India Pesticides Ltd (NSE: IPL) Q1 2026 Earnings Call dated Aug. 11, 2025
Corporate Participants:
Unidentified Speaker
Vishal Swarup Agarwal — Non-Executive Director
D.K. Jain — Chief Executive Officer
S. P. Gupta — Chief Financial Officer
Analysts:
Unidentified Participant
Viral Shah — Analyst
Ankit — Analyst
Dhwanil Desai — Analyst
Anant Shenoy — Analyst
Kaushal Sharma — Analyst
Darshal Zaveri — Analyst
Ankit Gupta — Analyst
Saket Kapoor — Analyst
Anant Shenoy — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to India Pesticides Q1FY26 earnings conference call hosted by Daler Capital Markets Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Viral Shah from Daulat Capital. Thank you and please go ahead, sir.
Viral Shah — Analyst
Yeah. Thank you. Arshi. Good afternoon everyone. On behalf of Daulat Capital, I would. Like to thank the management of India Pesticides Limited for giving us the opportunity to host their Q1FY26 earnings conference. Call from the management team we have. With us Mr. Vishwa Swaruu Non Executive Director. Mr. D.K. Jain, Chief Executive Officer and Mr. S.P. Gupta, Chief Financial Officer. Without further ado, I would like to. Hand over the call to the management for their opening remarks. Post which we will open the forum for the Q and A session. Thank you. And over to you sir.
Vishal Swarup Agarwal — Non-Executive Director
Thank you. Mr. Shah, this is Vishwa Surup Agarwal. Good afternoon ladies and gentlemen. Season’s greetings. I hope you and your family are staying safe and healthy. I take the pleasure of welcoming you all for the Q1 FY26 earnings conference call of India Pesticides. I hope you all had the chance to look at the financial statements and earning presentation uploaded on the exchanges and our website. As we commenced FY26, the agrochemical industry continued to operate within a complex and evolving global landscape. Despite headwinds in international markets, India Passive Limited demonstrated resilience and delivered a strong performance across operational, strategic and financial parameters.
This performance underscores our focus on long term value creation through manufacturing, scale up targeted R and D initiatives and emphasis on a differentiated product portfolio. During the quarter the company achieved its revenue of 282 crores reflecting a growth of 25.8% year on year. This growth was primarily volume led supported by sustained demand in the domestic and strategic product mix. Catering to both domestic and international customers. One of the key milestones was the successful commissioning of the expanded intermediate peda facility. This enhancement strengths are manufacturing capabilities and reinforces our ability to meet rising demand of Pretila Clor Technical.
Looking ahead, the company is on track to expand capacity to 8,500 metric ton per annum by Q2 FY26 which aligns with our long term growth plan and supports the Government of India’s AT Nirbhat Bharat Initiative. Additionally, the formulation capacity has been successfully augmented by 3500mt per annum. Our R and D efforts have gathered momentum resulting in the development of several new molecules. India Pacifi Limited is increasingly recognized as a trusted partner by both domestic and global players. With all major Indian companies sourcing one or more key molecules from us, our expansion plan remains firmly on Track.
During 2526 we intend to undertake capital expenditure of 52 crores at our existing manufacturing facilities and 64 crores at our wholly owned subsidiary Shalvi Specialties Ltd. As we look ahead in FY 2526, the company remains a committed Company remains committed to executing its strategic priority and accelerating its growth trajectory. With balanced product portfolio, strong demand, domestic positioning, expanding manufacturing capacity and advancing R and D capabilities, we are well placed to capitalize on emerging opportunities and navigate the evolving dynamics of the global agrochemical landscape. We are optimistic about the long term prospects of our company and remain committed to delivering sustainable value to our stakeholders.
Now I will hand over the further I will hand over further presentation to Mr. D.K. jain. Thank you.
D.K. Jain — Chief Executive Officer
Thank you, Vishwaji. Good afternoon ladies and gentlemen. I take this pleasure of welcoming you all for the Q1 FY26 earnings conference of India Pesticides. Let me begin with a brief update on industry dynamics. The global agrochemical market is showing early signs of recovery driven by a revival in demand and gradual improvement in prices. Inventory levels across distribution channels have largely normalized and raw metal prices remain stable. Overall, we see signals of positive global tailwinds and we expect this trend to continue through FY26. Our revenue for this quarter as already stated is at 282 crores which is 25.8% more yoy and 34% more q on Q.
This performance reflects both healthy market conditions and the success of our execution strategy. During the quarter we undertook several key initiatives to strengthen our operational capabilities. Number one, Commissioned the expanded Pedas Intermediate facility increasing the capacity from 2000 tonnes to 6000 tonnes per annum with a further scale up to 8500 metric ton per annum on track for Q2FY26. This expansion enhances supply chain efficiency and provides a cost advantage. Successfully commissioned the expansion of our formulation plant adding 3500 metric ton per annum of capacity. We continue to reinforce our position as one of the leading producers of India’s top selling rice herbicides and their key intermediates.
We continue our focus on innovation and Premiumization yielded positive result driving an improvement in gross margins. We constantly prioritized value over volume reflecting our long term strategy of sustainable profitable growth. This disciplined approach also led us to an improvement of in ROCE to 18.34 from 14%. A direct outcome of better product mix and efficient capital allocation for the year 2026 and onwards. Number of products launches are in pipeline There are almost two. There are two products in IPL and three products in Shelviz are lined up for launches this year. Next year these launches will further diversify our portfolio, enhance market reach and strengthen our position in high value segments.
I would like to highlight our expansion plans for FY26. We have earmarked the capital expenditure of approximately 116 crore for this year, 52 crores for the existing site and 64 crores for site. The majority of this investment will be directed towards capacity expansion and new product additions which we expect will further accelerate our growth momentum. Our R and D capabilities form the backbone of our manufacturing strength. With in house laboratory infrastructure including pilot plant and formulation facilities equipped with advanced analytical instruments, we have the capability to develop, scale up and manufacture differentiated technologies with precision.
This innovation driven approach not only strengthens our product pipeline but also reinforces our self reliant manufacturing model in line with the make in India vision. Looking ahead, we remain optimistic on the back of improving export demand while stable input cost provide a supportive macro backdrop. Internally our growth momentum will be supported by progress on a strong new product pipeline, expansion of our premier offerings and continuous improvement in operational efficiency. Our strategic framework remains consistent, profitable growth, self reliant manufacturing, continuous innovation and a focus on delivering long term stakeholder value. With a fully integrated foundation and disciplined execution, we are confident of sustaining this growth trajectory through FY26 and beyond.
Thank you for your support and partnership. I Now invite our CFO Mr. S.P. gupta to walk through you the financial details of this quarter. Thank you. SV Gupta Ji.
S. P. Gupta — Chief Financial Officer
Thank you sir. Good afternoon ladies and gentlemen and thank you for joining the India Pesticide Conference call to discuss Q1FY26 results. Taking you through the financial highlights for the quarter, Total revenue for Q1FY26 was 282 crores as compared to 224 crore in Q1FY25 an increase of 25.8%. By U buy we registered an EBITDA of 52 crore, an increase of 62.6% as compared with the same period same quarter last year EBITDA margin stood at 18.4% in Q1FY26 expanding 4.17% by UY. This is in line with our projections for the year. Net profit for the quarter stood at 35 crore.
An increase of 79.2% by UY with fat margin of 12.3%. Expanded 3.6% by U by on geographical split in Q1FY26 our revenue from export stood at 87 crore as compared to 77 crore in Q1FY25. And domestic revenue stood at 188 crore as compared to 143 crore. In Q1FY25 we saw an increased revenue on all the fronts. Revenue from technicals and formulations stood at 194 crore and 81 crore respectively for the quarter. There has been a robust increase in herbicide business during the quarter. 116 crore of capex has been planned for FY26 for both India Pesticide Limited and 100% subsidiary Sylvia Facility Limited.
India Pesticide Limited has its strong balance sheet with the ability to generate good free cash flow. Company is planning to fuel its CAPEX plan primarily with internal accruals. Capex will help company to continue its growth trajectory both in top line and bottom line. With this we would be happy to take your questions. Thank you.
Questions and Answers:
operator
Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mr. Ankit from Adezi Ventures family office. Please go ahead, sir.
Ankit
Hi, good afternoon and congratulations on a good set of numbers. I firstly wanted to understand what is the outlook that you have for revenue growth and for ebitda margins for FY25 and 26. And what. What gives you the confidence with regard to utilizing all these additional capacities that are coming on board?
D.K. Jain
Sir, the revenue target, what we have fixed is thousand crore for FY26 with the margin between 18 to 20%. And even this quarter also we have achieved an 18.4% margin which is in line with our expectations. And we are expanding the capacity of our intermediate plant and we are going to put one more block so that also utilization would be more than 70% of our capacities.
Ankit
And what gives you the. Just a continuation of the question. But what gives you the confidence of the utilization of these additional capacities?
D.K. Jain
The confidence level is A very good sir. Because we know whatever product we are making, we normally have some arrangements in advance. So as soon as we start manufacturing we can immediately market it. So there should not be any problem. The normal capacity utilization of around 70% we should be able to achieve.
Ankit
Understood. And I also saw that you have 32% of your revenues from exports. So what percentage of your revenues have the potential to be impacted by these US Tariffs that have been announced on India?
D.K. Jain
US Tariff that will not be substantial on our products because the tariffs, whatever has been declared by the US Administration, India and China both are in the similar range. And these are the two major countries who are exporting these agrochemicals to us. So we don’t see any impact on our products from US tariffs. Just to add, we are exporting just 3 to 4% of our turnover to us. Only 3 to 4%.
Ankit
Okay, perfect. Okay, thank you. And finally, I believe you saw pricing growth of 8% last quarter. So I just wanted to understand was there any forex contribution in this pricing growth as well? And secondly, if it was 8% last quarter, how does the pricing look for this quarter was year on year.
D.K. Jain
The pricing looks more or less stable now because raw material prices are more or less stabilized. So we think that it should continue in a similar way. And foreign exchange, some impact would be certainly there because of the conversion ratios between rupee and dollar.
Ankit
Okay, okay, okay. And finally, I mean if I was to look at revenue growth, I mean your Indian revenue growth in Indian market has been very, very strong, I believe. So what is the primary reason? What has been, what has caused this kind of very good revenue growth in the domestic market?
D.K. Jain
We have increased our herbicide capacity and this quarter is basically herbicide is being used, used. So there was a good demand for herbicides this quarter from India.
Ankit
And is this the first quarter wherein you’ve seen the impact of this increased capacity?
D.K. Jain
Yes, this increased capacity, part of the increased capacity was operationalized in the last week of April. So we have utilized partial capacity of this increased capacity.
Ankit
Okay, thank you so much for your clarification. Thanks a lot and good luck.
operator
Thank you.
D.K. Jain
Thank you.
operator
The next question is from the line of Ms. Mr. Danil Desai from Turtle Capital. Please go ahead, sir.
Dhwanil Desai
Hi, good afternoon everyone and congratulations for a very good set of numbers. So my first question is, you know, with respect to this anti dumping duty on, you know, have we seen the full benefit in terms of pricing because of that? And also, you know, this growth on the domestic side, is it driven by the, you know, increased Volume in petillacular. You know if you can talk a bit about that.
D.K. Jain
Yeah, petillacloor volumes have really helped us in this quarter because this is the main season for petillaclore because it goes in rice patty showing. So this, this was the main season and particular crore sales were good. With this anti dumping duty the prices have slightly normalized. Otherwise last year we were losing money on particular crore but now we are getting a reasonable margin in this.
Dhwanil Desai
Okay so that pricing effect has already come in. Come, come in. In terms of. Okay and we have, we are increasing this capacity, you know for Peda from 2000 to 6000. So you know how do we see the incremental ramp up in Petula Chlor, you know in terms of overall market share in Indian market? Because other than us I don’t see any major Indian players in this, you know, in this molecule. So you know what kind of volume we can do this year? If you can talk a bit about that.
D.K. Jain
See sir, presently we have a capacity of about 6,000 tons of pera which is further being augmented to 8,500 tonnes. This will be ready by September, October and we should be able to meet substantial demand of Indian requirement because up till now it has been largely imported. So we feel that the Indian customers will get our own product from us. So we should be able to meet at least 70% of more than 70% of the Indian requirement we should be able to fulfill.
Dhwanil Desai
Okay, okay. But that, that isn’t. Sorry.
D.K. Jain
Yeah, no, so that essentially this new.
Dhwanil Desai
Capacity, you know will come in, come on stream in Q2. So by that time the season will largely be over. Right. So the full benefit of this will get reflected in next year. Is that the right way to look? The 70% number you that you seen.
D.K. Jain
This intermediate sales, it starts from November, December itself because people they buy to this intermediate and then they convert it to petula cloth and then they pack it and sell it and reach the market. So normally it starts in November, December also. So we should be able to market part of the product from November itself.
Dhwanil Desai
Okay, third question. Are you talking about you know overall agriculture environment for you know technicals is kind of getting better just in terms of demand. So you know, if you can you know, give us some sense about our base business like you know, captain for pet, profal for cup, you know how are, how is the demand outlook and pricing scenario in some of these products?
D.K. Jain
The demand for our other products, for example our fungicides like Kapton Folped, that is also increasing because India is growing at almost 9 to 10% per year. So in line with that our product demand is also growing and especially folped there is some export demand is also coming up because of the banning of some of the products Folpate is finding as a replacement use. And even in Prosulfo Carb this year we have seen reasonably good demand and we feel that it should it will continue pricing wise. There is some pricing pressure on Prosulfo Carb. But we have optimized our process further to reduce our overall cost of production.
Dhwanil Desai
Okay, got it. One last question and I’ll come back in the queue. So sir, last year we did very well on the formulation side. You know almost 185, 190 crore revenue went to 280 crore. So on top of such a high base do we expect you know, 15% kind of a growth? And if so, you know what will drive the growth on the formulation side?
D.K. Jain
Formulation side formulation also will grow accordingly. Sir, as our basket of products are increasing so is our basket of formulation also increases. Number one. And we are increasing our reach to other parts of India where we are not present as on today. And number three, we are getting some bulk formulation orders from our overseas customers. So the formulation growth also will be in line with our technical growth.
Dhwanil Desai
Okay, that’s very good to hear sir. You know more questions, I’ll come back in the queue. Thank you.
D.K. Jain
As we are making more technical sir. So the demand for bulk formulations of those technicals. Yeah.
Dhwanil Desai
Okay. Okay, Got it. Got it.
operator
Thank you. The next question is from the line of Mr. Anant Shenoy from AS Capital. Please go ahead.
Anant Shenoy
Thank you for the opportunity. My first question is on the formulation sales which were flat in Q1 like 78 crore to 80 crore. This is despite good monsoons. So like what is the reason for that? And on 285 crore base of last year do you expect growth in the remainder part of the year for the formulation?
D.K. Jain
Yeah, formulation growth. In July there has been substantial growth actually because it’s slightly delayed. That is why it is come up. But now it is going on very well. Sir, the basic consumption starts from June end.
Anant Shenoy
Okay.
D.K. Jain
The product consumption starts from June end. So there was a delay in monsoon for a few days. So it started around 10th and 15th of July.
Anant Shenoy
So from Q2 onwards we will see formulation growth also.
D.K. Jain
Yeah, you will see growth in Q2 also Q3 and Q4.
Anant Shenoy
Okay. Okay. So second question is on the export order book like how is the export order book? Yoy do you see? Is there any growth in the export Order book for US Export order book.
D.K. Jain
Is also growing, sir. That is true. When compared to last year our export order book is relatively much better. We have orders for our major products like Pro Sulfo Carb as well as for full face as well as for captain. We have got very good export orders.
Anant Shenoy
Okay. So can you quantify like what like how much percent the export order book is higher.
D.K. Jain
A percentage that we have to calculate. Because like we don’t have the number readily. We will send you. Please again we will. I will. I will communicate with you.
Anant Shenoy
Okay. And lastly on the particular crore side in the Q1 what was the sales of particular floor?
D.K. Jain
What was the.
Anant Shenoy
What was the sales of particular floor in Q1?
Unidentified Speaker
It was around 55 crore.
Anant Shenoy
55 crore. Okay. And other key products like Kapton and Pulpit. How is the pricing? Is it stable or like has it. Gone up pricing now? Stable pricing is stable.
D.K. Jain
But in where it in euro dominated prices there is some gain on account of foreign exchange depreciation.
Anant Shenoy
Okay. And the last question in the last call you had mentioned about three to four products in your two products in Europe and one or two products in US that we got approvals last year. So how the products have started for this of the sales started for these products and if so like can you name the products and what. What sales you’ll see this year?
D.K. Jain
Sir, we have already have orders for one of the products from us other product. We have discussed they would be requiring the product near the year end. We. Last week only I was in US we had a conference there and we had the meeting with our customers. He has indicated that at the end of this year they would be requiring the major quantities of this product. And similarly in Europe. We are already in touch. And they will also be requiring by year end.
Anant Shenoy
Okay sir. Thanks a lot.
D.K. Jain
Thank you.
operator
Thank you. The next question is from the line of Mr. Kaushal Sharma from Equinox Capital Ventures Private Limited. Please go ahead.
Kaushal Sharma
Hi sir. Am I audible?
operator
Yes sir, please.
Kaushal Sharma
Yeah, yeah, yeah. Congratulations. My question is on your capacity side, what is current capacity utilization as on date?
D.K. Jain
Current capacity utilization is around 80% on blended basis. Technical will be around 73. And formulation is fully utilized.
Kaushal Sharma
Formulation is. So you are expecting more than 70% utilization level in this financial year, right?
D.K. Jain
Yes. Yes.
Kaushal Sharma
And so can you please tell me what is the average like? We have recently added the capacity average.
operator
Mr. Kaushal, could you come again with your question?
Unidentified Speaker
We are not able to hear clearly.
Kaushal Sharma
Yeah. So. And now is it? Hello.
operator
Yes sir, please.
Kaushal Sharma
Yeah, so I. I was asking.
operator
Sir. Again there is a static disturbance at your end.
Kaushal Sharma
Sir. Peda. Now is it clear?
operator
No sir.
Unidentified Speaker
What do you want in Pera please? The line is there is some disturbance.
operator
Mr. Kaushal, I’ll request you to rejoin the queue. Again we’ll take up the next participant. The next question in line is from Darshal Zaveri from Crown Capital. Please go ahead sir.
Darshal Zaveri
Hello. Good afternoon sir. Thank you so much for taking my question. Hopefully I’m audible.
D.K. Jain
Yeah, yeah, very clearly.
Darshal Zaveri
Yeah. Hi. Thank you. Thank you so much sir. So firstly great results on Q1. So just wanted to know with in Q1 we’ve performed with. You know the new capacity is being online only part of the quarter. So is it a fair way to look at that Q2 the new capacity will also be in that the Q1 capacity that came online will also be there for the full quarter. The Q2 should be better than Q1. And how do we see the seasonality of our business? Like in terms of H1 and H2 like is it the ratio is 50, 50 or 60, 40.
Could you, you know, help me with that sir?
D.K. Jain
But turnover ratio in generally in first half we are achieving 50, 56%. And in second half 43 to 44% first half major turnover comes from indigenous sale. In second half export turnover is higher. As far as the capacity in first quarter is concerned, it will be fully operational in second quarter. But the product demands comes from third quarter and fourth quarter. As already explained. The new new capacity of this peda major consumption is in third and fourth quarter.
Darshal Zaveri
Okay, okay. So it’ll be more in Q3 and Q4. Okay, fair enough sir. And so I just wanted to know with regards to you know, our other income, I know there was some insurance claim but even without that it is look slightly elevated. So what was the part of other income? Sir.
D.K. Jain
This other item is it. It includes higher forex gain due to increased euro denominated export this quarter. Euro had depreciated significantly this quarter and our Europe export to Europe was very good during this quarter.
Darshal Zaveri
Oh, okay, okay, okay. Fair enough sir. And so I just wanted to know like with regards to our FY26, our guidance is clear. But in the for the next year FY27, what is the target that we are looking at? Because as India is also growing, so what is the aim for us to grow at what level and what margins.
D.K. Jain
Even for the next year? We are investigating a growth of about 15 to 20% in our revenue and EBITDA margin. Again we would like to keep between 18 to 20.
Darshal Zaveri
Oh okay, okay, okay. Fair enough sir. And so I just wanted to know like on ground like how’s the macro environment? Like do we see any kind of risk in demand or you know China, the dumping and everything. So how do we just overall see the market? Any kind of you know risk that you know can be a speed bump for our growth.
D.K. Jain
Sir, China, China is already there. China is always a challenger challenge is there. So we have optimized our products and we are competitive to China now and we are able to compete with them. There is no problem at all. And in some products, for example in petillaclore because of this anti dumping duty now we are at a better living playing field. And the other products, we are quite competitive to them. So there is no threat for us from China in our major molecules.
Darshal Zaveri
Oh okay, fair, fair enough sir. Thank you so much. That’s it from. And so one more question if I may sir. So just wanted to know about our interest cost. So like is the Q1 level the stable that we could see or any higher? Because it is a bit like I think it’s twice what it was there last Q1. So just wanted to know how do we see interest cost going forward?
D.K. Jain
Sir, the interest cost will be reduced. In Cuban this year we have borrowing since in Q4 have accumulated a large inventory of our herbicide. Now they have been liquidated and we are receiving payments. So now our working capital limits they are at a very low level. So interest cost will be reduced in subsequent quarters.
Darshal Zaveri
Oh okay, okay, okay fair enough. So yeah that’s it from my side. Thank you so much sir.
operator
Thank you. The next question is from the line of Mr. Ankit Gupta from Bamboo Capital. Please go ahead.
Ankit Gupta
Thanks for the opportunity and congratulations for our great set of numbers sir on you know as you had highlighted that we have done a Petridla course sales of around 50 crore in the auto. But you also said that we can sell Peda from November, December onwards for this financial year. So for petitra core plus beta sales for this year how much are you expecting and what is the target for FY27?
D.K. Jain
We our annual capacity of PEDA would be about 8,000 to 8,500 tons from October onwards and we expect at least for this year. For the remaining period now from December to March we expect to sell at least 70, 50% at least of our capacity and next would be in from April to June.
Ankit Gupta
So what will be the realizations and like how much revenue can we generate from the Peda sales?
D.K. Jain
I think we should Be able to generate about 150 crores from Peda and Petila this quarter. This year.
Ankit Gupta
This season. This financial year.
D.K. Jain
Yes.
Ankit Gupta
Okay. And next year, you know, we’ll take the advantage for the full financial year. How should we look at the sales for Pira plus petroleum?
D.K. Jain
See for example if. If I take the capacity as 8500 and if I am able to utilize at least 70, 75% of the capacity. So it will be about 5000 to 6000 tons of pera which will convert into about 250 crores. 250 to 300 crores.
Ankit Gupta
Will sell outside also. Right. To the other manufacturers who convert into petroleum. And we also use for our own in house consumption.
D.K. Jain
Yes, yeah, that’s true. For in house as well as for selling to other customers.
Ankit Gupta
150 crore that you are saying for Peda per petriclo is. Is for. Is including the in house consumption. That is not the external.
D.K. Jain
If I don’t sell pedal, I will sell petilla cloth. So Pera or Petila I’m taking combined.
Ankit Gupta
Sure, sure, sure. Okay, okay. And on the overall, you know, global scenario you highlighted that the pricing pressure still continues on the export market. So you know, can you talk about some of the new products that we had launched in last two years, how they are doing and how do you see ramp up in their sale? You know, FY25 new products that we have launched this financial year, you know, in quarter one, if you launch any new products, how are they doing, how much sales are they contributing and how do you see growth for those products going forward?
D.K. Jain
The last year we introduced two products. They are doing quite well. One product we are able to sell almost about 500 to 600 tons per year. And the other product, what we have now, we are planning, the product is there but we are going for backward integration of that intermediate. So with that we will be able to get in the export market about a thousand tons of the product from next year onwards.
Ankit Gupta
How much do they contribute in revenue? The first product and second product, if.
D.K. Jain
I am able to sell thousand tons it should be. We should be able to get almost about 50 crores on that.
Ankit Gupta
Okay. And the first product that you told which contributed 500. Okay. So that should be around 25 crore.
D.K. Jain
Yes.
Ankit Gupta
Okay. Okay. How many products are we planning to launch this financial year? And I would request you to rejoin.
operator
The queue for any further questions. Yeah, thank you so much. The next question is from the line of Mr. Saket Kapoor from Kapoor Company. Please go ahead.
Saket Kapoor
Thank you for this opportunity. About Our backward integration. Sir, if you could just give some understanding that in your presentation you allude to the fact of incremental margins from backward integration for one of the funding sites. So how much are we currently integrated and what steps are we taking for incremental backward integration going ahead?
D.K. Jain
Sir, we have backward integrated few of our products where the raw material, the intermediate was largely imported. See some of the products we make from very basic state starting from very elemental chlorine or carbon disulfide and some products we need to import some intermediates and these intermediates are primarily imported into India. So we embarked on converting these intermediates in our own plant. One example is the petillaclor. This pera which was more than 90% was being imported into India and now we are able to meet the demand of the Indian consumers for more than 70, 80%.
So we have done that substantial work on making this intermediate. Similarly, we have also added the backward integration step for one of the fungicides which goes and which is also around 50 crores of turnover. And with that our margin would be much better if we are able to make our own intermediate which has already started.
Saket Kapoor
Annual sales ah, in.
D.K. Jain
In one fungicide. So in that our backward, if we have backward integration then the our realization would be improved substantially.
Saket Kapoor
Sir, we have also mentioned in our customer profile that we are improvising on our ability to manufacture complex of patent technicals. So what is what are the same in the product development stage and what are the potential if you could just allude to the same. And when we look at the customer profiles we have mentioned about Rallis and upl so how does the like of say the the likes of best agro and Shivali grass? Ian, do, do. Do they also fall as a competitor for us or are we doing business with them also?
D.K. Jain
No, we are not competing with Best Agro or Shivalic chemicals because their product range is different than our product range and but for their formulation business they buy some quantities of our products to have a better formulation basket. That way almost all the companies in India they buy our products but in the main technical segment we are not competing with Best Agro or fuel.
Saket Kapoor
Next to the incremental margins I can say in your presentation you mentioned about ability to manufacture complex off patent technicals. So what are the product pipelines in which we are working and what should we look for?
D.K. Jain
We have already identified three to four molecules and the work is going on at different stages. Two molecules. We have already completed the RD work and we have done the pilot plant and they are Ready to go for commercial. So the commercial plant is in construction stage. In our subsidiary shall be specialties at Amirpur.
Saket Kapoor
Okay, two small points and I joined the queue. Sir, you are also in your presentation mentioned about some certification, technical equivalent certification from the eu. So if you could just elaborate. I think you were mentioning about EU sales also catching up for quarter three and quarter four. And for Hamilpur capacity. Sir, also Hamilpur would be the greenfield project sir that we are emphasizing. And is it in the state of.
D.K. Jain
Yeah, please sir, that is a greenfield project. The work is going on there. The infrastructure work is under progress. The main. One of the main commercial production blocks is also under construction which is expected to be completed in another 2, 3 months of time. And the EU registration. What you have asked about what happens if you want to sell any product in European Union? We have to first register our product in European Union. So we submit all the data required for the registration to them and they will issue letter of equivalence. That means that our product is equivalent to the registered product in Europe.
So we can sell then in Europe otherwise we cannot sell.
Saket Kapoor
Okay, so what is the potential sir, in. In value terms? If you could just give an understanding the type of certification for the type of products which we will be able to monetize or sell going ahead. What is the market size that depends upon product?
D.K. Jain
Each product we have to register like this. Each individual product needs to be registered with EU and then we have to identify the customers who are using this product. So we go to them, they will add us as a source and then they will start buying different products from whatever product we are registered. So we have been doing this business for the last so many years and EU is one of our major export destinations.
Saket Kapoor
Last point sir, in your presentation again I’m referring to under the CAPEX plan you have highlighted the point about Hamirpur. And the future trajectory of a growth prospect is poised significantly with the augmentation of Hamirpur project. So how much are we spending? Enter if you could elaborate what will this facility add to? And so this is in the state of Himachal Pradesh where we are emphasizing this new.
D.K. Jain
Amirpur is in uttar Pradesh about 170 km from Lucknow and 80 km from Kanpur. And that is a wholly owned subsidiary of IPL by name shall be specialties. Because our present plant there is no space left now therefore almost full. So the the new products we are getting in our subsidiary called Shelby Specialties at Habirk above also there is a. New expressway which is coming up between Lucknow and Kanpur that will reduce the distance between Hamirpur and Lucknow by significant mark significantly. Now we need not to travel two and a half hours. I think one and a half hours we’ll be able to reach our production site myself or maybe our team and everyone can reach there quickly.
Saket Kapoor
Okay. And if you can now elaborate sir with the statement which you have provided what kind of revenue potential and when you say that the future trajectory of growth will be augmented from this project. So if you could just give us some color the type of capex we are first phase and the revenue potential.
D.K. Jain
We are doing almost next year we have planned a CAPEX of 64. This year. Sorry, this year we have planned a capex of 64 crores at our Amirpur site. And next year it will be much more than that. And our revenue potential there we are envisaging next year in ABY 2627 we should be able to get about 100 crores revenue from this site. And when this site is fully operational, when the complete because it is a land of 25 acres. If you pull when we fill that with the production blocks we should be able to get a revenue of almost thousand crores up from there.
Saket Kapoor
1000.
D.K. Jain
Yes. Ultimately that’s what we envy says thousand to 1100 crores from Amirpur site.
Saket Kapoor
And what is the timeline sir? By when can we achieve or three.
D.K. Jain
To four years sir, minimum. If we are lucky we can go fast but it depends on the market conditions.
Saket Kapoor
Okay sir, thank you. Thank you for the same. I’ll join the queue sir. In fact for Hamilton part of leadership to achieve this thousand crore what would be the incremental capital that needs to deploy 64 is what we are doing for the first I think so to achieve 100 crore and above turnover we have already.
D.K. Jain
We have already spent almost 50 crores there and 64 now is going on and we need to Invest almost about 400 crores roughly asset turnover up to 2 to 2.5.
Unidentified Speaker
So 400 to 500 crore of investment will be required.
Saket Kapoor
Right sir. I will join the Q sir. And thank you once again and all the best to the team sir.
D.K. Jain
Thank you.
operator
Thank you. Participants, if you wish to ask a question you may press star and one on your touch tone telephone. The next question is from the line of Mr. Anant Shenoy from AS Capital. Please go ahead.
Anant Shenoy
Hello sir, I needed a clarification on the previous one. So you told in the second H2 of this year we will make Peda sales of 100 crores. Is that correct?
D.K. Jain
Yes, yes.
Unidentified Speaker
Both Combined.
Anant Shenoy
Okay, so already we have done in Q1 we have done 55. So in H2 we will expect another 100 plus.
D.K. Jain
Yes.
Anant Shenoy
Okay, sir. Thank you.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one on your touchstone telephone. The next question is from the line of Mr. Ankit Gupta from Bamboo Capital. Please go ahead.
Ankit Gupta
Yeah, thanks for the opportunity again. So on the, you know, on the export demand side, you know, you, you, you had added that the rising pressure still continues during this quarter as well. So if you can talk about, you know, how much has been the decline in the prices of some of our key products like Kaptan Folpate and over the past year. Let’s say if we compare the prices of May June 2024 with May June of 2025. So how much has been a decline in the prices?
D.K. Jain
Only price decline has been in Pro sulfur car. In all other products they are quite stable.
Ankit Gupta
Okay.
D.K. Jain
And might be some benefit due to depreciation of euro also.
Ankit Gupta
Okay, okay, okay. Only has seen, you know, decline in prices. So for the rest of the products for the last 3 4/4 the prices have been stable.
D.K. Jain
Yes. But even in pro circle car we have optimized the process to really nullify some of the price decrease to upset.
Unidentified Speaker
The upset the lower price we are getting.
Ankit Gupta
And for this for like the pricing realization growth of you know, 8% that we have seen in the quarter. Is it primarily on account of the, you know, petit la crore sales for the quarter?
D.K. Jain
It is partly by Petla global sales and balanced by this some forex gain also as well as in some price rise in. Actually our basket is quite big say around 20 product technical product. So in some product we have been able to increase our prices by 4 to 5 rupees.
Ankit Gupta
Okay, okay. Okay. Thank you. Thank you so much.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one on your touch tone telephone. The next question is from the line of Mr. Saket Kapoor from Kapoor Company. Please go ahead, sir.
Saket Kapoor
On the backward integration part. So as a total percentage of the sales profile of the product, what is the current percentage? That is where we are backward integrated as a percentage of revenue. And going ahead, what are is our line of action or the thought process in that direction for the center.
D.K. Jain
Our philosophy is normally to make the product from very basic stage. That is what we have been doing. And in the in some new products what we do we initially start not with very basic but we start to introduce the product first. And if we see the product Response is good, then we go for backward integration of further steps. So that otherwise if you initially itself, if you do, then you lose lot of time and lot of capital to produce initially from very basic stage.
Saket Kapoor
So as of now, out of the product profile of our especially the the fungicide part, what portion of our branded sales are are we totally backward integrated and where are we working currently for how many products to for this backward integration? After the validation of the products, as.
D.K. Jain
You just alluded, presently what I can say, all our major products, they are all backward integrated. And the new product, what we are introducing, that once we see the response of the product, we go for backward integration. So this new product pipeline, slowly one by one we are going for backward integration. All our existing products, including our particular clothes. Now of course I told you then we all our other fungicide, Kapton pulpit, everything, they are all backward integrated.
Saket Kapoor
Right Sir. Thank. Thank you sir. And thank you for a very detailed presentation also.
D.K. Jain
Thank you.
Saket Kapoor
And all the best once again.
D.K. Jain
Thank you.
operator
Thank you. Ladies and gentlemen. That was the last question for this session. I would now like to hand the conference over to the management for closing comments.
D.K. Jain
Thank you very much for your participation. For any further queries or clarification, please do get in touch with our investor relation team and we would be happy to reply to your queries. Thank you again and wish you all a very happy Independence Day. And Krishna Janmashtami. Thank you.
S. P. Gupta
Thank you so much.
D.K. Jain
Thank you.
operator
Thank you sir. On behalf of Dalit Capital Markets Private Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.