Insecticides India Banks On Premium Products To Achieve Revenue Growth Target In FY26

Insecticides (India) Ltd. is eyeing a 15% topline growth in financial year 2025-26, driven largely by the sale of high-margin premium products, according to its Managing Director Rajesh Aggarwal.

Speaking to NDTV Profit, the top executive claimed fiscal 2025 will mark the company's highest-ever profitability, adding that Insecticides India has fully recovered from the post-Covid-19 correction in chemical prices.

“A big change has come in the past two years. After Covid had passed, the prices of all chemicals had declined, and we had to face that impact. We recovered fully in FY24 itself, and in FY25, you will see the improvements. I cannot declare the numbers because the results are yet to come, but we will have the all-time highest profitability in FY25, and this will continue in FY26.

We will be targeting a good topline growth in FY26, roughly about 15%. The target will be to bring it from the premium products. FY26 will surprise you with our results, and it will be evident from Q1 itself,” Aggarwal said.

The company's strategy is firmly centred on expanding its premium portfolio, especially herbicides, catering to crops like maize, rice, soybean, pulses, sugarcane, and wheat.

Aggarwal said market feedback to recent launches, including patented herbicide mixtures, has been encouraging. He also revealed plans to launch a new rice herbicide in collaboration with Japan's Nissan Chemical Corporation.

“We're backwards integrating by manufacturing active ingredients ourselves and launching high-margin patented mixtures,” he said.

Exports, which currently account for 8% to 9% of the company's revenue, are expected to deliver double-digit growth in fiscal 2026 and fiscal 2027, the top executive mentioned. Insecticides India plans to scale up its export turnover from Rs 100 crore to Rs 200 crore in fiscal 2026.

Aggarwal pointed to new registrations in South America and active discussions with Japanese firms as significant growth catalysts.

“Recently, we have bagged some registrations in South America, and the business is going to start. Discussions are on with a lot of Japanese companies also. We have been doing over Rs 100 crore of export business, and this year we wish to take it to about Rs 200 crores,” he said.

The revenue mix is expected to remain skewed toward the business-to-consumer segment, followed by business-to-business and export channels.

“The gross margin of premium products, not on the Ebitda level, will be about 35%. Generally, the B2B sales are also strong in Q1, Q2, and Q4. Q3 is a subdued quarter. B2C will contribute about 70% to 75%, B2B contribution will be around 25%, and export will contribute somewhere about 6% to 8%. So this will be the tentative percentage,” Aggarwal noted.

As part of its capacity expansion, the company has acquired 15 acres in the Sotanala Industrial Area of Rajasthan. Aggarwal expects the construction of its new automated plant to be completed within a year. “We wish to start the formulation in this plant by April 2026, with technical production starting by the Kharif season,” he said.