BHARATRAS - Bharat Rasayan

📊 NSE: BHARATRAS 🏢 Pesticides / Agrochemicals - Indian 📅 Last Updated: 12/13/2025 19:27

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue from operations reached INR 663.36 Cr for the six months ended September 30, 2025, representing a growth of 8.73% compared to INR 610.07 Cr in the previous year's corresponding period. While specific segment percentages are not disclosed, the company identifies seeds and nutrients as its high-growth segments driving future profitability.

Geographic Revenue Split

Export sales constituted 36.13% of total sales in FY2023-24, a significant decrease from 55.98% in FY2022-23. Domestic sales account for the remaining 63.87%. The company maintains 123 international registrations to support its global footprint.

Profitability Margins

Net Profit Margin for H1 FY2025-26 stood at 10.64%, a slight decline from 10.97% in H1 FY2024-25. Standalone Net Profit for H1 FY2025-26 was INR 69.82 Cr, up 4.29% from INR 66.95 Cr YoY.

EBITDA Margin

Operating Margin (PBILDT) was 14.44% for H1 FY2025-26, compared to 15.22% in H1 FY2024-25. The company's total expenses decreased by 10.97% from INR 1041.62 Cr in FY2022-23 to INR 927.36 Cr in FY2023-24, primarily due to optimized material consumption costs.

Capital Expenditure

Capital Work-in-Progress was reported at INR 2.02 Cr as of September 30, 2025. The company maintains a low gearing of 0.08x, providing significant headroom to raise debt for future capacity expansion and capex needs.

Credit Rating & Borrowing

The company holds a strong credit profile with a Debt-Equity Ratio of 0.08x as of September 30, 2025. CARE Ratings previously assigned CARE A1+ to its commercial paper (later withdrawn as unutilized). Interest Service Coverage Ratio remains robust at 37.35x for H1 FY2025-26.

⚙️ Operational Drivers

Raw Materials

Technical grade pesticides and chemical intermediates. Cost of materials consumed for H1 FY2025-26 was INR 441.89 Cr, representing 66.61% of total revenue from operations.

Import Sources

Approximately 58-60% of total raw material purchases are imported. China is the primary source, accounting for 85% of total imports, followed by Japan at 12-14%.

Key Suppliers

Key suppliers include Nissan Chemical Corporation through the 30:70 Joint Venture (Nissan Bharat Rasayan Private Limited) and various vendors in China and Japan.

Capacity Expansion

Current manufacturing focuses on technical grade pesticides and formulations. While specific MTPA figures are not disclosed, the company is leveraging its JV with Nissan Chemical Corporation to enhance technical capabilities and product range.

Raw Material Costs

Raw material costs increased by 10.86% YoY to INR 441.89 Cr in H1 FY2025-26 from INR 398.61 Cr. The company utilizes a natural hedge through export sales to mitigate the impact of import cost fluctuations.

Manufacturing Efficiency

The company focuses on high-growth segments like seeds and nutrients to improve overall plant utilization and profitability.

Logistics & Distribution

Distribution costs are managed as part of 'Other Expenses' which represent approximately 10.5% of total revenue.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be achieved through the expansion of the product portfolio in the seeds and nutrients segments, leveraging the 30:70 JV with Nissan Chemical Corporation for advanced technicals, and increasing market penetration in the 123 international markets where it holds registrations.

Products & Services

Technical grade pesticides, pesticide formulations, high-growth seeds, and plant nutrients.

Brand Portfolio

Bharat Rasayan, Nissan Bharat Rasayan (JV), B R Agrotech, and Bharat Certis Agriscience (associate).

New Products/Services

The company is entering new segments in seeds and nutrients, which are expected to be high-growth drivers for future revenue and profitability.

Market Expansion

Expansion is targeted through increasing international registrations (currently 123) and deepening the domestic reach for formulations and nutrients.

Market Share & Ranking

The company is a significant player in the Indian technical grade pesticide market and is mandated to have a Risk Management Committee as one of the top 1000 listed entities by market capitalization.

Strategic Alliances

Nissan Bharat Rasayan Private Limited is a critical 30:70 Joint Venture between Bharat Rasayan and Nissan Chemical Corporation, contributing INR 1.72 Cr in share of profit for Q2 FY2025-26.

🌍 External Factors

Industry Trends

The Indian chemical industry is seeing a shift toward domestic manufacturing of technicals to reduce import dependency. The industry is growing, but faces increasing environmental scrutiny and molecule-specific regulations.

Competitive Landscape

Competes with both domestic agrochemical players and multinational corporations in the technicals and formulations segments.

Competitive Moat

The company's moat is built on its extensive registration portfolio (584 total) and its strategic JV with Nissan Chemical, which provides access to proprietary technology. These are sustainable due to the high regulatory barriers to entry in the agrochemical space.

Macro Economic Sensitivity

Highly sensitive to agricultural output and monsoon patterns in India, as well as global commodity price cycles for agrochemicals.

Consumer Behavior

Increasing farmer preference for high-yield seeds and specialized nutrients is driving the company's shift toward these segments.

Geopolitical Risks

Significant exposure to China (85% of imports) makes the company vulnerable to trade barriers or supply disruptions originating from Chinese regulatory shifts.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to the Insecticides Act and Central Insecticides Board & Registration Committee (CIB&RC) norms. Prohibited usage of certain molecules represents a recurring regulatory risk.

Environmental Compliance

The company faces ongoing compliance requirements related to chemical manufacturing and waste disposal, though specific ESG spend figures are not disclosed.

Taxation Policy Impact

The company's effective tax rate is approximately 24.5%, with a tax expense of INR 22.66 Cr against a profit before tax of INR 92.48 Cr for H1 FY2025-26.

Legal Contingencies

The company has not disclosed any material pending court cases or litigation that would significantly impact its financial position in the provided documents.