India Pesticides FY26: Crossing 1,000 crore revenue, with Hamirpur and Shalvis set up as the next growth levers

India Pesticides Limited ended FY26 with a clear financial milestone. The company crossed 1,000 crore in revenue for the first time. Consolidated revenue for FY26 was 1,078 crore, up 27.9% year on year. EBITDA rose to 194 crore, up 44.7%, and EBITDA margin expanded to 18.0% from 15.9% in FY25. PAT came in at 120 crore, up 45.8%, with PAT margin at 11.1%.

Management attributed the year’s performance to strong domestic demand, higher capacity utilisation, and sustained execution across technicals and formulations. The commentary also acknowledged a challenging operating backdrop for the global agrochemical sector, with pricing pressure and supply chain volatility, but noted that conditions have been improving as channel inventories normalise.

A key feature of FY26 was the rise in domestic business in the closing quarter. In Q4 FY26, total revenue was 271 crore versus 211 crore in Q4 FY25. Domestic revenue in Q4 increased to 183 crore from 118 crore, driven by demand for herbicides and intermediates. Exports in Q4 were 84 crore versus 89 crore, which management linked to geopolitical disruptions affecting March 2026 shipments.

FY26 performance in context: growth with margin expansion

The company’s FY26 numbers show both top-line growth and profitability improvement.

The improvement in EBITDA margin is central to the FY26 narrative. Management highlighted process optimisation and backward integration as levers to protect margins, particularly in periods of raw material cost changes.

On the balance sheet, the presentation highlighted debt to equity at 0.1x and ROCE at 16.8%. Management also mentioned working capital improvement, with net working capital days improving to 223 in FY26 from 254 in FY25.

Revenue mix: technicals still dominate, formulations add breadth

The FY26 revenue split shows the continued dominance of technicals and APIs, with formulations building scale.

Technicals plus API contributed 71% of FY26 revenue, while formulations contributed 29%. In absolute terms, technicals plus API revenue was 746 crore in FY26, while formulation revenue was 311 crore.

Geographically, FY26 revenue was split 61% domestic and 39% exports. Export turnover in the presentation was cited as 408 crore, aligning with the FY26 export figure discussed in the call.

This mix matters because IPL’s positioning is built around being an advanced molecule-based manufacturing platform supplying technicals to global clients, while also operating a domestic formulations business that leverages in-house technical know-how.

Capacity, integration, and growth runway: Hamirpur and Shalvis

The company’s growth roadmap relies heavily on expanding capacity beyond its existing manufacturing base.

Hamirpur as the long-term expansion platform

In the investor deck, IPL provided an update on its Hamirpur facility. It stated that roads, civil works, boilers, and chillers have been constructed and central facilities have been created to support 10 blocks. As of 31 March 2026, two blocks were operational. The company said two additional blocks are expected to be operational in FY27.

The presentation also states the total permitted capacity at Hamirpur is 30,000 MT for technicals and 6,000 MT for formulations, positioning it as a major capacity expansion pathway over the coming years.

Backward integration and intermediates

Backward integration is a repeated theme across both the deck and the call. The company stated it commissioned an intermediate plant towards backward integration of one of its herbicides, using in-house indigenous R&D technology.

During the Q&A, management linked part of the quarter’s volume growth to intermediate PEDA and Pretilachlor related business. They noted that expanded capacity was commissioned in March, and that FY27 should see better utilisation given a full year of operations.

They also disclosed that the product is seasonal, and the plant may need to be stopped for about three months, typically August to October, which would keep utilisation around 70% to 75%.

Shalvis Specialities: early revenue, guided ramp-up

Shalvis Specialities Limited, a 100% subsidiary, is emerging as another growth lever. Management disclosed Shalvis generated about 4 crore revenue in FY26 from a technical product.

For FY27, management guided Shalvis revenue at 70 to 80 crore, including contribution from a second block expected to be operational by September or October 2026. Management also said two more molecules would be added in FY27.

For the longer term, management reiterated a 3,000 crore revenue target by March 2031 and stated that Shalvis could contribute about 1,000 crore of that total.

Guidance and capital allocation: growth target, margins, and capex

Management provided multiple forward indicators during the call.

For FY27, management expects revenue growth of about 15% to 20%. EBITDA margin guidance was given in the 18% to 20% range.

On capex, the CFO stated a FY27 capex plan of 45 crore for India Pesticides and 90 crore for the subsidiary. Funding is expected mainly through internal accruals, with the possibility of a small loan at the subsidiary.

Management also discussed working capital dynamics. While net working capital days improved in FY26, the CFO noted inventory levels may remain higher because customers have shifted from quarterly planning to more spot buying patterns.

What investors should track from here

FY26 establishes a strong base, but the next phase depends on execution across expansion and integration projects.

First, the pace of Hamirpur block commissioning will matter. The company has already built central infrastructure and has two blocks operational, with two more planned in FY27.

Second, Shalvis ramp-up is a measurable near-term test. Management has guided a jump from 4 crore in FY26 to 70 to 80 crore in FY27, supported by a second block and additional molecules.

Third, raw material volatility and export disruptions remain live variables. Management spoke about price fluctuations, including sulphur-based raw materials, and acknowledged selective export pricing pressure due to geopolitical factors.

Finally, working capital will remain an important lens. Even after improvement, 223 working capital days is high, and the company itself noted inventory requirements remain elevated due to customer buying patterns.

India Pesticides exits FY26 with improved profitability, a clear domestic plus export mix, and an expansion story anchored in Hamirpur and Shalvis. The company’s stated priorities remain consistent: backward integration, process optimisation, and scaling capacity while maintaining margins. The next few quarters should show whether these levers translate into sustained growth in line with the stated 15% to 20% FY27 growth guidance and the longer-term 3,000 crore by March 2031 roadmap.