India Pesticides Ltd

India Pesticides Limited: Trading window closed from 01 October 2026 till the conclusion of 48 hours after the declaration of Un-audited Financial Results for the quarter and half year ended 30 September 2026.

Rating action details

• Rating action: Reaffirmed for long-term and short-term bank facilities.
• Long Term/Short Term Bank Facilities: ₹100 crore; ratings CARE A+/Stable.
• Short Term Bank Facilities: ₹80 crore; rating CARE A1+.
• Facility size increased to ₹100 crore from ₹80 crore.
• Outlook: Stable for the long-term rating.
• Rating Agency: CARE Ratings Ltd.
• Rationale: Based on FY26 audited and Q1FY27 unaudited performance.
• Material change: uplift in facility size; ratings reaffirmed.
• Date: September 18, 2026.

International regulatory approvals

• Received Technical Equivalence approval for one insecticide product in the United Kingdom.
• Secured registration for one herbicide product in Argentina.
• Expands international growth strategy by accessing UK and Argentina markets.
• Aims to broaden export portfolio and engage new international customers.
• Will continue regulatory registrations and product development to scale global business.
• CEO comments on diversification of international revenue.
• Dated September 18, 2026, Lucknow, India.

Regulatory approvals

• UK Technical Equivalence approval obtained for one insecticide product.
• Argentina registration secured for one herbicide product.
• Approval dates: 15-09-2026 for both products.
• Implication: strengthens international growth and potential foreign exchange earnings.

AGM Details

• AGM held on 31 August 2026 through VC/OAVM at 12:00 P.M.
• Remote e-voting conducted Aug 28–30, 2026; in-meeting voting open 15 minutes after.
• Attendance: 67 members attended.

Key Resolutions

• Resolution 1 (Ordinary): Adopt audited standalone and consolidated financial statements for FY2025-26.
• Resolution 2 (Ordinary): Declare final dividend on equity shares for FY2025-26.
• Resolution 3 (Ordinary): Re-appoint Kuruba Adeppa as Whole-Time Director on rotation.
• Resolution 4 (Special): Increase remuneration of Kuruba Adeppa, Whole-Time Director.
• Resolution 5 (Special): Increase remuneration of Udaya Bhaskar Mantripragada, Whole-Time Director.
• Resolution 6 (Ordinary): Ratify remuneration of Cost Auditors for FY2026-27.

Voting Status

• Voting results to be submitted separately; Scrutinizer’s report within the timeline.

Dividend

• Final dividend on equity shares proposed for FY2025-26.

Directors & Remuneration

• Kuruba Adeppa re-appointed as Whole-Time Director.

Auditors & Remuneration

• Remuneration of Cost Auditors for FY2026-27 ratified.

Financial Performance

• Q1 FY27 revenue ₹256 cr; down 9.2% YoY from ₹282 cr.
• EBITDA ₹39 cr; margin 15.4%.
• PAT ₹23 cr; margin 8.9%.
• Export revenue ₹89 cr; exports ~35% of total.
• Domestic revenue ₹167 cr; chemicals ₹181 cr; formulations ₹72 cr.
• Cash balance ₹59 cr as at 30 Jun 2026.
• Receivable days ~120; inventory days ~200; inventory higher vs year-ago.

Operational Update

• Hamirpur facility: 2 of 10 blocks operational.
• Sandila capacity: 28,300 MT technical; ~10,200 MT formulated.
• Formulation capacity: 10,200 MT; network across 18 states, 24 depots, 370 sales professionals.

Capex and Projects

• Capex: Hamirpur ₹70–₹100 cr per year; Sandila ₹25–₹30 cr per year.
• Total annual capex guidance: ~₹100 cr per year.
• Capacity utilization: around 70%.
• Shalvis/exports: TEQ EU approval expands EU access; roadmap to growth via new blocks.

Guidance and Outlook

• FY27 top-line growth expected to be lower single-digit; Q3 and Q4 expected to be better.
• Sustainable EBITDA margin around 18%; current quarter 15.5%.
• Capex funded through internal accruals; no term loans planned.
• Shalvis revenue target for FY27: ₹50–60 cr; path to ₹1,000 cr in 3–4 years.

Q&A Highlights

• Execution priorities: domestic fungicide enhancement; Hamirpur multipurpose herbicide plant.
• Risks: demand shifts, regulatory changes, competitive pressure; mitigated via internal funding.
• Receivables stable; inventory elevated due to anticipated higher sales.
• New China fungicide: domestic production at Sandila; price ₹500–₹600 per kg; ~2,000 t capacity from IPL.
• Shalvis: two blocks per year; FY27 revenue ₹50–₹60 cr; total potential ₹1,000 cr over 3–4 years.

Risks and Watchpoints

• Monsoon variability impacting domestic demand; pricing and raw-material cost volatility.
• Export growth contingent on EU approvals and global supply dynamics.
• Receivables and working-capital cycle influenced by seasonality and volatilities.

Meeting Details

• 13 August 2026 at 12:30 PM.
• Audio earnings conference call (virtual).
• Event: Q1 FY2027 Conference Call Recording (June 2026) by India Pesticides.
• Quarter ended 30 June 2026.
• Results approved by Board on 1 August 2026.

Participants

• Board of Directors (governance) participants.
• Company Secretary and Compliance Officer present.

Purpose

• Discuss unaudited Q1 FY2027 results for quarter ended 30 June 2026.

Additional Notes

• Recording available on company website.

Financials at a glance

• Revenue from operations (Standalone): 1057.11 Cr; up 27.5% YoY.
• Total Income (Standalone): 1078.35 Cr; growth supported by higher volumes.
• PAT (Standalone): 122.29 Cr; up 44.9% YoY.
• EPS (Basic): Rs 10.62; EPS (Consolidated): Rs 10.40.
• Dividend recommended: Rs 0.75 per share; total payout Rs 8.63 Cr.
• Net debt: Standalone -34.02 Cr; Consolidated net cash -9.87 Cr.

Capacity & operations

• Total technical capacity: 28,200 MTPA; Formulations capacity: 10,000 MTPA.
• Formulation capacity expanded by 3,500 MT to 10,000 MT/yr.
• Hamirpur expansion provides potential 30,000 MTPA capacity.
• PEDA intermediate capacity increased from 2,000 to 6,000 MT/yr.
• Three facilities: Dewa Road Lucknow, Sandila Hardoi, Hamirpur.

R&D & product development

• 28 new product registrations in FY2026.
• EU TEQ approval for one fungicide product.
• Two DSIR-recognised in-house R&D labs; 25 scientists; 20+ years experience.
• Indigenous intermediate plant commissioned; Backward integration emphasis.
• SSL had 50 registrations for indigenous/export manufacturing by Mar 2026.

Exports & markets

• Domestic revenue: Rs 649.47 Cr; Export revenue: Rs 405.37 Cr; total Rs 1,054.84 Cr.
• Exports contribute around 40% of revenue; 35+ countries served.
• Sales network: 24 depots across 18 Indian states; 350+ sales personnel.

ESG, CSR & sustainability

• Energy: total energy 840,332 GJ; intensity 0.0000792 per turnover.
• Water: withdrawal 273,676 KL; water intensity 10.03 KL/MT.
• Zero Liquid Discharge (ZLD) at plants; biomass and solar energy usage.
• CSR spend: Rs 0.70 Cr; shortfall Rs 1.90 Cr; CSR policy on CSR activities.

Governance & people

• Board size 9; Independent Directors: 3; Independent Chair: Dr. Madhu Dikshit.
• ESOP: 4,54,640 options; 15% discount; approvals obtained.
• Remuneration: 10% uplift approved for Dr. Kuruba Adeppa and Dr. Udaya Bhaskar Mantripragada.
• Auditors: Statutory – Suresh Surana; Cost – Honey Singh; Secretarial – GSK & Associates.
• AGM 41st scheduled for Aug 31, 2026; multiple board/committee meetings held.

Debt & liquidity

• Total debt: Standalone Rs 74 Cr; Net debt (cash) -Rs 34.02 Cr.
• Consolidated total debt Rs 106.90 Cr; Net debt (net cash) -Rs 9.87 Cr.
• Credit rating: CARE A+; Short-term A1+; diversified funding; working capital facilities in place.

Dividend & capital structure

• Authorized share capital: Rs 15 Cr; Paid-up share capital: Rs 11.516 Cr.
• Promoter stake: 63.65% as of 31 Mar 2026.
• ESOP approvals for up to 28,79,088 shares; dividend once approved at AGM.

Meeting Details

• Q1 FY27 earnings conference call on 13 August 2026 at 12:30 IST; virtual.

Participants

• Key participants: CEO and CFO of the company.

Purpose

• Discuss unaudited standalone and consolidated results for quarter ended 30 June 2026.

Additional Notes

• Hosted by India Pesticides Limited; DiamondPass registration required.