Nath Bio-Genes (India) Limited

Nath Bio-Genes demonstrated resilience in H1 FY26, with revenue growing 15.9% Y-o-Y to INR3,199 million and PAT increasing 15.3% Y-o-Y to INR424 million. This performance was achieved despite challenging conditions such as uneven monsoons and erratic rainfall. The company's ability to deliver consistent results and strengthen farmer trust underscores the strength of its products and operational teams.

The cotton business, a backbone of the portfolio, recorded steady growth of 6% Y-o-Y in volume (1.11 million packets) and 26.3% in value, driven by strong demand for premium products like Sanket and RANA. Maize showed a sharp recovery with 7.3% Y-o-Y quantity growth, supported by favorable conditions and hybrid acceptance. Vegetable seeds were the fastest-growing segment, achieving almost 25% Y-o-Y value growth, while PNS sustained its momentum with 3.7% volume and 5.29% value growth. Bajra, however, saw a moderate decline of 5-6% due to lower acreages and rural sentiment.

The company's strategy is heavily focused on product innovation, development, and launches to create unique, high-value products. R&D efforts are progressing steadily in enhancing the product portfolio and creating hybrids resilient to diseases and pests. Nath Bio-Genes is also advancing its innovation pipeline, identifying several promising hybrids for commercial introduction in coming seasons, and is working on generating GM crops internally, with 12 products currently under Plant Varieties Protection Act registration.

Working capital increased from INR2,837.45 million in H1 FY25 to INR4,134.69 million in H1 FY26, primarily due to increased receivables and inventory. Management expects receivables to be recovered and inventory to reduce through sales in FY26. They also noted that approximately INR100 crores in advanced bookings will help adjust against debit balances receivable, indicating a clear plan for managing the working capital position.

The Uzbekistan joint venture, Nath Bio-Genes Central Asia Limited, is progressing well with marketing activities and cotton production, showing encouraging results and strengthening the company's international footprint. Plans are underway for parallel seed production and expansion into other crops in the region next year. For FY26, the company targets 15% Y-o-Y revenue growth, with an aspirational target of INR500 crores top line in the following year, contingent on crossing INR400 crores in the current year.

Management reiterated its commitment to shareholder value, highlighting consistent dividend payouts for the fourth or fifth consecutive year. They emphasized that the company's focus remains on operational excellence, R&D, and market acceptance of products. While acknowledging investor concerns about share price performance, management stated they do not interfere with market dynamics and are focused on long-term value creation through strong business fundamentals.