Financial Performance Overview

Full Year FY26 (vs FY25):

  • Revenue from operations increased from ₹2,000 crores to ₹2,140 crores (7% growth)
  • Gross profit increased from ₹641 crores to ₹675 crores (5% growth)
  • EBITDA increased from ₹221 crores to ₹227 crores (3% growth)
  • PAT declined from ₹142 crores to ₹139 crores due to increased deferred tax provision of ₹9 crores

Q4 FY26 Performance:

  • Registered approximately 19% growth supported by both B2C and B2B business
  • Premium products delivered 24% growth during the quarter

Segment-wise Revenue Contribution (FY26):

  • B2C: 73%
  • B2B: 22%
  • Exports: 5%

Product Category Revenue (FY26):

  • Patented products: ₹322 crores
  • Combination products: ₹324 crores
  • In-licensing products: ₹226 crores
  • Products launched during the year: ₹40 crores
  • Products launched last year: Increased from ₹23 crores to ₹82 crores

Operational and Strategic Highlights

Premiumization Strategy:

  • Over the last 3 years, launched more than 25 products
  • Premium products continue to outperform with 24% growth in Q4
  • R&D developed products (Torry Super, Centran SC, Centran granule, Amuse) receiving excellent farmer response

Global Partnerships:

  • Collaboration with Nissan: Launched Altair during the year
  • Collaboration with Corteva: Launched SPARCLE, Granuvia, with SPINOACE and Green Mix upcoming
  • Expect additional differentiated technologies and premium solutions from Corteva
  • Total launches under partnerships expected to reach four

Kaeros Subsidiary:

  • Strategic growth platform positioned as future-ready agri-science platform
  • Portfolio covers insecticides, herbicides, fungicides, bio-stimulants, micronutrients, and plant health products
  • Three-point strategy: brand building, direct imports from China, B2B activities (P2P)
  • Purchased for less than ₹6 crores two years back, PAT margin above ₹5 crores in current year
  • Current revenue: ₹111 crores, target to double sales in current fiscal
  • Aiming to contribute 5-8% to IIL's volume

Manufacturing and Capacity:

  • Manufacturing facilities at Sotanala and Dahej provide sufficient capacity headroom
  • Dahej technical plant recently added new building (L&T) with manufacturing just started
  • Sotanala formulation plant target start: Diwali 2026
  • Sotanala technical plant target start: March-April 2027
  • Capex requirement: ₹25-30 crores maintenance capex after FY27 project completion

Brand Building and Farmer Engagement:

  • Team of 90 field marketing managers and 1,000+ crop advisers
  • ICS (Insecticides India Crop Solutions) plot program: ₹30+ crores last year, target to double this year
  • Touched more than 75 lakh farmers in previous year
  • Conducting 70+ ICS plots across paddy, chili, maize, cotton, and other crops

Management and Governance

  • Mr. Sanskar Aggarwal (MD's son) joined the Board of Directors
  • Company proposed ESOPs for older employees as gift and to attract new talent
  • First strategic move from the new generation leadership

Outlook and Guidance

FY27 Outlook:

  • Cautiously optimistic about demand environment
  • Pricing actions may support decent growth during upcoming season
  • Raw material prices elevated due to geopolitical tensions
  • Monitoring El Nino impact, crop mix changes, particularly in dry crops

Strategic Targets:

  • Working capital reduction target: Achieve 120-day cycle from current 140-150 days
  • Export growth target: Increase from 5% to 10% over next 2-3 years
  • Focus on CDMO relationships and technical exports
  • Premium product contribution target: Increase from current 60-63% to 70% in 3-4 years

Raw Material and Pricing Environment

  • Raw material prices increased sharply (up to 10%+, higher for crude-linked products)
  • Geopolitical situation creating supply side constraints
  • Two price increases taken in April 2026
  • Market currently sluggish in May due to rising heat, waiting for monsoons
  • Expect improvement in June as monsoons hit Indian coastline

Working Capital and Finance Costs

  • Working capital remains at elevated levels
  • Finance cost increased significantly in FY26: ₹16.87 crores vs ₹6.86 crores in FY25
  • Target to reduce interest cost by 25-30% in FY27
  • Focus on reducing inventory levels and improving DSO (Days Sales Outstanding)

R&D and Innovation

  • Studying 9,000-10,000 products annually through R&D center established in 2014
  • Filed about a dozen patents from JV
  • Expecting first Indian patent filing in current year
  • Specialized team of doctors conducting 500-600 trials annually, resulting in 10-15 viable products

Distribution Strategy

  • Maintaining separate distribution networks for IIL and Kaeros brands
  • No common distributors between both companies
  • Strategy to avoid channel conflict while expanding market reach
  • Current sales force: 700+ headquarters for sales, 1,400+ crop advisers at peak