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.