Heranba Industries FY26: ₹1,595 Crore Revenue, ₹76 Crore Loss, and a Capex Hangover That Won’t Quit

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Prices referenced are not live. The CMP used throughout is ₹181.35, as sourced from the data sheet.

1 — At a Glance

Heranba Industries closed FY26 with revenue of ₹1,594.99 crore — a 13.1% jump over FY25’s ₹1,409.73 crore. So far, so encouraging.

Then the P&L reminds you it isn’t 2023 anymore.

Net profit came in at -₹76.42 crore, against +₹3.07 crore in FY25 and +₹34.89 crore in FY24. Operating margins compressed to 4.34%, interest costs ballooned to ₹50.04 crore (from ₹7.94 crore in FY23), and depreciation nearly quadrupled to ₹98.13 crore over the same window — the price tag of a ₹425 crore-plus capex cycle.

Borrowings have moved from ₹93 crore in FY23 to ₹576.05 crore in FY26. Receivables stand at ₹590.75 crore and inventory at ₹461.57 crore — a working capital glacier that hasn’t started melting.

The company now has the capacity. What it doesn’t yet have is the margin to service it.

2 — Introduction

Heranba Industries, incorporated in 1994 and listed on NSE/BSE (NSE: HERANBA), is a Vapi, Gujarat-based agrochemical manufacturer specialising in synthetic pyrethroids, insecticides, herbicides, fungicides, and public health products. The Shetty family, through a web of individual holdings and Sams Industries Pvt Ltd, controls 74.95% of the company.

The FY23–FY26 arc is essentially a single story: the company made a bold multi-year capacity bet — three new facilities, roughly ₹500 crore of gross capex — timed precisely as global agrochemical pricing began a protracted downturn driven by Chinese oversupply and a multi-year inventory correction at distribution.

The legacy business was profitable, throwing ₹104.37 crore in PAT in FY23. The new facilities arrived with heavy fixed costs at a moment when realisations in technicals — Heranba’s core export segment — fell sharply. The EBITDA margin went from 12% in FY23 to 7% in FY25 to 4.34% in FY26.

Crisil downgraded Heranba’s long-term rating to Crisil A-/Negative from Crisil A/Stable on June 8, 2026, citing dip in operating margin and a stretched working capital cycle. The short-term rating moved to Crisil A2+ from Crisil A1. Bank limit utilisation averaged 90% over the six months ended April 2026.

On the corporate side: ₹450 crore of inter-corporate deposits were converted to 10-year 1% Optionally Fully Convertible Debentures (OFCDs) for subsidiary Heranba Organics Pvt Ltd in April 2026. A creditor (Haresh Petrochem) filed IBC Section 9 petitions against both Heranba Industries and Heranba Organics in February–March 2026 — small claims (₹2.63 crore and ₹1.70 crore respectively), but the kind of announcements that show up in governance sections for a reason.

3 — Business Model: WTF Do They Even Do?

Heranba makes the chemistry that kills things that kill crops. That is, with some respect, the entire job description.

The three-layer cake

The business runs on three vertically integrated segments:

Intermediates sit at the base — chemicals like Cypermethric Acid Chloride (CMAC) and Bromobenzenes, produced mostly for captive use. This layer rarely gets glamorous investor coverage, but it’s the reason Heranba can make its own inputs rather than buying them at spot prices.

Technicals are active ingredients — Cypermethrin, Deltamethrin, Glyphosate, Metribuzin, Hexaconazole, and about 395 other molecules. These go both to end markets and to other agrochemical companies. UPL, Rallis, Dhanuka, PI Industries, and Sumitomo are all customers, which means Heranba is simultaneously a peer and a supplier to its competition — an arrangement that the industry accepts because nobody can make everything.

Formulations are the retail-facing products — branded bottles and pouches sold to farmers through 9,500+ dealers and 21+ depots. Brands include Hauris, Loranta, Progress Plus, Glory, Astron, and newer launches like Ginee, Dinomite, and Tagda. Formulations now account for roughly 50% of revenue (up from 33% in FY22), which management has been consciously pursuing since formulations carry better margins and use the in-house technicals as input.

The geography split

Domestic has grown to about 73% of revenue (from 57% in FY22) as exports weakened. The company exports to 65+ countries across Asia, Africa, the Middle East, and Southeast Asia. The export mix is heavy on insecticides; new capacity is designed to diversify into fungicides and herbicides, with registrations pending across new geographies including early-stage US presence.

The product count

400+ commercialised products, 1,018 registered globally, 190 more in the pipeline, plus a new R&D centre planned at Tarapur, Maharashtra, with ₹50 crore allocated for Phase 1. The pipeline narrative is large. The current margin is 4.34%. Those two sentences summarise the tension better than any additional adjective could.

4 — Financials Overview

Figures are consolidated, in ₹ crore. Result type: Quarterly. Latest period: March 2026 (Q4 FY26).

Quarterly Snapshot

Q4 was the worst quarter of the year. Revenue fell 4.6% YoY. Operating profit turned negative at -₹23.26 crore — meaning the core business, before interest and depreciation, lost money. Depreciation of ₹25.47 crore and interest of ₹13.77 crore compounded the damage, producing a