NewsEarningsNova Agritech Reports Mixed Q1 Results: Consolidated Revenue Up 11.5%, Standalone Revenue Down 64.8%Nova Agritech Reports Mixed Q1 Results: Consolidated Revenue Up 11.5%, Standalone Revenue Down 64.8%
Nova Agritech Limited reported mixed Q1 financial results. Consolidated revenue increased by 11.5% to ₹4,674.85 crore, but net profit decreased by 24.1% to ₹324.54 crore. Standalone performance showed significant declines with revenue down 64.8% to ₹1,165.17 crore and net profit falling 78.9% to ₹47.30 crore. The company faced cost pressures due to increased raw material expenses. Nova Agritech recently completed its IPO, raising ₹11,200 crore, with ₹10,050.83 crore already utilized for various purposes including working capital and a new formulation plant.
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Nova Agritech Limited , a manufacturer and distributor of soil health management and crop protection products, has announced its financial results for the first quarter, revealing a mixed performance across its standalone and consolidated operations.
Consolidated Performance
On a consolidated basis, Nova Agritech demonstrated resilience with a notable growth in revenue. The company's consolidated revenue from operations increased by 11.5% to ₹4,674.85 crore, compared to ₹4,191.45 crore in the same quarter of the previous year. However, the bottom line saw a decline, with net profit decreasing by 24.1% to ₹324.54 crore from ₹427.75 crore.
Standalone Results
The standalone performance of Nova Agritech presented a more challenging picture:
| Metric | Q1 | Previous Q1 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹1,165.17 crore | ₹3,314.10 crore | -64.8% |
| Net Profit | ₹47.30 crore | ₹224.63 crore | -78.9% |
| Earnings Per Share (EPS) | ₹0.05 | ₹0.72 | -93.1% |
The significant decline in standalone revenue and profitability highlights the challenges faced by the company's core operations during the quarter.
Cost Pressures and Margin Impact
A key factor impacting the company's performance was the substantial increase in raw material costs. On a consolidated basis, the cost of raw materials consumed rose to ₹3,761.38 crore, up from ₹2,650.17 crore in the previous year, putting pressure on margins.
Recent Developments
Nova Agritech completed its Initial Public Offering (IPO) in January 2024, raising ₹11,200 crore through a fresh issue of shares. The company has allocated these funds for various purposes:
- ₹4,335.85 crore for subsidiary investments in working capital
- ₹2,665.47 crore for company working capital
- ₹1,420.11 crore for a new formulation plant
As of June 30, 2025, the company has utilized ₹10,050.83 crore of the IPO proceeds, with ₹44 crore remaining unutilized.
Corporate Governance
The Board of Directors has approved the Directors' Report and set the date for the 18th Annual General Meeting. Additionally, subject to shareholder approval, the board has recommended the re-appointment of Mr. Kiran Kumar Adapa as an Independent Director for a second term of 5 years.
While Nova Agritech faces challenges in its standalone operations, the growth in consolidated revenue suggests that the company's diversified business model and recent investments may be positioning it for future growth. Investors and stakeholders will be watching closely to see how the company navigates the current market conditions and leverages its recent capital infusion to drive performance in the coming quarters.
Historical Stock Returns for Nova Agritech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.35% | -1.73% | +2.34% | +5.17% | -29.51% | -11.52% |
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