1. At a Glance
Dhanuka Agritech today feels like that topper kid who suddenly got 62 marks in one internal exam — still a topper, but the class is whispering. Market cap sits around ₹4,700 Cr, the stock has been punished with a -33% fall in six months, and Q3 FY26 numbers didn’t help calm nerves. Revenue fell 7.9% YoY, PAT crashed 27%, and margins slipped as the shiny new Dahej technical plant quietly sat underutilised like an unused treadmill bought on New Year’s Day.
Yet, zoom out and this is still a company with 28% ROCE, 22% ROE, near-zero debt, and a distribution muscle that most agrochemical players can only envy. Valuation-wise, it’s trading at ~17.8x P/E, well below the industry average of ~30x. Cheap? Maybe. Deserved? Also maybe.
The real question: is this a temporary monsoon-induced headache plus regulatory drama, or is Dhanuka slowly entering a boring middle-age phase?
Let’s dig. 🌾
2. Introduction
Dhanuka Agritech has always played the role of the “clean, disciplined, no-nonsense” agrochemical company. No wild leverage. No shady overseas adventures. No promoter pledging. Just molecules, farmers, and cash flows.
But FY26 so far has tested that calm image.
- Monsoon timing issues
- Government ban on bio-stimulants (July 2025)
- Underutilised Dahej plant hitting profitability
- Weak YoY quarterly comparisons
Suddenly, investors who bought this like a fixed deposit with swag are checking concall transcripts like anxious parents.
Still, Dhanuka isn’t some no-name formulator. It has 300+ product registrations, ~90 active products, and earns ~50% of revenue via global technical tie-ups. This is not a “spray-and-pray” pesticide company.
So the right lens here isn’t panic.
It’s patience with a calculator.
3. Business Model – WTF Do They Even Do?
Dhanuka doesn’t invent molecules in a lab like a mad scientist. It does something far more Indian and far more profitable: partner with global innovators, bring proven molecules to India, and scale them fast using distribution.
Think of Dhanuka as the Zomato delivery partner of agrochemicals — not cooking everything itself, but making sure the food reaches every pin code.
Product Mix (Q2 FY26)
- Insecticides: 46%
- Fungicides: 29%
- Herbicides: 9%
- Others: 16%
Translation: high-value crop protection dominates. No low-margin fertiliser drama here.
Distribution Muscle
- 41 warehouses
- 6,500+ distributors
- 80,000+ retailers
- 10+ million farmers
This network is the real moat. Molecules expire. Relationships don’t.
Does this model excite venture capitalists? No.
Does it mint cash over decades? Usually yes.
4. Financials Overview (Q3 FY26 – Quarterly Results)
Result Type Locked: QUARTERLY RESULTS
Key Metrics Table (₹ Cr)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 410 | 445 | 598 | -7.9% | -31.4% |
| EBITDA | 59 | 76 | 137 | -22.4% | -56.9% |
| PAT | 40 | 55 | 94 | -27.3% | -57.4% |
| EPS (₹) | 8.87 | 12.21 | 20.85 | -27.3% | -57.4% |
Commentary
This quarter was… ugly. There’s no polite way to say it.
Margins compressed due to:
