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1. At a Glance
Revenue climbed ₹1,138 Cr in FY26 (+20% YoY), a healthy notch up from ₹951 Cr last year. Profitability improved faster: net profit ₹55 Cr (+57%), driven by a 34% jump in EBITDA to ₹101 Cr.
The branded formulations vertical—the narrative crown jewel—barely budged: ₹1,979 Cr (+3% YoY). Monsoon uneven. Channel inventory built. Rabi pest attacks weak. Management’s framing: a “follow-through” miss, not a portfolio miss; normalization expected if weather cooperates.
The technical plant story flipped. Domestic active ingredients surged 37% YoY to ₹2,734 Cr. More crucial: the Sayakha technical facility hit PBT breakeven in FY26—a “landmark” milestone management flagged, and the narrative linchpin for years ahead. Utilization ran 65–70%; path to 75% next year and 8–10% EBITDA margin in “two to three years,” though the CFO later said “four, five years,” adding fog.
One tension stays live: does ₹2,074 Cr inventory (up 50% YoY to hedge West Asia raw material chaos) stabilize once Kharif draws it down, or does it signal working capital stress creeping in?
2. Introduction
Dharmaj was incorporated in 2015 by promoters Ramesh Ravajibhai Talavia and Jaman Hansarajbhai Talavia, each with 30+ years in agrochemicals. The company is publicly traded since December 2022 (IPO at ₹216–₹237; current price ₹275 as of June 8, 2026). Market cap: ₹935 Cr.
Three segments: Branded Formulations (B2C, 17% revenue), Domestic Institutional (51%), and Active Ingredients/Exports (32% combined). Geographic footprint: 24 Indian states, 19,300+ retail touchpoints, 5,300+ dealers/distributors. Export reach: 41 countries.
The company began operations in 2016 with formulation plants. The Sayakha technical plant was commissioned January 22, 2024, as a greenfield build. This marked integration of the value chain—from raw material synthesis to finished formulation. FY26 was the first full year of dual operations: formulations scaled, technical plant ramped, branded pushed into newer states (South India entry in FY25).
3. Business Model: WTF Do They Even Do?
A three-part play. Branded sells to farmers directly—19,300+ retail points, farmer-facing. Products: pesticides, fungicides, herbicides, micronutrients across 121+ product launches in the last three years alone. Think low-margin, volume-heavy, demand-generation-heavy, distribution-intensive. Revenue contribution: 17%.
Institutional (B2B) is the bread-and-butter: 51% of revenue. Sells to MNCs, Indian majors, regional players, bulk formulators. Offers 297+ institutional products; exports to 41 countries. This is where Dharmaj built its reputation before going retail-consumer. Margin profile: healthier than branded, less volatile to monsoon (less direct exposure to farmer sentiment).
Active Ingredients (technicals) is the long-game bet. Commissioned Sayakha plant in January 2024 with 8,000 TPA cumulative capacity (5,500 TPA multipurpose, 2,500 TPA dedicated intermediates). Makes pyrethroids, chlorantraniliprole, tebuconazole, thiamethoxam, metalaxyl, thiophanate methyl—building blocks for its own formulations (70–75% captive) and external merchant sales (25–30%). This is how the company competes on cost. Technicals are the moat.
The model is vertical integration in a margin-squeezed, price-sensitive industry. Own the raw materials; keep the formulation margin. Export institutional; leverage scale. Branded as volume-lift into newer states.
One snag: if the Sayakha plant produces technicals that internal formulations don’t consume, the carry-through to profitability slows. Management said the focus is on “improving product mix towards higher margin molecules” and “internal consumption within formulations.” Translation: they’re managing the technical plant like a cost center, not a merchant growth driver. That’s prudent but limits upside.
4. Financials Overview
Figures are consolidated, in ₹ crore, quarterly.
Metric
Q4 FY26
Q4 FY25
YoY
Full Year FY26
FY25
YoY
Revenue
234
211
+11%
1,138
951
+20%
EBITDA
11
4
+176%
101
75
+34%
PAT
4
-2.4
NM
55
35
+57%
EPS (₹)
1.18
-0.72
NM
16.19
10.31
+57%
The full-year story: topline ₹1,138 Cr marked solid growth in an “uneven monsoon” and “volatile operating environment” (management’s words, not mine). Gross margin inched up to 23% (from 22% in FY25). Operating expenses scaled 19% YoY, slower than topline, aiding leverage.
EBITDA margins improved 97 basis points to 9% full year. Q4 EBITDA margin came in at 5% (vs. 2% Q4 FY25), a huge Q/Q swing—the technical plant contribution kicking in, plus better product mix from institutional segments.
The P&L also carried noise: depreciation rose to ₹19.1 Cr (from ₹18.3 in FY25) due to Sayakha capitalization; interest climbed to ₹17.2 Cr (from ₹12.9) reflecting higher borrowings to fund the plant. Tax rate: 24.5%.
Concall insight (May 29, 2026): Management flagged “emerging disruption from West Asia crisis and its impact on key raw metal availability.” Paraquat ban in Andhra Pradesh noted as immaterial (<1% of sales). Guidance for FY27: topline growth 18–20%; EBITDA margin +50–75 bps improvement from FY26’s 9%.
5. Valuation Discussion: Fair Value Range (Educational Only)
What follows is a walkthrough of how three valuation methods work, using this company’s numbers as the example — not a target, not a forecast, not advice.
Method 1 (P/E multiple): Annualized FY26 EPS ₹16.19 × peer multiple band of 11.5x–32.8x produces ₹186–₹530 Cr per share. (Peer band derived from PI Industries 32.78x, Bayer 27.97x, Sumitomo 41.35x, down to Dharmaj 17.09x and Rallis 21.85x; median 23.09x suggests ₹373 per share on Dharmaj’s FY26 EPS.)
Method 2 (EV/EBITDA): FY26 EBITDA ₹101 Cr ÷ peer EV/EBITDA band of 9.74x–41.35x produces ₹982–₹4,177 Cr enterprise value. Subtracting net debt (borrowings ₹132 Cr − cash ₹6.4 Cr = ₹126 Cr net debt), equity value maps
