearly EBITDA we are breakeven is appears to be difficult. They are trying hard. But I think it is difficult. That will be around in the range of around negative 4, 5 CR.

Rahul Dhanuka: EBITDA, breakeven appears to be difficult. They are trying hard, but I think it is difficult. That will be around in the range of around INR -4, 5 crore. Difficult to say.

Speaker #3: Difficult to.

Speaker #2: Okay. And is it possible to also share the guidance on the bear products for FY27?

Saurabh Jain: Possible to also share the guidance on the Bayer products for FY27?

Speaker #3: Bear product, you see, in India brings—you are already aware—in the part of the balance sheet, in terms of the other, you see, work is going on.

Rahul Dhanuka: Bayer product you see in India, Binny, you are already aware in the part of balance sheet. In terms of the other, you see work is going on. We are already incorporating two companies, one in Brazil and one in Europe. Some distributor appointed. The exact figure is now difficult to share, but not a very significant portion will come in our balance sheet this year. Not significant amount of money will appear in this year.

Speaker #3: We are already see incorporating two companies, one in Brazil and one in Europe. And some distributor appointed the exact figure is now difficult to share.

Speaker #3: But not a very significant portion will come in our balance sheet this year. Not a significant amount of money will appear this year.

Speaker #2: Okay, understood. One last question. You mentioned that the sowing trend was weaker for Q1. But now, as we notice the sowing progress, the sowing for soybean and cotton has improved meaningfully, right?

Saurabh Jain: Okay, understood. One last question. You mentioned that the sowing trend was weaker for Q1, but now that we notice in the sowing progress, the sowing for soybean and cotton have improved meaningfully, right?

Speaker #3: That's right.

Rahul Dhanuka: That's right.

Speaker #2: So, soybean—I think you had a very successful product by the brand name Purge two years back, which suffered last year. But then, with the recovery in soybean sowing and also on the cotton side, can some of the products that you have in your portfolio benefit in Q2? And could some of the loss that you faced in Q1 be reversed?

Saurabh Jain: Soybean, I think you have a very successful product by the brand name Purge 2 years back. It suffered last year. With the recovery in the soybean sowing and also on the cotton side, can some of the products that you have in portfolio benefit in Q2 and some of the loss that you faced in Q1 could be reversed?

Speaker #3: So these products have a particular segment, which is mostly in the first fortnight of July, but preferably in the second fortnight of June. So no, I don’t think so. Purge and these that we decide would have a play opportunity for now.

Rahul Dhanuka: These products have a particular segment, which is mostly in first fortnight of July, but preferably in second fortnight of June. No, I don't think so. Purge and these, we decide would have a play opportunity for now.

Speaker #2: Okay, understood. Thank you, and all the best.

Saurabh Jain: Okay, understood. Thank you and all the best.

Speaker #3: Thank you.

Rahul Dhanuka: Thank you.

Speaker #1: Thank you. The next question is from the line of Umang Shah from Banyan Tree Advisors PMS. Please go ahead.

Rahul Dhanuka: Thank you. The next question is from the line of Umang Shah from Banyan Tree Advisors PMS. Please go ahead.

Operator: Thank you. The next question is from the line of Umang Shah from Banyan Tree Advisors PMS. Please go ahead.

Speaker #4: Hi, sir. Thanks for the opportunity again. I had one question. Because of this monsoon deficit, one thing that we see is that the sowing is lower compared to last year.

Umang Shah: Hi, sir. Thanks for the opportunity again. I just had one question. Because of this monsoon deficit, one thing that we see is that the sowing is lower compared to last year. Just wanted to also understand, do you observe some stress at farmer level, and would you think that they would not want to spend so much money on crop protection this year?

Speaker #4: I just wanted to also understand, do you observe some stress at the farmer level, and would you think that they might not want to spend as much money on crop protection this year?

Speaker #3: Well, we kind of thought this even when prices were going up significantly towards March end. But, as things would turn out, on one side March vegetable prices went down for a while, but then April, May, and early June also saw significant uptick in vegetable prices.

Rahul Dhanuka: Well, we kind of thought this, even when prices were going up significantly towards March end. As things would turn out, on one side, March vegetable prices went down for a while, then April, May, and early June also saw significant uptick in vegetable prices and thus significantly increased consumption of horticulture products also. I think so it is both ways. If the acreages would be slightly lower, then the farmers who are left with more acreages would have more opportunity to invest because commodity prices would be ranging higher. The demand-supply balance, how that appears, is something we are also watching. What will certainly be impacted is where irrigation is available versus where irrigation is not available.

Speaker #3: And thus, it would significantly increase the consumption of horticulture products also. I think it works both ways. If the acreages are slightly lower, then the farmers who are left with more acreage would have more opportunity to invest because commodity prices would be relatively higher.

Speaker #3: So, the demand-supply balance, how that appears, is something we are also watching. What will certainly be impacted is where irrigation is available versus where irrigation is not available.

Speaker #3: So, where irrigation is available, which is almost 60% of Indian agriculture, there would certainly be higher consumption as well as higher investment in crop protection.

Rahul Dhanuka: where irrigation is available, which is almost 60% of the Indian agriculture, would certainly have higher consumption as well as higher investment in crop protection as compared to where irrigation is not available. There, farmer will go for low cost or no spray options.

Speaker #3: As compared to where irrigation is not available, there the farmer will go for low-cost or no-spray options.

Speaker #4: Got it. Got it. Very useful. Very useful. And second was that although the monsoon is in deficit, there have been reports that the reservoir levels have been quite healthy.

Umang Shah: Got it. Very useful. Second was that although kharif is in deficit, there have been reports that the reservoir levels have been quite healthy. Despite this, when we see that this sowing has been lower, you mean that it has been delayed, right? It is not as if the acreage has reduced.

Speaker #4: Despite this, when we see that this sowing has been lower, you mean that it has been delayed, right? It is not as if the acreage has reduced.

Speaker #3: I'll respond to that in two parts. First of all, please do share with me the list of those reservoirs which are healthy, so that I can talk to my team also.

Rahul Dhanuka: I'll respond to that in two parts. First of all, please do share with me the list of those reservoirs which are healthy, so that I can talk to my team also. In my understanding, the reservoir health is significantly depleted and we are still praying for more rains. Yes, sowing has caught up in certain pockets where it has rained well in July and the sown acreages have become healthier to that extent.

Speaker #3: In my understanding, the reservoir health is significantly depleted, and we are still praying for more rains. Yes, sowing has caught up in certain pockets where it has rained well in July.

Speaker #3: And the acreage is—so, acreages have become healthier to that extent.

Speaker #4: Got it, got it. Thank you so much, sir. Wish you all the best.

Umang Shah: Got it. Thank you so much, sir. Wish you all the best.

Speaker #3: Thanks.

Rahul Dhanuka: Thanks.

Speaker #1: Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments.

Rahul Dhanuka: Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments.

Operator: Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments.

Speaker #5: Once again, I would like to thank all our investors, analysts, business partners, and stakeholders for their continued trust and confidence in Dhanuka Agritech Limited.

Rahul Dhanuka: Once again, I would like to thank all our investors, analysts, business partners, and stakeholders for their continued trust and confidence in Dhanuka Agritech Limited. We remain committed to building a resilient, innovation-driven, chemistry-forward, and farmer-focused organization that creates sustainable long-term value for all stakeholders. India ka pranam har kisan ke naam. Thank you and goodbye until next time.

Speaker #5: We remain committed to building a resilient, innovation-driven, chemistry-forward, and farmer-focused organization that creates sustainable, long-term value for all stakeholders. India ka pranam har kisan ke naam.

Speaker #5: Thank you, and goodbye until next time.

Rahul Dhanuka: On behalf of Dhanuka Agritech Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator: On behalf of Dhanuka Agritech Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

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Q1 2027 Dhanuka Agritech Ltd Earnings Call

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