Dhansa Labs Limited reported a 10.82% year-on-year increase in revenue from operations to ₹14,153.72 lakhs for the financial year ended March 31, 2026. Profit after tax (PAT) grew by 15.47% to ₹552.26 lakhs, while EBITDA stood at ₹1,221.80 lakhs, a growth of 6.31%. The company maintained an EBITDA margin of 8.55% and a PAT margin of 3.87% during the period.

Management outlined a significant capacity expansion initiative in its core agrochemical business, including a planned addition of Atrazine manufacturing capacity. This project involves an estimated investment of approximately ₹30 crores and is expected to commence operations by August 2026. Upon stabilization, the company anticipates the project will generate additional annual revenues of ₹120 crores to ₹140 crores, with an initial target of ₹40 crores in the current year.

Diversification and Subsidiaries

The company is diversifying through its subsidiaries, Dhansa Green Energy Private Limited and Dhansa Biofuels Power Private Limited. Dhansa Green Energy is developing a 15 TPD Compressed Biogas (CBG) project in the Bundi district of Rajasthan with an estimated cost exceeding ₹120 crores. Commercial operations are expected to commence by July 2027. The project includes a lease for 350 acres to cultivate Napier grass, ensuring a sustainable feedstock ecosystem and supporting carbon credit generation.

Dhansa Biofuels Power Private Limited is focusing on biomass pellets. The total planned investment for the BioFuel segment is approximately ₹120 crores. Management stated that financial closure for the CBG project is secured, with ₹85 crores in debt finalized and the remaining funding sourced from warrants issued in August 2025.

Financial Guidance and Metrics

For the upcoming financial year, the company expects revenue growth of approximately 20%. Current capacity utilization stands at 71%. Management addressed concerns regarding working capital utilization, noting that funds raised via IPO were used to reduce creditors, increase debtors, and improve stock levels to mitigate material scarcity issues.

Dhansa Labs Limited reported a 15.47% increase in Profit After Tax (PAT) to ₹552.26 lakh for the financial year ended March 31, 2026, compared to ₹478.27 lakh in the previous year. Revenue from operations rose 7.82% to ₹14,153.72 lakh from ₹13,126.99 lakh in FY25. The company’s EBITDA stood at ₹1,221.80 lakh, reflecting a growth of 6.31%, with an EBITDA margin of 8.55% and a PAT margin of 3.87%.

Financial Performance

The Board of Directors approved the audited standalone and consolidated financial results for the year ended March 31, 2026. For the quarter ended March 31, 2026, net profit was ₹208.94 lakh, while revenue from operations was ₹4,053.73 lakh. Total income for the year increased to ₹14,284.68 lakh from ₹13,318.60 lakh in the prior year. The finance cost for the six months ended March 31, 2026, was reduced by ₹58.94 lakh due to the reversal of costs previously recognized that should have been capitalised.

Capital Allocation and Warrants

During FY26, the company allotted 1,08,69,565 convertible equity warrants on a preferential basis at an issue price of ₹46 per warrant, aggregating to ₹4,999.99 lakh. The company received ₹1,697.50 lakh towards warrant subscription as of March 31, 2026. These funds were fully utilized for general corporate purposes, advances for plant and machinery, supporting ongoing capital expenditure, and land-related advances. There was no deviation in the utilization of funds raised.

Strategic Initiatives and Subsidiaries

The company is undertaking a significant capacity expansion initiative aimed at strengthening its manufacturing capabilities, including the planned introduction of Atrazine manufacturing. This project has the potential to contribute approximately ₹120–140 crore in additional annual revenue. Dhansa Labs is also diversifying through its subsidiaries, Dhansa Green Energy Private Limited and Dhansa Biofuels Power Private Limited. Dhansa Green Energy is progressing towards the commissioning of a Compressed Biogas (CBG) project with a capacity of 15 tonnes per day and is developing a Napier Grass project in the Bundi district of Rajasthan. Dhansa Biofuels Power is focused on developing biomass pellets as an alternative to coal.

Auditor’s Report and Compliance

Statutory auditors M/s Kapish Jain & Associates issued an audit report with an unmodified opinion on the audited financial results. The company assessed the impact of the New Labour Codes, effective from November 21, 2025, and recognized an incremental liability of ₹9.46 lakh pertaining to gratuity and leave encashment within employee benefit expenses. The consolidated financial results include the performance of its subsidiaries.