Dharmaj Crop Guard (DHARMAJ) Q2 FY27 Profit Dives 65% as Seasonal Dip Bites
The agrochemical firm's September quarter profit fell sharply on a sequential basis, as revenue declined and margins contracted amid a typical seasonal slowdown.
Dharmaj Crop Guard's Q2 FY27 profit fell 65% from the previous quarter to ₹13.2 crore, while revenue slipped 4% year-on-year. The results reflect the company's pronounced seasonal pattern and a margin squeeze.
For Dharmaj Crop Guard, the September quarter is the second act of the Kharif season, typically a step down from the June peak. This quarter followed that script precisely, delivering a sequential profit drop that underscores the business's seasonal heartbeat.
The numbers show a clear cooldown. Revenue was ₹332.6 crore, down 4% from a year ago and 13% from the strong June quarter. Profit fell more sharply, dropping 24% year-on-year and 65% sequentially to ₹13.2 crore.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 332.62 | 382.38 |
| Profit (₹ Cr) | 13.21 | 38.11 |
| Net Profit Margin | 4.0% | 10.0% |
The table reveals the firm's consistent seasonal rhythm, with H1 (June and September) consistently stronger than H2.
Why margins contracted sharply
The real story is in the margins. The net profit margin fell 600 basis points from the previous quarter to 4%. A preview from Univest notes this pattern, where operating margins have historically been lower in the September quarter compared to June. While total expenses fell, the decline in revenue was steeper, leading to the profitability squeeze.
Management, according to a report by StockFin.ai, scheduled a post-earnings call to discuss these H1 results. Their long-term vision remains a ₹2,000-crore valuation by 2030, driven by branded formulations and exports. The near-term challenge is navigating this predictable seasonal volatility.
The working capital anchor
Another pressure point is capital efficiency. Data from Informed.sh and SectorAlpha indicates the company's cash conversion cycle extended to 87 days in FY26, up significantly from 51 days in FY21. Higher inventory and debtor days mean more cash is tied up in operations, which can strain liquidity during softer sales periods like this quarter.
Key Points
- Profit fell 65% quarter-on-quarter to ₹13.2 crore, a steeper drop than the 13% decline in revenue, highlighting significant margin pressure.
- The results align with the company's historical seasonal pattern, where the September quarter is typically weaker than the preceding June quarter.
- An extended cash conversion cycle, reported at 87 days in FY26, indicates rising working capital needs that could pressure cash flows.
- Management reaffirms a long-term goal of reaching a ₹2,000-crore valuation by 2030, focusing on branded formulations and export growth.
Hexa Perspective
The quarter is a lesson in Dharmaj's operational seasonality, not a break in its model. The sharp sequential drop was anticipated by the historical cadence, where Q2 consistently delivers lower profits than Q1. The risk for investors isn't the seasonality itself, but whether the company can lift the baseline of its weaker quarters through its expansion plans.
The extended cash conversion cycle is a tangible headwind. Improving working capital efficiency will be crucial to fund growth without excessive leverage, especially as the company invests in new capacity like its herbicide formulations unit. The valuation, at a 37% discount to the industry PE, already prices in these cyclical and execution risks, leaving the stock sensitive to any deviation from the expected recovery path in H2.
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