IPL - India Pesticides

📊 NSE: IPL 🏢 Pesticides / Agrochemicals - Indian 📅 Last Updated: 12/14/2025 7:57

💰 Financial Performance

Revenue Growth by Segment

Pesticides (Technical & Formulations) contributed 96% of total sales, while pharmaceutical intermediates contributed 4% in FY23. Total revenue for H1 FY26 grew 26% YoY to INR 579 Cr compared to INR 459 Cr in H1 FY25.

Geographic Revenue Split

Export revenue contributed ~38% in FY25 and ~40% in FY24. In H1 FY26, export revenue nearly doubled to INR 140 Cr, driven by growth in the technical business segment.

Profitability Margins

Gross margins were impacted by raw material price drops in FY24. PAT increased 37.7% from INR 61 Cr in FY24 to INR 84 Cr in FY25. H1 FY26 PAT reached INR 67 Cr, a 48% YoY increase with a PAT margin of 10.7%.

EBITDA Margin

EBITDA margin improved to 18.6% in H1 FY26 from 15.9% in FY25 and 14.6% in FY24. EBITDA for H1 FY26 stood at INR 108 Cr, up 53% YoY due to better operating leverage and cost efficiencies.

Capital Expenditure

Planned capex of INR 158 Cr over the next three financial years (FY26-FY28), to be funded via internal accruals. INR 52 Cr has already been deployed in H1 FY26 for IPL and Shalvis projects.

Credit Rating & Borrowing

Maintains a strong financial profile with an overall gearing of 0.01x as of March 31, 2023. Positive rating sensitivity is tied to achieving Total Operating Income (TOI) of INR 1,000 Cr while maintaining PBILDT margins above 20%.

⚙️ Operational Drivers

Raw Materials

Tetra Hydro Phthalic Anhydride (THPA), Ammonium Thiocyanate, Di N Propylamine, and Cyano Acetyl Ethyl Urea. Specific cost percentages per material are not disclosed.

Import Sources

Majorly imported from Taiwan and China, exposing the company to supply chain disruptions and price volatility in those regions.

Capacity Expansion

Technical capacity increased from 24,200 MT in June 2024 to 28,200 MT by June 2025. Formulations capacity expanded from 6,500 MT to 10,000 MT in the same period. PEDA plant is expanding to 8,500 MT.

Raw Material Costs

Raw material costs are highly volatile; FY23 margins moderated from 30.40% to 22.99% due to high inventory costs and sudden price declines. Natural hedging is used as exports exceed imports.

Manufacturing Efficiency

Technical capacity utilization moved up to over 73% in H1 FY26 as global destocking eased. PEDA plant utilization is targeted at 75% by next year.

Logistics & Distribution

Distribution network consists of over 4,700 dealers and 20+ sales depots across major Indian states including Gujarat, Maharashtra, and UP.

📈 Strategic Growth

Expected Growth Rate

26%

Growth Strategy

Achieving INR 1,000 Cr revenue target through capacity expansion (PEDA plant adding INR 250-300 Cr), increasing technical utilization to 73%+, and expanding CR-DMO engagements with global innovators.

Products & Services

Technical grade pesticides (primarily fungicides), pesticide formulations, and pharmaceutical intermediates.

Brand Portfolio

Captan Technical (leadership position), Folpet.

New Products/Services

Expansion into new molecules via R&D to reduce dependence on off-patent generic molecules; CR-DMO segment is in active discussions with global innovators.

Market Expansion

Targeting regulated markets for product registrations; currently registered in 25 countries across Europe, Asia, and Australia to hedge against domestic volatility.

Market Share & Ranking

Leadership position in Captan Technical (fungicide) globally.

Strategic Alliances

Active discussions with several global innovators for CR-DMO (Contract Research and Development Manufacturing Organization) engagements.

🌍 External Factors

Industry Trends

The agro-chemical industry is recovering from a period of global destocking and oversupply from China. IPL is positioning itself toward 'Zero Incident Culture' and sustainable procurement to attract ESG-conscious buyers.

Competitive Landscape

Faces intense pricing competition from Chinese manufacturers and domestic generic players; mitigating this through product diversification and regulated market registrations.

Competitive Moat

Moat is built on leadership in Captan Technical, a massive 4,700+ dealer network, and in-house R&D capabilities that allow for process optimization and new molecule development.

Macro Economic Sensitivity

Highly sensitive to agro-climatic conditions (monsoon) and global agro-chemical destocking cycles which impact demand and pricing.

Consumer Behavior

Shift toward environmentally conscious and sustainably sourced products; IPL is responding with a Sustainable Procurement Policy and 'red triangle' free technicals.

Geopolitical Risks

Exposure to political instability and trade policy changes in India and the 25+ countries of export; monitored by a dedicated Risk Management Committee.

⚖️ Regulatory & Governance

Industry Regulations

Subject to stringent product registration requirements in 25+ countries. Recent anti-dumping duties on specific intermediates have positively impacted the ability to generate margins.

Environmental Compliance

Adheres to 'Care the World with Care' principle; focuses on 'Zero Incident Culture' and ensuring no technicals fall into the 'red triangle' (highly toxic) category.