Recently I came across Best Agrolife Ltd (NSE – BESTAGRO).

Stock is down from 1,600 odd levels to 400 currently. It briefly touched lows of 250 in Mar’25. What’s interesting is that in Mar’25 itself, Promoters bought shares worth Rs 2 crore from the open market around 270 odd levels.

Due to the above factors, got interested in the stock and went through its Q4 FY 25 concall which has some interesting details about the business and the management’s plans for next few years.

Below, we have shared notes from the Q4 FY 25 concall of the company to understand its plans for the next few years.

 

Before that, recently, we released the following new stock recommendations

  • On 3rd Jul’25, we released a new recommendation under “Insider Bets” subscription. You can read about it by clicking HERE
  • On 9th Jul’25, we released a new Special situation opportunity for our Alpha + members. You can read about it by clicking HERE

 

Best Agrolife – Q4 FY 25 concall notes

  • 1. Industry Context and Strategic Response
    • Indian agrochemical sector faces volatility due to erratic weather (unseasonal rains, heatwaves).
    • Farmer incomes remain unpredictable due to reliance on rain-fed farming.
    • Best Agrolife aims to build business predictability through:
      • Launch of 3–4 patented, farmer-focused products annually.
      • Strengthened R&D to create high-trust, brand-led solutions.
  • 2. Q4 FY25 Performance Highlights
    • Revenue: ₹274 Cr (↑103% YoY from ₹135 Cr).
    • EBITDA: Improved to ₹4 Cr (from -₹67 Cr in Q4 FY24).
    • PAT: Reduced loss of ₹21.6 Cr (vs -₹72.5 Cr).
    • Key gains due to cost optimization, restructuring, and operational efficiency.
  • 3. FY25 Full-Year Financial Summary
    • Revenue: ₹1,814 Cr (slightly ↓ from ₹1,873 Cr in FY24).
    • Branded sales volume ↑14%; revenue flat at ₹1,190 Cr due to price drop in non-patented products.
    • Branded business share: 66% (vs 64% in FY24).
    • Gross Margin: ↑ to 29.5% (from 24.7%).
    • EBITDA: ₹200 Cr (vs ₹225 Cr); dip due to higher marketing, expansion, and employee costs.
    • Cash flow from operations: ↑ to ₹228 Cr (from ₹35 Cr).
    • Inventory: ↓ ₹185 Cr (↓19% YoY); Working capital: ↓ ₹146 Cr (↓54% YoY).
    • Debt: ↓ ₹161 Cr (ST borrowings: ₹453 Cr; cost of capital 9.5%–10%).
  • 4. Strategic & Operational Initiatives
    • New Sales Policy: FY26 will see reduced sales returns through:
      • Capping returns on select SKUs to 5%.
      • Promoting cash-based sales for key products.
    • Restructuring: Merged underperforming regions to reduce OPEX.
    • Focus Areas for FY26:
      • Improving profitability, margins, and cash flows.
      • Reducing working capital cycle via better inventory control.
  • 5. Product Innovation & Launches
    • New Patented Products:
      • Shot Down: Herbicide (Haloxyfop + Imazethapyr); technicals produced in-house.
      • Bestman: Insecticide (Fipronil + Abamectin + Tolfenpyrad); to launch by Q2 FY26.
      • Futagin: Insecticide (CTPR + Emamectin + Fipronil); for paddy and vegetables.
    • Expected combined revenue from the above: ~₹150 Cr in FY26.
    • Organic fertilizers & biostimulants pipeline to support sustainability.
    • Ronfen Family sales FY25: ~₹150 Cr (expected to rise with cotton acreage recovery).
  • 6. Backward Integration & CAPEX
    • FY26 brownfield CAPEX: ₹90 Cr for 3 blocks (insecticides, fungicides, herbicides).
    • Revenue/EBITDA from expansion expected from FY27.
    • Focus on India-based inputs to reduce reliance on Chinese intermediates.
    • Already achieved full backward integration for Diafenthiuron (Ronfen) & working on Topramezone.
  • 7. Export & International Strategy
    • Active in: Vietnam, Sudan, EU, Australia, LATAM, Sri Lanka, etc.
    • Initial exports to Africa under way ($250k shipped; $150k upcoming).
    • Interest from overseas buyers to fund patented product registrations.
    • Strategic MOU signed with Shanghai E-Tong for technical collaborations.
    • International growth focus: Patented products, nano urea, newer fungicides/herbicides.
  • 8. Additional Key Updates
    • Sales Returns (FY25): 17–18%; expected to drop significantly in FY26.
    • Patented Product Revenue (FY25): ₹357 Cr.
    • Forex Impact: ₹10–12 Cr cost (included in other expenses).
    • Other Expenses: Increased YoY due to new product launches & regional expansion; Q4 showed reduction due to seasonal scale-back.
    • Right of Use Assets: Reflect acquisitions of entities till Mar 2024.
  • 9. FY26 Outlook & Targets
    • EBITDA margin target: 15–18%.
    • Strong visibility for Q1 & Q2 FY26 with favorable monsoon, ramped-up patented product sales.
    • Focus on sustainable growth, market share gains from MNCs, and building a scalable branded portfolio.
    • Management aims for predictable quarterly improvements going forward.

Hope you found the blog post useful and it added value to your investment decisions. Sign up for more interesting stock ideas and industry notes.

 

 

Disclaimer: This is not a recommendation to buy/sell any of the stocks mentioned above. The securities quoted are for illustration only and are not recommendatory.

Ekansh Mittal
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