Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
GODREJ AGROVET LTD (NSE: GODREJAGRO) Q4 2026 Earnings Call dated May. 04, 2026
Corporate Participants:
Nadir Godrej — Chairman and Non-Executive Director
Sunil Kataria — Chief Executive Officer and Managing Director
Burjis Godrej — Executive Director
S. Varadaraj — Chief Financial Officer
Arijit Mukherjee — Chief Operating Officer
Analysts:
Probal Sen — Analyst
Abhijit Akella — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Aejas Lakhani — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to The Godrej Aggravate Limited Q4FY26 Earnings Call hosted by ICICI Securities. As a reminder, all participant lines will be on listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr.
Prabhal Sen from ICIC Securities. Thank you. And over to you.
Probal Sen — Analyst
Thank you. Good afternoon everyone. Thanks for making the time and joining us on this Godrej aggravate Q4FY26 earnings conference call from the company. We have with us members of the Senior Management including Mr. Nagit Godrej, the Chairman of the Company, Mr. Burgess Godrej, the Chairman Designate, Mr. Sunil Kataria, the Chief Executive Officer and Managing Director, Mr. S. Vardaraj, the Chief Financial Officer and Mr. Arijit Mukherjee, the Executive Director and Chief Operating Officer of Aztec Life Sciences.
We would like to begin the call with brief opening remarks from the management following which we will have the forum open for an interactive Q and A session. Before we start, I would like to point out that some statements made in today’s call may be forward looking and a disclaimer. This effect has been included in the earnings presentation that the company has shared with you earlier. Without further ado, I would now like to invite Mr. Nadir Godrej to make the initial remarks. Over to you, sir.
Nadir Godrej — Chairman and Non-Executive Director
Thank you. Good afternoon everyone. I welcome you all to the Godrej Aggrevet earnings call. I will begin by briefly commenting on our performance for quarter four, fiscal year 26 and the full year fiscal year 26. Kogik Aggreved delivered a strong and consistent performance in quarter four fiscal year 26, concluding the year on a positive note. For the quarter, consolidated revenues grew to 2,333 crore reflecting a 9% year on year growth while profit before tax excluding non recurring and exceptional Items increased by 16.8% to 87 crore rupees.
This performance was driven by broad based volume led growth, disciplined margin management and a favorable business mix across key segments. For the Full year ended 31st March 2026, the company surpassed an important milestone with consolidated revenues exceeding 10,000 crore rupees reaching 10,233 crore representing a robust year on year growth of 9%. Profit before tax excluding non recurring and exceptional Items increased by 17.2% year on year to 569 crore rupees reflecting the improved quality of earnings margin expansion and strong execution.
In addition to earnings growth, fiscal year 26 also saw a meaningful reduction in working capital translating into stronger operating cash flows and a tangible improvement in return on capital employed. Let me now briefly walk you through the performance of our key business segments. Animal nutrition delivered another strong quarter with quarter four volumes growing 15% year on year significantly ahead of industry growth. Cattle feed volumes increased sharply by 24% supported by strong performance of new products, launched favorable commodity positions and continued cost optimization.
Margins expanded meaningfully across the portfolio. The oil farm business concluded a landmark year in fiscal year 26 marked by highest ever area expansion, strong volume growth and all time high oil extraction ratio. While quarter four is seasonally weak, margins were largely resilient aided by improved oil extraction ratios and improved realizations. The crop care business remained impacted in quarter four fiscal year 26 due to carry forward of inventory in the core marketing channel leading to lower volumes of in house products.
This was partially offset by improved sales of selected specialty products. Aztec Life Sciences continued its strong turnaround momentum with EBITDA breakeven in fiscal year 26. In quarter four fiscal year 26, both revenue and EBITDA recorded robust year on year growth driven by higher volumes led by the CDMO category, improved realization and better capacity utilization. Enterprise margins improved further compared to quarter four fiscal year 25. But I would also like to mention that in line with our focus on harnessing group expertise in chemicals, we have recently augmented the Aztec Port with Mr.
Vishal Sharma as non executive chairperson, Mr. Matthew Ike as independent director. Mr. Arijit Mukherjee who has been the CEO of the business, has joined the board as Executive Director and will be leading the business going forward. These appointments meaningfully strengthen aftec’s leadership and we believe will be instrumental in accelerating growth and and unlocking its true potential. Streamline Dairy recorded approximately 5% year on year growth in revenues excluding bulk sales during quarter four fiscal year 26.
Profitability remained under pressure due to elevated milk procurement costs though value added product salience improved to around 40% up from 38% last year. Vogue Foods Limited continued its strategic shift towards branded offerings in quarter four fiscal year 26. EBITDA margins improved significantly driven by margin expansion in both the Live Bird and Yummies categories supported by improved realizations. Branded revenue salience remained above 80% in fiscal year 26. Overall, fiscal year 26 was a year of strong performance for Goodridge Acrobat underpinned by disciplined execution, improving business mix and sustained focus on value added and branded portfolios.
We also made meaningful progress on our sustainability agenda under the Good and Green vision with leadership positions across climate, water and renewable energy initiatives. Thank you.
Operator
Should we begin the question and answer session?
Sunil Kataria — Chief Executive Officer and Managing Director
Yeah, let’s do that. Yeah.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take our first question from the line of Abhijit Akela from Kotak Securities. Please go ahead.
Abhijit Akella
Yeah, good afternoon and thank you so much for taking my questions. I limit myself to two or three in the first round. First, you know, from the standpoint of FY27, the way you’re seeing the outlook for your various segments, would it be possible to offer us some sort of, you know, outlook or guidance regarding what kind of revenue growth, what kind of profitability it might be fair to expect for the year ahead?
Sunil Kataria
Hi, Abhijit Sunil here. So Abhijit, obviously you know, the direction that, let’s say broad guidance that we give for FY27 has one overhang of Iran war which you know, none of us have anticipated. And that’s one piece which I would say remains a bit of a variable still I think open for everybody as how it pans out currently. But given from the, you know, strong work that we’ve been doing in the last eight, nine months overall at the G of A level we’d like to look at, we’d like to focus on getting a early double digit revenue growth put together at a console level.
Along with the way our PBT has improved this year, we’d like to again target, let’s say a mid strong double digit mid teens kind of a PBT growth also for the next year. So that’s a broad directional overall growth that we would like to gun for between the businesses. I think animal nutrition business has done a very strong showing across and also I think the entire revenue growth for us by and large we are focused on driving through underlying volume growth. So that’s another large piece that will play out for us.
So we are focused on getting volume driven revenue growth in terms of businesses. I think first of all animal nutrition quickly the business has been doing pretty well across led by cattle feed and even some other feed businesses. That something momentum continues. Would like to again go for a double digit growth in revenue led by volume in animal nutrition business as we would like to call it now and similarly for our crop care business. The next year is likely a year which we’d like to go for a recovery and that’s what we are calling as a year of recovery for this.
However, at the same time one piece I want to just point out is that the recovery of the crop scale business we’ll start seeing it coming back fully from quarter two onward because the last year also there’s a co marketing based inventory which is sitting in our Q1 base of last year and that will play out in this Q1 for CCB business or the crop care business. Otherwise we’ll go for very strong recovery in both bottom line and top line and it will be again a very high double digit number that will happen in the crop care business.
In CDKL business the journey continues toward increasing value added portfolio. Further the pressure points will be I think on the milk recurrent prices which we expect it to cool down somewhere from quarter two gradually and then the broad direction that quarter two onward the milk price should kind of normalize. The Gojek foods part again in the value rated piece which is primarily the branded piece again the focus is very clearly to drive double digit growth. The momentum that we already built for ourselves that is again going to continue.
Livebirds continues to keep coming down for us and that’s where we’ll keep on investing in both these businesses behind advertising to ensure that there’s a strong double digit volume growth happening. Oil pump on a very very strong footing right now again looking for another year of double digit volume growth in oil pump early double digit and we have done some exceptional work on oil extraction ratio. We definitely see some more work happening there and we have done a record area expansion this year.
Next year we’re gunning for even beating that record on area expansion. We also so I think I have covered animal nutrition and Astec and on the Aztec business I think Arijit would come in between specific questions but broad direction. Let me give you that we have seen a strong comeback led by cdmo. Pipeline funnels are looking pretty good. We expect that momentum to continue with a clear focus on CDMO led growth happening and we have become Ebitda breakeven this year and we will expect that journey to continue going forward.
So overall, all in all, there is momentum that is there in the business. We expect the momentum to continue across all parts of our business and with some businesses which are taking a beating, getting into a recovery mode.
Abhijit Akella
Thank you for that, Sunil. That’s very helpful. Just one or two follow ups if I may. One is on the palm oil business. So you mentioned that all of the top line growth is targeted to be driven by volume expansion but at the same time you’re seeing fairly strong palm oil prices at this point in time. So is that all over and above this guidance that we are kind of looking at? And what is your outlook for palm oil prices? I mean, do you see them remaining firm here for the foreseeable future or how do you see the trajectory?
Sunil Kataria
Okay, so this is where I’ll give my point and then I’ll ask nbj, it should also step in. But first of all, I think you know the way there are certain kind of palm oil modeling that had happened pre Iran war where the output outlook for the year on palm oil was actually a little bearish this year. Let me tell you when I had gone to you know, Malaysia, the conference which really the palm oil conference which happened, which gives a kind of outlook, this one looking like a little bearish here. And then this war happened and obviously now all models have gone a bit haywire on palm oil.
So for me to be very honest to say that what is the year long outlook on palm oil? I think we are right now playing it quarter to quarter, honestly, you know, so it’s very, very difficult to give you a very long term point of view. But I would say I would take it by the quarter and maybe I’ll express NBD if NBD wants to also give any sense of what this take on this is right now. Mr. Godish.
Nadir Godrej
Yes, I also mentioned that a lot depends on what happens in the Middle east and palm oil prices are strongly correlated with crude oil prices because of the connection through biodiesel and therefore a lot will depend on that. But I would also like to say that if the MIDI continues it will probably be bad for the crop protection business but good for oil palm. So for agrobat overall the impact either way may not be very great.
Sunil Kataria
Thank you.
Abhijit Akella
Yeah, thank you so much. And if I may ask one last one before I return on the queue please. Just on the Aztec business, you know, obviously with all this management kind of restructuring that has recently happened or should I say just you Know, changes at the senior management level would really appreciate some color from, you know, the promoters or senior management. Regarding the way forward for ASTEC as well as the overall chemicals business of the Goodrich Group. I will ask you. So
Sunil Kataria
Maybe I would ask to give in a few points on this and then I’ll step in the side. Bharjeet, over to you.
Burjis Godrej
Yes, hi Abhijit, this is Burjis speaking. I just want to say that we do believe that Aztec has very strong underlying potential and this is supported by Godrej Industries Group’s very deep chemical experience and manufacturing expertise. So we did make some recent management and board changes which reflect our intent to leverage this expertise more effectively and accelerate value creation and synergies. The board is strengthened with the induction of Mr. Sharma as chairman and Mr. Matthew Ibe on the board whose sectoral experience we believe will materially benefit as tech.
And Arijit Mukherjee has been closely involved with Aztec’s operations as CEO for over a decade, will now drive the business forward as an executive Director. Sunil and I will continue on the board and this will ensure continuity and we are very confident that leveraging the group expertise will be the starting point for an accelerated scale up of this business.
Sunil Kataria
And one more thing which I just want to add here on this, Abhijit, is that in terms of structure, it is too premature for us to comment on the same. You know, we are in the process of evaluating what is the most optimal structure and how it will go forward. And I think maybe over a period of next 2, 3/4, then once we have a bit more clarity in our mind and thought process, we’ll come back to all of you on that. For now we just want to assure that the interest of all minority shareholders will be protected.
And our endeavor is actually to make sure that we enhance shareholder value for everyone. So I think there was a bit more time. I think as we are more clear, we’ll come back to you over the coming two, three quarters.
Abhijit Akella
Okay, sure, my apology. But just the last two. If I may just squeeze in before I return for more on the animal feed side of things. The volume growth seems to have accelerated quite sharply in the last few quarters. So what’s behind this and how do you see that going forward? Also, are margins expected to stabilize and if so, what are the drivers behind that? That was one piece on the animal feed business. The other was just with regard to Your outlook for CapEx working capital and free cash flow for the year ahead.
You know what, what should we pencil in for each of These items and what are the proposed uses of any surplus cash that you might generate? Thank you so much.
Sunil Kataria
So I think on the animal nutrition business, I think it’s a mix of some very, very strong execution which has been happening and some, you know, environmental support. So the one, let me first say the little bit part of the environmental support, I would not say that played the biggest role is the fact that when milk preserve prices remain so elevated, it does become a kind of a positive trigger for shift from unbranded to branded compound feed business because the farmers see the benefits of the income which they’re generating from a better higher milk yield.
So that obviously is one thing which we have seen in the last seven, eight months which has impacted our Kremlin dairy business very negatively. But that’s something which plays positively in this part of the business. Having said that, I think there have been two, three, some very fundamental execution levers that differs. One, first and foremost, I think there has been a strong work across some key geographies that we have focused on. We have done very well in west, which has always been our stronghold.
But we have done also very focused work towards east and central India which have maybe a bit of a, traditionally a weaker part of our business and that we have started seeing some gains in this services business. It’s very difficult to get a Nielsen equivalent share gain report. But our hunch is that we have started making some share gains out of these two other geographies that we’ve started focusing on. That’s one thing which has happened. Secondly, there are some products that we had launched, you know, a few quarters back and some in the last quarter which I think started giving us some gains.
And these products are aimed at more, you know, higher end or what we call as the type 1 products which are targeted at higher yield animals which again, while I won’t call it premiumization in that sense right now, but that is a focus, I would say a little bit more value added part of the business which we are trying to push to grow. So that is the second piece which has very clearly happened. I would also want to call out that our R and D has done some very strong work in terms of also reconfiguring certain cost structures in our, you know, raw material prices, raw material components here which also has given us some benefits in the margin expansion.
So I think put together these three, four things are something which are, you know, played out for us pretty well in the animals nutrition business. May
Nadir Godrej
I add something, Sunil?
Sunil Kataria
Yeah, yeah, yes.
Nadir Godrej
Yeah. I would like to Add that Sunil has brought a lot of focus on the sales organization and the marketing organization. We always had very strong R and D but now we are focusing it more directly on the consumer and as a result we have developed these new products and I think these initiatives will continue and we have the potential of helping the farmers greatly by making better quality feed which gives more production from the animals at a lower cost. And we will drive R and D knowledge in with better marketing to satisfy the farmer and grow the business.
Sunil Kataria
Thank you. And I think Varda also wants to say now take on the question on that cash flow and working capital.
S. Varadaraj
So Abhijit, in terms of animal nutrition before I move to the cash flow in terms of the segment margin improvement which we saw part of the reason for the improvement in segment margin in Q4 is that that includes the pet food business income of around nine and a half crores. Now this is a. We sort of take care of the back end or the manufacturing business of the pet food. The front end is taken care by GCP Godreach pet care food business and the back end is sort of taken care of by us. So that’s the line of business for us in a small way.
The manufacturing in a way I
Sunil Kataria
Would just add in here in a way it’s a new stream of operations for us. You can say it’s a bit of a. It’s actually a kind of a new category expansion work for us at the back end where as this business area is moving forward we are also going to get some strong income coming out of this business.
S. Varadaraj
And consequently, unfortunately what has happened is the way we have sort of structured this arrangement it sort of sits in the other income line and that is the reason why you don’t see it in the normal space. So that’s one reason why the segmental results for the animal feed business has sort of animal nutrition business has gone up. In terms of the cash flow we expect that for the full year of FY27 we’ll be sort of after taking care of the CAPEX requirement of the year which is close to 400 crores, we should be left with around 100, 125 kind of crore cash surplus which will be there.
Sunil Kataria
And in terms of CapEx I think the CAPEX requirements would be in the coming year we are pretty much first of all our overall capex it will be raised around 350 odd crores. Roughly around 75 to 80% of that capex would be growth capex for us. And we are pretty clear in My mind we have done that. The entire capital allocation would be towards high growth businesses. And that is where the entire capex is going through. If I remember correctly and correct me Amitavh. Roughly right. I think 50 odd percent of our CapEx deployment is going towards oil palm.
Oil palm business. Correct.
Unidentified Participant
Yeah, that’s right.
Abhijit Akella
Yep. Sorry, just to clarify this pet food business of nine and a half crore. The income there that. This is the profit we are talking about is it? Or the revenue.
Sunil Kataria
And this is an additional stream of income for us going forward.
Abhijit Akella
Yes. And what would the corresponding revenue pertaining to that be?
Sunil Kataria
We revenue doesn’t come to us because revenue doesn’t. See we are manufacturing this product for them. Right. So we are the manufacturers of this product. The revenue doesn’t belong to the profit of. It’s a payout on the manufacturing fees that happen to us. So it’s kind of a contract manufacturing kind of arrangement.
S. Varadaraj
So Abhijit, as you would appreciate the manufacturing part of the business is taken care of by us. But you would be. You’d appreciate that as per our accounting standards, accounting guidelines we are required to account the entire transaction in a particular manner. And that is the reason why we don’t see the revenue stream coming. Yeah.
Abhijit Akella
Okay. Understood. Thank you so much.
Sunil Kataria
There’s a good adjacency for us which is developing.
Abhijit Akella
Sure. Thank you so much. I’ll return for any more in this.
Operator
Thank you. Next question is from the line of Arjun Khanna from Kotak Mutual Fund. Please go ahead.
Unidentified Participant
Thank you for taking my question. So the first question is regarding the impact of monsoons. So there is a prediction by Skymit and IMD that we probably see below normal monsoons this year. You did talk about the impact of the war on our business. Could you just comment on how you see the outlook for the year? While you did give us a brief interplay with the weaker monsoons segment wise. Thank you.
Operator
Ladies and gentlemen, we’ve lost the management connection. Please stay on the line while we reconnect them. Foreign ladies and gentlemen, we have the management team back on the line. Arjun.
Sunil Kataria
Arjun. We lost in between.
Unidentified Participant
Sure. I’ll just reframe my question again. We did in the opening remarks talk about the impact of the war on our business. And we also given commentary on the outlook for the year. Given that there is a prediction from IMD and Skymet that the monsoons this year would be below normal, below long period average. How do you see that interact with our predictions for the year in terms of volume growth and which segments do you See, positively or negatively impacted due to the same.
Sunil Kataria
Honestly, we all have a smile on our face when you’re asking this question. To be very honest, when we made this whole guidance and this plan, we were still not very sure how the sky met and IMD’s predictions would pan out. They have obviously become clear to us in the last 30 odd days, especially with IMD giving a prediction which is worse than Skymat right now, honestly. I mean, these numbers don’t figure in a real Alino impact. But at the same time I think it’s very difficult for us to right now put in any part of Elino because three reasons or two reasons.
One, all the predictions are saying that June will be pretty normal and then there’ll be a gradual decline with August and September genuinely becoming pretty bad. So the severity would I think hit August and September if these predictions were to come. Right now what this means is that it is not that June, July would still fall within the LPA range as the, you know, monster, as the metro department, you know, describes it. So I would say this elinor will have maybe a two halves to it. That’s point one.
Second part is there is always in this one thing which happens is that how does it play out geographically. Now our businesses have all different kinds of SKUs. Like for example the cock production business for us has a pretty decent skew towards south and west. Now as of now, if I were to go by this monsoon, it says the only region which is likely to play out normal in the entire period is south. Now if that happens, then this ELINO is not exactly elino for us in the crop care business. While it may have impact on some other businesses.
And the third part very clearly is there is always this probability of an Indian Ocean dipole or something developing and then maybe the effect could get in a month some kind of a moderated. So honestly, there is clearly playing out now how it plays out in geographies, how it plays out in time period is a bit of a variable which is still very difficult to pick a hard column. So the way we would see it, we would like to stay coarse on this guidance as of now and see how we can play it out across once this Alino becomes clear by the month.
That’s what I would say. Right. Stay right now.
Unidentified Participant
Sure
Nadir Godrej
You want to say something about oil palm?
Sunil Kataria
Okay. Yeah. And why can’t you pitch in? You know. Yeah, you can pitch in and I’ll add on to that. Yeah,
Nadir Godrej
Yeah. So we feel that there will not be a very bad impact on Oil palm this year, even if the monsoon is poor because it oil palm being a tree, it takes a long time to get affected. There could be some effects next year. But we will do a lot of research to see if there are any solutions to prevent bad effects next year as well.
Sunil Kataria
But you know, to add on to that we have, you know, we have certain kind of in an overall piece on oilfarm, we don’t expect any impact of oil farm plantation business this year. And there are certain kind of interventions we have planned to see how to counter El Nino in this year so that it also does not impact us too badly next year. Plus one more thing I want to also add on to oil farm plantation business from a long term point of view. See, there is a very interesting thing of what we are internally calling as demographic dividend which is playing out for us in this business that a lot of like Today, roughly around 50% of our trees are in the stage which we call as a journal stage, which is 0 to 4 when they’re completely unproductive.
And as we have been doing a lot of plantations now over a period of time, starting from this year and next year and then next year all these junal trees will start becoming younger trees which become productive. It’s almost like typically what India has seen the benefit and I love this word and that’s why I introduce this team, what a team saying hey, this business is actually going to see a demographic dividend over the next five years. So while what NBA are mentioning that first of all this year, no impact, if at some stage some impact comes in a year after my hunch is that my reading is that it will be more than made up by our demographic dividend playing out because more and more part of our business will start coming into a productive stage.
And that more than offset any negative impact which may happen at some years. So I’m pretty bullish about that overall with the intervention that is playing out, the demographic didn’t play out overall. I guess the oil palm plantation business should be pretty strong going forward for us.
Unidentified Participant
Perfect, that’s good to know. And just the last bit on the animal feed piece because historically a poorer monsoon as we saw in 23 calendar year 23 or August 23rd. If I look at FY24, that’s the highest ever revenues we have done as a company. So if you could just talk about the correlation between our animal feed piece and the monsoons.
Sunil Kataria
Okay. I mean normally I think our correlation is pretty well to what happens to the milk yield. I would Say I think so. I think that I would say the larger variable than anything else in this business.
Unidentified Participant
Sure. Fair enough. So the second query I had was more bookkeeping. If we look at the other equity line in our balance sheet for FY26 substantially lower than FY25. Given that we have had a good profits. Yes. We have paid out dividends. Could you explain the difference of the 300 plus crores reduction in other equity?
S. Varadaraj
Just give a second. Okay. Yes, Arjun. The reason why that is happening is because when in the current year FY 2526 we acquired the remainder stake in our dairy business. That is fair.
Unidentified Participant
So the loss is fair. Understood? Well.
S. Varadaraj
Yeah. Okay.
Unidentified Participant
Sure. Thanks. That’s it. From my side. Wishing you all the best.
S. Varadaraj
Thank
Nadir Godrej
You.
Operator
Thank you. Before we take the next question, would like to remind participants to ask a question. Please press star and one on your phone. Next question is from the line of Manish Badani from 361 Capital. Please go ahead.
Unidentified Participant
Thank you sir for an opportunity. Sir, my first question is on the asset life science part. Like we earlier used to procure the lot of raw material from the China. So how much Currently we are sourcing from the sideline percentage terms for the asset life science.
Sunil Kataria
Okay. So I would ask Arijit to pitch in here. Arijit, over to you.
Arijit Mukherjee
So for last year the purchase has been in the around 47% of the total imports have come from China.
Unidentified Participant
Okay. And like we also sort of on the backward integration. So how is it going on
Arijit Mukherjee
The backward integration is in two aspects. One, it is done continuously because all not only for our own molecules, for other molecules also. We really go on reviewing what what to do with the backward integration. But always a backward integration is not only based on the price, right? Backward also will also generate. Has to generate some long term value creation. It has to match our assets. It has to match our our chemistries also. So as of now what we have done for most of our enterprise molecules we are fully backward integrated.
In the sense if there is a supply constraint or the prices goes up or supplies are not there. We can immediately start the backward integration process so that the supplies are not affected. Similarly for major of the cdmos we talk with the partners and we are going for a backward integration. So it is a continuous. But it all depends on the valuation on the value Creations are also the cost competitiveness.
Unidentified Participant
Okay, Got it. And like as we all know that the Indian currency is depreciating. So given a substantial part that we are importing from the China. So how we are managing this input cost and like what sort of the margin impact we are seeing from this
Arijit Mukherjee
In our sort of businesses. Say currency management or currency volatility is a part of a structurally we approach to it. Right. But you have to remember that we are a net exporter. So once every the depreciation happens and the export realization actually offers a natural hedge to the imports. So that is one aspect. Secondly, we manage our impost properly in terms of proper time of say importing the lot so that the production there is no too much of inventory buildup. There is also some actions is taken in terms of with the currencies, currencies also is there.
So that in the short term we generally take care of the currency volatility. And being a net exporter it has almost neutral to neutral impact in terms of the overall businesses margin. It does not impact too much in the overall business.
Sunil Kataria
But maybe I would say maybe a little bit that again the currency volatility is something very difficult to predict. But yeah, maybe in the short term if this remains too high there could be a mild positive benefit for asset which happened. Given that we are a net exporter, net exporter overall. But again these are things, you know, which as we know they are pretty much changing by the month, you know.
Unidentified Participant
Got it, got it. And sir, it will be valuable if you share the outlook on the product mix like enterprise product versus contract manufacturing going forward. Like if you have any targets at your mind. And also onto the domestic exports market. Like what will be the contribution going forward?
Arijit Mukherjee
Yeah, so in 26 enterprise constitute almost 48 of the inter revenue. And CDM was where CD was a new products constitute around 52%. I think next two years also it was a ratio wise it will be the same a little bit reduction in enterprise will happen only after financial year 28. And in terms of the exports this year we clocked around 53% of the total revenue through exports. Next year if we see the enterprise molecules moving up, we should be somewhere between 60% of the revenue coming from exports.
Unidentified Participant
Okay, got it, got it. And so In I think 2022 or 2023, we also launched some brand. So how is the traction for that brand and future? Or like we like launch we have any idea to launch any new brand like the Samrudhi brand we launch in 22, 23, something like that.
Sunil Kataria
Okay, so obviously Samrudhi brand is one brand which led to a complete, you know, disruption in the market of Maharashtra for us in post 23. And as I mentioned in the earlier, you know, answer to ABHIJIT that there are a couple more products which have started coming in for us in the last year. And one such product which had come in which is scaling up now pretty well for is a brand called Dhan Lakshmi and that is one piece which has started happening in markets of Maharashtra and Karnataka. Again it is targeted at the higher yield milk yield giving animals.
So that is again which is showing us a good traction and we hope to take that brand further to you know across these three states of Maharashtra, Karnataka and one more state. And we expect that to become a pretty strong, you know product for us going forward in southern markets. We have also upgraded, done a renovation of a product which is a product from which we earlier used to have called Buy Pro which we have upgraded to a new richer product called Buy Pro plus. And that again is giving us pretty decent incremental gains which are happening in parts of south.
So I think as Ndeeji also mentioned somewhere in the middle that one clear focus for us going forward in our all our businesses and while annual nutrition obviously comes in that is that we are and as part of our long term strategic shift we are becoming more consumer centric. We are becoming more market facing and R and D innovation pipeline across all our businesses will become stronger and stronger.
Unidentified Participant
Thank you so much for answering all the questions this topic.
Operator
Thank you. Next question is from the line of Sumanth Kumar from Motilal Oswal. Please go ahead.
Unidentified Participant
So my questioning crop protection. Sorry to
Operator
Interrupt. Can you use your handset mode please?
Unidentified Participant
Yeah. Can you hear me now?
Operator
Yes, please go ahead.
Unidentified Participant
Yeah. So can you talk on new product launches in the coming year in the key segment and also a crop wise in the crop protection segment.
Sunil Kataria
Okay, so your question with respect to specifically to crop protection business.
Unidentified Participant
Yes.
Sunil Kataria
Okay. Maybe for the benefit of everybody I’ll say there are two pieces that are changing in terms of nomenclature of businesses internally. One is we are moving our animal feed business to we are naming it now animal nutrition business. And it’s not a name change really because we are shifting the mindset itself of the business as part of our strategic direction to a more benefit led, innovation led and market centric model. So we believe we would like to shift our mindset to more from a feed to a nutrition.
That’s one. Similarly in our crop protection business we believe that there is a segment of products that we are which we are reasonably strong which is plant growth regulators which are about plant nutrition. So hence we would like to not only be thinking ourselves as crop protection business but also as an overall crop Care business. So that’s a second nomenclature that we’re doing. But more than just name change, it’s also actually a strategic mindset and a strategic direction shift, direction, value add that we are doing in these names, you know.
So that’s one thing I just wanted to add in the beginning. Now in the top care business there is one very large strategic shift that we had done that as I mentioned somewhere earlier, that we are in the middle of this whole strategy piece is that we have been very much stuck onto what we call as a single point of failure that we in majority of our businesses. So if you see in a crop care business we were pretty much very, very centric on being a cotton herbicide lead vertical. And then there was obviously another product of our glacier which was focused on chilies.
So if these two seasons go bad, we see what happens was what happened last year for us which was kind of a, you know, a perfect storm for us. Now one thing which is going to shift drastically over the next five years is that we are diversifying our portfolio very sharply. Obviously products take time to come out of this but we are going to move away from two crop segment product to a multi crop segment product company so that we’ll have more crops coming our way. We’ll have more segments from herbicide to maybe insecticide and fungicide also coming into our play.
So this business should in five years be a very different business from what it’s today. In the immediate what you’re going to see a change that in the year of FY27 there are two new products that are coming in which are completely new products altogether into new crop segments. One is something which got launched in the month of December last year which is Ashitaka, which is our first maize entry. It’s a maize hobby site that will see a major scale up this year. So that’s one product which is going to be one of our star products.
The second is we are entering into rice plus insecticide segment through a product which is called Takai which is actually a multi crop insecticide although its lead application is paddy. So this will be a second new entry which will happen for us between these two products itself. We expect next year’s. Just to give you maybe a number or direction, I’ll give you how we are moving on to this diversification. Last year, since this got launched only towards the latter part of the year, this contributed roughly around 3 odd percent of our revenues.
Between these two products itself. If everything goes right in terms of weather, season, etc. Don’t play through one. We expect these two products itself to contribute to roughly around anywhere between 16 to 18% of our business. So that’s the kind of shift that we’ll see roughly around a four times salience shifting for that that would happen for us next year.
Unidentified Participant
Thank you so much.
Operator
Thank you. Next question is from the line of ages Lakhani from Unifi amc. Please go ahead.
Aejas Lakhani
Yeah. Hi team. My question is for Mr. Godrej. Mr. Godrej, you know as a institutional shareholder who’s been observing your business for five years plus years, you know we appreciate the breadth of strategic changes that have been underway to try and improve the quality of the business, you know, across, across lines from, from what you’ve done in share gains and feed to improving margin profiles in palm by going forward and backward. The restructuring in dairy, the buyout of poultry to speed up the changes that you made to clean up the crop protection portfolio.
Now the sharper focus towards in licensing. So we appreciate all of those things that you’ve been engaging in. But if I were to ask you just the next two year view. Just to your view, sir. So what should we as investors be looking to understand? Should we be looking at a, at the JVL which is trying to be more, you know, strategic sort of from a portfolio restructuring perspective where you know, business units are being clustered together to unlock probably value through that and improve or is it that, you know, given the composite nature of the business and the CAPEX requirements which could feed into multiple.
It will continue to be one cohesive unit but it will be more accelerated, more consistent revenue growth, better profiles, better ROCE improvements, the same capital allocation discipline. Which one of this is the path that JVL is likely to take? Thank you
Sunil Kataria
Sunil here. So maybe let me take a little bit of a shot at this and then I can ask NBG and Baji also pitch in if required on that. But I hear your question loud and clear that what is it that you’re seeing? So thank you for noting down some of the shifts that you’re making. One fundamental piece over the next two years. What you can expect is that Any transformation takes 4, 5 years to happen fully, especially in a business like us, which is a multi segmental business. But the shift that you’ll start seeing already started panning on in the next two years is that we will move from fundamentally from a commodity centric thinking to a market customer facing approach, whatever the nature of the entity itself is because that’s a fundamental mindset and a capability shift that we’re doing.
If I were to read out a few points I’ve put down on the headers for you. What you can expect is that our animals nutrition business will move from a feed business to a nutrition mindset business led by innovation, technical services, marketing and sourcing as modes. Our crop care business will move from a product chemistry and patent focused business to a product innovation, distribution and branding as modes. Our oil palm business as I already talked about from a volume led upstream player only to a full fledged differentiated upstream downstream value added player which happen in terms of Aztec from an enterprise business to a very clearly schema focused business.
Everything may not play out in the two years because the 3D funnels take a little longer so that some part of that layout will happen over from FY28 onwards. But you will see that shift already started happening in Godish foods very clearly. We are dialing down Live Bird completely and over the next three, four years it should just remain maybe a back end of ours and that becomes a protein forward. A company which will have many new segments coming in. I would like to call out what you would see in the next two years in terms of new starting this year itself is we are making entry into two new segments in the food business.
One is we have entered into Momos which we believe there’s a potential to upgrade the streets food business into a branded business. And the second one is there is a very piece which I personally think can a very strong ramp up over the next three to four years in India would be entering into frozen chicken now. And that’s another piece which is playing out for us and in cpl clearly the evaluation goes forward. We have to make it more and more profitable. I think this is a largest shift which is in a way I’ve given a headline of our strategy document for you.
It is going to followed by a cost culture with a mindset shift coming back to whether there will be a restructuring of these businesses. As I said the models are still taking shape in our mind. We cannot say at what time which will pan out. We talked about that question to Aztec is that maybe in a couple of quarters we’ll come back and to say how does this whole chemical plays out for us. But this in a nutshell is my take on that that is a larger transformation at play. We have already made portfolio choices also maybe for everybody’s benefit I’ll say on what we don’t want to do which also you will see in this next two years.
So for example the businesses that we are putting up for strategic review right now. Our shrimp business, our seeds business, our cattle genetics business, we are our live birth business obviously is coming down. We are going to take some strategic reviews of this business going forward. So this in a nutshell is the journey which has started shaking shape. You’ll see them accelerating over two years and then maybe the structural pieces will, if any, will play out at that stage. We don’t know right now.
Anything which Burgess, you want to add on at this stage?
Burjis Godrej
Yes, thank you. Sunil. Hi, this is Burgess Godrej speaking. I appreciate your question and I think the deeper subtext, if I’m correct, is possibly hinting at unlocking shareholder value. So I think Sunil has answered the question very well. I’m confident that this approach will lead to good performance and unlocking of shareholder value across GAVL as a whole. But we remain open to suggestions, alternative pathways if you have any, for how to improve performance and how to unlock shareholder value.
So I welcome your thoughts and suggestions on this topic and you reaching out to us separately to discuss it in more detail. I’ll request Mr. Nadir Godrej if he has any comments.
Nadir Godrej
Yes, this is Nadir Godrej. I would urge you to focus on a longer horizon. In oil palm there is likely to be rapid growth because A is the demographic dividend that Sunil talked about. B is the rapid expansion in acreage that we did both in the fiscal year 26 and we are likely to do even better in fiscal year 27. Plus we are producing more and more value added products and we have very good technologies for wealth from waste which will also gain traction and all these will get magnified by the rapid growth of acreage.
So I see a very bright future for this and even for animal nutrition we should look further out in just two years. We will have good growth in two years, but just imagine what kind of growth we can have over 10 years.
Sunil Kataria
Thank you Embiri. It is one more point which I think you’d ask for comment from your end on the return on capital employed. So I think again if you see in the last two, three quarters there’s an exceptional work which we’ve done through a focus on working capital and our return on capital employed has also moved along with our result from 16% to now 20% which is a very sharp jump of 4% which has never happened in our history of our business. Now as we invest further on growth capex one thing we will be very sure of in the next two or four or five years in fact for that time that we will be very, very stringent and we’ll keep the discipline very strong on managing working capital and return on capital employed.
We have reached 20%. While I wouldn’t hazard a guess right on saying how ambitious we can be. Right. But we will definitely not let it slip away and as we find more and more opportunities, we’ll only try to improve it further.
Aejas Lakhani
Noted. Team, thank you and all the best.
Operator
Thank you. Take our next question from the line of Prabhal Sen from ICICI Securities. Please go ahead.
Probal Sen
Thank you for the opportunity. Sir. Just a couple of housekeeping questions. First in terms of the foods business, I think you obviously mentioned the strategy and the bandit salience is going up consistently and maintaining at about 80%. But just as a thought in terms of the live birds business, is there a thought to sort of exiting the live birth business altogether or does this still provide supply chain benefits and pricing boosts from time to time depending on the seasonal factors? Just your thoughts on that?
Sunil Kataria
Yeah. So Prabhu, thanks for the question. So one thing is live trading per se is coming down sharply for us and over this next four, five year period and I think more accelerated manner we would not be in the business of selling live birds. That is very that trading we don’t want to do. So that’s out of question for us. What may happen for us and which I think is, I think could be a very strong moat as we build a business. I mentioned that, you know, we would like to maybe try to build certain categories like a new emerging category of frozen chicken in India right now.
What is happening in this business is that there is a potential of doing a category creation altogether in this business that one of the reasons why fresh chicken never sold was because there was a shelf life of four days. Now with frozen chicken the shelf life changes. The work that we have done on product innovation is this chicken is as good as anything on the fresh side. And we have now got a structural tailwind which is happening in this industry in the shape of cucumbers whereby the cold chain also is getting taken care of.
We believe that if we go ahead and build this category forward then one of the biggest modes actually is a control on the raw material supply of this category which is where the having some presence of live word as a sourcing is a damn good, you know, very good what you call differentiator. So clearly no play on Livebird as a trading stroke sales business. We could have this pure play as a back end supply chain for our future businesses. Whether it is Jamie’s nugget which you want to take it forward or whether it is, you know, some of these new categories that we’re looking forward to.
Probal Sen
Understood sir. A couple of more small questions. One was what was the amount of FFB that was processed this quarter and what was the extraction ratio just for this quarter?
Sunil Kataria
Okay, the extraction ratio for this quarter as I remember was 20.4. Let me just check it again, just give me a minute. So 20.4. I remember
Abhijit Akella
20.77.
Sunil Kataria
Sorry, it was 20.77
Abhijit Akella
Was
Sunil Kataria
Extraction rate. So because this quarter the overall the number is very small per se for all com business the FFP become very small. Just to give an example that out of our, you know, 6,37,000 FFP process annually, this is just 60 odd thousand tons, you know, so this is a very small which comes in this year. So it’s a very marginal quarter for OPB business per se. But the good part is we were at a 19.766% last year on OER in the same quarter.
Operator
Ladies and gentlemen, please stay connected with lossy management connection. Sa. Sam. Foreign. Ladies and gentlemen, thank you for patiently holding the line. We have the management team back online.
Probal Sen
Yes sir, Apologies, I. You know we got cut off in the middle. I think you were mentioning a number of somewhere around 20 plus extraction but on a smaller base for this quarter. Yeah,
Sunil Kataria
The number was 20.7 on a smaller base. I said the base is so small for us that it just becomes, you know, the base for example is 60,000 on a base of 6.3 lakhs, you know, so this is really a very, very marginal quarter. But the good part is that even on a, you know, such a small base where the leverage really doesn’t come in also into play in operating leverage, our OER was pretty much stronger over last year, same quarter and that direction which tells you about how the processes and the productivity parameters have got established by the teams.
I think that’s a very good sign going forward.
Probal Sen
One last question if I may. In terms of dividend policy, the dividend payout obviously has been a fairly healthy levels of around 45 to 47% in the last couple of years. Any thoughts in terms of how it will proceed? Given that they’re definitely expecting mid teens profitability and EBITDA growth, is it fair to assume that, you know, with CapEx remaining at, you know, somewhere around, let’s say 300 to 350 odd crores, that this number has the potential to go up as well from here?
Sunil Kataria
Honestly this Is something which, you know, very difficult to comment because this is a larger distance which gets taken as the years go results come in. So I would say that we have a very strong policy of giving consistently good dividend. As you yourself mentioned the range of 48 odd percent. And I think this is a call which we will take along with promoters every year as the results come by. And one thing is very clear that if obviously the results are good, I mean it’s always good to, you know, make sure that all the shareholders benefit.
But I think a call which will take more as. As the results come in.
Probal Sen
Understood sir. Congrats on a good set of numbers. I’ll hand back, I’ll go back to the operator.
Sunil Kataria
Thank you. Thank you. Thank you.
Operator
We’ll take our next question from the line of Avijitakela from Kotak securities. Please go ahead.
Abhijit Akella
Thank you so much for the follow up. Just on Aztec would be possible to get your thoughts for the year ahead in terms of the growth expectations, you know, across both CDM as well as enterprise and on the profitability as well. EBITDA side
Sunil Kataria
You would like to pitch in here.
Arijit Mukherjee
So the way the entire industry is behaving is little is a positive sense because Q4 also if you see the numbers Q4 the improvement has been both in terms of the volumes as also the price realizations. This is primarily because more or less the prices are bottomed out. Bottomed out in the sense of the market prices and the competition from China has more or less stabilized. That is primarily because most of the geographies are showing local demands be it China, be it India, the local demands have improved.
So international supplies should be normal right now. So price realization I think has stabilized raw material supplies. If you remove. We don’t know what would be impact long term impact in terms of Iran war or some other problems coming into. But more or less it is stabilized. So I think we should, we should aim like anyway we should aim around 15% of growth in terms of the top line and CDMO should be growing further a little bit higher than the cdo. Margins are intact both in CDMO and for enterprises.
Margins are intact. That is much I can see as of now. Directionally it is a positive growth both for CDMO and for enterprise business.
Sunil Kataria
And maybe I will pitch in. I think one thing which is very clearly looking positive for us in the Aztec front is that I think the work that the team had been doing on the business development side over the last year, I think there are some good early leads emerging for us in The CDMO space, although they still to come to fruition. But I think going forward this is a business which where we’ll keep the CDMO percentage going well in the range of around you know, 52 to 53% plus kind of salient. And while Abhijit is obviously talking about I think a number of around 15, but I believe we have a pretty good shot at something in the range of, you know, 20% kind of a number going forward on this, you know.
Abhijit Akella
Got it, thank you. And just on oil palm, how much of the earnings now come from the value added side of things and how do you expect that category to sort of continue to increase its contribution? Just asking from the context that suppose palm oil prices were to correct a year down the line then I mean how do we cushion the impact on our earnings in that business?
Sunil Kataria
I think that’s a fair question. So one question, one part first I’ll give you maybe a bit of a context that the last year sharp jump of oil palm profitability that we have seen. If I were to purely discount the pricing part of that 65% odd part of that profit which was 70% is come because of our internal efforts. So that I think the good context to have, you know that the pricing play which was abnormal played out last year is still not more than 30 odd percent of our thing. So that tells you the structural strength of the work which is happening.
That is one part second is yes, as part of a strategic exercise that we have done. One clear direction is how do we get into more and more differentiated value added play to further insulate ourselves from any of these pricing, you know, volatility or bearishness that may happen. So what is happening is that this year in May itself we are rolling out our specialty fat refinery also and which will come into full flow from I would say maybe let’s say second half of the year in full fashion. And that will start giving us a very meaningful play in second half onwards into value added products which will then go from strength to strength over a period of next long range plan of four to five years.
Our broad direction is that we would like this business to have roughly around 50 to 55% of its portfolio over a period of maybe FY31 in that direction if I would put coming out of value added products. And that should give us a very, very significant insulation from any kind of price volatility years which could go down into business sense. So I think that’s a very clear direction. When I said from being an upstream player to a complete value added upstream downstream players. That’s the aspiration that we are having for us.
Abhijit Akella
Thank you very much. That’s very helpful on the best.
Operator
Thank you, ladies and gentlemen. We’ll take that as the last question for today. I would now like to hand the conference over to management for closing comments. Over to you, sir.
Nadir Godrej
Thank you. I hope we have been able to answer all your questions. If you have any further questions or would like to know more about the company, we would be happy to be of assistance. Thank you once again for taking the time to join us on this call.
Operator
Thank you, members of the management team, on behalf of ICICI Securities. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.