Operator
Ladies and gentlemen, good day and welcome to the Dharmaj CropCard Ltd. Q2 and H1FY 27 earnings conference call hosted by TIL Advisors. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sayyam Pokharna from DIL Advisors. Thank you, and over to you, Mr. Pokharna.
Thank you, Michelle. Welcome, everyone. Good afternoon. Wishing you all a very happy Diwali and greetings of the festive season on behalf of Dharmaj. Thanks for taking out the time to join us today for the Q2 and H1 FI27 earnings conference call of the company. The investor presentation and press release has already been uploaded to the stock exchange and on the company's website. In case you wish to be added to our mailing list, please feel free to reach out to us. To take us through today's results, we have with us from the management team, Mr. Ramesh Talavya, Chairman and Managing Director, Mr. Vishal Domadia, Chief Executive Officer, and Mr. Vikas Agrawal, Chief Financial Officer. We will start with a brief opening remarks on the business performance for quarter two and for the half year from Mr. Talabia, followed by remarks on the financial performance by Mr. Agarwal, and then open the floor for Q&A session. I would like to remind you all that anything and everything that is said on this call that represents any outlook for the future, which can be construed as a forward-looking statement, must be viewed in conjunction with the risk and uncertainties that we face. These risks and uncertainties have been detailed in our annual reports. With this, I would now like to hand over the call to Ramesh, sir. Over to you, sir.
Good afternoon, everyone, and thank you for joining us today for Q2 and H1 F527 hunting conference call of Dermotroga Ltd. Let me begin with the operating contest because it has said everything about this quarter. The 2026 monsoon season has been one of the weakest India has seen in over a decade, and extended dry spell more particularly in this country. A softener season for the agrochemical industry. Longer period average, which is the fourth lowest since 2001. In formulation, both our verticals have remained resilient. Another one here. Hi, person. What matters to us is that The demand base for our brand remains. Thank you. S1 export grew 50% year-on-year. We now account for 8% of our revenue compared to 6% in actual last year. Revenue declines 27% year-on-year in Q2 and 20% in S1. In the merchant market have remained rapid. Thank you. The Q2, EBITDA margins, do that. Higher input cost across Thank you. In the technical business, we are working to pass this higher cost on. ...outlook for the rest of... At the start of the year, Thank you. A normal monsoon. Given this monsoon has turned out to be The demand has been subdued across the country. Thank you. Thank you. Thank you. TalkLine are in place. This has made a strong On the project front, our new formulation facility near Kerala GADC, Ahmedabad, dedicated to herbicide manufacturing, remain on track for commissioning. The facility will release capacity at our existing site and support the herbicide production cycle that begins ahead of next Karib season. For the financial highlight, I now invite our CFO, Mr. Vikas Agarwal.
Thank you, Ramay, sir. Good afternoon, everyone. I will skip to the numbers and few points on the balances. Starting with Q2F527, revenue from operation stood at Rs. 332.6 crore, down by 4% year-on-year. Gross profit stood at Rs. 61.9 crore, with a gross margin at 18.6%, compared to 21.8% in Q2F526, a compression of about 320 basis points. This is where the higher input cost that promises spoke about. Operating expenses were lower by 14% year-on-year at Rs. 37.6 crore, which partially cushioned the impact. EBITDA stood at Rs. 24.3 crore, down 20% year-on-year, with the EBITDA margin at 7.3% compared to 9.2%. Finance cost was lower by 27% at 2% 3.3 crore, at 2% 17.7 crore, down 21%, and profit after Tax stood at Rs. 13.3 crore, down 24%, with a paid margin of 4%. EPS for the quarter stood at Rs. 3.93 compared to Rs. 5.13. Moving to H1 FY27, revenue from operations stood at Rs. 716.7 crore flat year-on-year. Gross margin stood at 22.5% compared to 23%, a comparison of about 50 basis points. EBITDA stood at Rs. 81.6 crore marginally lower than 82.5 crore last year with the margin at 11.4% compared to 11.5%. Finance cost for the half year was lower by 22% at Rs. 5.9 crore and other income was higher at Rs. 2.8 crore. As a result, profit before tax grew 3% to Rs. 68.6 crore and profit after tax grew 3% to Rs. 51.3 crore. With a pay margin at 7.1% compared to 7%. DPS for the half-year stood at Rs.15.19 compared to Rs.18.78. On the revenue mix for H1FY27, institutional formulation contributed 55% of the revenue, branded formulation 19%, export 8%, and the technicals 18%. Compared to H1FY26, the share of technical has come down from 22%, and the share of export has gone up from 6%. On the balance sheet as of 30 September 2026, Inventory stood at Rs 174 crore compared to Rs 207.4 crore as of 31 March 2026. As the raw metal inventory built, year of courage has been consumed. Trade visible stood at Rs 409.9 crore, lower than Rs 450.8 crore as of 30 September last year. Working capital borrowing stood at Rs 74 crore against Rs 80.9 crore as of March. And long-term borrowing at Rs 45 crore against Rs 51.2 crore. Growth debt stood at Rs 119 crore, and the growth debt to equity stood at 0.24x, compared to 0.29x of March, with net worth at Rs 500.5 crore. Capital working broker stood at Rs 11.7 crore, compared to Rs 6.2 crore as of March, reflecting the spend on the outside facility. To note, I would dictate what Ranneser said on the outlook. Given the season, we have had a state of the technical market. We are working on to deliver single-digit revenue growth for FY27 as a whole, with our effort in the second half directed at export, cost pass-through, and the commissioning of the arbitrage facility. With this, we can open the floor for caution.
Operator
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions, may please press star and one on their touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Persons are requested to use only handsets while asking a question and are requested to ask their questions in Hindi as a preferable language for the duration of this call. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take the first question from the line of Yogash Jaiswani from Mithil Analytics. Please go ahead.
Thank you for the opportunity. Sir, may I have a voice audible, eh? This year, our season was very tough for the whole sector. We have maintained our numbers, so this is a good thing. But if we take a look at this year, we will think about the time in H1, which we have best performed. But if we think about the time, how are we positioning our company for FY28? Thank you.
So, basically, this is the weak season because of the rainfall has been unrelated, but as such, we are 100% sure that we will be on our target, and our target in 2030, we will be completing 2,000 crore turnover, that will be on track. Thank you.
Okay, I want to ask another question. Usually, when there are issues in the sector, what happens is that there are pushbacks or returns in the channel or inventory. Historically, it was a good idea that our sales returns were very low. But given that the situation is now, is there any pressure or issues around it? Are there any issues coming from the call?
No, no, no, no, no, no, no. Thank you. Thank you.
Sir, time is a difficult time.
Thank you, everyone, and welcome to the call. Good morning, everyone, and welcome to the call. Thank you.
Good morning, everyone, and welcome to the call. If you can know which type of molecules you have targeted, or which type of geographies you will target, it will help us understand.
In technical, our IND and pilot plan, we have added three new products in this time, and that is our plan. So, we have made a strategy like this. Thank you.
Got it, sir. All the best to you and your team for a better...
Operator
Thank you. A reminder to all the participants that you may please press star and want to ask questions at this time. Anyone who wishes to ask questions may please press star and one now. For friends who wishes to ask questions, may please press star and one on their touchtone phone. Ladies and gentlemen, as there are no further questions, with that we conclude today's conference call on behalf of Darmaj CropCard Ltd. Thank you for joining us and you may now disconnect your lines. Thank you.
