Dharmaj Crop Guard Limited has received fresh credit ratings from Care Ratings Limited, with the rating agency assigning investment-grade ratings to the agrochemical manufacturer's bank facilities worth ₹249.00 crore on February 18, 2026.

Rating Assignment Details

Care Ratings assigned the following ratings to Dharmaj Crop Guard's banking facilities:

The stable outlook reflects Care Ratings' expectation that the company will continue benefiting from its promoters' extensive experience in the agrochemical industry while maintaining a comfortable financial risk profile.

Key Rating Strengths

Promoter Experience and Market Position

The rating agency highlighted the extensive experience of promoters Ramesh Talavia and Jaman Talavia, who possess over three decades of experience in the agrochemical industry. This expertise has enabled the company to build brand presence and establish an extensive distribution network across domestic and international markets.

Diversified Operations and Growing Scale

Dharmaj Crop Guard operates with a well-diversified revenue mix across three segments. In FY25, branded formulations contributed approximately 20% of total operating income, institutional formulations 59%, and technicals 21%. The company's total operating income grew at a healthy compound annual growth rate of approximately 37% over the last five years, reaching ₹951.66 crore in FY25.

The company's manufacturing capabilities include two facilities with a combined capacity of 25,500 MTPA for formulations and 8,000 MTPA for technicals and intermediates. In H1FY26, the company reported continued sales momentum with total operating income of ₹714.65 crore, representing 26% year-on-year growth.

Financial Performance Metrics

The company maintains a comfortable capital structure with tangible net worth of ₹392.36 crore as of FY25 end and moderate reliance on external debt, leading to overall gearing of 0.32x as of March 31, 2025.

Rating Constraints

Profitability and Working Capital Challenges

Despite the positive factors, Care Ratings noted several constraints. The company's profitability remained moderate with PBILDT margins in the range of 8-12% over the last five years. PBILDT margin moderated by 175 basis points year-on-year to 7.94% in FY25 due to commercialization of the technical plant, while PAT margin declined to 3.66% in FY25 from 6.78% in FY24.

The company's operations are working capital intensive, with overall inventory days remaining stable at 50-52 days while debtor days expanded from approximately 55 days to 70 days over three years ended FY25. The operating cycle stood at 64 days as of March 31, 2025.

Industry and Regulatory Risks

The ratings also factor in the company's presence in the highly competitive agrochemical industry, where intense competition from organized and unorganized players exerts pricing pressure. Additionally, the company's profitability remains susceptible to regulatory and climatic conditions, as demand for crop protection products depends on monsoons and pest attack incidence.

Rating Sensitivities

Care Ratings outlined specific factors that could lead to rating actions. Positive factors include growth in scale of operations with total operating income exceeding ₹1,400 crore and PBILDT margin above 12% on a sustained basis. Negative factors include significant decline in total operating income and PBILDT margin below 8%, total debt to PBILDT above 2x, or total outside liabilities to tangible net worth above 0.80x on a sustained basis.

The company's liquidity profile remains adequate, with expected gross cash accruals of over ₹80 crore in FY26 against low term debt repayment obligations of approximately ₹12 crore. Average utilization for cash credit facilities stood at approximately 42% for the 12 months ended November 2025.

Dharmaj Crop Guard Limited has announced the appointment of celebrated cricketer Rohit Sharma as its brand ambassador on February 11, 2026. The strategic partnership marks a significant milestone in the agrochemical company's journey to strengthen its domestic brand business division and enhance its brand presence across India.

Strategic Brand Partnership

The collaboration aims to leverage Rohit Sharma's mass appeal and leadership stature to reach deeper into rural markets and connect with farmers across the 24 states where Dharmaj operates. Through this business endorsement, the company will drive impactful marketing and brand-building initiatives that resonate with the shared values of trust, performance, and consistency.

Management Commentary

Commenting on this milestone, Chairman and Managing Director Rameshbhai Talavia expressed his enthusiasm about the partnership. He stated that the company is delighted to welcome Rohit Sharma to the Dharmaj family, noting how his winning spirit and connect with millions of Indians mirror their commitment to serving the farming community with dedication, trust, and quality products. Talavia emphasized that this collaboration will usher in a new phase of growth for their domestic brand business division.

Company Profile and Operations

Dharmaj Crop Guard Limited operates as a dynamic and fast-growing agrochemicals company engaged in manufacturing and marketing agrochemical formulations. The company's product portfolio includes:

• Insecticides
• Fungicides
• Herbicides
• Plant growth regulators
• Micro fertilizers

The company markets and distributes generic and licensed formulations to B2C customers (farmers) under its brands and to B2B customers (institutional). Additionally, Dharmaj is engaged in the business of general insect and pest control chemicals for public and animal health protection.

Recent Business Developments

The company recently entered active ingredients manufacturing to become an integrated player across the agrochemical value chain. This expansion includes an 8,000 TPA intermediates and technicals greenfield unit at Sayakha, which was commissioned in Q4FY24. This strategic move positions Dharmaj as a more comprehensive player in the agrochemical industry, enhancing its ability to serve customers across the entire value chain.

Rohit Sharma's collaboration with Dharmaj will play a pivotal role in the company's marketing and promotional campaigns, creating a stronger identity for its brands among farmers and channel partners nationwide. The partnership represents the company's continued commitment to redefining the crop protection segment with top-quality formulation, product performance, and ability to continually expand its portfolio.