Bayer CropScience Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,250.70 Cr (-19.49% YoY) and PAT growth of +8.84% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,250.70 Cr (-19.49% YoY) |
| PAT (Q2) | Rs. 166.20 Cr (+8.84% YoY) |
| EBITDA margin | 17.41% (+419 bps YoY) |
| EPS (Q2) | Rs. 36.98 (+8.83% YoY) |
Q2 FY27 revenue fell 19.49% YoY to Rs.1,250.7 Cr against a rain-depressed base, running far behind management's 3-5 year high single-digit to low double-digit growth guidance, while EBITDA margin expanded ~419 bps YoY to 17.41% on flat cost lines and PAT grew 8.84% organically. The soft spot is cash: H1 CFO was negative Rs.631.6 Cr with receivables up 63% vs March and a ~134-day DSO proxy, contradicting management's working-capital focus. The Rs.90/share interim dividend was maintained at an 82.92% payout of H1 PAT.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue vs rain-depressed base | "directionally ahead of the depressed base, with the acreage decline the offsetting drag" | Revenue −19.49% YoY; H1 −11.02% | Contradicted |
| Further divestment tranches in Q2 | watch item: whether further tranches "land in Q2" | Filing Note 2 shows nil gain in Q2; other income Rs.13.4 Cr — no gain | Played out |
| H1 cash flow seasonally weak | "expected to be seasonally weak regardless of demand" | CFO −Rs.631.6 Cr vs −Rs.34.9 Cr H1 FY26 — deeper | Played out |
| Interim dividend Rs.90 test | policy "intact", Board to consider 3-Nov | Rs.90/share declared | Played out |
| Glyphosate tailwind vs feared glut | "the glut scenario did not materialise" — supportive | No price/segment data in filing | Not observable |
| Transfer-price stabilization test | "first full quarter where that claim can be tested" | Materials cost flat YoY in Rs.; no quantified disclosure | Partially |
| Ex-one-off margin quality | Q1 PAT flattered by Rs.63.9 Cr gain | Q1 normalized PAT Rs.270.5 Cr (−2.94% YoY); Q2 growth clean | Played out |
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| What management said | Where | What happened | Verdict |
|---|---|---|---|
| High single-digit to low double-digit revenue growth over 3-5 years, base FY24-25 (volume+value combo) | management guidance, Q2 FY26 earnings call | H1 FY27 revenue −11.02% YoY; Q2 −19.49% YoY — running behind | Missed |
| ~100bps margin improvement over 2-3 years from FY24-25 base (PAT/revenue 10.4% in FY25); CFO called it "more as a target, more as an aspiration" | management guidance, Q2 FY26 earnings call | Q2 PAT/revenue 13.29% (vs 9.83% YoY); H1 15.81% (vs 12.44%) — seasonally flattered; but directionally ahead | On Track |
| Rs.90/share half-year interim dividend; policy "intact" | management commentary, FY26 calls | Rs.90/share declared 3-Nov-2026 | Met |
| Grower-payment / Bayer AG transfer-price stabilization "this year" | management commentary, FY26 calls | No quantified disclosure in the filing; materials cost flat YoY in Rs. | Too Early |
| Opex managed to grow slower than revenue (new operating model) | prior earnings-call commentary | Employee cost −6.22% YoY; other expenses flat at Rs.214.0 Cr on revenue −19.49% | Confirmed |
| "Resilient" agri franchise amid challenging weather | CEO commentary, Q1 FY27 results | Revenue −19.49% YoY vs a rain-depressed base; H1 −11.02% — resilience showed in margins, not revenue — on revenue | Contradicted |
| Working-capital focus via collections and inventory optimization | CFO commentary, Q1 FY27 results | Receivables +63% vs March; CFO −Rs.631.6 Cr H1 | Contradicted this half |
| Dividend policy intact | management commentary | Rs.90/share interim declared | Confirmed |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.