India Pesticides Ltd (IPL)
🎯 Key Takeaways
- India Pesticides Ltd is in a strategic investment phase marked by capacity expansion and product diversification, despite short-term margin pressure from demand volatility and input cost headwinds. Management is executing a long-term growth plan centered on new manufacturing facilities and EU-approved product launches, targeting INR 1,000 crores in revenue over 3-4 years, while maintaining a conservative balance sheet with minimal debt.
- Revenue declined 5.5% QoQ to ₹252 in Q1FY27.
- ⚠️ 1) Ongoing tax proceedings and contingent liabilities related to undisclosed income assessments pose a potential earnings risk. 2) Persistent monsoon-
📖 The Story
India Pesticides Ltd is in a strategic investment phase marked by capacity expansion and product diversification, despite short-term margin pressure from demand volatility and input cost headwinds. Management is executing a long-term growth plan centered on new manufacturing facilities and EU-approved product launches, targeting INR 1,000 crores in revenue over 3-4 years, while maintaining a conservative balance sheet with minimal debt.
📰 What's Happening
In its August 1, 2026 board meeting, the company approved unaudited Q3 FY26 financial results showing revenue of ₹256.50 crores and PAT of ₹23.07 crores, down from ₹270.62 crores and ₹31.76 crores respectively in Q3 FY25. The June 30, 2026 earnings call highlighted a consolidated revenue decline to INR 256 crores in Q1 FY27, with EBITDA margin compressing to 15.4% due to softer domestic demand, deficient rainfall, and elevated raw material costs. Management cited inventory buildup and capacity utilization at 70% as temporary challenges, while export revenue remained stable at INR 89 crores. Capex plans include INR 70-100 crores annually at Hamirpur and INR 25-30 crores at Sandila, supporting the long-term revenue target.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 290 | 225 | 266 | 252 |
| Operating Profit | 43 | 32 | 37 | 30 |
| OPM % | 15.0% | 14.3% | 13.8% | 11.8% |
| Net Profit | 32 | 23 | 31 | 23 |
| EPS | ₹2.74 | ₹1.97 | ₹2.66 | ₹1.98 |
Revenue has declined sequentially from ₹290 crores in September 2025 to ₹252 crores in June 2026, with OPM falling from 15.0% to 11.8%, reflecting margin pressure from cost inflation and weak domestic demand. However, this is consistent with management's stated expectations of transitory headwinds, as PAT and EPS have also moderated from ₹32 crores and ₹2.74 in Q3 FY25 to ₹23 crores and ₹1.98 in Q3 FY26, aligning with the EBITDA margin compression observed in the latest filings.
🔮 Management Outlook & What's Next
Management has provided a clear long-term revenue target of INR 1,000 crores over 3-4 years, supported by capacity expansion at Hamirpur and Sandila facilities, with INR 50-60 crores expected from Hamirpur in FY27. A new fungicide product approved under EU technical equivalence is projected to contribute INR 30-40 crores annually starting November, leveraging existing infrastructure. Capex of INR 70-100 crores annually at Hamirpur and INR 25-30 crores at Sandila underscores the capital-intensive growth phase, with management emphasizing portfolio diversification and backward integration to mitigate monsoon-driven demand volatility.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 12 | 12 | 12 | 12 |
| Reserves | 851 | 887 | 945 | 998 |
| Borrowings | 22 | 55 | 44 | 107 |
| Total Liabilities | 1,123 | 1,143 | 1,280 | 1,337 |
| Fixed Assets | 319 | 327 | 351 | 388 |
| Investments | 16 | 15 | 19 | 19 |
| Total Assets | 1,123 | 1,143 | 1,280 | 1,337 |
The balance sheet remains financially prudent, with equity of ₹12 crores and reserves growing from ₹887 crores in March 2025 to ₹998 crores in March 2026, while total borrowings declined to ₹107 crores from ₹55 crores in the prior year. This reflects a strategy of reinvesting retained earnings into expansion rather than increasing leverage, supporting the capital expenditure plans without compromising financial stability.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +3 |
| Investing | +1 |
| Financing | +19 |
| Net Cash Flow | +23 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 63.6% | 63.6% | 63.6% | 63.6% |
| FII | 2.8% | 1.9% | 1.9% | 0.2% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 17.2% | 17.9% | 17.8% | 19.0% |
| # Shareholders | 95,314 | 95,456 | 93,551 | 94,075 |
Promoter holding remains stable at 63.65% across all quarters, indicating confidence in long-term prospects. However, FII and DII shareholding has declined from 2.78% in Q2FY26 to 0.2% in Q1FY27, with public holding rising to 19.01%, suggesting institutional investors are reducing exposure amid near-term margin pressures, while retail participation is increasing.
⚖️ Peer Comparison — Agro Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| UPL | 47,750 | 23.4 | 11.4% | 6.7% | 0.64 |
| PIIND | 36,230 | 31.1 | 13.3% | 10.4% | 0.02 |
| SUMICHEM | 25,674 | 44.3 | 23.1% | 17.1% | 0.00 |
| BAYERCROP | 17,940 | 371.7 | 3.3% | 1.2% | 0.00 |
| SHARDACROP | 7,113 | 11.4 | 25.8% | 20.0% | 0.00 |
| DHANUKA | 4,409 | 15.1 | 27.5% | 21.2% | 0.03 |
| RALLIS | 4,032 | 24.6 | 12.9% | 9.7% | 0.03 |
| NACLIND | 3,948 | 337.1 | 6.0% | 1.8% | 0.44 |
| BHAGCHEM | 3,496 | 127.2 | 6.1% | 3.9% | 0.33 |
| GSPCROP | 2,890 | 25.3 | 22.5% | 21.9% | 0.66 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Ongoing tax proceedings and contingent liabilities related to undisclosed income assessments pose a potential earnings risk. 2) Persistent monsoon-dependent demand volatility and deficient rainfall could delay recovery in domestic sales. 3) Margin pressure from raw material cost inflation and inventory buildup may extend beyond management's 'transitory' timeline if market conditions deteriorate further.
📋 Recent Filings
-
🔴 annual report 1 September 2026India Pesticides Limited (IPL) reported a 27.5% revenue increase to ₹1,078.35 crore and 44.94% PAT growth to [amount context mismatch] crore for FY202...
-
🟡 Board Meeting 31 August 2026India Pesticides held its 41st AGM on 31 August 2026 via video conference, adopting audited standalone and consolidated financial statements for FY202...
-
Announcement 18 August 2026India Pesticides Limited reported a 9.2% YoY revenue decline to INR 256 crores in Q1 FY27, with EBITDA down to INR 39 crores (15.4% margin) and PAT fa...
-
Announcement 13 August 2026India Pesticides Limited announced that the audio recording of its earnings conference call for the quarter ended June 30, 2026, held on August 13, 20...
-
Announcement 3 August 2026India Pesticides Limited announced its Q1 FY27 earnings conference call scheduled for August 13, 2026 at 12:30 PM IST to discuss unaudited standalone ...
-
Announcement 2 August 2026India Pesticides Limited reported Q1 FY27 revenue of Rs. 256 crores, down 9.2% year-on-year due to weak domestic herbicide demand, though export sales...
-
Announcement 2 August 2026India Pesticides Limited (IPL) presented un-audited Q1 FY2027 results showing consolidated revenue of ₹256 crores, down 9.2% YoY, with EBITDA at ₹39 c...
-
🟡 Board Meeting 1 August 2026India Pesticides Limited announced the outcome of its board meeting held on 01 August 2026, where it approved unaudited standalone and consolidated fi...
-
Announcement 15 July 2026India Pesticides Limited announced it received EU technical equivalence approval for a fungicide product, enabling expanded exports to Europe and stre...
-
🟡 concall transcript 30 June 2026India Pesticides Ltd reported a consolidated revenue decline to INR 256 crores in Q1 FY27 from INR 282 crores YoY, with EBITDA margin compressing to 1...
🧠 Analyst's Read
India Pesticides is navigating a deliberate transition from volume-driven growth to a structurally stronger, diversified model supported by capex and new product rollouts, but near-term profitability is being weighed down by external demand shocks and cost pressures. The key watchpoints are the pace of margin recovery, execution of capex plans, and the timely commercialization of the EU-approved fungicide to offset domestic weakness.
Based on filing content and financial data. Not a recommendation.
Read the full analysis
Quarterly trends, balance sheet, cash flow, peer comparison, and AI insights — sign up free to unlock.
Sign Up Free — Unlock Full Analysis2 free AI queries per day.
Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
📡 Get AI alerts when IPL files new disclosures
Track IPL filings, board meetings, and corporate actions. Free email alerts at 5 PM.
Track IPL — FreeFree account · 2 AI queries/day
© 2026 StockFin.ai — AI-powered Indian stock research
About · Privacy Policy · Terms of Service · Pricing
Today's Announcements · Screener · Insights · AI Chat
Data provided by CMOTS Internet Technologies Pvt Ltd