Dhanuka Agritech Q2 FY27: consolidated PAT up 16% YoY to ₹109 Cr, margins expand

Dhanuka Agritech's consolidated Q2 FY27 (quarter ended September 30, 2026) revenue from operations rose 9.9% YoY to ₹657.51 Cr (₹598.25 Cr in Q2 FY26) and PAT rose 16.2% YoY to ₹109.22 Cr (₹93.97 Cr), with EPS at ₹24.43 (₹20.85). The standalone and consolidated statements are identical — the lone subsidiary, Dhanuka Agritech Europe Private Limited (incorporated August 26, 2026, Ireland), had nil revenue, profit and assets for the period and is not yet material to the Group. Sequentially the print looks dramatic — revenue up 42.3% and PAT up over 200% versus Q1 FY27's ₹461.93 Cr / ₹36.30 Cr — but that QoQ jump is largely a base effect against an unusually weak, delayed-monsoon-hit Q1, not a standalone signal of strength; the YoY comparison is the one that matters here. The expansion came from input costs, not pricing or mix: cost of materials consumed fell to 48.9% of total income from 56.9% a year ago (and from 61.0% in Q1 FY27), pulling operating margin (OPM) to 23.3% from 22.9% YoY and net margin (NPM) to 16.4% from 15.5% YoY. The effective tax rate held steady at ~25.4%, in line with both Q1 FY27 (~25.3%) and Q2 FY26 (~25.4%), so none of the YoY PAT growth is tax-driven. Neither period carries exceptional items, so reported and adjusted YoY growth are the same. Management's own FY27 guidance — cut on the Q1 call to "small single-digit" revenue growth with a flagged ~200 bps EBITDA margin contraction — is being outrun on a standalone-quarter basis: Q2 revenue grew faster than that pace and margins expanded rather than compressed. But the cumulative picture is softer: H1 FY27 revenue of ₹1,119.44 Cr is down 0.6% YoY and H1 PAT of ₹145.53 Cr is down 2.6% YoY, so Q2's rebound has only partly offset Q1's weak start, and the "small single-digit" full-year target still needs H2 to do the heavy lifting. No published sell-side estimates specific to this quarter turned up (results were filed same-day, October 30, 2026), so vsStreet is unknown; no press release or MD&A commentary beyond the board-outcome letter was available in this filing packet. During the quarter the company completed its buyback — 5,00,000 shares (1.11% of equity) at ₹1,400/share for ₹70 Cr, extinguished June 20, 2026 — launched three new products (herbicide Tembotrax, fungicide POLIN, and two other agri-products), and disclosed a senior management resignation (October 15, 2026) and a ₹46.77 Cr entry tax demand order (October 6, 2026) that sits outside this quarter's P&L as a contingent dispute. The read into Q3 FY27 is whether the input-cost relief behind this quarter's margin expansion persists, and whether revenue growth accelerates enough in H2 to close the H1 YoY gap and validate "small single-digit" guidance rather than invite another downgrade. The Nagpur formulation plant (23,000 MT/annum, ₹200 Cr capex, ~₹100 Cr in FY27-28) remains targeted for an April 2028 start per prior guidance, with no capex update in this filing.