Bhaskar Agrochemicals Limited filed its 38th Annual Report for the financial year ended March 31, 2026, reporting a 35% rise in revenue and a 20% increase in net profit. The company also appointed two new independent directors during the period.

The board of directors approved the financial statements on May 30, 2026. The 38th Annual General Meeting is scheduled for September 30, 2026, to transact ordinary and special business, including the ratification of cost auditor remuneration.

Financial Performance

Total revenue from operations stood at ₹12,191.81 lakh in FY26, up from ₹9,050.60 lakh in FY25. Net profit after tax reached ₹468.41 lakh, compared to ₹389.70 lakh in the previous year. Earnings per share increased to ₹8.99 from ₹7.48.

What the Numbers Show

Revenue growth outpaced net profit expansion, indicating margin compression. While revenue surged by nearly 35%, net profit grew by just over 20%. This divergence was driven by a higher tax expense of ₹172.60 lakh in FY26 versus ₹150.33 lakh in FY25, alongside an exceptional item charge of ₹39.54 lakh related to the new labour code impact on gratuity provisions.

Corporate Governance Updates

The board appointed Mr. Sanjeev Kumar Koritala and Mr. Chandra Sekhar Pudi as additional independent directors effective April 1, 2026, subject to shareholder approval at the AGM. Mrs. P. Rajyalakshmi retires by rotation and offers herself for reappointment.

M/s. Lavanya and Associates LLP were appointed as cost auditors for FY27 with a remuneration of ₹1 lakh plus expenses. M/s. Vivek Surana & Associates serve as the scrutinizer for the AGM voting process.

Balance Sheet Highlights

Total assets increased to ₹7,130.49 lakh from ₹5,837.94 lakh. Current assets rose significantly to ₹5,046.61 lakh, driven by higher inventories of ₹2,553.79 lakh. Borrowings decreased to ₹1,605.63 lakh from ₹2,027.78 lakh, reflecting debt reduction efforts.

Bhaskar Agrochemicals Limited reported a return to profitability in its first quarter of FY27, posting a standalone net profit of ₹13.53 lakh for the three months ended June 30, 2026. This marks a reversal from a net loss of ₹21.26 lakh recorded in the same period of FY25. The company’s revenue from operations grew by 6.7% year-on-year to ₹2,476.42 lakh, up from ₹2,320.13 lakh in Q1FY26.

The Board of Directors approved the unaudited financial results on August 14, 2026, during a meeting held at the company’s registered office in Hyderabad. The results were reviewed by R. Kankaria & Uttam Singhi Chartered Accountants, who issued a limited review report confirming compliance with Ind AS 34 and SEBI Listing Regulations.

Financial Performance

Revenue growth was accompanied by a notable increase in input costs. Cost of materials consumed rose sharply to ₹2,205.59 lakh in Q1FY27 from ₹1,791.03 lakh in the prior year period, an increase of over 23%. However, this was partially offset by a significant build-up in finished goods inventory, which reduced the cost of sales by ₹647.17 lakh, compared to a reduction of only ₹145.62 lakh in Q1FY26.

Operating expenses saw mixed trends. Employee benefits expenses increased to ₹337.65 lakh from ₹265.12 lakh, while finance costs declined significantly to ₹25.27 lakh from ₹47.90 lakh. Other expenses rose to ₹490.84 lakh from ₹337.19 lakh. Depreciation and amortization remained stable at ₹47.22 lakh.

What the Numbers Show

A key divergence in the quarter is between the top-line growth and the bottom-line turnaround. While revenue grew modestly by 6.7%, the profit swung from a loss of ₹18.58 lakh before tax to a profit of ₹20.47 lakh. This improvement was not solely driven by operational efficiency but heavily influenced by inventory management. The increase in finished goods inventory reduced the recognized cost of sales by nearly ₹500 lakh more than in the previous year. Without this inventory buffer, the company would have faced a significantly lower profit or potential loss, given that material costs outpaced revenue growth by a wide margin. This suggests the current profitability is partly supported by stock accumulation rather than pure margin expansion on sold units.

Tax and Earnings Per Share

The total tax expense for the quarter was ₹6.94 lakh, comprising current tax of ₹17.41 lakh offset by a deferred tax credit of ₹10.47 lakh. This compares to a total tax expense of ₹2.68 lakh in Q1FY26. The basic and diluted earnings per share stood at ₹0.26, compared to a loss per share of ₹0.41 in the same quarter last year.

For the full year ended March 31, 2026, Bhaskar Agrochemicals reported a net profit of ₹468.41 lakh on revenue of ₹12,191.81 lakh. The company operates exclusively in the manufacturing and sales of agrochemicals segment.