Concall AI

India Pesticides Limited — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

India Pesticides delivered a strong Q3 FY26, with revenue growing 31% YoY to INR 229 crores and EBITDA up 39.7% YoY, driven by disciplined execution and improved cost efficiency. The company is progressing with capacity expansion at Shalvis and Sandila, and advancing its CDMO pipeline. Management acknowledged concerns regarding market valuation and committed to increased investor engagement.

Highlights

Q3 FY26 revenue of INR 229 crores, up 31% YoY from INR 175 crores in Q3 FY25, demonstrating strong growth momentum.
EBITDA for Q3 FY26 increased 39.7% YoY to INR 41 crores, with margins improving to 18% from 17%, reflecting operating leverage expansion.
Net profit for 9M FY26 grew 44% YoY to INR 89 crores from INR 62 crores last year.
Export sales showed a robust 28% increase, driven by strong demand in Europe and Australia.
Shalvis facility commenced commercial production, with 1 fungicide technical product expected to contribute INR 50 crores in revenue.

Concerns

Some price softening observed in a 'very few products' due to competition from China, though overall realization remained stable.
Market capitalization is perceived by analysts to be struggling despite consistent good performance.
A one-off tax expense related to deferred tax and prior year adjustments impacted the tax rate in Q3 FY26.

Key financials

2 periods

Headline

Revenue
₹229 Cr
YoY +31%
EBITDA
₹41 Cr
YoY +39.7%
EBITDA Margin
18%
Net Profit
₹23 Cr
YoY +41%
PAT Margin
10%

9M

FY26 Revenue
₹808 Cr
YoY +27.6%
FY26 Net Profit
₹89 Cr
YoY +44%
FY26 Capacity Utilization
65%

What they filed

Q1 FY27: revenue down 8.4%, net profit down 34.3% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	229	172	207	275	290 +27%	225 +31%	266 +29%	252 −8%
Expenses	195	146	176	230	242	188	225	216
EBITDA	34	27	32	45	49 +44%	38 +41%	42 +31%	35 −22%
Margin	15%	15%	15%	16%	17%	17%	16%	14%
Other income	5	3	3	9	5	3	4	4
Interest	1	1	1	2	1	1	3	3
Depreciation	4	5	5	5	5	6	5	6
Profit before tax	34	23	29	47	47 +38%	34 +48%	38 +31%	31 −34%
Tax rate	23%	31%	25%	26%	33%	33%	19%	26%
Net profit	26	16	22	35	32 +23%	23 +44%	31 +41%	23 −34%
EPS	2.25	1.40	1.89	3.03	2.74	1.97	2.66	1.97

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Technical and API
73% Revenue Contribution
Formulation
27% Revenue Contribution
B2C
18% Share of Total Turnover

Capital allocation

high confidence

Capex ₹105 Cr Mostly with internal accruals, with small loans of INR 25-30 crores for Shalvis and balance funded by India Pesticides Limited.
- Shalvis facility expansion ₹80 Cr
- Sandila unit expansion ₹25 Cr
- Pretilachlor PEDA plant commissioning
- New blocks at Shalvis (2-3 blocks per year for 3-4 years)
Our company is planning to fuel its capex plan mostly with internal accruals. Our continued focus on innovation will see the regular introduction of new molecules developed through our in-house R&D, ensuring that we remain at the forefront of industry. With this, we would be happy to take your questions. Thank you. (D.K. Jain, Page 5) Capex, madam next year, we are not yet finalized, but it will be around INR80 crores to INR100 crores for Shalvis and about INR25 crores to INR30 crores at our Sandila unit. (D.K. Jain, Page 6) We will be taking some small loans, say, INR25 crores to INR30 crores and balance will be funded by India Pesticides Limited. (S.P. Gupta, Page 7)
Debt Debt disclosed

We will be taking some small loans, say, INR25 crores to INR30 crores and balance will be funded by India Pesticides Limited. (S.P. Gupta, Page 7)
Liquidity Liquidity disclosed Capex plans are mostly funded by internal accruals.

Our company is planning to fuel its capex plan mostly with internal accruals. (D.K. Jain, Page 5)

Guidance & targets

Revenue

FY27 Revenue Growth Revenue · FY27 · High confidence 20%

Next year, we can expect about 20% growth over this year, madam.

— D.K. Jain
Shalvis Facility Revenue Contribution Revenue · next financial year · High confidence INR 80-100 crores

We expect Shalvis to contribute approximately INR80 crores to INR100 crores in the revenue in the next financial year, marking a meaningful scale-up in our technical capabilities.

— D.K. Jain
New Fungicide Technical Product Revenue Revenue · implied next year · Medium confidence INR 50 crores

We have 1 fungicide technical product progressing well, expected to contribute approximately INR50 crores in revenue.

— D.K. Jain
Total Revenue Target (IPL + Shalvis) Revenue · in 5 years · Medium confidence INR 3,000 crores

Looking ahead, in line with promoters' vision to achieve INR3,000 crores in 5 years, we have defined clear internal milestones across product expansion, CDMO scale-up and operational efficiency.

— D.K. Jain
Total Revenue Target Breakdown (by March 2031) Revenue · by March 2031 · High confidence INR 3,100 crores

Madam, what we have worked out is that from Hamirpur, we will be getting about INR1,000 crores to INR1,100 crores. And from the existing technical the Sandila and Dewa Road unit, we will be getting around INR1,500 crores. And then we have B2C segment that is our branded sale, which we expect to be around INR500 crores.

— D.K. Jain
Revenue from New Zealand and Australia Registrations Revenue · implied next year · Low confidence INR 10-15 crores

Ballpark number is difficult to tell at presently. We are still negotiating the technical situation. So maybe at least with these 2 registrations in New Zealand and Australia, we should get at least INR10 crores to INR15 crores.

— D.K. Jain

Margin

FY27 EBITDA Margin Margin · FY27 · High confidence 18-20%

Margin also will be in the similar range, 18% to 20%.

— D.K. Jain

Capacity

Total Production Capacity Capacity · next month · High confidence 29,000 tons

30,000 tons metric capacity, we will not achieve this quarter, sir. We will be achieving presently 28,200 tons. And another 1,000 tons metric, we will be ready by this quarter, next month. So, it will be around 29,000 tons.

— D.K. Jain

Registrations

New Registrations Abroad Registrations · next year · Medium confidence 7-8

And in the coming months, we will be getting more. They are on the way. Already we are working on some 5 reports. So that we will be submitting with the next year, we should be able to get at least 7, 8 registrations abroad.

— D.K. Jain
New Registrations (CIB, Delhi) Registrations · ongoing · Medium confidence similar number

And similar number, we are already having application pending with CIB, Delhi.

— D.K. Jain

What to watch in Q4 FY26

Shalvis Capex Finalization

by March

Current Not yet finalized

Target Finalized with Board approval

Why it matters

Finalization of capex plans for the Shalvis facility is crucial for tracking future capacity expansion and revenue growth drivers.

Yes, By March, we will finalize everything because we have to get the Board's approval also for this. So, in March, we will finalize this and then get the Board approval. (D.K. Jain, Page 11)

Risks & concerns

Market capitalization not reflecting performance
medium

Despite strong financial performance, the company's stock price is perceived to be struggling, which management attributes to lack of visibility and investor engagement.

Analyst acknowledged
Price softening in specific products due to competition
low

Some price softening was noted in a 'very few products' due to competition from China, but management stated overall realizations remained stable.

Management downplayed
Inventory overhang in B2C segment
low

There is a slightly higher level of inventory in the B2C business, but this segment constitutes only 18-20% of total turnover, limiting its overall impact.

Management downplayed

Q&A highlights

6 direct

Market capitalization not reflecting performance Direct

We will make some more efforts on this, sir. We will contact our IR, and we will ask them to have more investor meetings. And as you rightly said that maybe some research reports could be published, we will have an internal meeting, and we will certainly work on this.

An analyst directly challenged management on the stock's underperformance despite good results, leading to a commitment from management to improve investor relations and visibility.

Asked by Ajay Desai

CDMO progress and client interactions Direct

Yes. We are progressing well on this count. With our Japanese friend, they will be visiting us in the first week of March again. And we are quite hopeful that it will get materialized. Similarly, we are having discussions with the other 2 clients, 1 in Australia and 1 in U.S.A. And we have already sent some samples to them. They have approved the samples.

Provides specific updates on the CDMO pipeline, including upcoming client visits and progress with samples, indicating potential for future business.

Asked by Yogansh

Reason for QoQ decline in export revenue Partial

Sequentially, because last quarter, normally, we have normally larger sales in second quarter than in the third quarter. That's why there could be a slight adjustment. And again, that depends upon the geography where we are selling. So sometimes customers, they buy in advance, sometimes they don't buy in advance, they want in the last minute. That is why there is some fluctuation in the export revenues.

Clarifies that the sequential dip in export revenue is due to seasonal variations and customer buying patterns rather than a fundamental decline, addressing a potential concern.

Asked by Lakhan Yadav

Roadmap to INR 3,000 crores revenue target Direct

Madam, what we have worked out is that from Hamirpur, we will be getting about INR1,000 crores to INR1,100 crores. And from the existing technical the Sandila and Dewa Road unit, we will be getting around INR1,500 crores. And then we have B2C segment that is our branded sale, which we expect to be around INR500 crores.

Management provided a detailed breakdown of how they plan to achieve the ambitious INR 3,000 crores revenue target by March 2031, by facility and segment, offering clarity on growth drivers.

Asked by Vidhi Shah

Tax rate for the quarter and full year Direct

This tax expenses includes some deferred tax. Otherwise, our tax rate is 22% plus 10% surcharge around 25% only. This includes some provision for deferred tax current 9M FY26

Clarified that the higher tax rate was due to one-off deferred tax provisions, and the underlying effective tax rate remains around 25%, which is important for future earnings projections.

Asked by Vishvender Singh

Capacity utilization and expansion timeline Direct

30,000 tons metric capacity, we will not achieve this quarter, sir. We will be achieving presently 28,200 tons. And another 1,000 tons metric, we will be ready by this quarter, next month. So, it will be around 29,000 tons.

Provided a clear update on the progress towards the 30,000 MT capacity target, indicating that 29,000 MT will be operational soon, which is crucial for future volume growth.

Asked by Vishvender Singh

Government incentives for Shalvis facility Partial

We are targeting this government incentive in Shalvis facility is limited, but it will be accrued to the company after it start, production in next year. Some letter will be received for that by the Shalvis facility. ... Incentive will be in the percentage of plant and machinery, certain percentage of plant... It will be spread over 10 years after completion of first phase.

Revealed that government incentives for the new Shalvis facility are expected, which could positively impact profitability, although the details and timing of accrual are still being finalized.

Asked by Manish Badani

Realization trends in domestic vs. export markets Direct

We price our product in domestic and international market in a band of 3% to 4% only. ... So, for example, sir, for export, maybe the price could be slightly lower in the sense that we buy the raw material with duty advanced license. So to that extent, the price in the export market gets slightly adjusted. So that is the overall situation. But otherwise, from overall working point of view, more or less same.

Clarified that realizations are generally stable across domestic and export markets, with minor adjustments for exports due to duty advanced licenses, indicating pricing power and stable margins.

Asked by Yogansh

3 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Overview

India Pesticides Limited reported a strong Q3 FY26 performance with total revenue reaching INR 229 crores, marking a 31% year-on-year increase from INR 175 crores in Q3 FY25. EBITDA for the quarter stood at INR 41 crores, up 39.7% YoY, leading to an EBITDA margin expansion to 18% from 17%. Net profit for Q3 FY26 was INR 23 crores, a 41% increase YoY, with a PAT margin of 10%.

9M FY26 Performance Highlights

For the nine months ended December 2025 (9M FY26), the company's revenue was INR 808 crores, representing a 27.6% growth compared to INR 633 crores in the corresponding period last year. Net profit for 9M FY26 grew significantly by 44% YoY to INR 89 crores from INR 62 crores. The 9M FY26 capacity utilization was approximately 65%.

Capacity Expansion and New Projects

The company is actively pursuing capacity expansion initiatives. The Shalvis facility has commenced commercial production, with the first block operational and the second expected by August/September 2026. This facility is projected to contribute INR 80-100 crores in revenue in the next financial year. Additionally, the intermediate Pretilachlor PEDA plant has been commissioned, enhancing backward integration and cost competitiveness. The company aims to add 2-3 blocks annually for the next 3-4 years at Shalvis, targeting INR 1,000 crores revenue from this site in 5 years.

CDMO and R&D Pipeline

India Pesticides is making good progress on the CDMO front, with projects underway with customers from Japan, the U.S.A., and Australia. A Japanese client is scheduled to visit in March, and samples sent to U.S. and Australian clients have been approved. The company has 1 fungicide technical product progressing well, expected to contribute approximately INR 50 crores in revenue. The R&D-driven approach remains core to the company's strategy, focusing on process chemistry optimization and product technology to improve yields and reduce input costs.

Revenue and Margin Outlook

Management expects approximately 20% revenue growth for FY27, with EBITDA margins maintained in the 18-20% range. The company's long-term vision is to achieve INR 3,000 crores in revenue within 5 years (by March 2031), with contributions from Hamirpur (INR 1,000-1,100 crores), existing technical units (Sandila and Dewa Road) (INR 1,500 crores), and the B2C segment (INR 500 crores). Export sales increased 28% and domestic sales 33% in 9M FY26, with technical and API products accounting for 73% of Q3 FY26 revenue.

Capital Expenditure Plans and Funding

For the next financial year, the company plans capex of approximately INR 80-100 crores for Shalvis and INR 25-30 crores for the Sandila unit. These investments are primarily aimed at capacity expansion and strengthening backward integration. The capex will be largely funded through internal accruals, with a small portion (INR 25-30 crores) potentially sourced through loans, maintaining a disciplined capital allocation approach.

Sustainability Initiatives

India Pesticides has made significant strides in enhancing its renewable energy capabilities. The company has successfully begun receiving a 6 megawatt solar power supply at its Sandila unit from a group captive solar plant. This initiative underscores the company's commitment to sustainable practices and reducing reliance on conventional power sources, aligning with global environmental responsibility standards.

This is an AI-generated summary of a publicly available earnings call transcript.

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