Best Agrolife Ltd (BESTAGRO) Q2FY27 Concall Transcript - Sep-2026 Qtr
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Moderator: Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '27 conference call of Best Agrolife Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference, please signal for an operator by pressing star and then zero on your touchtone telephone. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. The statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. Today, from the management side, we have with us Mr. Vimal Kumar, Managing Director, Mr. Surendra Sai, Executive Director, Mr. Sanjeev Bajaj, Chief Financial Officer, and Mr. Vikas Jain, Vice President, Business Operations. I would now like to hand the call over to Mr. Vimal Kumar for his opening remarks. Thank you and over to you, sir.
Vimal Kumar (Best Agrolife Ltd): Thank you. Good afternoon, everyone. First of all, main aap sabhi ka aaj ki earning call me swagat karta hoon. Thank you for taking out time to join us. Aaj main aapke sath company ki performance ke bare mein baat karunga. Saath hi yeh bhi share karna chahoonga ki is saal ground level par market mein kya challenges rahe, unka hamare business par kya asar pada, aur hum aage kis direction mein kaam kar rahe hain. Agar hum numbers ki baat karein to quarter two financial year '27 mein hamara total revenue 407 407 crore raha, jab ki pichle saal isee quarter mein yeh 517 crore rupaye tha. H1 FY '27 mein revenue 803 tha, jab ki pichle saal isi period mein yeh 898 898 crore tha. Revenue kam hone ke bawajood is saal humne apni profitability mein achha improvement kiya hai.
Vimal Kumar (Best Agrolife Ltd): grow ho gaya in spite of a total revenue. H1 me EBITDA 123 crore se badhkar 178 crore raha. Isi tarah Quarter 2 ka PAT 39 se badhkar 57 crore hua. Jab ki H1 ka PAT 59 crore se badhkar 98 crore raha. Hamari profitability me iss improvement ke peeche patented products se behtar margins, cost discipline and challenging monsoon ko dhyan me rakhte huye ki gayi behtar planning ka yogdan raha. Peechle do saalon me hum lagatar apne product portfolio ko generic product se aage badhakar patented aur differential product par zyada focus kar rahe hain. Hum aage bhi isi direction me kaam karte rahenge kyuki hamara focus sirf short term performance par nahi balki ek sustainable and profitable business banane par hai. Ab main aapko thoda market condition ke baare me batana chahunga, kyunki iss saal hamare performance ko samajhne ke liye kharif season ki situation ko samajhna zaroori hai. Iss saal monsoon ka pattern kafi uneven raha. Kayi areas me baarish sahi samay par nahi hui, jiski wajah se buayi me deri hone par kuch jagaho par buayi ka area bhi kam raha. Kuch areas me bohot zyada baarish hui jab ki kuch jagah par baarish ke beech lambe gaps rahe, jiska seedha asar poore kharif season, kharif crop par pada. Kayi kisano ko apni buayi delay karni padi, kuch areas me soil moisture me kami rahi. Khaaskar un jagaho par jaha irrigation facility limited thi. Iss saal kisaano ke liye apna kharch soch samajhkar karna zaroori tha aur iska asar overall demand par pada. Saath hi kuch product category me generic products ki wajah se competition aur pricing ka pressure bhi bana raha. In sabhi factors ko chalte iss quarter ka business environment challenging tha. Humne pehle hi buayi me hone wali deri aur crop protection products ki demand me aane wale badlavo ka idea laga liya tha. Aisi situations me humne targeted product placement aur behtar farmer education ke zariye manage karne ki koshish ki. Ab mai aapko thoda regional markets ke baare me batana chahunga kyunki sabhi regions aur sales aur market conditions ek jaisi nahi thi. Pashchim me, Madhya Bharat me, Central India me khaaskar Maharashtra, Madhya Pradesh, Gujarat ke kuch hisso me baarish ke uneven pattern ne buayi aur fasal ki growth par asar daala. Soybean, cotton, groundnut, maize, paddy aur kuch dusri fasale ugane waale kisaano ko alag alag tarah ki chunotiyon ka samna karna pada. North India me situation mukhya roop se dry rahi. Kuch areas me temperatures zyada rahe, soil moisture bhi kami rahi aur dams me milne waali paani ki availability bhi kam thi. Andhra Pradesh me kuch regions me paani ki uplabhdata se jude samasyaon ke karan paddy acreage par pressure bana raha. Same Telangana me bhi tha. Tamil Nadu me bhi water availability kam rahi jabki Karnataka aur Telangana ke alag-alag hisso me condition alag-alag rahi. In sabhi conditions ka asar cotton, paddy, chilli, groundnut aur crop protection product ki demand par asar kafi raha. Uttar Pradesh me demand ka pattern kuch alag raha. Paddy me early leaf folder ki problems ke chalte huye areas me spray product ki demand ko support mila. Halanki fungal disease ka pressure kam hone ke karan fungicide segment me demand utni strong nahi thi. Iske alawa cotton acreage me bhi kami dekhne ko mili jiska seedha asar product demand par pada kyunki cotton ki jagah unhone guar and other crops ka buayi ki, sowing ki. Overall iss kharif season me demand par weather conditions, sowing pattern, irrigation aur availability aur farmers ke spending pattern ka combine effect dikha. In sabhi factors ko closely monitor karne aur ground level se milne waale feedback ke aadhar par humne planning me badlaav karne se hume kam revenue ke bawajood results ko behtar tareeqe se manage karne me madad mili. Iss challenging market environment ke bawajood humne naye product ko market me introduce karne ka apna kaam jaari rakha, jo hum har saal karte hain ek se do product. Hume market se unka achha response mila. Iss period me humne apna patented product Midcotim paddy segment ke liye launch kiya.
Vimal Kumar (Best Agrolife Ltd): paddy kisanon se achha response mila. September mein humne ek aur powerful insecticide Sector brand name Sector se launch kiya jise humne pomegranate aur chilli mein sucking aur lepidopteran pests ke management ke liye market mein introduce kiya. Aage ki baat karein to hum rabi season ko closely monitor kar rahe hain jo ab shuru ho gaya hai. Rabi season ki demand kaafi had tak is baat par depend karti hai ki buwai kaisi rehti hai, soil moisture ki availability kaisi hai, irrigation water kitna available hota hai aur farmers agriculture input par kharch karne ko lekar kitna confidence mehsus karte hain. Is stage par market recovery ko lekar bohot strong assumption banna sahi nahi hoga, banana sahi nahi hoga abhi. Hum actual ground situation ko closely assess kar rahe hain aur usi ke hisaab se apni aage ki planning karenge. Pichhle char-paanch saal mein jo hamara experience hai, wo is saal hum behtar tarike se isko apne isme system mein leke aaye hain. Ab main aapko apne innovation aur intellectual properties property portfolio ke baare mein bataunga. Pichhle do saalon mein humne patented product portfolio mein ko majboot banane ki disha mein lagatar kaam kar rahe hain aur aage bhi hamari strategy priority bani rahegi. Is dauran hamein fluxametamide jo ki ek insecticide hai aur uska ek bohot powerful combination Fluxametamide, Abamectin, Trifloxystrobin ke liye patent grant hua. Yeh hamare intellectual property portfolio ki aur ek important uplabdhi hai aur differential product development hamari karne ki hamari disha ko aur majboot karta hai. Iske alawa humne Ronfen, Nano Urea aur Fluxametamide, Flonicamid tatha Abamectin ke aage combination se judi foreign patent application par bhi progress ki hai. Yeh applications UAE, Vietnam, Sri Lanka, Philippines, Egypt jaise markets mein aage badhi hai aur ab hum examination stage par pahunch gaye hain. Jis tarah se aapko humne pichhle calls mein bataya hai ki different-different stages rehte hain jab hum kisi ek product ko kisi country mein register karte hain to na abhi inki examination stage tak pahunch chuki hain in countries mein. Hamare iske saath hi is quarter mein humein alag-alag categories mein 13 CIB registration bhi mile hain. International business bhi ek aisa area hai jahan hum lagatar process kar rahe hain, progress kar rahe hain. Is period mein ke dauran humne Sudan mein 47 metric ton ki shipment ki hai. Nepal mein bhi humein apne ek patent product Ronfen ke liye registration mila hai. Char anya product ko bhi registration ke liye submit kiya gaya hai. Mexico mein humein lambda play registration mila hai jabki ek anya technical product ka registration process chal raha hai. Iske alawa hum dusre international markets mein bhi opportunities par kaam kar rahe hain. Taiwan mein hamara ek product approval ke final stage par pahunch gaya hai jabki ek anya product review process mein aage badh raha hai. Sri Lanka mein hamare do patented product ke samples ko initiate approval mil gaya hai, initial approval mil gaya hai. Uske baad testing aur trials ke stage mein aage badhaye jaane ki umeed hai. Global expansion ke disha mein ek aur mahatvapurna kadam uthate hue humne Brazil mein ek step-down subsidiary incorporate ki hai. Iske zariye hamara uddeshya South America market mein agrochemical aur agriculture product se jude business ka expand karna hai. Is tarah entity ko hamari whole-owned subsidiary Best Agrolife Global ke madhyam se incorporate kiya gaya hai. Yeh sabhi developments international markets mein hamari presence badhane ki disha mein important step hai. Hamara focus in opportunities ko samay ke saath actual business mein convert karne par rahega. Aakhri mein main yahi kehna chahunga ki financial year ke pehle half mein revenue par pressure zaroor raha hai aur hum is baat ko nazarandaz nahi kar sakte. Lekin saath hi profitability aur improvement ko apne patented portfolio ko majboot banane ki disha mein ho rahi progress humein apni long term direction ko lekar confidence deti hai. Hum aage bhi disciplined tarike se kaam karte rahenge, apne business aur fundamentals ko strong banayenge aur aise growth opportunities par focus karenge jo long term value create kar sakein. Thanks. All from my side. Thank you once again for joining us today. Ab main apne CFO Mr. Sanjeev Bajaj ko invite karta hoon jo aapko company ke financial performance ke baare mein batayenge. Thank you very much.
Sanjeev Bajaj (Best Agrolife Ltd): Thank you. Thank you, Vimal sir, for
Sanjeev Bajaj (Best Agrolife Ltd): as for the, business update. Good afternoon, everyone. So I will take you through the financial performance of Best Agrolife Limited for the quarter, quarter 2, Financial Year '27, and H1 Financial Year '27. Let me begin with revenue. Revenue from operations for quarter 2 Financial Year '27 stood at 407 crore compared with 517 crore in quarter 2 Financial Year '26, representing a year-on-year decline of approximately 21%. For H1 Financial Year '27, revenue was 803 crore compared with 893 crore in the corresponding period last year, a decline of approximately 11%. Our revenue performance was affected by the challenging kharif season including irregular rainfall, delayed and uneven sowing, reduced crop acreages in certain markets, changes in spray schedule, and cautious farmer spending. These conditions affected demand across several crop protection categories. Also, as a strategy, the company is focusing on the patented portfolio and has been gradually reducing generic products from the overall portfolio. However, profitability improved significantly during the quarter and the first half of the year. Gross margin for the quarter 2 Financial Year '27 stood at 182 crore compared with 170 crore in corresponding year, corresponding last year the same quarter. Gross margin as a percentage of revenue improved to 45% compared with 33% in the corresponding quarter last year. For H1 Financial Year '27, gross margin was 328 crore against 280 crore in H1 Financial Year '26, an increase of approximately 17%. Gross margin percentage improved to 41% compared with 31% in the previous year. Now move to EBITDA. EBITDA for quarter 2 Financial Year '27 increased to 101 crore from 78 crore a year ago, representing a growth of approximately 30%. EBITDA margin expanded to 25% compared with 15% in the quarter 2 Financial Year '26. For H1, Financial Year '27 EBITDA rose to 178 crore from 123 crore in H1 Financial '26, an increase of approximately 45%. EBITDA margin improved to 22% compared with 14% in the corresponding period last year. Now move to profit after tax. The profit after tax for the quarter 2 Financial Year '27 was 57 crore compared to 39 crore in quarter 2 Financial Year '26, representing growth of approximately 48%. The PAT margin increased to 14% compared with 8% a year ago. For for H1 Financial Year '27, profit after tax reached 98 crore against 59 crore in H1 Financial Year '26, a increase of approximately 67%. The PAT margin improved to 12% as compared to 7% in the previous year. These results demonstrate that despite lower revenue, the company delivered higher gross margin, EBITDA, and profit after tax together with a substantial expansion in margins. An important strategic factor behind this improvement has been the company shifts toward a stronger patented product portfolio, initiated from Financial Year '26. This transition along with our initiative of cost discipline, operational efficiency has been an important contributor to the improvement in the margin. We intend to continue strengthening the patented portfolio, while remaining focused on our execution and financial discipline. Since last year, the company is focusing on reducing the OPEX and is successful in doing so. Operating expenses expenses including finance cost and depreciation was 81 crore in quarter 2 Financial Year '27, compared with 92 crore in quarter 2 Financial Year '26, a reduction of approximately 12%. For H1 '27, these expenses were 149 crore compared with 157 crore in the corresponding period last year, a reduction of 5%. This reflects the importance of maintaining cost discipline while navigating a challenging market environment. So we will continue to maintain a disciplined approach to cost and take all necessary measure to enhance efficiency, ensure that expenditures remain aligned with business requirement and growth priorities. We will continue to focus on our working capital management in line with market requirements. We have been monitoring our working capital and ensuring that gradually reduce it over the period.
Sanjeev Bajaj (Best Agrolife Ltd): So to summarize Q2 and H1 financial 25 were characterized by revenue pressures amid challenging agriculture conditions. However, the company was able to deliver strong growth in profitability and substantial margins expansion. Improvement in gross margin, EBITDA, and PAT, together with lower operating expense, reflects the progress made in strengthening the company's profitability profile. Our focus remain on sustaining financial discipline, managing working capital carefully and supporting the company's strategy of building a stronger patented portfolio and pursuing sustainable profitability growth. Thank you, anyone everyone, that's all from my side. So, we are now open to take the questions.
Moderator: Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter star followed by one on their handsets. If you wish to remove yourself from the question queue, you may enter star followed by two. Participants are requested to please use only handsets while asking a question. We will wait for a moment while the question queue assembles. To ask questions, please enter star and one. The first question is from the line of Hemant, please go ahead.
Hemant: Hello, sir. Good afternoon.
Vimal Kumar (Best Agrolife Ltd): Good afternoon, Hemant ji.
Hemant: Firstly, congratulations for the excellent bottom line this quarter. My first question is related to this top line for this quarter. In the commentary, you are mentioning that top line is reduced mainly because of bad monsoon. But if we see the numbers closely, only 22 crores reduction came from B2C business this quarter compared to last year. and the balance 88 crores came from institutional sale. So can you please explain this?
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