Godrej Agrovet Q2FY26 Results: Despite Revenue Growth Across Key Segments, Profit Declined by 12% YoY to ₹84 Crore
By Shishta Dutta | Published at: Nov 6, 2025 11:21 AM IST
Mumbai, 6 November 2025: Godrej Agrovet Limited (NSE: GODREJAGRO, BSE: 540743) announced its financial results for the quarter ended September 30, 2025 (Q2FY26). Reporting a modest rise in revenue but a decline in profitability due to margin pressures in select business verticals. Consolidated revenue of the company increased by 5% year-on-year (YoY) to ₹2,567 crore, while profit after tax (PAT) reduced by 12% to ₹84 crore.
Financial Overview
Godrej Agrovet’s top line remained quite stable during the quarter. A trend that was supported by increased volumes in the animal feed and vegetable oil segments. However, profit was limited due to margin contraction in crop protection and international operations. On a half-year basis, the company’s revenue amounted to ₹5,182 crore, showing an 8% increase YoY. The PAT was up by a mere 3% to ₹233 crore, thus reflecting the gradual growth of the core businesses.
Segmental Performance
The animal feed segment succeeded in achieving record quarterly volumes, and demand for cattle feed increased by 18% YoY. The segment experienced softened realizations due to the decrease in commodity prices. It recorded improved cost management, which resulted in a 70 basis point increase in margins.
The vegetable oil business was active, and it managed to record substantial YoY growth in both revenue and profitability. The company was able to achieve the highest-ever Oil Extraction Ratio (OER). Therefore, it could easily take the record Fresh Fruit Bunch (FFB) that increased by 9% YoY in Q2 and 24% in H1.
Meanwhile, the crop protection division was negatively impacted by variable rainfall and reduced crop areas. Hence, they had a 30% YoY decrease in revenue and a margin decline, due to the increase in product returns and inventory buildup.
Astec LifeSciences, a subsidiary, reported a 15% YoY increase in sales of the enterprise category, while the overall revenue dropped by 25% due to weak contract manufacturing demand. Nevertheless, EBITDA improved both sequentially and YoY due to higher volumes and better operational efficiency.
The dairy business was pretty good and brought in revenue that would have increased by 8% excluding bulk sales. This was mainly due to the high demand for value-added products (VAP). The contribution of VAP to total sales has increased from 32% in Q2FY25 to 36%, which is a clear indication of the ongoing trend of premiumization.
In the branded foods segment, Godrej Foods had a 3% YoY revenue increase. Yummiez was up by 19%. Currently, branded products make up 86% of the total sales compared to 77% last year, with EBITDA increasing by 28% YoY. This was because of margin gains in the value-added portfolio.
International Operations and Outlook
ACI Godrej Agrovet, the company’s joint venture in Bangladesh, reported an 11% year-on-year decline in revenue (in local currency terms), primarily due to lower volumes and pricing pressures. However, signs of recovery are evident, with the business registering a 6% quarter-on-quarter growth in volumes compared to Q1FY26.
Management Commentary
Sunil Kataria, Managing Director of Godrej Agrovet, stated that despite the “softness in crop protection,” the company was able to achieve volume-led growth in most of the businesses.” He further mentioned that operational efficiencies, cost control measures, and emphasis on value-added products are the main reasons that profitability is being maintained in a tough macro environment.
Stock Performance
After the disclosure, the share price of Godrej Agrovet was trading at a 3.03% loss, ₹629.50 on the NSE at 10:14 am IST, reflecting the impact of the profit decline. Despite this, the stock has shown strong momentum over the past month, gaining more than 9% in value.
REF: https://nsearchives.nseindia.com/corporate/GODREJAGRO_05112025211544_BSENSEMEDIARELEASE05112025.pdf
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