India Pesticides Ltd Q4 FY26 Earnings Analysis

- FY27 revenue growth is expected around 20% over FY26. - EBITDA margin guidance for FY27 remains in the 18% to 20% range. - The roadmap aims to reach INR 3,000 crores in revenue by FY31. - Revenue contribution by FY31 is expected to be: - INR 1,000-1,100 crores from Hamirpur facility. - INR 1,500 crores from existing technical facilities (Sandila and Dewa Road). - INR 500 crores from the B2C branded segment. - Shalvis facility is projected to contribute INR 80-100 crores in FY27 and is expected to scale up to INR 1,000 crores in revenue over 5 years. - Capacity expansions are ongoing, targeting about 29,000 metric tons in near term with further additions planned. - Expanded registrations and new product launches both domestically and internationally will support growth. - Stable pricing and volume increases expected to support revenue growth.

- India Pesticides expects about 20% revenue growth in FY27 over FY26. - EBITDA margin guidance for FY27 remains stable at 18% to 20%. - Net profit for 9M FY26 increased by 44% YoY to INR89 crores, indicating strong operating leverage. - Capacity expansions at existing and new facilities (Hamirpur, Sandila, Shalvis) are planned to support growth. - The Hamirpur plant is expected to contribute INR1,000-1,100 crores, existing units INR1,500 crores, and B2C segment INR500 crores by FY31. - Expansion and new registrations in export markets (Australia, New Zealand, Europe) are expected to add incremental revenues (~INR10-15 crores). - Ongoing R&D and operational efficiencies aim to sustain margin improvements and cost competitiveness. - Overall, the company targets INR3,000 crores revenue by March 2031, signaling strong long-term growth in earnings and profitability.

- **Shalvis Facility:** - Two blocks operational; second block expected ready by Aug-Sept 2026. - Revenue potential of INR80-100 crores in FY27 from these blocks. - Plans to add 2-3 blocks annually over next 3-4 years, targeting 10 blocks total. - Expected to achieve INR1,000 crores revenue from Shalvis in 5 years. - Capex for next year: INR80-100 crores. - **Sandila Unit:** - Planned capex of INR25-30 crores for FY27 towards a technical plant and bulk formulation expansion. - **Hamirpur Facility:** - Expected revenue of INR1,000-1,100 crores by March 2031 (capex details not specified). - **Funding:** - Shalvis capex mostly funded by internal accruals, with INR25-30 crores from loans. - Emphasis on phased capacity expansion aligned with visible demand. - **Other:** - Investments in renewable energy (6 MW solar supply at Sandila unit). - Continuous R&D leading to new molecule introductions and process optimizations.

- For the Shalvis capex of INR80 to 100 crores planned next year, the company will fund mostly through internal accruals. - They plan to take some small loans of around INR25 to 30 crores for Shalvis expansion. - For the Sandila unit capex of INR25 to 30 crores, funding details were not specifically mentioned but implied to be from internal sources. - Overall, the company is planning to fuel its capex plans mostly with internal accruals. - No specific mention of any new equity fundraising was made during the call.

- India Pesticides Limited is actively engaged in multiple ongoing projects under its CDMO business with clients from Japan, the USA, and Australia. - Discussions and site visits are progressing well, with positive client feedback and sample approvals already received. - The company has projects underway and expects materialization of these collaborations soon. - Several registrations are pending and in process: about 5 reports are being worked on for overseas and domestic submissions. - Recent registrations include fungicide formulation registrations in Australia, as well as registrations in Europe and New Zealand expected to bring incremental revenues. - The management expects to secure 7-8 overseas registrations in the coming year, along with a similar number pending with the Central Insecticides Board (CIB) in Delhi. - No specific quantitative data on total order book value was disclosed during the call.