Godrej Agrovet Limited , a diversified agribusiness company, has announced its financial results for the second quarter of fiscal year 2026, showcasing a mixed performance across its various business segments.

Financial Highlights

*Excluding non-recurring items

Segment Performance

Animal Feed

• Strong 18% volume growth in cattle feed
• Flat revenues due to lower commodity prices
• Underlying margins improved by 70 basis points

Vegetable Oil

• 41% revenue growth
• Margins expanded to 22.40%
• Driven by higher crude palm oil realizations and improved oil extraction ratio of 19%

Crop Protection (Standalone)

• 30% revenue decline
• 62% drop in segment results
• Margins compressed to 23.30% from 43.10%
• Challenges due to excessive rainfall and lower acreages

Astec Life Sciences

• 25% revenue decline
• Cautious contract manufacturing demand
• Enterprise category grew 15%
• EBITDA improved

Creamline Dairy

• Revenue and EBITDA remained broadly flat
• Value-added products grew 10%
• Value-added products' salience rose to 36%

Godrej Foods Limited

• 7% overall revenue decline
• 28% EBITDA growth driven by branded products
• Branded salience increased to 86%

Godrej Agrovet's performance in Q2 FY26 reflects the company's resilience in a challenging environment. While the Animal Feed and Vegetable Oil segments showed strong growth, the Crop Protection segment faced significant headwinds. The company's diversified portfolio helped in maintaining overall growth, with consolidated revenues increasing by 5% year-on-year.

The Animal Feed segment's volume growth, particularly in cattle feed, demonstrates the company's strong market position despite flat revenues due to lower commodity prices. The Vegetable Oil segment's impressive performance, with a 41% revenue growth and expanded margins, highlights the benefits of higher crude palm oil realizations and operational efficiencies.

However, the standalone Crop Protection segment faced challenges due to adverse weather conditions and reduced acreages, resulting in a substantial decline in both revenue and segment results. This underscores the impact of external factors on agribusiness operations.

Astec Life Sciences, while experiencing a revenue decline, showed improvement in EBITDA and growth in its enterprise category. Creamline Dairy maintained its performance, with a focus on value-added products showing positive results. Godrej Foods Limited's strategy of focusing on branded products appears to be paying off, with significant EBITDA growth despite an overall revenue decline.

As Godrej Agrovet navigates through varying market conditions across its diverse business segments, the company's ability to leverage its strengths in high-performing areas while managing challenges in others will be crucial for sustained growth in the coming quarters.

Godrej Agrovet , a key player in India's agricultural sector, has recently provided updates on its business outlook and strategic plans. The company has maintained its animal feed EBIT guidance while revising its overall growth expectations for FY26.

Animal Feed Business Remains Steady

Godrej Agrovet has reaffirmed its earnings before interest and taxes (EBIT) guidance for the animal feed segment. The company expects to maintain its EBIT in the range of INR 1,900-2,000 per metric ton for this division, indicating stability in this part of its business.

Revised Growth Expectations

The company had initially set ambitious targets for FY26, projecting 16-18% growth in both revenue and earnings. However, these targets are now unlikely to be achieved due to unforeseen weather impacts on the crop protection business. Despite this setback, the management remains optimistic, expecting strong and healthy revenue growth, albeit lower than the initial projections.

Weather Impact on Crop Protection

The revision in growth expectations highlights the vulnerability of the agricultural sector to weather conditions. The crop protection business, which is crucial for farmers in safeguarding their yields, has been particularly affected, necessitating a recalibration of the company's growth outlook.

Looking Ahead: FY30 Strategic Plan

In response to the changing business landscape, Godrej Agrovet is developing a new strategic plan with targets set for FY30. This forward-looking approach demonstrates the company's commitment to long-term planning and adaptability in the face of challenges. The management has announced that these new targets will be shared with investors by the end of March, providing stakeholders with a clearer picture of the company's future direction.

Key Points Summary

As Godrej Agrovet navigates through these challenges and opportunities, investors and industry observers will be keenly watching how the company adapts its strategies to achieve sustainable growth in the dynamic agricultural sector.