Dharmaj Crop Guard Ltd Q3 FY26 Earnings Analysis

- The company expects overall volume growth of 30% to 35% in H1 FY '26, with formulations growing around 28% to 35% and technicals about 28% to 30%. - Management targets a consolidated revenue growth of 20% to 25% for FY'26 and beyond. - B2C domestic formulation revenue is projected to grow to INR 220-230 crores for FY'26, a 20-25% increase over last year. - B2B bulk and formulation is targeted at INR 630-650 crores, and export revenue at INR 70-80 crores for FY'26. - The technical segment's revenue is expected at INR 250-270 crores for FY'26, with a 20-25% growth outlook for FY'27. - Plant capacity utilization is planned to increase to around 70-80% over FY'27 and FY'28, supporting the growth trajectory. - The company envisions reaching INR 2,000 crores business by 2030, increasing market share across B2B, B2C, technicals, and exports.

- **Revenue Growth:** Management expects overall revenue growth of 20% to 25% for FY '26 and beyond, supported by volume growth of 30% to 35% in formulations and 28% to 30% in technicals for H1 FY '26. - **EBITDA Margin:** EBITDA margins are expected to improve by 1% to 1.5% during the year, targeting around 9% to 9.5% overall for FY '26. - **Profitability:** EBITDA for the technical segment is expected to break even or be positive for the full year FY '26, with PBT coverage at approximately 50%. - **Volume Growth:** Consistent volume growth of 20-25% is anticipated in the Rabi season and the second half of FY '26. - **Capacity Utilization:** Technical plant utilization expected to reach 70%-80% by FY '27, supporting margin and profit growth. - **EPS Impact:** While EPS figures are not explicitly stated, improved margins, volume growth, and controlled costs imply positive earnings per share growth trajectory.

- Tentative CAPEX for technicals is estimated at Rs. 75 to Rs. 100 crores. - Planning a technical plant for herbicides in the future (next 1-2 years), currently focused on insecticides and fungicides at Saykha plant. - Considering expansion for herbicides if opportunities materialize; no final decision yet. - Current capacity utilization of the Saykha technical plant is around 65%, expected to increase to 70%+ in FY27. Additional capacity likely needed beyond 80% utilization, possibly by FY27-28. - Export registrations for technical products ongoing in regulated countries (Brazil, Poland, US), expected to complete within 1-2 years, enabling business expansion. - No immediate plan for debt prepayment as company benefits from interest subsidy. - Additional capacity expansion ideas will be evaluated post FY27-28 based on demand.

- No explicit mention of any new fundraising through debt or equity in the transcript. - Current debt on books is being maintained to avail interest subsidy benefits; prepayment is not planned. (Vikas Agarwal, Page 16) - Debt reduction is expected to happen as per schedule but no accelerated repayment is planned due to interest subsidy (INR 3.5 crores received in November). (Page 16) - Capacity expansions are planned for technical and herbicide plants, but no details on funding sources provided; future capacity additions will be considered around FY '27-'28. (Pages 12-13) - No announcements or discussions about equity fundraising in the provided transcript.

- The transcript does not explicitly mention the current or expected order book or pending orders. - However, registration processes for various products and countries are ongoing, with new licenses being obtained monthly, which implies an expanding order pipeline. - Export business has grown significantly (50% year-on-year in H1 FY26), with further growth expected due to recent registrations in key markets like Brazil, the US, and Europe. - The company is optimistic about the Rabi season and expects 20-25% growth in H2 FY26, indicating strong demand and order inflow. - Expansion in formulation and technical businesses with volume growth of 30-35% suggests a healthy order pipeline across segments. - Discussions with potential MNC partners in LATAM markets are ongoing, which may lead to future orders.