India Pesticides Ltd

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.

EU TEQ approval for fungicide

• EU TEQ approval granted for India Pesticides fungicide product.
• Date of approval: 15-07-2026.
• Product targets international markets, specifically the European Union.
• Expected to strengthen export revenue and foreign exchange earnings.

EU TEQ approval details

• EU TEQ approval granted for India Pesticides’ fungicide product.
• Launch date: 29-05-2026; product targets international market, including the EU.
• Expected to strengthen export business and foreign exchange earnings.
• Product name: Fungicide; category: Pesticides; international scope: European Union.

Status of dematerialisation/rematerialisation

• The Registrar and Share Transfer Agent processed the dematerialisation/rematerialisation details and furnished them to all stock exchanges.
• Details of securities dematerialised/rematerialised have been furnished to all stock exchanges where shares are listed.

Tax Demand Update

• Notice of Demand under Section 156 for block period 01 Apr 2018 to 10 Feb 2025.
• Tax demand ₹7,09,58,949; additions ₹10,12,15,449 related to stock and unaccounted sales.
• Block assessment initiated after 12 Dec 2024 search and seizure.
• Company believes demand is not tenable; evaluating remedies and appeal.
• Management expects no material financial impact.
• Communication date 29 June 2026; authority: Asst Commissioner, Lucknow.

FY26 results

• India Pesticides Limited announced audited Q4 and FY26 consolidated results.
• FY26 total income rose 27.9% year-on-year to Rs. 1,078 crore.
• FY26 EBITDA increased 44.7% year-on-year to Rs. 194 crore.
• FY26 EBITDA margin improved to 18.0%.
• FY26 net profit increased 45.8% year-on-year to Rs. 120 crore.
• FY26 PAT margin was 11.1%.

Operational performance

• FY26 volume growth was about 29%, supported by higher capacity utilization.
• Q4 FY26 revenue grew 28.5% year-on-year, driven by herbicides and intermediates demand.
• Technical and API segments contributed 71% of total revenue.

Business developments

• The company crossed Rs. 1,000 crore revenue for the first time in FY26.
• Management cited multiple product registrations across Indian and international markets.
• The company highlighted ongoing capacity expansion, backward integration, and innovation-led manufacturing.

Business

• India Pesticides makes agrochemical technicals, formulations, and intermediates for Indian and global customers.
• It operates two R&D centres and uses project engineering to optimise capex and scale-up.

Operations

• FY26 revenue mix was 71% technicals and APIs, with formulations contributing 29%.
• Hamirpur has two operating blocks; two more blocks are planned for FY2027.
• The company sells directly to customers in 35+ countries and 18 Indian states.

Financials

• FY26 revenue rose 27.9% YoY to Rs 1,078 crore.
• FY26 EBITDA increased 44.7% YoY to Rs 194 crore; margin improved to 18.0%.
• FY26 PAT grew 45.8% YoY to Rs 120 crore; margin improved to 11.1%.
• Q4 FY26 revenue was Rs 271 crore, EBITDA Rs 46 crore, and PAT Rs 31 crore.

Capital

• Debt-to-equity was 0.1x, indicating a low-leverage balance sheet.
• Export turnover was Rs 408 crore in FY26.
• CFO was Rs 62 crore, supporting shareholder value creation through operating cashflows.

Outlook

• Management expects growth from capacity expansion, backward integration, and new product registrations.
• Hamirpur expansion provides a pathway to 30,000 MTPA technicals capacity.
• The company aims to strengthen domestic and international market presence through innovation-led manufacturing.

Governance

• Mr. Vishwas Swarup Agarwal joined the board effective 23 January 2026.
• The board included 33% independent directors and 11.11% female board composition.
• Key executives were Dheeraj Kumar Jain as CEO, Satya Prakash Gupta as CFO, and Narendra Ojha as Company Secretary.