ICICI Securities Maintains 'Buy' Rating on Godrej Agrovet, Sees Target Price of Rs 900

Godrej Agrovet Sees Improvement in Q4FY26 Results

Godrej Agrovet (GOAGRO) has released its quarterly performance report for Q4FY26, showcasing a mixed bag of results. The company's recurring EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stood at INR 1.4 billion, representing a 5% decline year-over-year (YoY). However, the company's recurring PAT (Profit After Tax) witnessed a significant improvement, rising by 14% to INR 0.8 billion YoY.

A closer examination of the company's performance reveals that the strength in animal nutrition and foods segments has helped offset the weakness in crop protection and vegetable oil segments. Notably, Astec, a part of the crop protection segment, delivered positive EBITDA for the quarter, marking a significant improvement from the loss of INR 610 million in FY25. The company's FY26 EBITDA is now at a positive level.

Positive Trends Ahead

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The research report by ICICI Securities suggests that the next 12 to 18 months are likely to witness stronger trends in the animal feed and vegetable oil segments. Additionally, the recovery in Astec is expected to continue, and the crop protection segment is anticipated to benefit from a relatively better application window.

Recommendation

ICICI Securities has maintained its BUY recommendation for Godrej Agrovet with a revised target price (TP) of INR 900. The research firm has also downward revised its earnings per share (EPS) estimates for FY27E and FY28E by 3% and 2%, respectively. The downward revisions are primarily due to the crop protection segment, while the animal nutrition and Astec segments have seen upward revisions.

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Note: The table above highlights the YoY performance of each segment.