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    Godrej Agrovet Limited

    GODREJAGROGood
    Fast Moving Consumer Goods·4 Feb 2026
    Management Summary

    Godrej Agrovet delivered a strong Q3 performance characterized by disciplined margin expansion and operational efficiencies across most segments. The quarter was highlighted by a sharp turnaround in Astec LifeSciences and record efficiencies in the Vegetable Oil business. While the Dairy segment continues to face headwinds from milk inflation, the company is undergoing a deep strategic portfolio review to prioritize high-growth, high-margin branded retail plays.

    Highlights

    8

    • Consolidated revenues grew 11% YoY in Q3 FY26, with 9M FY26 revenue at ₹7,900 crores (+9% YoY)

    • Profit Before Tax (excl. exceptional items) increased 23% YoY in Q3; 9M PBT at ₹482 crores (+17% YoY)

    • Animal Feed segment saw 12% volume growth, led by a 21% surge in cattle feed volumes

    • Vegetable Oil business achieved a record Oil Extraction Ratio (OER) of 21.0% vs 20.7% last year

    • Astec LifeSciences turned EBITDA positive at ₹5 crores, following a period of losses, with 33% revenue growth

    • Dairy segment remains under pressure with EBITDA margins softening to 3% due to 10% milk procurement inflation

    • Branded salience in the Foods business reached 81% in Q3, up from 77% in the previous year

    • FFB (Fresh Fruit Bunches) arrivals grew by 16% during the quarter

    Concerns

    1

    • Milk Procurement Inflation

    What Changed3

    vs Q4 FY26

    Guidance items11 → 7 (-4)Risks discussed3 → 4 (+1)Q&A highlights8 → 3 (-5)
    Key financials

    Metrics

    6

    Periods

    3

    Headline

    4
    • Animal Feed EBIT per MT
      ₹2,020
      YoY+4.3%
    • Astec EBITDA
      ₹5 Cr
    • Dairy EBITDA
      ₹11 Cr
    • Foods EBITDA
      ₹17 Cr
      YoY+51%

    9M

    1
    • Consolidated Revenue
      ₹7,900 Cr
      YoY+9%

    9M, excl. exceptional

    1
    • PBT
      ₹482 Cr
      YoY+17%

    Segment breakdown

    Animal Feed
    12% Volume Growth21% Cattle Feed Volume Growth17% Segment Results Growth
    Vegetable Oil
    27% Revenue Growth25% Segment Results Growth21% Oil Extraction Ratio (OER)
    Astec LifeSciences
    33% Revenue Growth₹5 Cr EBITDA
    Dairy (Creamline)
    3% Revenue Growth3% EBITDA Margin
    Foods
    ₹215 Cr Revenue81% Branded Salience
    List

    Guidance & targets

    7
    CategoryTargetPriority
    Profitability
    Astec EBITDA
    Breakeven
    		High
    Revenue
    Astec Revenue Growth
    20%
    		Medium
    Revenue
    Astec Revenue Growth
    15%
    		Medium
    Volume
    FFB Tonnage Growth
    12-15%
    		High
    Capacity
    Palm Oil Acreage Expansion
    17,000 to 18,000 hectares
    		High
    Capacity
    Pet Food Plant Commissioning
    1 month
    		High
    Margin
    Crop Protection Sustainable Margin
    28-30%
    		Medium

    Risks & concerns

    6
    RiskSeverity

    Milk Procurement Inflation

    Driven by global butter price spikes and high exports from India; management expects this to continue for at least another quarter. — Both acknowledged

    high

    Unseasonal Rains and Cyclones

    Impacted Crop Protection volumes, particularly in grape crops, leading to flat segment results despite revenue growth. — Management acknowledged

    medium

    China Overcapacity in Agrochemicals

    Continues to exert pricing pressure on enterprise molecules, though management notes it is starting to flatten out. — Management acknowledged

    medium

    Base Effect in Crop Protection

    Q4 will face a base effect due to Hitweed co-marketing sales from the previous year. — Management acknowledged

    low

    Areas of Evasion(2)

    • Specific EBIT per ton for cattle feed (deferred to offline)
    • Exact revenue growth target for Crop Protection ex-co-marketing

    Q&A highlights

    3

    “Last year quarter 3, this number was 20.7% and this year we have beaten that to 21%.”

    Confirms that growth in the Vegetable Oil segment is driven by operational efficiency (OER) rather than just commodity pricing, which was actually a headwind for CPO.

    asked by Probal Sen, ICICI Securities

    2 min read5 chapters

    Detailed Narrative

    01

    Vegetable Oil Efficiency Hits Record Highs

    The Vegetable Oil business was a standout performer, with segment results growing 25% YoY. This was underpinned by a record Oil Extraction Ratio (OER) of 21.0%, up from 20.7% in the previous year. Management highlighted that while CPO prices were lower YoY, strong volume growth in Fresh Fruit Bunches (FFB) of 16% and improved efficiencies more than offset the pricing headwind.

    02

    Astec LifeSciences Turnaround Underway

    After several quarters of losses, Astec LifeSciences reported a positive EBITDA of ₹5 crores in Q3. Revenue grew 33% YoY, driven by robust volume growth in both enterprise and CDMO segments. Management reiterated their target for EBITDA breakeven for the full year FY26 and noted that the CDMO inquiry funnel has doubled from 22 to 45 inquiries.

    03

    Dairy Segment Faces Persistent Inflationary Headwinds

    The Dairy business (Creamline) saw revenue growth of only 3%, with EBITDA margins compressed to 3%. The primary culprit was a 10% increase in milk procurement costs, particularly in Maharashtra. Management attributed this inflation to high global butter prices driving Indian exports, and they expect these pressures to persist through Q4.

    04

    Strategic Shift Toward Branded Foods

    Godrej Agrovet is aggressively pivoting toward a branded retail model in its Foods and Poultry businesses. Branded salience rose to 81% in Q3 from 77% last year. The company is intentionally reducing its exposure to the volatile 'live bird' trading business to focus on value-added offerings like Yummiez and Real Good Chicken, aiming for a pure-play branded retail organization over the next 5 years.

    05

    Animal Feed Premiumization Strategy

    The Animal Feed segment delivered 12% volume growth, significantly outperforming the industry. Cattle feed was the primary driver with 21% growth, as farmers upgraded to branded compound feed due to favorable milk prices. The segment achieved an EBIT per metric ton of ₹2,020, up from ₹1,937 in the prior year, reflecting a successful shift toward premium, differentiated products.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.