Shares of Best Agrolife Limited witnessed a spectacular rally for the second consecutive trading session, surging more than 14% on Thursday as investor enthusiasm built around the company's proposed corporate actions.
Stock Split and Bonus Share Proposal
The dramatic upmove comes a day after the agrochemical company announced that its board of directors will meet on Wednesday, December 3, 2025 to consider a proposal for sub-division of equity shares and issuance of bonus equity shares. This would mark the first such corporate action since the company's listing.
In an official exchange filing shared during market hours on Wednesday, Best Agrolife stated: "We wish to inform that a meeting of the Board of Directors of Best Agrolife Limited is scheduled to be held on Wednesday, December 3, 2025, to consider, inter alia, the proposal of sub-division/splitting of the face value of the equity shares of the company and issuance of Bonus Equity Shares of the company."
The company emphasized that these proposals are subject to shareholder approval, indicating that the final decision will depend on investor consent.
Remarkable Stock Performance
The market response has been overwhelmingly positive. Best Agrolife shares had already rallied 20% in the previous trading session following the initial announcement. Combined with Thursday's 14% surge, the stock has delivered impressive returns of over 35% in just two trading days.
During Thursday's trading session, the small-cap stock hit an intraday peak of ₹413, representing a significant 14% jump from its previous closing price of ₹361.30. This remarkable performance comes despite the stock being down 36% over the past year.
Challenging Quarterly Results
The stellar stock performance contrasts sharply with the company's recent financial results. Earlier this month, Best Agrolife reported disappointing numbers for the second quarter of financial year 2025-26.
The company witnessed a 30.8% year-on-year decline in revenue, falling to ₹517 crore in Q2 FY26 from ₹747 crore in the same quarter last year. More significantly, profit after tax plummeted by 59% to ₹39 crore from ₹95 crore in Q2 FY25.
Operating margins also came under pressure, with the EBITDA margin experiencing a sharp contraction of 470 basis points to 15% during the quarter. The company attributed these weak results to a combination of erratic rainfall patterns and lower placements in the market.
Despite the challenging quarterly performance, Best Agrolife shares have managed to deliver 17% returns over the past six months. The stock had reached its 52-week high of ₹670 in December 2024 and touched a 52-week low of ₹244.55 in March 2025.
The upcoming board meeting on December 3 will be closely watched by market participants, as the decision on stock split and bonus shares could significantly impact the stock's liquidity and accessibility to retail investors.
