1:2 Bonus and 1:10 Stock Split: Chemical stock jumps 7% after board approves bonus and share split

The stock climbed sharply after approval of a bonus issue and stock split, improving affordability and liquidity. Despite this positive trigger, recent quarterly performance remains weak, guidance has been lowered, and capex plans deferred due to muted demand and seasonal challenges.

The shares of the prominent Agrochemical Pesticide manufacturer gained up to 7 percent in today’s trading session after the company’s board approved the issue of bonus shares & stock split in the ratio of 1:2 and 1:10.

With a market capitalization of Rs 955.25 crore, the shares of Best Agrolife Ltd were trading at Rs 404.00 per share, increasing around 3.79 percent as compared to the previous closing price of Rs 389.25 apiece.

Bonus & Stock Split

The shares of Best Agrolife Ltd have seen positive movement after its board approved a major corporate action. The company will split each  Rs 10 face value share into 10 shares of  Rs 1 each, subject to shareholder approval at the EGM, improving stock affordability and liquidity.

Along with the split, the company also announced a bonus issue in the ratio of 1:2, granting one bonus share for every two shares held. This move boosts shareholder value, increases outstanding equity, and often enhances investor participation in the stock.

Financial Highlights & Guidance

The company reported a sharp slowdown in Q2FY26 performance. Revenue fell 31% year-on-year to  Rs 517 crore, reflecting weaker business traction. Profitability took a bigger hit, with net profit dropping 59% to  Rs 39 crore. The steep decline points to margin pressure and softer demand during the quarter.

The company has revised its FY26 revenue guidance downward to around  Rs 1,500 crore from the earlier estimate of  Rs 1,700 crore. Management cited a conservative outlook due to lower debtors and inventory levels, along with seasonal disruptions in certain regions impacting overall sales momentum.

For the second half, it aims to maintain EBITDA margins of 13–14% and remain PAT positive in both Q3 and Q4. With  Rs 898 crore already achieved in H1, about  Rs 600 crore is targeted in H2, supported by a better product mix, lower sales returns, and tighter cost control.

Furthermore, the company has decided to put its planned capital expenditure on hold, mainly delaying the expansion of its Gajraula plant. Management said extremely weak monsoons led them to shift focus toward stabilising core operations and tightening finances. As a result, the project timeline has been pushed back by 3–6 months and is unlikely to begin in H2 FY26.

Best Agrolife Ltd is a leading Indian agrochemical manufacturer focused on crop protection solutions. The company has a strong product portfolio across herbicides, insecticides, and fungicides, serving both domestic and export markets. It is known for innovation, patented products, and a growing farmer-centric distribution network.

Written by Abhishek Singh

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