INDIA PESTICIDES LIMITED Q4 FY26 EARNINGS CALL SUMMARY

Event Date: 25 May 2026 (Earnings Call)

Financial Performance Highlights

Q4 FY26 Performance:

  • Total Revenue: ₹271 crores, growth of 28.5% YoY (vs ₹211 crores in Q4 FY25)
  • EBITDA: ₹46 crores, growth of 31.1% YoY (vs ₹35 crores in Q4 FY25)
  • Net Profit: ₹31 crores, growth of 40.6% YoY
  • PAT Margins: 11.3% (improved from previous year)

Full Year FY26 Performance:

  • Consolidated Revenue: ₹1,078 crores, growth of 27.9% YoY (vs ₹843 crores in FY25)
  • First time crossing ₹1,000 crores revenue milestone
  • EBITDA: ₹194 crores, growth of 44.7% YoY
  • EBITDA Margin: 18% (improved from 15.9% in FY25)
  • PAT: ₹120 crores, growth of 45.8% YoY (vs ₹82 crores in FY25)

Geographical and Product Mix

Q4 FY26 Geographical Revenue:

  • Domestic Revenue: ₹183 crores (vs ₹118 crores in Q4 FY25), representing >50% growth
  • Export Revenue: ₹84 crores (vs ₹89 crores in Q4 FY25), slight decrease due to geopolitical issues in March 2026

FY26 Full Year Revenue Breakdown:

  • Domestic Revenue: ₹649 crores
  • Export Revenue: ₹408 crores
  • Export Contribution: Approximately 39% of total revenues

Product Mix FY26:

  • Technicals Revenue: ₹744 crores
  • Formulations Revenue: ₹311 crores

Operational Highlights

Volume Growth: Approximately 30% volume growth during Q4 FY26 supported by higher production levels and efficient execution.

Manufacturing Capacity: Formulation capacity scaled up to 10,000 metric tonnes supported by distribution network across 18 states through 24 depots and over 340 sales personnel.

Backward Integration: Commissioned intermediate plant for backward integration of herbicide using in-house indigenous R&D technology, supporting supply chain stability and reducing import dependency.

Expansion Projects and Capex

Hamirpur Facility: Development work progressed steadily with supporting infrastructure established. Provides pathway for future capacity expansion and specialty product manufacturing.

Shalvis Subsidiary (100% subsidiary):

  • Started one technical product with ₹4-5 crores revenue contribution in FY26
  • Expected revenue of ₹25 crores from current molecule in FY27
  • Two additional molecules to be added in FY27
  • Second block expected operational by September-October 2026
  • Total expected revenue from Shalvis: ₹70-80 crores in FY27
  • Long-term target: ₹1,000 crores revenue by March 2031

Capex Plan FY27:

  • India Pesticides Limited: ₹45 crores
  • 100% Subsidiary: ₹90 crores
  • Total Capex: ₹135 crores
  • Funding: Mainly through internal accruals, with possible small loan in subsidiary
  • Current term loan in subsidiary: ₹27 crores at ~8% cost

Financial Position

Balance Sheet Strength: Maintained strong financial position with disciplined working capital management and low leverage.

Working Capital: Net working capital days improved to 223 days in FY26 from 254 days in FY25. Expected further improvement by 10-12 days in FY27.

ROCE: Improved to 16.8%.

Credit Rating: Current rating A+, next review due September 2026.

Cost of Funds: Working capital blended cost around 7.2-7.3%.

Market and Business Environment

Industry Conditions: Global agrochemical industry conditions gradually improved compared to previous year with channel inventories normalizing and demand visibility improving across international markets.

Geopolitical Impact: Ongoing tensions in Middle East resulted in periodic disruptions in global logistics and supply chain planning, affecting export pricing in some products.

Pricing Environment: Successfully passed on raw material cost increases to customers, particularly for sulfur-based products. Overall price increases varied by product depending on raw material involvement.

Specific Product Updates

PEDA and Pretilachlor:

  • Capacity utilization expected at 70-75% due to seasonal nature (plant stops for ~3 months during August-October)
  • Domestic production largely replaced imports due to anti-dumping duties
  • Margins maintained despite raw material cost increases

Japanese Partner: Forecast for FY27 shows 30% increase over previous year. Discussing one additional molecule with samples submitted awaiting feedback.

Guidance and Outlook

FY27 Expectations:

  • Revenue growth: 15-20%
  • EBITDA Margin: 18-20% range
  • Maintained despite raw material cost pressures through backward integration

Long-term Target: ₹3,000 crores revenue by March 2031, with ₹1,000 crores expected from Shalvis subsidiary and ₹2,000 crores from existing facilities.

Monsoon Impact Assessment: Management believes 6-8% below normal rainfall forecast by IMD should not significantly affect overall agricultural production based on historical patterns.

Dividend Policy

Company paid dividend of ₹0.75 per share. Management emphasized conserving funds for growth investments rather than higher dividends to create long-term shareholder value.