Financial Performance Highlights

Q2 FY27 Results (Standalone)

  • Revenue: INR 231 crores (22% decline YoY from INR 295 crores in Q2 FY26)
  • EBITDA: INR 33 crores with 14.4% margin (vs INR 54 crores and 18.2% in Q2 FY26)
  • Profit After Tax: INR 18 crores with 8% PAT margin (vs INR 32 crores in Q2 FY26)
  • Revenue split: Technicals and API - INR 115 crores; Formulations - INR 111 crores

H1 FY27 Results (Standalone)

  • Revenue: INR 487 crores (15.9% decline YoY from INR 579 crores in H1 FY26)
  • EBITDA: INR 73 crores with 14.9% margin (vs INR 108 crores and 18.6% in H1 FY26)
  • Profit After Tax: INR 41 crores with 8.5% PAT margin (vs INR 67 crores in H1 FY26)
  • Operating cash flow: INR 48 crores generated during H1 FY27
  • Net cash position: Increased to INR 36 crores as of September 30, 2026 from INR 29 crores at March end

Operational and Business Updates

Export Performance

  • Export revenue: INR 177 crores during H1 FY27 (vs INR 229 crores in H1 FY26)
  • Received export orders worth INR 100 crores for coming quarters from Europe and Australia
  • Orders include mix of technical grade material and bulk formulations (WDG and EC types)
  • Serving customers across 35+ countries with 60+ international customers

Regulatory Approvals

  • Received technical equivalence approval for insecticide product in United Kingdom
  • Received registration for herbicide product in Argentina (first entry into Argentine market)
  • Anticipated revenue from Argentina entry: INR 20-25 crores in first year
  • Second molecule registration underway in Argentina
  • 4 more products in pipeline for registration equivalency in Europe

Manufacturing and Expansion

  • Total installed capacity: 28,300 metric tons of technicals and 10,200 metric tons of formulations
  • Hamirpur subsidiary: 2 of 10 planned blocks operational, 2 additional blocks expected operational early next year
  • Permitted capacity at Hamirpur: 30,000 metric tons of technicals and 6,000 metric tons of formulations
  • Capitalization of INR 65 crores in subsidiary for operational blocks
  • Target additional revenue from subsidiary: INR 40-50 crores in H2 FY27, INR 80 crores next year

Backward Integration

  • 75% of products are backward integrated
  • Successfully developed indigenous production of Pretilachlor intermediate, eliminating imports
  • Developed backward integrated intermediate production facility for 2 more molecules
  • Job work charges increased to INR 12 crores in Q2 FY27 (vs INR 6 crores in Q2 FY26)

Raw Material Sourcing

  • 65% sourced from India, 20% from China, remaining from other countries
  • Facing challenges from supply chain disruptions and raw material price volatility

Guidance and Outlook

  • Aiming to achieve full-year revenue similar to FY26 levels (INR 1,041 crores)
  • Targeting to compensate for H1 shortfall with improved H2 performance
  • Capex guidance: INR 40-45 crores for IPL, INR 80-90 crores for subsidiary in FY27
  • Expecting inventory normalization by Q4 FY27
  • Maintaining current EBITDA margin levels going forward

Management Commentary

  • Challenging quarter due to geopolitical uncertainty, softer overseas demand, and raw material volatility
  • Deficient and erratic rainfall affected agricultural activity in key states (Maharashtra, Andhra Pradesh, Karnataka, Telangana, Punjab, Haryana)
  • Revisiting product portfolio at Hamirpur plant due to geopolitical situation and supply chain problems
  • Focus on commercializing products in newly approved markets and improving manufacturing economics