Dharmaj Crop Guard Limited

DCGL’s promoters, Ramesh Talavia and Jaman Talavia, possess over three decades of experience in the agrochemical industry, which has enabled DCGL to build its brand presence and establish an extensive distribution network across both domestic and international markets. They oversee the company’s overall operations. Jagdish Savaliya (Director - Technical) brings over two decades of industry experience and manages research and development, along with production at the manufacturing facility. The

DCGL has a well-diversified revenue mix across branded formulations (B2C), institutional formulations (B2B) and active ingredients/technicals. In FY25, branded formulations contributed ~20% of TOI (FY24: ~26%), institutional formulations 59% (FY24: 76%) and technicals at 21%. Of the total TOI, ~94% derived from domestic market and balance from export market in FY25. The company operates two manufacturing facilities with capacities of 8,000 metric tonnes per annum (MTPA) for technicals and

DCGL’s TOI grew at a healthy compound annual growth rate (CAGR) of ~37% in the last five years and stood at ₹951.66 crore in FY25. Growth in TOI was supported by sales volume expansion with capacity expansion in formulation plant in FY22 and foray into technicals manufacturing in FY24. In H1FY26 (provisional), sales momentum continued and the company reported TOI of ₹714.65 crore; a y-o-y growth of 26%. The same was led by scale up of technical plant and steady growth in other segments. CareEdge

DCGL’s capital structure remains comfortable with a healthy TNW of ₹392.36 crore as on FY25 end (₹356.97 crore as on FY24 end) and moderate reliance on external debt, leading to overall gearing of 0.32x as on March 31, 2025 (FY24 end: 0.31x). Debt coverage indicators remained comfortable marked by PBILDT interest coverage at 5.86x and total debt to gross cash accruals (TD/GCA) at 2.16x as on March 31, 2025 (18.46x and 2.13x respectively in FY24). CareEdge Ratings envisaged DCGL to sustain

The company’s profitability is exposed to fluctuation in the price of key raw materials which are crude-oil derivatives. DCGL’s profitability remained moderate marked by PBILDT margins in the range of 8 -12% in the last five years ended FY25, as along with branded products, it also has presence in the institutional segment. DCGL’s PBILDT margin moderated by 175 bps y-o-y to 7.94% in FY25 due to commercialisation of technical plant from January

DCGL’s operations are working capital intensive due to requirement of holding inventory to accommodate large product basket and debtor days are impacted by seasonality associated with sales. Overall inventory days remained stable at 50-52 days while debtor days expanded from ~55 days to ~70 days for three years ended FY25. While large part of working capital requirement is being met through GCA, the company receives credit period of ~40-50 days, aiding its operations. Operating cycle stood at 64

The agrochemical sector in India remains highly fragmented, with no single player holding a dominant market share. Intense competition from organised and unorganised players exerts pricing pressure, constraining profitability. While Indian companies largely focus on marketing generic and off-patent products with relatively lower R&D intensity, multi-national corporations continue to lead in developing patented molecules, further heightening competitive pressures.

Demand for crop protection products depends on the agriculture sector, which depends on monsoons and incidence of fungal/pest attack on crops. Any major fluctuations in rainfall and its distribution affect the crop and overall production and has a direct correlation with sales and profitability of entities operating in the industry. In export market each country has specific registration processes across environmental rules and regulations. Non-compliance