Godrej Agrovet Ltd
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Godrej Agrovet Ltd (GODREJAGRO) Q2 FY27 Results Analysis: Revenue Grows 16.65%, Margin Slips 122 bps

Cofacto Research Published November 06, 2026 4 min read
Negative

Godrej Agrovet Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 2,994.98 Cr (+16.65% YoY) and PAT growth of +21.83% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details
Results dateNovember 06, 2026
Revenue (Q2)Rs. 2,994.98 Cr (+16.65% YoY)
PAT (Q2)Rs. 102.75 Cr (+21.83% YoY)
EBITDA margin7.40% (-122 bps YoY)
EPS (Q2)Rs. 5.99 (+24.53% YoY)

Quarter Snapshot

Revenue growth accelerated to 16.65% YoY with Animal Nutrition delivering 32.01% segment-profit growth despite maize inflation, but EBITDA was flat (+0.16%) with margin down 122 bps as material costs outpaced revenue. H1 operating cash flow turned negative at Rs.(142.20) Cr on a Rs.474.91 Cr inventory build, cash fell to Rs.3.72 Cr, and H1 PBT of −3.33% YoY leaves management's mid-teens FY27 PBT growth guidance dependent on a sharp H2 acceleration.

Q2 FY27 Expectations vs Results

DriverExpected before resultsWhat happenedVerdict
Revenue"revenue growth likely continues off the soft base"+16.65% YoYPlayed out
Margins"likely compressing at the gross level, with partial offsets"EBITDA margin 7.40% vs 8.61%Played out
Crop Care swing factorweak monsoon vs undemanding baseRevenue +27.89%; result −5.55 (loss)Partially
Feed margin bridgeun-passed maize inflation to squeeze cattle-feed economicsAN result +32.01% despite CoM +23.27% — better than fearedContradicted
Dairy pressuremilk inflation to keep Dairy PBIT negative(3.87), loss widened QoQPlayed out
Oil Palm realisationsduty cut a H2 headwind; Q2 only clipped at the endVO margin −388 bps YoY; duty cut effect still aheadPartially
Guidance deliveryprecise FY27 range owed "by end of quarter 2"Filing silent; H1 PBT −3.33% vs mid-teens target — remains open for the callNot observable in filing
Working capital strainimplicit from inflation + Q1 cost patternCFO H1 −142.20, CFO/PAT −0.62xPlayed out

Read our full results preview.

Management Guidance vs Delivery

What management saidWhereWhat happenedVerdict
FY27 consolidated PBT growth: "mid-teens"Reaffirmed on the Q1 FY27 earnings call ("we had given a guidance of roughly around mid-teens"), originally set at the Q4 FY26 callH1 FY27 PBT −3.33% YoY; Q2 PBT before JV +4.90% — H1Off track
FY27 consolidated revenue growth: double-digit; precise range promised "by the end of quarter 2"Q1 FY27 call: "I'll be in a better position to tell you by the end of quarter 2"H1 +12.90% YoY; Q2 +16.65% — growth); range not in the filing — the results document contains no updated guidanceOn Track
Animal Nutrition double-digit revenue growthPrior earnings-call guidanceQ2 +13.95%On Track
Crop Care full-year guidance promised "more by end of quarter 2"Q1 FY27 callNot contained in the results filingToo Early
Oil Palm capex Rs.300–350 Cr (group Rs.350–400 Cr)Q4 FY26 callH1 consolidated PPE acquisition Rs.171.58 Cr — run-rate within envelopeOn Track
Crop Care recovery expected in H2 off a soft baseQ1 FY27 call, CEO "cautiously optimistic"Q2 revenue +27.89% but segment result swung to (5.55) from +16.33 — revenue yes; profit noToo Early
Oil Palm margin dip in Q1 was "phasing", to be recovered by year-endQ1 FY27 callQ2 Vegetable Oil margin still 388 bps below year-ago (17.74% vs 21.62%)Not yet visible
AN growth led by volume and operating leverageQ1 FY27 callAN result +32.01% on revenue +13.95%, margin +92 bpsConfirmed
Balance-sheet efficiency focus (FY26 NWC 25 days vs 39)Prior calls / AGMH1 CFO −142.20; inventories +467.38 vs MarchContradicted this half

Key Investment Insights

Key Positives

  • Consolidated revenue grew 16.65% YoY to Rs.2,994.98 Cr, accelerating from +9.21% in Q1
  • Animal Nutrition segment result grew 32.01% YoY on 13.95% revenue growth, with margin up 92 bps to 6.69% despite maize inflation
  • Crop Care revenue grew 27.89% YoY on a soft base
  • Vegetable Oil revenue grew 26.39% YoY
  • Finance costs fell 16.31% YoY to Rs.33.10 Cr; employee, other expenses and D&A growth all held under 2.5% YoY
  • Effective tax rate normalized to 28.27% from 37.55% in Q2 FY26
  • Net worth grew 12.28% YoY to Rs.2,188.90 Cr; interest service coverage improved to 4.95x from 4.15x

Risk Factors

  • EBITDA grew only 0.16% YoY with margin compressing 122 bps YoY to 7.40% as cost of materials rose 23.27% YoY
  • Crop Care swung to a segment loss of Rs.(5.55) Cr from +16.33 Cr despite 27.89% revenue growth
  • Dairy loss widened to Rs.(3.87) Cr from Rs.(1.90) Cr in Q1 on milk procurement inflation
  • Vegetable Oil margin fell 388 bps YoY to 17.74% as revenue grew 4x faster than segment profit
  • H1 consolidated operating cash flow was negative Rs.142.20 Cr (CFO/PAT −0.62x) with free cash flow of Rs.(313.78) Cr
  • H1 PBT declined 3.33% YoY against management's reaffirmed mid-teens FY27 PBT growth guidance, requiring a sharp H2 acceleration
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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.

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