Dhanuka Agritech reported a 35% year-on-year decline in net profit to ₹36.30 crore for the quarter ended June, citing challenging market conditions.
Despite the earnings contraction, the company announced plans to invest up to ₹200 crore in a new pesticide manufacturing plant in Nagpur, Maharashtra, signaling a continued commitment to capacity expansion.
The profit drop underscores the persistent pressure on Indian agro-chemical firms, which are navigating volatile input costs and competitive pricing dynamics.
While revenue figures were not explicitly detailed in the initial reports, the margin compression suggests that operational efficiencies have not yet offset the broader sectoral slowdown.
The decision to proceed with the Nagpur facility, a significant capital expenditure relative to the quarterly profit, indicates management's confidence in long-term demand for domestic pesticide production.
This move aligns with a broader trend among Indian chemical manufacturers to localize supply chains and reduce dependency on imports, a strategy that has been gaining traction amid global trade uncertainties.
Investors will be watching to see how the new plant impacts the company's cost structure and market share in the coming quarters.