India Pesticides Outlook Strong Capacity Drives Growth

Ashwin Thakker

— 2 min read
  • Target Revenue FY26: Rs. 1,000 crores.
  • Target EBITDA Margin FY26: 18%-20%.
  • PEDA intermediate capacity expanding to 8,500 MT by Q2 FY26.
  • Formulation capacity augmented by 3,500 MT per annum.
  • Planned Capital Expenditure for FY26: Rs. 116 crores, including Rs. 64 crores for Shalvis Specialties (Hamirpur).
  • Expects 15%-20% revenue growth and 18%-20% EBITDA margins in FY27.
  • Hamirpur site projected to contribute Rs. 100 crores revenue by FY26-27, with long-term potential of Rs. 1,000-1,100 crores.

India Pesticides Limited delivered robust Q1 FY26 results, reporting a 25.8% year-on-year revenue growth to Rs. 282 crores. Building on this strong foundation, the company projects significant growth ahead, driven by strategic capacity expansions and a diversified product portfolio. This forward-looking commentary underlines a clear roadmap for sustained financial performance and market leadership.

Capacity Expansion Fuels Future Sales

India Pesticides Limited is aggressively expanding its production capabilities to meet burgeoning market demand. The company successfully commissioned an expanded PEDA intermediate facility, significantly boosting capacity from 2,000 to 6,000 tons per annum, with a further scale-up to 8,500 metric tons expected by Q2 FY26. Alongside this, formulation capacity has been augmented by 3,500 metric tons. These enhancements underpin the company's confidence in future sales growth.

For fiscal year 2025-26, India Pesticides Limited has set a robust revenue target of Rs. 1,000 crores. Management is highly confident in utilizing the new capacities, citing pre-arranged market agreements. CEO Dheeraj Kumar Jain affirmed,

"Confidence level is very good sir because we know whatever product we are making we normally have some arrangements in advance. So, as soon as we start manufacturing, we can immediately market it."

The company expects to achieve over 70% capacity utilization, driving volume-led growth across its diversified product portfolio.

Margin Resilience and Strategic Growth

India Pesticides Limited is focused on maintaining strong profitability, targeting an 18%-20% EBITDA margin for FY25-26 and beyond. This is underpinned by enhanced gross margins due to innovation, product premiumization, and efficient capital allocation. The company plans a significant capital expenditure of Rs. 116 crores in FY25-26, with Rs. 64 crores allocated to its new Hamirpur site under Shalvis Specialties Ltd. This site alone is projected to add Rs. 100 crores revenue by FY26-27, with a long-term potential of Rs. 1,000-1,100 crores, signaling substantial future growth.

India Pesticides Limited is poised for sustained growth, backed by strategic capacity expansions and a robust product pipeline. The company's focus on profitable growth, backward integration, and a healthy balance sheet positions it well to navigate market dynamics. With clear revenue and margin targets for the coming years, IPL demonstrates a confident outlook for long-term value creation.

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