Summary
Indogulf Cropsciences Limited - Q3 FY26 Earnings Call Summary Thursday, February 12, 2026, 12:00 P.M. IST
Event Participants
Executives 3 Manoj Gupta (CFO), Sanjay Aggarwal (Managing Director), Vijay Vir Singh (VP – Sales and Marketing)
Analysts 4 Arjun Gupta (MK Capital), Maitri Shah (Sapphire Capital), Nivendra Shah (Alfa Securities), Ram (Individual Investor)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue from Operations | ₹116.1 crores | +17% YoY; Driven by strong B2C/B2B demand despite subdued crop prices. |
| EBITDA | ₹11.7 crores | +16% YoY; Growth supported by operating leverage and favorable product mix. |
| Profit Before Tax (PBT) | ₹7.4 crores | +60.8% YoY; Reflects improved operating performance and better fixed cost absorption. |
| Profit After Tax (PAT) | ₹3.9 crores | +5.6% YoY; Impacted by a one-time accounting adjustment for prior-period tax liabilities. |
| 9M FY26 Revenue | ₹553 crores | +19.3% YoY; Sustained momentum across all three quarters. |
| 9M FY26 PAT | ₹28 crores | +31% YoY; Reflects improved earnings quality and significant contribution from AGPL. |
| B2C Segment (9M) | ₹301.6 crores | +16% YoY; Driven by brand strength and closer farmer engagement. |
| B2B Segment (9M) | ₹219.4 crores | +26% YoY; Added scale and improved manufacturing capacity utilization. |
| Biologicals (9M) | ₹5.6 crores (est. share) | +15% YoY; Reflects increasing farmer trust in differentiated offerings. |
| Plant Nutrients (9M) | ₹50.4 crores (est. share) | +23% YoY; Strongest growing vertical within the diversified portfolio. |
Geographic & Segment Commentary
- Domestic Market: Strong growth recorded in Tamil Nadu (+80%), Haryana (+66%), Bihar (+58%), and Uttar Pradesh (+31%) during 9M FY26. Performance was anchored by disciplined execution and deeper market penetration in key agricultural states.
- Abhiprakash Globus (AGPL): Achieved gross sales of ₹54 crores in its first full year of operations during 9M FY26. Management plans to expand AGPL’s footprint into additional states, specifically targeting Central India.
- International Markets: Successfully entered Venezuela, Taiwan, and Sudan during the quarter with initial orders totaling ₹4-₹5 crores. These orders are scheduled for execution in Q4 FY26 with margins ranging from 7% to 18%.
Company-Specific & Strategic Commentary
- Capacity Expansion: Construction of the new Barwasni facility faced a 2-3 month delay due to GRAP (Graded Response Action Plan) restrictions in Delhi NCR. The plant is now expected to be operational by the end of Q1 FY27.
- Inventory Rationalization: The company has successfully normalized channel inventory to sustainable levels, positioning it to benefit from improving demand trends while the broader industry still faces elevated inventory.
- Regulatory Tailwinds: Management views the Draft Pesticide Management Bill 2025 and Seed Bill 2025 as structural positives. These regulations mandate QR tagging and digital traceability, favoring large organized players like IGCL.
- Product Innovation: While no new products were launched in Q3, the company plans to launch 4-5 new products in Q1 FY27. Growth in Q3 was primarily quantitative as average market prices saw a slight dip.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue & Margins | Positive Growth (FY26/FY27) | Management declined specific numerical guidance but expects growth across all segments driven by AGPL expansion and new exports. |
| Operational Timeline | Q1 FY27 | Expected commissioning of the new infrastructure facility after environmental delays. |
| Tax Rate | Steady-state | Future quarters will return to normal tax levels following the one-time prior-period adjustment in Q3 FY26. |
Risks & Constraints
| Risk | Context |
|---|---|
| Environmental/Regulatory | Construction delays at the New Delhi facility were caused by GRAP restrictions, potentially pushing back revenue contributions from new capacity to FY27. |
| Sector Volatility | Subdued crop prices and an extended monsoon impacted crop protection growth in certain pockets during the quarter. |
| Industry Inventory | While IGCL has normalized its stock, the broader industry continues to struggle with elevated inventory levels, which could pressure pricing. |
Q&A Highlights
Export Dynamics
- Question: Can you quantify the current export order book and associated margins? (Maitri Shah)
- Answer: Current orders from new markets (Venezuela, Taiwan, Sudan) stand at ₹4-₹5 crores with margins ranging from 7% to 18% (Sanjay Aggarwal).
One-time Tax Impact
- Question: What caused the dent in the bottom line this quarter regarding tax expenses? (Ram)
- Answer: This was a one-time accounting adjustment to settle prior-period tax liabilities found in the assets/liabilities side; it will not recur in future quarters (Manoj Gupta).
Capacity Delays
- Question: When will the Barwasni plant be operational and what is the delay? (Nivendra Shah)
- Answer: Due to GRAP air quality restrictions in Delhi, there is a 2-3 month delay. Commissioning is now targeted for the end of Q1 FY27 (Sanjay Aggarwal).
Growth Drivers
- Question: Was the Q3 growth driven by volume or price? (Arjun Gupta)
- Answer: Growth was primarily quantitative (volume). Average prices dropped slightly, meaning volume growth was actually 1-2% higher than the reported value growth (Sanjay Aggarwal).
Key Takeaway
Indogulf Cropsciences delivered a resilient Q3 FY26 with revenue growing 17% YoY to ₹116.1 crores, despite industry-wide headwinds of subdued crop prices and high inventory. For the 9M FY26 period, the company maintained a strong trajectory with revenues of ₹553 crores and a 31% increase in PAT to ₹28 crores. Strategy remains focused on diversifying beyond traditional crop protection into high-growth Plant Nutrients (+23%) and Biologicals (+15%), alongside the rapid scaling of the AGPL subsidiary which contributed ₹54 crores in sales. While the commissioning of new manufacturing capacity is delayed to Q1 FY27 due to regional environmental restrictions, the company is successfully diversifying its geographic risk through entry into new international markets like Taiwan and Venezuela. Management enters Q4 with a normalized inventory position and a positive outlook on rural liquidity and monsoon stability, expecting sustained quantitative growth across its B2C and B2B platforms.
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