Standalone profit rests on operations as exports target rises to 20%
Other income was Rs 0.22 cr, while management said Unit-4 operations are targeted to start by Q3 FY27.
Filed 06 Aug 2026, 12:40 IST · ADVANCE (ADVANCE)
Key takeaways
- Standalone net profit was Rs 22.55 cr, with other income at only Rs 0.22 cr, making earnings primarily operational.
- Operating profit of Rs 35.07 cr produced a 10.61% operating margin, while the 25.46% tax rate shaped the conversion to net profit.
- Management is targeting export revenue share of 20% by FY29, compared with 2% currently.
Operating earnings drove the standalone quarter
The standalone quarter's Rs 22.55 cr net profit was supported mainly by operations rather than non-operating income. Other income was Rs 0.22 cr against profit before tax of Rs 30.25 cr, so it was not a material earnings driver. The 25.46% tax rate was the main deduction between pre-tax profit and net profit.
Operating margin sets the base for the integration plan
Operating profit of Rs 35.07 cr on revenue of Rs 330.4 cr resulted in a 10.61% operating margin. Management said backward integration should expand margins by bringing technical manufacturing in-house, capturing supplier margins and improving operating leverage as utilisation rises.
Exports and new capacity are the strategic focus
Management said it is targeting an increase in export revenue share from 2% currently to 20% by FY29, while its portfolio strategy is intended to reduce exposure to pure price competition. The company said it aims to start operations at the Unit-4 technical manufacturing facility in Gidani by Q3 FY27. It also said construction has started on the Unit-5 technical pesticide facility at Dahej II GIDC in Bharuch.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹330 cr |
| Other income | ₹0 cr |
| Expenses | ₹295 cr |
| Operating profit | ₹35 cr |
| Operating margin (%) | 10.61% |
| Interest | ₹2 cr |
| Depreciation | ₹3 cr |
| Profit before tax | ₹30 cr |
| Tax | ₹8 cr |
| Net profit | ₹23 cr |
| EPS (₹) | ₹3.50 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company is targeting an increase in export revenue share from 2% to 20% by FY29.
- Backward integration is expected to drive margin expansion by capturing supplier margins and improving operating leverage.
Expansion
- The company aims to commence operations at its new Unit-4 technical manufacturing facility in Gidani by Q3 FY27.
- Construction has commenced on the Unit-5 technical pesticide facility at Dahej II GIDC in Bharuch, Gujarat.
Problems & risks
- The company’s portfolio strategy is intended to protect it from pure price competition.
What to watch
- Whether operating margin holds around 10.61% as backward integration progresses.
- Whether export revenue share moves above the current 2% level toward management's 20% FY29 target.
- Whether Unit-4 operations commence by Q3 FY27 as targeted by management.