Godrej Agrovet Ltd (GODREJAGRO) Q1 FY27 Results Analysis: PAT Falls 14%, PBT Misses Guidance

Godrej Agrovet Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 2,855.22 Cr (+9.22% YoY) and PAT growth of -13.79% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Q1 FY27 revenue grew 9.2% YoY to Rs.2,855.22 cr, but PAT fell 13.8% YoY to Rs.128.31 cr as input costs rose faster than revenue. EBITDA margin compressed 184 bps to 8.93% and Q1 PBT missed management's mid-teens growth guidance; Animal Nutrition and Oil Palm were strong while Crop Care, Dairy, and Poultry dragged. Management expects Crop Care recovery from Q2 and revenue remains on track for early double-digit FY27 growth.

Key Investment Insights

Key Positives

• Animal Nutrition PBIT rose 29.7% YoY to Rs.83.68 cr, with segment margin up 85 bps to 6.43%.
• Vegetable Oil segment revenue rose 24.1% YoY to Rs.619.24 cr and PBIT rose 14.7% to Rs.99.61 cr.
• Gross debt-equity improved from 0.95 to 0.71 YoY; net worth rose 12.2% to Rs.2,294.64 cr.
• Finance costs fell 16.1% YoY to Rs.29.79 cr.
• Interest service coverage improved to 6.66x from 6.30x.

Risk Factors

• Consolidated PAT fell 13.8% YoY to Rs.128.31 cr; PAT attributable to owners fell 16.2% to Rs.134.50 cr.
• EBITDA margin compressed 184 bps YoY to 8.93%, with cost of materials up 17.7% versus revenue up 9.2%.
• Crop Care revenue fell 13.3% and PBIT fell 35.1%; Dairy swung to a Rs.1.90 cr PBIT loss; Poultry PBIT fell 80.5%.
• Effective tax rate rose 339 bps YoY to 29.16%, partly from Section 115BAA deferred tax recognition at Godrej Foods.
• Q1 PBT of Rs.168.50 cr was 10.46% below year-ago, missing management's mid-teens PBT growth guidance.