ICICI Securities has maintained its buy rating on Godrej Agrovet with a target price of ₹900 in its research report dated May 04, 2026, despite the stock experiencing significant pressure. The brokerage's analysis comes as the company reported mixed Q4FY26 results, with profit after tax growing 14% to ₹0.8 billion while recurring EBITDA declined 5% to ₹1.4 billion. According to the latest reports, the stock has traded around ₹596.30 in early May 2026, down more than 10% year-to-date, reflecting market concerns about future earnings recovery.
Godrej Agrovet reported recurring EBITDA of ₹1.4 billion and PAT of ₹0.8 billion in Q4FY26, representing a 5% decline in EBITDA and 14% increase in PAT year-over-year. As reported by ICICI Securities, the company's performance was driven by strong year-over-year improvements in animal nutrition and foods segments, which successfully offset the weakness observed in crop protection and vegetable oil segments during the quarter. The contrasting earnings figures highlight the company's resilience in core segments despite broader market challenges.
The company's Astec division, part of the crop protection segment, delivered positive EBITDA for the quarter, with FY26 EBITDA at a positive level versus a loss of ₹610 million in FY25. According to ICICI Securities' analysis, this turnaround in Astec's performance contributed significantly to the overall quarterly results and provides a positive outlook for the crop protection segment going forward. The animal nutrition and foods divisions emerged as strong performers, contributing positively to the overall results and helping offset weakness in other segments.
ICICI Securities expects stronger trends over the next 12-18 months driven by continued strength in animal feed and vegetable oil segments, recovery in Astec operations, and a relatively better application window for crop protection. The company anticipates improving business performance over the next 12 to 18 months, with growth anticipated from continued momentum in animal feed and vegetable oil segments. The diversified business model is positioned as a source of resilience, with the animal feed business benefiting from rising protein demand in India and the oil palm segment from favorable commodity prices.
Despite the positive outlook, analysts maintain cautious optimism about future recovery prospects. The Indian agrochemicals sector is forecast for steady growth of 6-8% in fiscal year 2027, while the animal feed market is projected to expand with compound annual growth of 6.6% between 2026 and 2034 due to increasing protein consumption. However, the agrochemical sector faces global oversupply challenges, particularly from China, leading to pricing pressures. Key competitors include Avanti Feeds and Mukka Proteins in animal feed, while PI Industries and UPL compete in agrochemicals, with Godrej Agrovet's own P/E ratio standing at approximately 24.26.
