Godrej Agrovet Reports 22% Rise in Q2 Net Profit to ₹103 Crore

Godrej Agrovet Ltd has announced a 22 percent rise in its consolidated net profit, reaching ₹103 crore for the quarter ended September. The financial results, shared through a regulatory filing, compare to a net profit of ₹84.34 crore recorded during the same period in the previous year.

The company reported a 17 percent increase in total income, moving to ₹2,995 crore from ₹2,567.42 crore a year earlier. Meanwhile, total expenses climbed 18 percent to ₹2,886.09 crore, up from ₹2,450.62 crore. According to the company, growth was supported by higher realisations and volumes, although input cost inflation kept core earnings, or EBITDA, flat.

Managing Director Sunil Kataria stated that the company delivered a strong quarter despite a challenging macro-operating environment characterized by El Nino-related weather disruptions, geopolitical volatility, and inflationary pressures.

Segment-wise performance varied across the company's portfolio. The animal nutrition division recorded a 14 percent growth in revenue, while its segment profit increased by 32 percent, supported by better realisations, product mix, and operating efficiencies. The oil palm business posted a 28 percent increase in revenue.

The crop care segment saw revenues climb 42 percent on a low base, although profitability was impacted by El Nino conditions. Astec LifeSciences experienced a 3 percent drop in revenue as a 15 percent growth in its contract development and manufacturing business (CDMO) was offset by weak enterprise demand.

In the consumer-facing segments, dairy revenue grew by 6 percent, and foods rose by 8 percent, led primarily by the business-to-consumer (B2C) segment. Internationally, the company's joint venture in Bangladesh, ACI-GAVL, registered a 32 percent increase in revenue, backed by a 21 percent growth in volumes.

As part of its ongoing operational adjustments, Godrej Agrovet noted that it has exited the shrimp feed business to concentrate on more profitable and scalable segments. The company is currently investing in plantation expansion alongside the commissioning of its Khammam complex, CPKO refinery, and a biogas plant within its oil palm operations.

"Godrej Agrovet's latest quarterly results highlight the resilience required to navigate supply chain and weather-related headwinds in the agribusiness sector. By focusing on high-performing segments like animal nutrition and oil palm while exiting lower-margin lines such as shrimp feed, the company demonstrates sound strategic realignment. Managing operational expenses alongside volume growth will remain key for sustaining profitability amidst ongoing input cost inflation." — Dr. Shishir Gupta, Founder & CEO, StartupLanes