According to Anand Rathi's research report dated May 20, 2026, Dhanuka Agritech delivered impressive Q4FY26 results that exceeded analyst estimates. The company reported revenue growth of 9% year-on-year, EBITDA growth of 14%, and PAT growth of 30% for the quarter. The EBITDA margin stood at 25.8%, significantly higher than Anand Rathi's estimate of 22.2%, driven by GST refunds of ₹145 million in Q4FY26 and ₹290 million for the full fiscal year. Additionally, the company benefited from higher marketing expense reimbursements of ₹100 million in Q4FY26 and ₹320 million for FY26, despite facing a ₹35 million impact from the new labour code.
As reported by Anand Rathi, Dhanuka Agritech's Dahej revenue reached ₹500 million in FY26, up from ₹410 million in FY25, while the EBITDA loss narrowed to ₹130 million in FY26 from ₹140 million in FY25. The company's innovation-turnover index stood at 13.9% in FY26, compared to 14.9% in FY25. Revenue contribution from 9(3) products reached approximately 26%, demonstrating the company's diversified product portfolio performance.
According to the research report, Dhanuka Agritech's board has approved a share buyback program of up to 500,000 shares at ₹1,400 per share through the tender offer route, aggregating up to ₹700 million. This buyback initiative represents the company's commitment to returning value to shareholders while maintaining its growth trajectory.
As reported by Anand Rathi, the brokerage maintains its BUY rating on the stock with an unrevised target price of ₹1,350, valuing the company at 17x FY28e EPS. The recommendation is based on broadly maintaining FY27/28 estimates, considering the lower base of FY26 and anticipated near-term price hikes. The target price of ₹1,350 represents significant upside potential from current levels, reflecting the company's strong operational performance and strategic initiatives.
