Nova Agritech Limited , a key player in the agricultural solutions sector, has reported no deviation in the utilization of proceeds from its Initial Public Offer (IPO) for the quarter ended June 30, 2025. The company also announced its financial results for the first quarter of the fiscal year 2025-26.

IPO Fund Utilization

The company raised ₹112.00 crore through its IPO, with a net proceed of ₹100.95 crore after deducting issue-related expenses. Nova Agritech has confirmed that the utilization of funds is in line with the objectives stated in the prospectus dated January 28, 2024. As of June 30, 2025, the company has utilized ₹100.51 crore of the net proceeds, with only ₹0.44 crore remaining unutilized.

The funds have been allocated as follows:

The Audit Committee has reviewed and noted that there is no deviation, and the unutilized proceeds are parked in fixed deposits with scheduled banks.

Q1 FY26 Financial Highlights

Nova Agritech Limited has released its unaudited standalone financial results for the quarter ended June 30, 2025:

• Revenue from operations stood at ₹11.65 crore
• Total income, including other income, was ₹12.62 crore
• Profit before tax (PBT) was reported at ₹0.47 crore
• Net profit after tax (PAT) for the quarter was ₹0.47 crore

Consolidated Performance

On a consolidated basis, which includes its subsidiaries Nova Agri Sciences Private Limited and Nova Agri Seeds Private Limited, the company reported:

• Consolidated revenue from operations of ₹46.75 crore
• Total consolidated income of ₹46.84 crore
• Consolidated profit before tax of ₹3.91 crore
• Consolidated net profit after tax of ₹3.25 crore

Corporate Governance and Future Outlook

The Board of Directors, in their meeting held on August 9, 2025, approved these financial results along with other key decisions:

• Scheduled the 18th Annual General Meeting for September 19, 2025
• Recommended the re-appointment of Mr. Kiran Kumar Adapa as an Independent Director for a second term of 5 years, subject to shareholder approval

Nova Agritech continues to focus on its core business of manufacturing, marketing, and distribution of soil health management, crop nutrition, and crop protection products. The company's commitment to proper fund utilization and transparent financial reporting underscores its dedication to corporate governance and shareholder trust.

As Nova Agritech moves forward, it aims to leverage its expanded production capabilities and working capital to strengthen its position in the agricultural solutions market.

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:

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.