Bhagiradha Chemicals & Industries Q2 FY27 results: net profit down 1.6% to ₹5.41 crore, revenue up 21.3%

How did Bhagiradha Chemicals & Industries perform in Q2 FY27?

Bhagiradha Chemicals’ consolidated Q2 FY27 revenue was ₹169.92 crore, up 21.3% from ₹140.10 crore in Q2 FY26 but down 12.9% from ₹195.02 crore in Q1 FY27. Total income was ₹170.42 crore. EBITDA rose 50.9% year on year to ₹22.72 crore, lifting margin by 2.7 percentage points to 13.4%, while sequentially EBITDA fell 25.6% and margin declined 2.3 percentage points.

Profit before tax was ₹6.57 crore, down 12.5% from ₹7.51 crore a year earlier and 62.5% from ₹17.54 crore in Q1 FY27. Net profit was ₹5.41 crore, compared with ₹5.50 crore in Q2 FY26 and ₹13.33 crore in Q1 FY27; basic EPS was ₹0.42, unchanged year on year but down from ₹1.03. On the standalone basis, revenue was ₹146.64 crore and profit after tax was ₹4.08 crore.

What changed in Bhagiradha Chemicals & Industries' costs and profit?

Against Q2 FY26, cost of materials rose by ₹60.73 crore, or 70.3%, to ₹147.17 crore. Employee cost increased by ₹3.69 crore, or 31.9%, finance costs by ₹3.58 crore, or 88.2%, depreciation by ₹5.06 crore, or 128.1%, and other expenses by ₹9.74 crore, or 44.0%. Total expenses consequently rose by ₹30.80 crore, or 23.1%, to ₹163.85 crore.

Other income increased by ₹0.04 crore, or 8.7%, to ₹0.50 crore, while tax expense fell by ₹0.84 crore, or 42.0%, to ₹1.16 crore. There was no exceptional item. Management said higher depreciation and finance costs associated with the Bheema Fine Chemicals plant weighed on profit, while softer demand and higher input and logistics costs also affected profitability.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹364.93 crore, up ₹101.05 crore or 38.3% from ₹263.88 crore in H1 FY26. Total income rose 38.6% to ₹367.22 crore from ₹264.98 crore, while profit before tax increased 140.9% to ₹24.11 crore from ₹10.01 crore.

Profit after tax for H1 FY27 was ₹18.74 crore, up ₹9.26 crore or 97.7% from ₹9.48 crore in H1 FY26. EPS increased 98.6% to ₹1.45 from ₹0.73. Management said the first-half increase in profit reflected stronger operating performance despite higher depreciation and finance costs from the Bheema ramp-up.

What do the balance sheet and cash flow show?

Total assets rose to ₹1,335.66 crore at 30 September 2026 from ₹1,120.19 crore at 31 March 2026. Total equity increased to ₹715.27 crore from ₹698.32 crore, while borrowings rose to ₹367.89 crore from ₹231.05 crore. Cash declined to ₹2.17 crore from ₹16.35 crore; inventories increased to ₹262.20 crore from ₹145.75 crore, trade receivables to ₹277.40 crore from ₹204.68 crore, and trade payables to ₹193.85 crore from ₹138.09 crore.

H1 FY27 net cash used in operating activities was ₹93.36 crore, compared with ₹5.85 crore in H1 FY26. Net cash used in investing activities fell to ₹42.52 crore from ₹103.32 crore, while financing cash inflow increased to ₹122.30 crore from ₹93.36 crore. Capital expenditure was ₹45.16 crore in H1 FY27, compared with ₹103.84 crore a year earlier.

How has Bhagiradha Chemicals & Industries done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters. It peaked at ₹195.02 crore in Q1 FY27 before falling to ₹169.92 crore in Q2 FY27; over the broader series, the low was ₹102.73 crore in Q3 FY25. Profit after tax bottomed at a loss of ₹0.88 crore in Q4 FY25, peaked at ₹13.33 crore in Q1 FY27 and then declined to ₹5.41 crore in Q2 FY27.

EBITDA margin moved from 5.0% in Q4 FY25 to a peak of 15.7% in Q1 FY27 before easing to 13.4% in Q2 FY27. The current quarter therefore showed lower revenue, profit and margin than the preceding quarter, even as revenue remained higher than a year earlier.

What did Bhagiradha Chemicals & Industries' management say?

Management said Q2 and H1 revenue growth was led by higher volumes, new molecule introductions and a richer product mix. It attributed gross and EBITDA margin expansion to a higher contribution from better-margin products, process improvements, higher capacity utilisation and improved operating efficiencies, while noting that higher depreciation and finance costs from the Bheema ramp-up limited profit growth.

Management set out a revenue target of ~3.5x at consolidated levels over the next 3 to 5 years, with operating efficiency and a better margin profile. It also said the Bheema portfolio would introduce an additional 6 to 10 agrochemical actives over the next 3 years, while backward integration in key future products is planned to reach N-9 level with 16 process stages by FY 27.

Management said Phase 2 of the Bheema expansion is expected to commence in Q2 FY28, followed by a 12–24 month ramp-up, and expects the assets to yield ~1.5x asset turn at full potential with an improved margin. It identified inventory rationalisation, cash-flow optimisation, operating efficiency and development of higher-value molecules as priorities, with clearer benefits expected in FY28.

Management identified weather disruptions, rainfall deficits and drought-like conditions linked to El Niño as risks to sowing and agrochemical consumption, alongside higher input prices and elevated supply-chain and logistics costs. It also cited inventories of ₹262.2 crore, H1 operating cash outflow of ₹93.4 crore and cash of ₹2.2 crore as reasons for making inventory rationalisation and cash generation immediate priorities.

How did Bhagiradha Chemicals & Industries shares react?

The filing appeared during market hours. From the price when the filing was published, the stock was down 3.7% after 5 minutes, 3.3% after 15 minutes and 5.4% after 30 minutes. On the reaction day, it closed 7.3% below the previous close of ₹203.00; by the next day’s close, it was down 3.4% from that pre-results close.

The Pesticides & Agrochemicals industry median was unchanged on the reaction day and rose 1.5% by the next day’s close. Bhagiradha Chemicals therefore underperformed the industry median by 7.3 percentage points on the reaction day and by 4.9 percentage points by the next day’s close. Earlier results-day moves included 1.9% on 3 August 2026, 1.0% on 19 May 2026 and 4.1% on 10 November 2025.

How did other Pesticides & Agrochemicals companies do?

Thirteen other Pesticides & Agrochemicals companies had filed for the quarter. Their median revenue growth was -0.3%. Among the peers, 10 grew more slowly than Bhagiradha Chemicals, while 2 grew faster; Bhagiradha Chemicals’ own revenue growth was 21.3%. Five of the 13 peers reported higher profit.