Godrej Agrovet

The Animal Feed segment was a standout performer, with EBIT per ton surging 45% YoY to ₹1,925 in Q3 FY25. Margins expanded significantly from 4% to 6% due to a favorable commodity environment and internal R&D initiatives. Management expressed high confidence for this to continue, guiding for an EBIT per ton of over ₹2,100 in Q4 FY25 and a sustainable range of ₹1,800-₹2,000 for FY26. However, they cautioned that performance remains highly dependent on volatile corn and DORB prices, which are subject to regulatory shifts.

Astec LifeSciences faced what management termed a 'big disaster' of a year. The full-year FY25 CDMO revenue growth guidance was slashed from a robust 30-40% to flat, citing significant order postponements from clients. While the business managed to reduce its quarterly EBITDA loss to ₹4 crores from ₹17 crores a year ago, the outlook remains challenging. For FY26, management has guided for a rebound with 30% growth, but stated that future guidance will be more conservative and based only on confirmed purchase orders.

The Vegetable Oil segment delivered strong results with a 45% YoY increase in revenue during Q3 FY25. This growth was entirely price and efficiency-led, driven by higher Crude Palm Oil (CPO) and Palm Kernel Oil (PKO) prices, coupled with an improved Oil Extraction Ratio (OER). The performance came despite flat fresh fruit bunch (FFB) arrivals, which stood at 1,46,000 tons for the quarter. Management also highlighted the significant expansion in plantation area, expecting to add 13,000-14,000 hectares in FY25, up from 5,000 last year.

The Poultry business continued its strategic pivot away from the volatile live birds segment towards higher-margin branded products. For the first nine months of FY25, the contribution from live birds fell to 26% of sales from 41% a year ago. Correspondingly, the share of branded 'Real Good Chicken' (RGC) rose to 54% (from 43%) and 'Yummiez' to 20% (from 15.9%). This shift resulted in significantly improved profitability in Q3, even as overall revenue was marginally lower.

In a notable exchange during the Q&A, management directly addressed analyst concerns about the company's complex consolidated structure, where underperformance in one segment often negates strong performance in another, limiting value creation. The Managing Director agreed with the assessment, stating 'Spot on,' and confirmed that the company is 'thinking about how to simplify the structure' to provide better visibility and potential for re-rating. This signals a potential strategic review of the business portfolio in the future.