Godrej Agrovet

The Standalone Crop Protection segment was the primary laggard in Q2, with revenue declining 30% YoY. Management attributed this to 'excessive and uneven' rainfall which significantly narrowed the window for spraying opportunities. Furthermore, a reduction in chilli acreage due to lower prices impacted the performance of in-licensed products, leading to a 62% drop in segment results and margin compression from 43.1% to 23.3%.

The Vegetable Oil business posted stellar results with a 41% YoY revenue increase and margins expanding to 22.4%. This was driven by a record-high Oil Extraction Ratio (OER) of 19.49%, which management credited to exceptional micro-operational execution on the ground and favorable monsoon support. The company expects mid-teens growth in fruit bunches for the full year.

Animal Feed delivered robust volume growth, particularly in the cattle feed sub-segment which grew 18% YoY. However, segment revenue remained flat as lower realizations from softening commodity prices acted as a pass-through. Despite this, underlying margins improved by 70 basis points, and management maintained its guidance of ₹1,900 to ₹2,000 EBIT per metric ton.

Astec LifeSciences saw a 25% revenue decline, primarily due to cautious contract manufacturing demand. Management is pivoting toward a B2B strategy and investing in a business development team to build a stronger product pipeline. They remain committed to achieving EBITDA breakeven for Astec by the end of FY26, supported by a target turnover of approximately ₹500 crores.

Under the new CEO Sunil Kataria, Godrej Agrovet has launched 'Project PI', an organization-wide initiative to root out inefficiencies and drive cost savings. Management is also conducting a 'strategy refresh' to simplify its diverse portfolio of seven businesses. This exercise is expected to conclude in 70-90 days, with a long-term 'FY30 Unleash' model to be presented to investors by March 2026.