IPL Targets Strong Growth Via Capacity Boost
- FY26 Revenue Target: ₹1,000 Crores
- FY26 EBITDA Margin Target: 18%-20%
- PEDA Capacity Expansion: To 8,500 MTPA by Q2 FY26
- Formulation Capacity Boost: 3,500 MTPA added
- FY26 Capital Expenditure: ₹116 Crores
- Hamirpur Plant Potential: ₹1,000-1,100 Crores Revenue (long-term)
- New Product Pipeline: 5 launches planned for next year
India Pesticides Limited (IPL) delivered a strong Q1 FY26, with revenue up 25.8% year-on-year. The company's recent earnings call revealed a confident outlook, driven by strategic expansions and product diversification. Management outlined ambitious sales and margin targets, significant capacity additions, and a robust pipeline, positioning IPL for sustained profitable growth.
Strategic Capacity Expansion Fuels Revenue Ambitions
IPL is targeting ₹1,000 crores in revenue for FY26, with a projected 15-20% growth in FY27. This growth is underpinned by substantial capacity enhancements, including the PEDA intermediate facility expanding to 8,500 MTPA by Q2 FY26 and formulation capacity increasing by 3,500 MTPA. The company anticipates utilizing over 70% of its new capacities. A significant capital expenditure of ₹116 crores for FY26 is earmarked for these expansions and new product additions, primarily funded by internal accruals.
“The revenue target what we have fixed is Rs. 1,000 crores for FY25-26 with a margin between 18%-20%.” - Dheeraj Kumar Jain, CEO
Margin Resilience and Diversified Growth Drivers
IPL expects to maintain EBITDA margins between 18% and 20% for FY26, supported by a strategic focus on value over volume and efficient capital allocation. Gross margins have shown improvement. The company is actively developing a pipeline of new molecules, with five products slated for launch next year, including complex off-patent technicals. Backward integration initiatives enhance competitiveness and profitability. Despite global headwinds, IPL remains confident due to strong domestic demand and improving export markets. Anti-dumping duties on key products like Pretilachlor further aid profitability, while raw material prices remain stable.
“This disciplined approach also led us to an improvement in ROCE to 18.34% from 14%.” - Dheeraj Kumar Jain, CEO
IPL's Q1 FY26 performance sets a positive tone for the year. The company's strategic investments in capacity and R&D, coupled with a focus on profitable growth and market resilience, indicate a strong trajectory. Its commitment to backward integration and new product development positions it well to capitalize on evolving agrochemical opportunities, ensuring sustained value creation for stakeholders.