Godrej Agrovet To Focus On Value-Added Products, Targets 10% Ebitda Margins In FY26

Godrej Agrovet aims to stabilise its Ebitda margins at 9-10% in FY26, with an enhanced focus on value-added products and efforts to boost top-line growth, the company’s Managing Director Balram Singh Yadav has told NDTV Profit. 

Godrej Agrovet reported a 4.5% year-on-year increase in its revenue to Rs 2,450 crore in Q3 from Rs 2,345 crore in the same quarter last year. Net profit jumped 17% YoY to Rs 99 crore from Rs 85 crore, while Ebitda grew 34% YoY to Rs 229 crore. The Ebitda margins were clocked at 9.3% in the December quarter.

Talking to NDTV Profit, Yadav said that Godrej Agrovet is focusing more on its value-added products to keep its margins stabilised.

“The focus is to improve value addition, which is much more consistent and profitable. Whether it is life sciences where we are going to focus on, CDMO, or the milk or the food business, value-added products in both milk and chicken are going to be the big focus for our marketing initiative. So, we believe that we will definitely stabilise between 9-10% Ebitda margin next year,” he said.

The company is targeting a 10%-plus growth in its revenues, which will automatically result in margin expansion, the top executive explained.

“What we are trying to get is more than 10% growth in topline, which will automatically result in a high growth in our margin. So, I think that is what the focus for next year is. Then we are well on the way to probably achieve that,” he said.

Talking about the December quarter, Yadav said it was an “extremely good” one for the company in terms of profitability.

“Several businesses, like the crop protection business, the oil palm plantation business and the animal feed business are moving towards record profitability this year, so I think it has been an extremely good quarter from a profitability point of view,” he said.

“We strongly believe that Q4 is going to be very similar. We are having a lot of momentum both in the top line and bottom line in Q4,” Godrej Agrovet MD added.

Shares of Godrej Agrovet Ltd. closed 2.05% higher at Rs 762.80 apiece on the NSE on Monday. Compared to this, the benchmark Nifty 50 closed 0.54% down at 23,355.3 points.