💰 Financial Performance

Revenue Growth by Segment

Agro Chemicals remains the primary driver with revenue of INR 11,926.50 Lacs in H1 FY26 compared to INR 20,059.00 Lacs for the full year FY25. Agro Trade revenue reached INR 100.75 Lacs in H1 FY26, nearly matching its total FY25 revenue of INR 101.73 Lacs, indicating a significant acceleration in trading activities.

Geographic Revenue Split

Not disclosed in available documents, though the company emphasizes 'Huge Export Potential' and plans for 'Increase in Geographical Presence'.

Profitability Margins

The Consolidated Net Profit Ratio was 2.79% for FY25, a decrease of 7.81% YoY from 3.03% in FY24. Standalone Net Profit Ratio for FY25 was 3.30%, up 8.48% YoY.

EBITDA Margin

Consolidated EBITDA for FY25 was INR 17.38 Cr (INR 1,737.52 Lacs), representing an EBITDA margin of approximately 8.66% based on FY25 revenue of INR 20,059.00 Lacs.

Capital Expenditure

Historical capital expenditure for H1 FY26 included INR 4.38 Cr (INR 437.74 Lacs) for the purchase of Property, Plant, and Equipment. Planned expenditure is focused on increasing geographical presence and product portfolio expansion.

Credit Rating & Borrowing

The Debt-Equity Ratio stood at 0.52 for FY25, an increase of 20.19% YoY from 0.44 in FY24, driven by additional borrowings from financial institutions to fund operations. Finance costs for H1 FY26 were INR 2.82 Cr (INR 282.27 Lacs).

⚙️ Operational Drivers

Raw Materials

Technical formulations and active ingredients for Pesticides, Insecticides, Herbicides, and Fertilizers represent the core raw material requirements, accounting for approximately 83.3% of revenue (INR 10,020.93 Lacs in H1 FY26).

Import Sources

Not specifically disclosed, but the company notes a requirement for foreign government approvals for exports, suggesting international supply chain linkages.

Capacity Expansion

Current installed capacity is not specified in MT; however, the company is actively expanding its product portfolio and geographical footprint to utilize its works at Ankleshwar, Gujarat.

Raw Material Costs

Cost of materials consumed was INR 10,020.93 Lacs in H1 FY26, representing 83.3% of revenue from operations. This high percentage makes the company sensitive to price fluctuations in chemical technicals.

Logistics & Distribution

The company utilizes an extensive marketing setup including dealer training programs, field demonstrations, and farmer training to manage distribution across target regions.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth will be driven by increasing geographical presence, expanding the product portfolio (Antibiotics, Bactericides, etc.), and strengthening the brand through extensive marketing activities such as field shows and dealer training. The company is also leveraging its subsidiary, Hetban Spec-Chem Limited, for broader market reach.

Products & Services

The company sells Antibiotics, Bactericides, Plant Growth Regulators, Micro Fertilizers, Pesticides, Insecticides, Fungicides, and Weedicides.

Brand Portfolio

Crop Life Science Limited (CLSL).

New Products/Services

The company is focused on 'Increasing our product Portfolio' particularly in the R&D of new agrochemical technicals and formulations.

Market Expansion

Targeting both domestic expansion and international markets through 'Huge Export Potential' and seeking foreign government approvals.

Strategic Alliances

The company operates with a subsidiary, Hetban Spec-Chem Limited, which is included in its consolidated financial results.

🌍 External Factors

Industry Trends

The industry is shifting toward Integrated Pest Management (IPM) and organic farming. There is a rising global demand for food grains, which supports a growing market for yield-enhancing agrochemicals.

Competitive Landscape

The company operates in a competitive SME segment of the agrochemical industry, facing risks from industry cycles and economic headwinds.

Competitive Moat

The company's moat is built on its brand image, extensive marketing setup, and a diversified product portfolio across multiple agrochemical verticals. These are sustainable through continuous dealer engagement and R&D.

Macro Economic Sensitivity

Highly sensitive to agricultural output and rainfall; growth in food grain demand and organic farming trends (IPM) are key macro drivers.

Consumer Behavior

Farmers are increasingly adopting organic farming and IPM, requiring the company to adapt its product mix toward more sustainable formulations.

Geopolitical Risks

Export operations are subject to foreign government approvals and changing international regulatory norms.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, SEBI (LODR) Regulations 2015, and specific agrochemical regulatory norms including foreign government export approvals.

Environmental Compliance

The company is aligning with Integrated Pest Management (IPM) and organic farming trends, though specific ESG compliance costs are not disclosed.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 26.34% based on standalone profit before tax of INR 437.74 Lacs and tax expense of INR 115.31 Lacs.

Legal Contingencies

The company reported an exceptional gain of INR 29.63 Lacs in H1 FY26 related to the cancellation of a lease and transfer of land liability.

⚠️ Risk Analysis

Key Uncertainties

High dependence on natural climate and rainfall (potential 20%+ impact on seasonal revenue) and frequently changing government regulatory norms.

Geographic Concentration Risk

Manufacturing operations are concentrated in Ankleshwar, Gujarat, making it sensitive to regional industrial policies.

Third Party Dependencies

Significant reliance on a network of dealers and distribution partners for reaching individual farmers.

Technology Obsolescence Risk

Risk of traditional pesticides being replaced by bio-pesticides or organic alternatives if R&D does not keep pace.

Credit & Counterparty Risk

Trade Receivables Turnover Ratio decreased to 2.74 in FY25 (down 24.32% YoY), indicating a potential increase in credit risk or longer collection cycles from distributors.