Best Agrolife Q2 FY27 results: net profit up 47.6% to ₹57.46 crore, revenue down 21.2%

How did Best Agrolife perform in Q2 FY27?

Best Agrolife’s consolidated Q2 FY27 revenue was ₹407.12 crore, down ₹109.71 crore or 21.2% from Q2 FY26. EBITDA rose ₹23 crore or 29.7% to ₹100.51 crore, and margin increased by 9.7 percentage points to 24.7%. PBT was ₹77.62 crore, up 48.0%, while net profit increased ₹18.53 crore or 47.6% to ₹57.46 crore; basic EPS was ₹1.62.

Against Q1 FY27, revenue increased ₹10.92 crore or 2.8% to ₹407.12 crore. EBITDA rose ₹22.78 crore or 29.3% to ₹100.51 crore, margin increased by 5.1 percentage points to 24.7%, and net profit rose ₹16.81 crore or 41.4% to ₹57.46 crore. Basic EPS increased from ₹1.15 to ₹1.62. On the standalone basis, revenue was ₹287.94 crore and PAT was ₹37.61 crore.

The reported year-on-year revenue comparison shows lower sales alongside higher operating profit and net profit. Total income was ₹408.57 crore, down ₹106.37 crore or 20.7% from ₹514.94 crore, while total expenses fell ₹131.53 crore or 28.4% to ₹330.95 crore. The filing did not provide a separate consolidated-versus-standalone explanation for the quarter’s movements.

What changed in Best Agrolife's costs and profit?

Total expenses fell ₹131.53 crore or 28.4% from ₹462.48 crore in Q2 FY26 to ₹330.95 crore in Q2 FY27. This was alongside higher cost of materials, up ₹43.34 crore or 32.6% to ₹176.39 crore, and higher employee cost, up ₹5.15 crore or 21.7% to ₹28.85 crore. Finance costs rose ₹1.82 crore or 14.2% to ₹14.62 crore, while depreciation declined ₹0.64 crore or 6.2% to ₹9.72 crore.

Other expenses declined ₹15.92 crore or 23.3% to ₹52.49 crore, while other income moved up ₹3.34 crore to ₹1.45 crore from ₹1.89 crore in the year-ago quarter. No exceptional item was reported. Tax expense increased ₹6.63 crore or 49.0% to ₹20.16 crore, and net profit rose to ₹57.46 crore from ₹38.93 crore.

Against Q1 FY27, total expenses fell ₹12.34 crore or 3.6% to ₹330.95 crore, despite higher cost of materials, up ₹18.18 crore or 11.5%, and employee cost, up ₹3.88 crore or 15.5%. Other expenses rose ₹9.31 crore or 21.6% to ₹52.49 crore, other income fell ₹0.35 crore to ₹1.45 crore, and tax rose ₹6.10 crore or 43.4% to ₹20.16 crore. The filing did not state the specific reasons for these changes.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹803.32 crore, down ₹94.75 crore or 10.6% from ₹898.07 crore in H1 FY26. Total income declined ₹93.69 crore or 10.4% to ₹806.57 crore from ₹900.26 crore. Despite the lower income, PBT rose ₹54.19 crore or 69.3% to ₹132.33 crore, and PAT increased ₹39.26 crore or 66.7% to ₹98.11 crore. H1 basic EPS was ₹2.77, while the reported H1 FY26 comparison was ₹24.89.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,957.42 crore against ₹1,686.41 crore at 31 March 2026, and total equity was ₹863.99 crore against ₹768.77 crore. Borrowings increased from ₹432.85 crore to ₹455.57 crore, while cash declined from ₹34.49 crore to ₹24.05 crore. Inventories rose from ₹650.86 crore to ₹786.40 crore, trade receivables from ₹489.98 crore to ₹612.76 crore, and trade payables from ₹318.92 crore to ₹424.54 crore.

H1 FY27 operating cash flow was negative ₹3.63 crore, compared with positive ₹37.97 crore in H1 FY26. Investing cash flow was ₹1.32 crore against ₹14.22 crore, financing cash flow was negative ₹8.0 crore against negative ₹68.67 crore, and capital expenditure was ₹4.76 crore against ₹1.9 crore. The data does not provide a closing cash figure for either period.

How has Best Agrolife done over the last 8 quarters?

Revenue peaked at ₹516.83 crore in Q2 FY26 and bottomed at ₹155.69 crore in Q4 FY26. It recovered to ₹396.20 crore in Q1 FY27 and rose to ₹407.12 crore in Q2 FY27, although it remained below the year-ago peak. Profit followed a similar pattern, moving from a ₹37.24 crore loss in Q4 FY26 to ₹40.65 crore in Q1 FY27 and ₹57.46 crore in Q2 FY27. EBITDA margin reached 24.7% in Q2 FY27, the highest in the reported period, after falling to negative 17.3% in Q4 FY26.

What else did the company announce?

The board approved the un-audited consolidated and standalone financial results for the quarter and half-year ended 30 September 2026, along with the limited review report. It also considered a proposal for employee stock options under the Best Agrolife Employee Stock Option Scheme, subject to revised in-principal approval and other applicable compliances; the Nomination and Remuneration Committee would undertake the actual grant later. The filing did not report a dividend or a fund raise.

What did Best Agrolife's management say?

Management said patent products reached 60% of the H1 portfolio from 50%, which supported profit-margin expansion despite lower revenue. It said the generic-product withdrawal was deliberate, while an uneven monsoon delayed Kharif sowing, reduced acreage in some markets and affected farmer spending. The company retained its ambition for FY27 revenue to close above FY26, although not by a large amount, and acknowledged that the earlier 10%-15% annual growth ambition may be difficult.

Management expects H2 FY27 not to be loss-making and said higher sales-return provisions and a gross-margin buffer would protect profitability. It said 95% of sales returns had been collected by end-October 2026, with remaining exposure covered by higher provisions. The capex plan remains deferred, and an additional ₹20-30 crore may be borrowed if working-capital needs persist; borrowings rose ₹50 crore for working capital, and inventory was expected to unwind by March.

Management said Rabi demand depends on crop growth, soil moisture, irrigation availability and farmer spending, and it was not assuming a strong market recovery. On the call, Managing Director Vimal Kumar said, “At this stage, it is not right to make very strong assumptions about market recovery.” He also said, “In the short term, we are noticing that we are not chasing much revenue.” Vice President, Business Operations, Vikas Jain said, “So what we believe is H2, we should not be having losses.”

Management also discussed international business, including a Sudan shipment of 47 metric tons, about ₹5 crore, repeat consignments under discussion and foreign registrations progressing. The call did not record analyst questions. Management identified residual sales returns, specialised-product inventory, generic competition and pricing pressure, farmer-spending constraints and uncertain Rabi recovery as risks.

How did Best Agrolife shares react?

The filing appeared after market hours, when the stock price was 3.8% lower after 5 minutes, 3.4% lower after 15 minutes and 2.4% lower after 30 minutes. From the pre-results close of ₹13.80, Best Agrolife closed the first tradable session up 4.1% at ₹14.50. By the next day’s close, the stock was up 2.7% from the pre-results close; no five-day move was available.

The Pesticides & Agrochemicals industry median moved up 2.0% on the reaction day and 2.2% by the next day’s close. Best Agrolife therefore exceeded the industry median by 2.0 percentage points on the reaction day and 0.5 percentage points by the next day’s close. The nearest market benchmark, Nifty Microcap 250, rose 1.4% on the reaction day. Earlier results-day moves included 16.7% on 30 July 2026, negative 9.7% on 27 May 2026 and negative 5.4% on 6 February 2026.

How did other Pesticides & Agrochemicals companies do?

Thirteen other Pesticides & Agrochemicals companies had filed for the quarter by 4 November 2026, with a median revenue growth of 3.0%. Twelve peers grew revenue faster than Best Agrolife, while one grew more slowly. Four of the 13 peers reported higher profit, and the peer comparison covered 13 companies for profit.