Bharat Rasayan Limited

BRL has a leading market position in many technical and intermediate products, including Lambda Cyhalothrin Technical, Meta phenoxy Benzaldehyde, Metribuzine Technical, Thiamethoxam (Insecticides) and Fipronil (Insecticides) among others. Though 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release there is a slight product concentration risk, as BRL’s top three products accounts for ~25% of

The company supplies its products in local and overseas locations and has a long-standing relationship with reputed customers, including NISSEI Corporation, Syngenta Crop, Sumitomo Chemical Company Limited, Shanghai Agro tree Chemical Corporation Limited, and Rallis India Limited among others. BRL has 489 domestic registrations and 123 international registrations and has been exporting its products to over 24 countries across the globe. However, BRL is exposed to moderate client concentration ri

Corporation (NCC), which commenced commercial production in March 2023. The JV reported a total income of ₹373 crore in FY25 and ₹134 crore in H1FY26, with a profit after taxation (PAT) margin of 14% in FY25 and -6% in H1FY26. The negative PAT in H1FY26 was primarily considering a notional foreign exchange loss booked in the profit and loss account. Recovery in domestic demand in FY25 and strong financial risk profile

In FY25, domestic demand recovered following above-average rainfall in key crop areas, supporting a rebound in operational performance after reporting a year-over-year degrowth due to weak industry-wide demand and a decline in prices driven by EL Nino and destocking by Chinese counterparts. In FY25, the company reported TOI of ₹1,183 crore (PY: ₹1,059.26 crore), PBILDT of ₹185.04 crore (₹ 132.32 crore), and a margin of 15.6% (PY:12.5%). The recovery continued into H1FY26, with TOI of ₹663.4

BRL is part of the Bharat group; one of the leading manufacturers of technical grade pesticides in India and has been engaged in manufacturing and selling pesticides for over four decades. The company’s promoters have also extended support in terms of financial assistant to working capital requirements of the company in the past. The group’s directors are supported by a team of professionals with rich experience in varied spheres of business.

The pesticide/crop protection industry derives its sales from the agriculture sector , which highly depends on monsoons and incidence of fungal/pest attack on crops. Major fluctuations in total rainfall and its distribution affect the crop and overa ll productivity and has a direct correlation with sales and profitability of the pesticides i ndustry. However, the risk is partially mitigated through the company’s wide geographical presence covering over 21 states in India and over 24 countries, w

The pesticides industry is marked by heavy fragmentation with the absence of key player having sizeable market share. Intense competition leads to competitive pricing and lower margins. Traditionally, Indian players concentrated on marketing generic and off-patent products with little expenditure on research and development (R&D), while MNCs focused on developing patented molecules. BRL is supported by a dedicated R&D team that consistently works on developing innovative new products, ensuring

The Bharat Group is exposed to foreign currency fluctuation risk, as BRL’s export sales constitute ~around 26% of the company’s total sales in FY25 (PY: ~36.13%). BRL is also importing raw materials for manufacturing technical grade pesticides, as ~50% of the total purchases is imported, mainly from China (85% of total imports), Japan (12-14%) and balance from other countries. Thus, foreign exchange fluctuation risk is reduced, partially considering natural hedge available in the form of export

The pesticide industry requires high working capital investment due to high inventory holding and longer credit period on sales due to the commoditised products and seasonality factor. Average inventory holding remains at elevated level and stood ~101 days in FY25, though slightly reduced from 116 days in FY24. Providing extended credit is necessary to stimulate demand as farmers are left with little surplus money for purchasing pesticides after having invested in seeds, and fertilisers, among o