Bayer CropScience Reports 12.3% Profit Growth in Q2, Declares ₹90 Interim Dividend

Bayer CropScience Limited has posted a significant 12.3% rise in its net profit for the second quarter ended September 30, 2025, compared to the same period last year, reaching ₹152.7 crore. This profit growth was achieved despite a 10.6% decline in revenue, which fell to ₹1,553.4 crore from ₹1,738.2 crore a year ago. The company's operational efficiency improved, with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increasing by 11.4% to ₹204.9 crore, and operating margins expanding to 13.19% from 10.59% year-on-year.

Factors contributing to the profit increase include a favourable sales mix, stabilised input costs, reduced provisioning for doubtful receivables, and stringent cost management, as stated by Chief Financial Officer Vinit Jindal. Vice Chairman and Managing Director Simon Wiebusch noted that prolonged and excessive rainfall impacted field activities and crop protection sales, but the corn seed business continued to show strong growth.

In a significant move for shareholders, the board of directors declared an interim dividend of ₹90 per equity share, amounting to a total payout of ₹4,045 million. The record date for this dividend is November 14, 2025, and payment is scheduled for December 3, 2025.

Impact: This news is positive for Bayer CropScience shareholders due to the profit growth and substantial interim dividend. It indicates resilient operational performance despite adverse weather conditions. The dividend payout can boost investor confidence and potentially lead to increased demand for the company's shares if it were listed. This news is relevant for the Indian agrochemical sector, highlighting performance drivers and challenges. Impact rating: 6/10

Difficult terms: EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. This metric shows a company's operating profitability before accounting for financing costs, taxes, and non-cash expenses like depreciation and amortization. Provisioning for doubtful receivables: An accounting practice where a company estimates and sets aside funds to cover potential losses from customers who may not be able to pay their debts. Interim dividend: A dividend payment made to shareholders during the company's financial year, before the final annual dividend is declared. Hybrids (in corn seed business): Seeds created by cross-pollinating two genetically different parent varieties, often resulting in improved traits like higher yield, disease resistance, or better adaptation to environmental conditions.