Dhanuka Agritech spurts after Rs 70-cr share buyback plan; Q4 PAT jumps 29% YoY

The board of directors of Dhanuka Agritech announced a share buyback worth up to Rs 70 crore at a price of Rs 1,400 per share through the tender offer route. The company will buy back up to 500,000 fully paid-up equity shares of face value Rs 2 each, representing 1.11% of its total paid-up equity capital.

The board has fixed 29 May 2026 as the record date to determine eligible shareholders who can participate in the buyback offer. The company also said promoters and promoter group entities intend to participate in the proposed buyback.

The company's board also recommended a final dividend of Rs 2 per equity share of face value Rs 2 each for FY26. The dividend will be paid within 30 days from the conclusion of the company's annual general meeting (AGM), subject to approval of members at the ensuing AGM. It also fixed 17 July 2026 as the record date for the dividend.

The company reported a standalone profit after tax (PAT) of Rs 97.77 crore in the March quarter, up 29.5% year-on-year (YoY) from Rs 75.50 crore in the same period last year. Revenue from operations rose 9.3% YoY to Rs 483.34 crore during the quarter, compared to Rs 442.02 crore in Q4 FY25.

Profit before tax increased 26.2% to Rs 128.31 crore in Q4 FY26 from Rs 101.66 crore in Q4 FY25. EBITDA rose 13.79% YoY to Rs 124.89 crore in Q4 FY26, while EBITDA margin improved to 25.84% from 24.83% in Q4 FY25.

On a full-year basis, the company's standalone net profit fell 3.3% to Rs 287.23 crore, while revenue from operations declined 0.8% to Rs 2,019.79 crore in FY25 over FY24.

Meanwhile, the company's board also approved the setting up of wholly owned subsidiaries and/or acquisition of shares of companies outside India to support and facilitate the growth of Dhanuka Agritech's foreign business in Europe and Brazil. The proposed names are yet to be finalized, and the structure may be the incorporation/acquisition of WOS or even a JV, as per the laws of the respective countries. Both entities will be wholly owned subsidiaries of Dhanuka Agritech Limited, operating in the agro-chemical business and carrying out similar activities as the parent company.

The setup is primarily intended to support overseas business growth, including the transfer of ownership of brands acquired from Bayer and the registration of various products in the company's name, subject to applicable laws and regulatory approvals. The investment will be made through 100% subscription to share capital in cash via banking channels, with an initial limit of Rs 1 crore for each entity, which may be increased as per business requirements, subject to board approval.

Dhanuka Agritech is an agrochemical company. The company has 3 manufacturing units with 39 warehouses and a network of over 8 branch offices across the Indian geography that caters to 6,500 distributors & approximately 75,000 dealers.

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