India Pesticides targets FY26 revenue on Rs 100 crore orders

India Pesticides is aiming to maintain FY27 revenue at its FY26 level after H1 FY27 revenue declined 15.9% year on year to Rs 487 crore, with management citing about Rs 100 crore of export orders from Europe and Australia as support for a second-half recovery. The orders cover existing technical-grade products and bulk formulations.

Why is India Pesticides aiming for FY26-level revenue?

India Pesticides is aiming to maintain revenue at the FY26 level because management described demand, geopolitical conditions and supply-chain disruptions as difficult to estimate after a weak first half. Management said it wanted to cover the revenue gap of the first six months, while characterising the objective as at least matching last year's revenue rather than projecting growth above FY26.

H1 FY27 revenue was Rs 487 crore, down Rs 92 crore from Rs 579 crore in H1 FY26, while export revenue fell Rs 52 crore to Rs 177 crore. Management said H2 FY27 should be similar to or slightly better than H2 FY26, allowing India Pesticides to compensate partially for the first-half shortfall.

The Q2 FY27 result showed a sharper revenue decline than the half-year figure. Revenue fell 22% to Rs 231 crore from Rs 295 crore in Q2 FY26, while technicals and active pharmaceutical ingredients contributed Rs 115 crore and formulations contributed Rs 111 crore. The two segments were therefore nearly equal contributors to quarterly sales.

What do the Rs 100 crore export orders cover?

India Pesticides said it has about Rs 100 crore of orders from Europe and Australia, partly executed with the remaining balance scheduled for execution in coming months. Management said these are orders for existing molecules, rather than new product launches, and include both technical-grade material and bulk formulations.

The bulk formulations include water-dispersible granules and emulsifiable concentrates. Management said supplying formulations to certain customers produces somewhat more margin overall, while the orders followed a dull prior quarter and are expected to help address the H1 FY27 revenue deficit.

The Rs 100 crore order value is material against H1 FY27 export revenue of Rs 177 crore, but management did not provide a country-level split or say how much is incremental to FY27 sales. It also said certain orders expected in Q2 FY27 had shifted into Q3 FY27, which partly explains the timing difference in export revenue.

India Pesticides said it had also received Q3 FY27 inquiries for a rice herbicide that recorded lower sales in Q1 FY27. Management expects the combination of deferred export orders and fresh inquiries to help normalise inventory by Q4 FY27, linking order execution to working-capital movement.

How did India Pesticides' profitability change in H1 FY27?

India Pesticides reported H1 FY27 EBITDA of Rs 73 crore, down from Rs 108 crore in H1 FY26, and its EBITDA margin fell to 14.9% from 18.6%. PAT declined to Rs 41 crore from Rs 67 crore, with the PAT margin at 8.5% for the first half.

In Q2 FY27, EBITDA was Rs 33 crore against Rs 54 crore a year earlier, while the EBITDA margin narrowed to 14.4% from 18.2%. Management attributed the quarterly margin movement to higher employee expenses and lower foreign-exchange income, alongside volatility in raw-material prices and freight charges.

Job-work charges also increased within other expenses. India Pesticides said Q2 FY27 job-work charges were about Rs 12 crore, compared with about Rs 6 crore in Q2 FY26, because it moved from directly buying one intermediate to getting raw material converted through job work.

India Pesticides sources more than 65% of its raw materials from India, about 20% from China and the remainder from other countries. Management said nearly 75% of products are backward integrated, including an indigenously manufactured intermediate for the herbicide pretilachlor that has largely replaced imports of that intermediate.

Which overseas markets could add future revenue?

India Pesticides has begun receiving European orders following an earlier European equivalence approval, but it will sell formulated products through formulation companies rather than directly to consumers. Management said it does not have the registration needed to market formulated products directly in Europe.

Argentina is a new market for India Pesticides, where management said a distribution agreement has been finalised. It expects Rs 20 crore to Rs 25 crore of first-year business from one molecule, while registration work is under way for a second molecule after the company submitted data.

In the United Kingdom, India Pesticides said existing customers have received letters of access, which management expects to enable some business in coming months. The UK approval concerns an existing molecule already sold in that market, whereas Argentina represents the company's first business entry into that territory.

Management also disclosed four products for which European registration equivalents have already been applied for, plus four products in data generation. Those eight products are intended for registrations across Australia, Europe, Brazil and Canada, although management did not provide revenue targets for those applications.

What capacity plans support India Pesticides' recovery effort?

India Pesticides has installed capacity at Dewa Road and Sandila of 28,300 metric tons of technicals and 10,200 metric tons of formulations. At Hamirpur, two of 10 planned blocks are operating and management expects two more blocks to become operational early next year.

Hamirpur has permitted capacity of 30,000 metric tons of technicals and 6,000 metric tons of formulations. Management is revisiting its planned product portfolio because raw-material availability, price movements and demand patterns have changed, but said the multipurpose plant can accommodate different approved products with minor modifications.

In September 2026, India Pesticides capitalised about Rs 65 crore of blocks that became operational at its subsidiary. Management expects those blocks to generate Rs 40 crore to Rs 50 crore of additional turnover in H2 FY27 while they remain in the stabilisation stage.

For the following year, management said it was targeting asset turnover of two times on about Rs 40 crore of incremental capital expenditure, excluding infrastructure costs. That target implies at least Rs 80 crore of additional revenue, while FY27 capital expenditure guidance for the subsidiary was reduced to Rs 80 crore to Rs 90 crore as the second phase is reviewed.

Conclusion

India Pesticides is pursuing a recovery plan rather than a return to a stated growth outlook. The plan depends on executing Europe and Australia orders, increasing bulk-formulation sales, entering Argentina and using newly operational subsidiary blocks, after first-half revenue, exports, EBITDA and PAT all declined from H1 FY26.

The next disclosed markers are execution of the unfulfilled portion of the Rs 100 crore export orders, inventory normalisation by Q4 FY27 and commissioning of two more Hamirpur blocks early next year. Management's Rs 40 crore to Rs 50 crore H2 FY27 subsidiary-turnover expectation and its reassessment of Hamirpur's product mix will also determine the pace of the planned recovery.