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New product pipeline, Nissan partnership, and capex drive FY26 optimism
Despite muted topline growth of just 2% in FY25, Insecticides India is confident of delivering double-digit revenue growth in the current financial year (FY26).
Speaking to CNBC-TV18, Rajesh Aggarwal, MD of Insecticides India, attributed the weak performance in FY25 to erratic rainfall and the late timing of product launches. “We did not get time to establish these products, but the response has been good,” he said. “So, we are very, very confident that this year we should be able to register both topline and bottom-line growth.”
The company has lined up six new product launches for FY26 and is adding four more molecules to its high-volume, premium ‘Focused Maharatna’ range, which Aggarwal said will be the "star products" this year. These are part of the firm’s strategic push to expand its premium product portfolio, which already contributes significantly to margins. Around 61% of the company’s revenue in FY25 came from Focused Maharatna and Maharatna products, and the company aims to increase this to 70% over the next few years.
A key driver for the business is its partnership with Nissan Chemicals, which contributes nearly one-fourth of Insecticides India’s topline. Products like Shinwa, Hachiman, and Pulsor have already proven successful, and the company is betting big on a new rice herbicide, Altair, launched this year. “We’ll begin with a target of about ₹15 crore in mind, but we expect to multiply that by at least two or three times in the next fiscal year,” Aggarwal said.
With much of the growth coming from high-margin categories, Aggarwal expects the company’s profitability to improve further in FY26. In FY25, Insecticides India posted an EBITDA margin of 11.1%, and while no specific number was shared for FY26, Aggarwal stated that margins will “surpass last years.”
The company is also working to optimise its working capital, which increased to 122 days in FY25 due to inventory build-up linked to new product launches and plant expansion. The long-awaited Dahej plant is now set to begin operations in June, and Aggarwal expects working capital to normalise by the end of Q2 FY26.
To keep up with robust demand—especially for herbicides amid strong pre-monsoon showers—the company’s facilities are running at full capacity. It has announced a ₹100 crore capex for its Sotanala plant in Rajasthan this year to ease production pressure. “Our plants are operating 24/7 at full capacity,” Aggarwal said.
While Insecticides India remains largely focused on the domestic market, the company is actively pursuing international expansion. Trial shipments are scheduled this quarter for the US, with Japan and a few other countries also on the radar. Exports currently contribute just 5% of revenue, and while the company has missed its ₹200 crore export target for the last two years, Aggarwal remains optimistic: “If we don’t achieve 100% export targets this year, we will definitely cross ₹200 crore in the next fiscal, that I’m confident about.”
In Q4FY25, the company reported a 31.7% rise in revenue to ₹359 crore. Net profit for the quarter nearly doubled to ₹14 crore, and margins improved to 7.94% from 3.22% in Q4FY24.
