Weak monsoon, cost squeeze cut Dharmaj Crop Guard’s Q2 margin
Revenue fell 13.01% QoQ while expenses declined 5.10%, pushing operating margin 7.73 percentage points lower.
Filed 04 Nov 2026, 17:33 IST · after market close · Dharmaj Crop Guard Ltd (DHARMAJ)
Key takeaways
- Consolidated operating margin fell 7.73 percentage points QoQ to 7.28% as revenue declined 13.01% while expenses fell only 5.10%.
- Consolidated net profit dropped 65.34% QoQ to Rs 13.21 cr, with interest expense up 22.01% and other income contributing 9.25% of pre-tax profit.
- Management said the 2026 monsoon was one of the weakest in over a decade, while its herbicides facility at Kerala GIDC remains on track.
Price around the results
Q2 revenue drop exposed operating leverage
Dharmaj Crop Guard’s consolidated revenue declined 13.01% QoQ, but expenses fell only 5.10%, causing operating profit to drop 57.82%. The mismatch cut operating margin by 7.73 percentage points to 7.28%. Management attributed the weaker operating environment in part to the 2026 monsoon, which it said was one of the weakest in over a decade.
Interest rose as other income supported pre-tax profit
Interest expense increased 22.01% QoQ to Rs 3.27 cr, adding pressure below the operating line as pre-tax profit fell 65.42%. Other income accounted for 9.25% of pre-tax profit, making it a meaningful part of reported earnings. The tax rate was marginally lower by 0.16 percentage points, but that did little to offset the operating decline.
Margin trailed 111 reported commodities peers
The 7.28% operating margin was 5.99 percentage points below the 13.27% median for the 111 commodities-sector peers that had reported the same quarter. The margin also fell from 15.01% in Q1FY27, making this a sharp sequential deterioration rather than a small quarterly fluctuation. Dharmaj Crop Guard ranked 27th from the bottom on this comparison.
Expansion and registrations remain management’s focus
Management said the new herbicides manufacturing facility at Kerala GIDC, Ahmedabad, remains on track. The company also said it had added 15 sales team members, received 52 technical registrations and 132 export-market registrations, with 11 technical and 176 export registrations still awaited. It said dealer meets, field days, product demonstrations and recently launched B2C products were part of its market-building efforts.
Results were filed after market close
The consolidated results were filed at 17:33 IST on 04 Nov 2026, after market close. There is therefore no post-results market reaction to assess yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹333 cr | ₹382 cr | -13.01% |
| Other income | ₹2 cr | ₹1 cr | +44.25% |
| Expenses | ₹308 cr | ₹325 cr | -5.10% |
| Operating profit | ₹24 cr | ₹57 cr | -57.82% |
| Operating margin (%) | 7.28% | 15.01% | — |
| Interest | ₹3 cr | ₹3 cr | +22.01% |
| Depreciation | ₹5 cr | ₹5 cr | +1.65% |
| Profit before tax | ₹18 cr | ₹51 cr | -65.42% |
| Tax | ₹4 cr | ₹13 cr | -65.61% |
| Net profit | ₹13 cr | ₹38 cr | -65.34% |
| EPS (₹) | ₹3.91 | ₹11.28 | -65.34% |
Operating margin of 7.28% compares with a Commodities sector median of 13.27% across 111 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.
Expansion
- The company remains on track with its new herbicides manufacturing facility at Kerala GIDC, Ahmedabad.
New products
- The company recently launched products in its B2C portfolio.
New initiatives
- The company added 15 sales team members.
- The company has received 52 technical registrations and is awaiting 11 additional registrations.
- The company has received 132 export market registrations and is awaiting 176 additional registrations.
- The company conducted dealer meets, field days and product demonstrations in new and existing markets.
Problems & risks
- The 2026 monsoon was one of the weakest in over a decade.
What to watch
- Whether operating margin recovers from 7.28% after the 7.73-percentage-point QoQ decline.
- Whether interest expense moves down from Rs 3.27 cr after its 22.01% QoQ increase.
- Progress on the Kerala GIDC facility and the 11 technical and 176 export registrations awaiting approval.