India Pesticides Q4 FY26 Earnings Call — Analysis (NSE: IPL)
India Pesticides crosses the ₹1,000 Cr revenue milestone in FY26 with 28% top-line growth and 46% PAT jump, underpinned by strong domestic demand and backward integration.
The take
FY26 Revenue ₹1,078 Cr ( +27.9% YoY ) , Q4FY26 +>50% . New guidance — FY27 fy27 consolidated revenue growth 15–20% .
Results
FY26 consolidated revenue ₹1,078 Cr (+27.9% YoY), EBITDA ₹194 Cr (+44.7%, margin 18%), PAT ₹120 Cr (+45.8%); Q4FY26 revenue ₹271 Cr (+28.5% YoY), PAT ₹31 Cr (+40.6%, margin 11.3%).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue | ₹1,078 Cr | +27.9% | yoy · FY26 |
| EBITDA | ₹194 Cr | +44.7% | yoy · FY26 |
| EBITDA margin | 18% | +210 bps | yoy · FY26 |
| PAT | ₹120 Cr | +45.8% | yoy · FY26 |
| Revenue | ₹271 Cr | +28.5% | yoy · Q4FY26 |
| EBITDA | ₹46 Cr | +31.1% | yoy · Q4FY26 |
| PAT | ₹31 Cr | +40.6% | yoy · Q4FY26 |
| PAT margin | 11.3% | point_in_time · Q4FY26 · Q4FY26 | |
| Domestic revenue | ₹183 Cr | +>50% | yoy · Q4FY26 |
| Export revenue | ₹408 Cr | point_in_time · FY26 · FY26, 39% of total revenue | |
| Net working capital days | 223 days | -31 days | yoy · FY26 |
| ROCE | 16.8% | point_in_time · FY26 · FY26 | |
| Capex budget standalone | ₹45 Cr | none · FY27 · budgeted FY27 | |
| Capex budget subsidiary | ₹90 Cr | none · FY27 · budgeted FY27 for 100% subsidiary |
Guidance
Management guided FY27 revenue growth of 15–20%, EBITDA margin of 18–20%, and expects Shalvis subsidiary to contribute ₹70–80 Cr, while reaffirming the ₹3,000 Cr revenue target by FY31.
What management committed to
- [India Pesticides] expects consolidated revenue growth of 15–20% in FY27. — 15–20%, FY27
- Management projects [India Pesticides] EBITDA margin in the range of 18% to 20% for FY27. — 18–20%, FY27
- [Shalvis subsidiary] revenue will be around INR 70 crores to INR 80 crores in this financial year, FY27, including the new block. — INR 70 crores to INR 80 crores, FY27
- [Shalvis] second block is expected to be operational by September or October 2026. — Q3FY27
- Net working capital days of [India Pesticides] are expected to reduce by another 10 to 12 days by FY27. — 10–12 days, FY27
- India Pesticides aims to achieve consolidated revenue of INR 3,000 crores by March 2031. — INR 3,000 crores, FY31
- [India Pesticides'] FY27 capex budget is INR 45 crores, and for its 100% subsidiary [Shalvis], it is INR 90 crores, funded mainly through internal accruals.
Key themes
₹1,000 Cr milestone, Shalvis ramp-up, margin resilience
Operational commentary
- Hamirpur facility development progressing with infrastructure and operational blocks on track, providing a significant pathway for future capacity expansion.
- Commissioned an intermediate plant for backward integration of a herbicide using in-house R&D, reducing import dependency and improving cost competitiveness.
- Formulation capacity scaled up to 10,000 metric tonnes, supported by a distribution network across 18 states with 24 depots and over 340 sales personnel.
- Shalvis subsidiary generated ₹4 Cr revenue in FY26 from its first technical product; targets ₹70–80 Cr in FY27 with two additional molecules and a second block expected operational by Sep–Oct 2026.
- Domestic Q4 revenue surged >50% YoY driven by strong herbicide and intermediate demand; FY26 domestic revenue ₹649 Cr, exports ₹408 Cr (39% of total).
- Received multiple product registrations across domestic and international markets, strengthening future pipeline.
- Japanese partner provided a forecast of 30% volume increase for next year; an additional molecule under discussion with samples already submitted.
Analyst Q&A
Q. What price increases have been taken amid raw material and freight inflation, and can demand sustain at higher prices?
China is increasing prices; we have passed on costs to customers for several products after discussions, and we expect to maintain these prices in coming months. Some sulphur-based products saw larger increases.
Q. How much of the 30% volume growth came from new products like PEDA, Pretilachlor, and the Shalvis block?
Shalvis contributed about ₹4–5 Cr; the major volume increase came from the intermediate PEDA and the herbicide Pretilachlor, driven by the new backward-integration facility.
Q. How is the scale-up with the Japanese partner progressing?
Going well; they provided a forecast for this year and next year that is almost 30% higher. We are also discussing one more molecule and have submitted samples.
Q. Given the Skymet forecast of below-normal monsoon and geopolitical disruptions, is the ₹3,000 Cr FY31 revenue target intact?
We are very much intact; we have a plan in place to achieve ₹3,000 Cr by March 2031 and are working rigorously on that plan.
Q. With strong profitability and low debt, why not increase dividend payout or consider a buyback to boost investor confidence?
We are conserving funds for capex and increased working capital; intrinsic value will increase by reinvesting. This is a very difficult question because it depends on market conditions.
Research and educational content only. Not investment advice.