Dhanuka’s 23.27% margin beats 49-peer sector median in Q2
Management attributed the subdued industry backdrop to 13% lower monsoon rainfall, delayed crop-care applications and high raw-material costs.
Filed 30 Oct 2026, 13:42 IST · Dhanuka Agritech Ltd (DHANUKA)
Key takeaways
- Dhanuka’s consolidated Q2FY27 operating margin of 23.27% was 7.85 percentage points above the 49-peer Commodities median.
- Other income of Rs 9.17 cr was not the main source of the Rs 146.47 cr consolidated profit before tax.
- Management said Dahej capacity utilisation is expected to reach 70.75% by the end of the financial year, alongside planned capacity expansion.
Price around the results
Q2FY27 margin stayed above the sector benchmark
Dhanuka reported a consolidated operating margin of 23.27%, ahead of the 15.42% median for 49 Commodities peers that have reported the quarter. Other income of Rs 9.17 cr supplemented profit before tax of Rs 146.47 cr, so reported earnings were not mainly driven by non-operating income.
Uneven monsoon and input costs shaped the quarter
Management said the agrochemical sector faced a weak second quarter because of uneven rainfall and persistently high raw-material procurement costs. The company said monsoon rainfall was 13% lower, disrupting farming cycles, delaying crop-care applications and compressing industry volumes and margins. Management added that dry weather hurt herbicides, while the insecticides segment grew.
Dahej expansion is the stated next step
Management said Dhanuka plans to expand capacity within its Dahej manufacturing unit and will begin making products acquired from Bayer AG there. The company said the fungicide-brand acquisition provides access to 20+ international markets and links that opportunity to manufacturing at Dahej. Management also said two research and technology centres are working on new formulations, generic products and late-stage patented products.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹658 cr |
| Other income | ₹9 cr |
| Expenses | ₹505 cr |
| Operating profit | ₹153 cr |
| Operating margin (%) | 23.27% |
| Interest | ₹1 cr |
| Depreciation | ₹15 cr |
| Profit before tax | ₹146 cr |
| Tax | ₹37 cr |
| Net profit | ₹109 cr |
| EPS (₹) | ₹24.43 |
Operating margin of 23.27% compares with a Commodities sector median of 15.42% across 49 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The insecticides segment grew during the quarter despite dry weather affecting herbicide performance.
Guidance & outlook
- Dahej Plant capacity utilization is expected to reach 70.75% by the end of the financial year.
Expansion
- Dhanuka plans capacity expansion within its Dahej manufacturing unit.
- Dahej Plant will begin manufacturing products acquired from Bayer AG.
- The acquisition of Bayer AG fungicide brands provides access to more than 20 international markets and integrates manufacturing at Dahej.
New initiatives
- Dhanuka has established two research and technology centers to strengthen innovation and research.
- One research center focuses on applied chemistry and developing new products and formulations.
- The second laboratory focuses on process technology for generic and late-stage patented products.
Problems & risks
- The agrochemical sector faced a weak and highly subdued second-quarter earnings season, affected by uneven monsoon rainfall and high raw-material costs.
- Monsoon rainfall was 13% lower, with significant regional and monthly variations across key agricultural belts.
- Weather disruption compressed industry volumes and margins by delaying crop-care applications and reducing farmer consumption.
- Dry weather significantly affected herbicide performance.
What to watch
- Whether consolidated operating margin remains above the 15.42% peer median.
- Dahej capacity utilisation against management’s 70.75% year-end expectation.
- The contribution of other income relative to the Rs 146.47 cr profit before tax reported this quarter.