1. At a Glance – When Synthetic Pyrethroids Meet Synthetic Pain
Market Cap: ₹830 Cr Current Price: ₹207 3-Month Return: –21.5% Book Value: ₹210 Price to Book: 0.99 ROCE: 4.39% ROE: 0.37% TTM Sales: ₹1,610 Cr TTM PAT: ₹-60.1 Cr
Ladies and gentlemen, presenting an agrochemical company trading below book value… while making negative profits. That’s like owning a pesticide company whose profits are being eaten by its own insects.
In Q3 FY26 (December 2025 quarter), sales came in at ₹301 Cr, down 11.7% YoY. PAT? A spicy ₹-23 Cr. EPS? –5.81. Meanwhile, debt stands at ₹513 Cr and interest coverage is a microscopic 0.13.
And yet… this is a company with 6 manufacturing facilities, 10,000 dealers, 222+ international customers across 74+ countries, and a massive capex cycle underway.
So what happened? Is this a temporary agrochemical winter or a structural margin drought?
Let’s dig in like a forensic accountant with a pesticide mask on.
2. Introduction – From IPO Darling to Margin Mayhem
Heranba started in 1994 and built its empire around Synthetic Pyrethroids — a fancy word for insecticides that farmers spray when insects get too ambitious.
Over time, it expanded into:
Intermediates
Technical grade chemicals
Formulations
Public health pest control
At one point, Technicals contributed 67% of revenue (FY22). Now in FY24, Technicals and Formulations are evenly split at 50–50.
Sounds like diversification. But here’s the catch: while revenue mix evolved, profitability decided to go on spiritual retreat.
TTM PAT is negative ₹61 Cr. FY25 PAT was just ₹2 Cr. FY24 PAT: ₹34 Cr. FY23 PAT: ₹104 Cr.
That’s not a slowdown. That’s a reverse rocket.
And the market? It shaved 36% off in 6 months.
The big question: Is this cyclical agro pain or something more structural?
3. Business Model – WTF Do They Even Do?
Imagine this chain:
They manufacture intermediates like CMAC and High CIS CMA.
These are used to make Technical pesticides.
Then those are turned into branded formulations like Hauris, Glory, Progress Plus, etc.
