Synopsis: Aristo Bio-Tech & Lifescience Ltd hit the 5 percent upper circuit after securing a Letter of Intent worth Rs. 2.5 crore from National Fertilizers Limited for the supply of agrochemicals. 

An agrochemical stock surged after receiving a significant order, with investors responding positively to the development. The Letter of Intent is set to provide business visibility till March 2026, helping the company strengthen its presence in the agrochemical supply chain.

Aristo Bio-Tech & Lifescience Ltd, with a market capitalization of Rs. 79.41 crore, opened trading at Rs. 113 against the previous close of Rs. 111.10. The stock touched an intraday high of Rs. 116.65, locking at the 5 percent upper circuit limit. 

What’s the News?

The company has received a Letter of Intent (LOI) dated August 13, 2025, from National Fertilizers Limited, which was delivered on August 22, 2025. The LOI, valued at approximately Rs. 2.5 crore, is for the supply of various agrochemicals. The contract is valid from the date of issuance until March 31, 2026.

According to the management, this order is expected to broaden Aristo Bio-Tech’s customer base and contribute positively to its profitability, marking a significant development in its ongoing business growth.

The payment terms for the order specify that settlement will be made within 90 days from the date of invoice. Payments will be released by the concerned zonal office of National Fertilizers Limited, ensuring a structured and time-bound cash flow mechanism for the company.

Financial Snapshot

For the half year ended September 2024 compared to March 2025, sales fell from Rs. 214 crore to Rs. 104 crore, a decline of 51.4 percent. Operating profit dropped sharply from Rs. 8 crore to Rs. 1 crore, down 87.5 percent. Profit before tax slipped from Rs. 6 crore to a loss of Rs. 1 crore, while net profit fell from Rs. 5 crore to a loss of Rs. 49 lakh, reflecting a turnaround into losses.

On a year-on-year basis, comparing March 2024 with March 2025, sales declined from Rs. 112 crore to Rs. 104 crore, a fall of 7.1 percent. Operating profit contracted from Rs. 3 crore to Rs. 1 crore, down 66.6 percent. Profit before tax fell from Rs. 2 crore to a loss of Rs. 1 crore, while net profit declined from Rs. 1 crore to a loss of Rs. 49 lakh, further highlighting margin pressures.

About the Company

Aristo Bio-Tech & Lifescience is a dedicated crop protection company engaged in manufacturing, formulation, supply, and packaging job work for pesticides, including insecticides, herbicides, fungicides, and plant growth regulators. The company caters to both domestic and international markets with a wide range of agrochemicals.

Written by Manan Gangwar 

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.