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Nadir Godrej, Chairman of Godrej Agrovet, gave his speech in the annual report for FY 25-26
The Print Times
It is my privilege to present to you Godrej Agrovet Limited’s Annual Report for FY 2025-26. I hope this message finds you and your families in good health and spirits.
As a diversified agri-business company deeply connected to India’s agricultural economy, Godrej Agrovet remains uniquely positioned to capitalize on these structural opportunities while creating long-term value for all stakeholders.
FY 2025-26 was a landmark year for your Company. We crossed the important milestone of ₹10,000 Crore in consolidated revenues for the first time, reporting revenue from operations of ₹10,233 Crore. More importantly, we achieved our highest-ever profitability, with Profit Before Tax increasing by 20% to ₹602 Crore in FY 2025-26 from ₹500 Crore in FY 2024-25, while Profit After Tax stood at ₹445 Crore in FY 2025- 26 from ₹403 Crore in FY 2024-25. These results reflect the strength of our diversified portfolio, disciplined execution, and focus on operational excellence.
Robust revenue growth combined with all time high profitability provides a solid foundation for superior performance in the years ahead While the year presented numerous challenges, we made sure that most of your Company’s businesses remained focused on increasing their market share and margin expansion.
The Animal Nutrition business delivered a robust performance during the year, with profitability growing by 19% year-on-year, supported by strong volume-led growth. Overall volumes increased by nearly 12%, driven by sustained farmer engagement and continued focus on product innovation. Excellent volume growth, favourable commodity trends and enhanced operational efficiencies contributed to a meaningful expansion in margins. Your joint venture business in Bangladesh also remained resilient amidst a challenging operating environment.
Oil Palm business emerged as a standout performer. Higher Fresh Fruit Bunch arrivals, improved oil extraction ratio, and higher realizations for crude palm oil and palm kernel oil translated into 68% year-on-year growth in segment profitability. Continued investments in area expansion, farmer partnerships, and downstream integration have further strengthened our leadership position in this strategically important sector.
The Crop Care business operated in a challenging environment characterized by adverse weather conditions, lower acreage in certain key crops and regulatory disruptions. While these factors impacted margins during the year, we continued to strengthen our portfolio through new product launches and expansion into newer crop segments such as maize and paddy enhancing diversification and firmly positioning the business for recovery.
The Dairy business faced headwinds from elevated milk procurement costs and temporary demand disruptions caused by unseasonal rainfall in first half of the financial year. Despite these challenges, the business continued to focus on operational efficiencies, portfolio optimization, and strengthening its valueadded products portfolio through targeted innovation and consumer-centric offerings
Strong balance sheet and improving capital efficiency
We achieved significant optimization of net working capital, reducing average working capital days to 25 days in FY 2025-26 from 39 days in FY 2024-25. This was accomplished through disciplined credit management, accelerated collections, and inventory optimization across businesses. Our focus on capital efficiency also resulted in a further improvement in Return on Capital Employed (ROCE) from 16% in FY 2024-25 to 20% in FY 2025-26, reinforcing the quality of our growth and strengthening our ability to invest for the future.
R&D and future-ready digital investments to aid in long-term consistent growth
At Godrej Agrovet, we continue to view Research and Development as a key pillar of our long-term growth strategy. Over the years, we have built strong R&D capabilities across our core business segments, and we are sharpening our R&D focus to be deeply consumer-centric, with a renewed emphasis on identifying emerging need gaps and unmet expectations. This shift will enable us to accelerate innovation and consistently introduce differentiated products that are aligned with evolving customer preferences.
These capabilities have enabled us to launch customized products in Animal Nutrition, advance molecule development in Crop Care and Astec LifeSciences, and deliver meaningful improvements in yields and operational efficiencies in our Oil Palm business. Our sustained focus on R&D not only supports the development of new molecules and products but also strengthens our ability to respond to changing customer needs, regulatory requirements, and industry dynamics. These investments reinforce our commitment to innovation-led growth and position Godrej Agrovet to create long-term value for all stakeholders.
In line with our commitment towards climate action, your Company sequestered 29,750 MT of CO₂ in FY 2025–26.
We also achieved around 12% reduction in Scope 1 and Scope 2 greenhouse gas emissions, reflecting continued progress towards our climate goals. Godrej Agrovet remains one of the first agri companies in India to have approved science-based emission reduction targets aligned to the ‘Well Below 2°C’ scenario.
On the people front, our CSR initiatives continue to focus on sustainable economic development for vulnerable and low-income communities. During the year, we positively impacted the livelihoods of over 14,000 dairy farmer households, trained more than 16,000 students in modern agriculture techniques, and enabled over ₹1,000 crore of insurance coverage for farmers through government social security schemes. Our Disha Programme (School of Sales) trained 276 women, reinforcing our commitment to diversity & inclusion.
