DHANLAXMI - Dhanlaxmi Crop

📊 NSE: DHANLAXMI 🏢 Miscellaneous 📅 Last Updated: 12/13/2025 21:30

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 102.95% YoY to INR 129.62 Cr. Maize segment posted 31% YoY growth, while Wheat increased 39.65% YoY. Cotton segment maintained sales of INR 114 Cr despite market headwinds. The Non-Cotton (NC) portfolio decreased from 23.37% to 11.78% of total revenue.

Geographic Revenue Split

The company operates a distribution footprint across 5 States in India with over 1,100 distributors. Key facilities including HQ, R&D, and processing plants are centralized in Himatnagar, Gujarat.

Profitability Margins

Gross profit rose 16.13% to INR 11.73 Cr. Profit After Tax (PAT) grew 85.53% to INR 8.68 Cr. Net profit margin stood at approximately 6.7% for FY25.

EBITDA Margin

EBITDA stood at INR 12.65 Cr for FY25, representing an EBITDA margin of 9.76%, which moderated from 10.86% in FY24 due to seasonal business nature and external headwinds in the cotton segment.

Capital Expenditure

The company operates modern processing units designed to minimize capex while maintaining operational flexibility. Specific historical capex figures in INR Cr were not disclosed, but the company raised INR 23.80 Cr through an IPO in December 2024 for fresh issue requirements.

Credit Rating & Borrowing

Finance costs increased 174.96% YoY to INR 0.69 Cr. Long-term borrowings stood at INR 0.78 Cr as of March 31, 2025. Specific credit ratings and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Agriculture seeds (raw/unprocessed) represent the primary raw material, with the cost of materials consumed totaling INR 102.55 Cr, accounting for 79.1% of total revenue.

Import Sources

Sourced domestically within India, primarily supporting the government's goal of strengthening domestic seed production.

Key Suppliers

Not specifically disclosed; however, the company works with a network of 1,100+ distributors for its supply chain.

Capacity Expansion

Current capacity includes centralized R&D laboratory, seed processing plants, and storage warehouses in Himatnagar, Gujarat. Expansion plans focus on scaling R&D capabilities and national sales expansion in FY26.

Raw Material Costs

Raw material costs were INR 102.55 Cr in FY25, a 105.64% increase from INR 49.87 Cr in FY24, tracking closely with the 102.95% revenue growth.

Manufacturing Efficiency

The company utilizes decentralized processing units across multiple states to enhance geographic resilience and ensure seed viability through faster distribution.

Logistics & Distribution

Distribution is handled through 1,100+ distributors across 5 states. The company generates 95% of its revenue in the first half of the financial year (April-September) due to the seasonal nature of agriculture.

📈 Strategic Growth

Expected Growth Rate

102.95%

Growth Strategy

Growth will be achieved by sharpening focus on high-margin segments like vegetables, maize, and hybrid paddy. The company plans to scale R&D capabilities, expand its national sales footprint, and maintain cotton leadership through innovation and advocacy.

Products & Services

Agriculture seeds for Cotton (ZCH-511, 25D51, 25D55), Wheat (46D44, 46D46, Sarvottam), Maize (Mahashakti), Gram (Phule Vikram, Phule Vikrant), Cumin (33D61, Phoenix), and Vegetables (Bhimashakti).

Brand Portfolio

Dhanlaxmi Crop Science, ZCH-511, 25D51, 25D55, Mahashakti, Bhimashakti, Phoenix.

New Products/Services

Focusing on Hybrid Paddy and high-margin Vegetable seeds; five applications are filed under the PPV & FR Act for new varieties including cotton, wheat, and green gram.

Market Expansion

National expansion into new Indian states beyond the current 5-state footprint is planned for FY26.

Market Share & Ranking

Not disclosed; company is positioned as a well-known seeds supplier in the SME segment.

Strategic Alliances

Collaborations with well-known institutions for agri-skilling and capacity building of its 72-member team.

🌍 External Factors

Industry Trends

The industry is shifting toward resilient seed solutions due to global demand and domestic goals for traceability and quality certification. Maize and Wheat segments are growing at 31% and 39.65% respectively.

Competitive Landscape

Faces increased competition from both domestic and foreign players in the seeds space, leading to tighter regulatory norms.

Competitive Moat

Moat is built on R&D (5 pending/received certifications under PPV & FR Act), a centralized Gujarat-based infrastructure, and a robust 1,100+ distributor network. Sustainability is driven by the development of climate-resilient seeds.

Macro Economic Sensitivity

Highly sensitive to monsoon patterns and natural calamities, as 95% of revenue is seasonal (H1).

Consumer Behavior

Farmers are increasingly demanding seeds that can withstand drought and heat waves, shifting demand toward R&D-heavy hybrid varieties.

Geopolitical Risks

Government goals to reduce reliance on seed imports provide a favorable domestic regulatory environment.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013, SEBI (LODR) Regulations 2015, and the Protection of Plant Varieties and Farmers' Rights (PPV & FR) Act.

Environmental Compliance

The company is subject to increasingly stringent ESG and biosafety norms within the agriculture sector.

Taxation Policy Impact

Current year tax expense was INR 2.98 Cr on a PBT of INR 11.73 Cr, representing an effective tax rate of approximately 25.4%.

Legal Contingencies

No material unspent amounts for CSR were required to be transferred under Section 135. No other specific pending court case values were disclosed in the provided documents.