India Pesticides expects Rs 20-25 crore Argentina sales

India Pesticides expects Rs 20 crore to Rs 25 crore of first-year sales from Argentina after finalising a distribution agreement for its first business in the country, management said on its Q2 and H1 FY27 call. The projected sales concern one existing technical product, while registration of a second molecule is under way.

How much will India Pesticides sell in Argentina?

India Pesticides expects at least Rs 20 crore to Rs 25 crore of Argentina sales in the first year, management said in response to a question on its newly registered product. Management confirmed that the estimate applies to a single molecule, following completion of the distribution agreement. The call did not specify the product name, pricing, margin, shipment date or the precise period covered by the first year.

Argentina is a fresh market for India Pesticides because management said it had not previously done business in the country. The first Argentine product is an existing technical product already made by India Pesticides, rather than a newly developed molecule. Management also said one of the recently registered products is sold in India and export markets, while the other is export-only, without identifying which product applies to Argentina.

The Rs 20 crore to Rs 25 crore figure is management's sales expectation rather than reported revenue. India Pesticides said the Argentina agreement had already been closed and that business should now begin with the distributor. A second molecule could add to the Argentine product range, but management said registration remained in progress after data had been provided.

How will India Pesticides sell products in Argentina?

India Pesticides will sell its first Argentine product through a distributor, following the distribution agreement that management said had been finalised. The agreement provides a commercial route after registration for the existing technical product. India Pesticides did not disclose the distributor's identity, agreement term, minimum purchase terms, exclusivity arrangements or inventory commitments.

The Argentina route differs from the European model described on the Q2 and H1 FY27 call. India Pesticides said it sells formulated products to European formulation companies, which then sell in the market, because India Pesticides does not have registration to sell formulated products directly to consumers there. Orders under the earlier European equivalence approval had already started arriving.

India Pesticides also distinguished the Argentina entry from its UK position. In the UK, management said existing customers already knew India Pesticides and had received letters of access required from the producer. Management expected some UK business in coming months but gave no sales target for the UK comparable with the Rs 20 crore to Rs 25 crore Argentina estimate.

How does Argentina fit India Pesticides' export plan?

Argentina is part of an export-registration programme covering about eight products at different stages, according to management. India Pesticides said four products had already been submitted for registry equivalents in Europe, while data generation was under way for four more. Management named Australia, Europe, Brazil and Canada among the markets where it plans further registrations.

India Pesticides' first Argentina sales target comes after export revenue declined in the first half of FY27. Export revenue fell by Rs 52 crore year on year to Rs 177 crore in H1 FY27, while total revenue declined by Rs 92 crore to Rs 487 crore. Management said overseas demand had remained challenging during the period.

Separately, India Pesticides said it had about Rs 100 crore of export orders from Europe and Australia, partly executed and partly due for execution in coming months. These orders cover existing molecules and include technical-grade material and bulk formulations. Management named water-dispersible granules and emulsifiable concentrates among the formulations it can make at its factories.

What does Argentina mean for India Pesticides' current performance?

Argentina creates a potential new export channel as India Pesticides seeks to recover from a lower first half. Q2 FY27 revenue was Rs 231 crore, compared with Rs 295 crore in Q2 FY26, a 22% year-on-year decline. For H1 FY27, revenue was Rs 487 crore, down 15.9% from Rs 579 crore in H1 FY26 amid geopolitical conditions, supply-chain headwinds and deficient and erratic rainfall.

Profitability also declined in Q2 FY27. Earnings before interest, tax, depreciation and amortisation, or EBITDA, was Rs 33 crore with a 14.4% margin, compared with Rs 54 crore and an 18.2% margin in Q2 FY26. Profit after tax was Rs 18 crore, compared with Rs 32 crore, and management attributed the lower EBITDA margin to higher employee expenses and lower foreign-exchange income.

India Pesticides said Q2 FY27 formulation sales included bulk formulations sold for export. Management added that, after excluding incremental bulk-formulation sales, the formulation share was still higher year on year. It aims to achieve at least the prior year's revenue, with H2 expected to be similar to or slightly better than the previous year's second half so that some of the H1 shortfall can be recovered.

Manufacturing expansion is also part of India Pesticides' plan to support revenue and product economics. Two blocks at the Shalvis facility were operating, 10 blocks were expected to become operational gradually in the coming year, and two further blocks were planned for the following year. Management said about 75% of products were backward integrated and that an intermediate for the herbicide Pretilachlor was now being produced in India, reducing imports of that intermediate to more or less zero.

Conclusion

India Pesticides has converted its Argentina registration into a distributor-led entry and management expects Rs 20 crore to Rs 25 crore of first-year sales from one existing molecule. The planned entry opens a market where India Pesticides had no previous business, while export revenue fell Rs 52 crore year on year to Rs 177 crore in H1 FY27 and total revenue declined Rs 92 crore to Rs 487 crore.

The next points to watch are the start of Argentina sales, progress in registering the second molecule and execution of about Rs 100 crore of export orders from Europe and Australia. Management also plans registration work for about eight products across markets including Australia, Europe, Brazil and Canada, while targeting H2 revenue similar to or slightly above the previous year's second half.