Bayer Crop Science CEO, Simon-Thorsten Wiebusch, has expressed measured optimism regarding the company's fiscal year 2026 outlook, balancing the challenges of erratic monsoons against India's untapped agricultural market potential.

Strong Start, Inconsistent Progress

The year began on a positive note for Bayer CropScience, with early monsoons boosting the company's first-quarter performance. However, Wiebusch noted that subsequent rainfall patterns have been inconsistent and erratic, introducing uncertainty into the agricultural sector's prospects.

Critical September for Kharif Season

Wiebusch emphasized the importance of September's weather conditions in determining the success of the kharif crop season. This period is crucial for many of India's important crops and could significantly impact the agricultural industry's performance.

Positive Outlook for Rabi Season

Despite the kharif season uncertainties, the CEO expressed a more optimistic view for the upcoming rabi season. Well-filled dams and stable commodity prices for farmers are expected to contribute positively to this winter crop season.

India's Untapped Agricultural Market

Highlighting India's growth potential, Wiebusch pointed out that the country remains an under-penetrated market compared to other nations. This presents significant opportunities for agricultural input companies like Bayer CropScience to expand their presence and offerings.

Evolving Industry Dynamics

The CEO cautioned that the agricultural sector is increasingly influenced by factors beyond traditional monsoon patterns. This evolving landscape requires companies to adapt their strategies and outlook continuously.

Gross Margin Pressures Easing

Addressing industry concerns about gross margin pressures, particularly related to glyphosate pricing, Wiebusch suggested that the worst may be over. He indicated that the company has likely reached the bottom in terms of gross margins on the chemical side of the business.

External Challenges Persist

While expressing cautious optimism, Wiebusch acknowledged that external factors, such as industrial overcapacity in China, could still impact the Indian market. This highlights the interconnected nature of global agricultural markets and the need for companies to remain vigilant to international trends.

As Bayer CropScience navigates these complex market conditions, stakeholders will be closely watching how the company capitalizes on India's agricultural potential while managing the challenges posed by climate variability and global market dynamics.

Bayer Crop Science has announced strong financial results for the first quarter, demonstrating significant growth across key metrics.

Financial Highlights

• Revenue Surge: The company's revenue from operations jumped to ₹19,146.00 million, marking a substantial 17% increase from ₹16,314.00 million in the corresponding quarter of the previous year.
• Profit Growth: Net profit rose to ₹2,787.00 million, up from ₹2,542.00 million year-over-year, representing a 10% increase.
• EBITDA Performance: EBITDA improved to ₹3,671.00 million from ₹3,415.00 million in the same period last year.
• Margin Dynamics: Despite the revenue growth, the EBITDA margin saw a slight decline to 19.2% from 20.9% in the previous comparable quarter.

Key Performance Drivers

Simon Wiebusch, Vice Chairman & Managing Director and CEO of Bayer CropScience Limited, attributed the strong quarterly performance to several factors:

1. Early Monsoon Impact: The early onset of the monsoon contributed to higher volumes in key product segments.
2. Product Performance: Corn seeds and Roundup® herbicide saw significant volume growth.
3. Innovation Launch: The company successfully introduced BICOTA®, an innovative solution for managing Stem Borers in paddy cultivation, aimed at supporting smallholder farmers across India.

Financial Management

Vinit Jindal, Executive Director and Chief Financial Officer, highlighted the company's financial strategy:

• Cost Management: Early signs of input cost stabilization were observed, contributing to improved profitability.
• Operational Efficiency: Despite elevated operating expenses due to the early monsoon, the company maintained a focus on cost discipline.

Market Position and Outlook

Bayer CropScience's strong Q1 performance underscores its robust market position in the agrochemical sector. The company's focus on innovation, as evidenced by the launch of BICOTA®, along with its ability to capitalize on favorable weather conditions, positions it well for continued growth.

The management's emphasis on cost discipline and operational efficiency, coupled with strategic product launches, suggests a positive outlook for the company in the coming quarters, subject to monsoon patterns and overall agricultural sector performance.

About Bayer CropScience Limited

Bayer CropScience Limited is a key player in the life science fields of health care and nutrition. The company is committed to addressing global challenges in food security and healthcare, aligning with its mission of "Health for all, Hunger for none." With a focus on sustainable development and innovation-driven growth, Bayer CropScience continues to play a crucial role in India's agricultural sector.