India Pesticides Limited (IPL) has reported Revenue from Operations of Rs. 256 crore for the first quarter of FY2027, down 9.2% year-on-year from Rs. 282 crore, as softer demand for its key herbicide Pretilachlor weighed on domestic sales.

 

Despite the domestic slowdown, the company maintained stable export momentum, with export sales rising marginally to Rs. 89 crore from Rs. 87 crore in the corresponding quarter last year, supported by steady international demand.

 

Profitability also came under pressure during the quarter. EBITDA stood at Rs. 39 crore, compared with Rs. 52 crore a year ago, while the EBITDA margin narrowed to 15.4% from 18.4%. Profit Before Tax (PBT) was Rs. 31 crore, translating into a margin of 12.2%, while Profit After Tax (PAT) declined to Rs. 23 crore from Rs. 35 crore in Q1 FY26, with the PAT margin moderating to 8.9% from 12.3%.

 

The company said higher job-work processing costs also impacted margins, with processing charges increasing to Rs. 14 crore from Rs. 8 crore in the year-ago period due to higher conversion volumes and increased processing rates per kilogram.

 

During the quarter, IPL achieved a significant regulatory milestone after securing Technical Equivalence (TEQ) approval from the European Union for one of its fungicide products, a development expected to strengthen its international footprint and support future export growth.

 

In another key development, Chief Executive Officer Dheeraj Kumar Jain was conferred the Lifetime Achievement Award by the PMFAI Agribusiness Foundation.

 

Commenting on the company's performance, Dheeraj Kumar Jain, Chief Executive Officer, said: "We commenced FY27 amid a challenging operating environment in the domestic agrochemical market. Revenue from Operations was at Rs. 256 crores, while EBITDA was at Rs. 39 crores with an EBITDA margin of 15.4%. 

 

"Softer demand for the Company’s key herbicide, Pretilachlor, impacted domestic sales during the quarter, while export sales remained stable. Higher employee and fuel costs, along with elevated channel inventory, impacted profitability. However, the Company continued to focus on operational efficiency, cost management, and disciplined execution."

 

He added: "During the quarter, we achieved an important milestone with the receipt of Technical Equivalence (TEQ) approval from the European Union for one of our fungicide products. 

 

"This approval strengthens our presence in international markets, enhances our ability to serve global customers, and creates opportunities for expanding our export business. This achievement reflects our continued focus on innovation, product development, and strengthening our position as a trusted partner in the global agrochemical industry."

 

Looking ahead, he said, "we remain confident in our growth prospects, supported by improving demand across domestic and export markets, favourable agricultural conditions, and continued focus on operational efficiencies. 

 

"We will continue to strengthen our product portfolio, expand our international presence, and enhance our manufacturing capabilities. With an integrated value chain, strong customer relationships, and a commitment to innovation and excellence, we believe IPL is well positioned to deliver sustainable growth and create long-term value for all stakeholders."