Insecticides (India) Limited (NSE: INSECTICID) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Masoom Rateria — Investor Relations Associate
Rajesh Aggarwal — Managing Director
Sandeep Aggarawal — Chief Financial Officer
Dushyant Sood — Chief Marketing Officer
Analysts:
Unidentified Participant
Bhargav — Analyst
Bharat — Analyst
Ashwini Agarwal — Analyst
Saket Kapoor — Analyst
Darshil Jain — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Insecticides India Limited Q1FY26 earnings conference call organized by MUFG in time. 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 the conference call, please signal an operator by pressing STAR and then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Masoom Leteria. Thank you. And over to you ma’.
Masoom Rateria — Investor Relations Associate
Am. Thank you. And welcome to Q1FY26 earnings con call of Insecticides India Limited. Today on this call we have with us Mr. Rajesh Kumar Agrawal, the Managing Director, Mr. Sandeep Agrawal, the Chief Financial Officer and Mr. Dushyan Sood, the Chief Marketing Officer. Before we proceed the call, I would like to give a small disclaimer that this conference may contain certain forward looking statements which are based on beliefs, opinions and expectations of the company as on date. The statements are not guarantee of future performance, uninvolved risks and uncertainties which are difficult to predict. A detailed disclaimer has been given in the company’s investor presentation which was uploaded on the stock exchange.
Now I would like to hand over the conference to Mr. Rajesh for his opening remarks. Over to you sir.
Rajesh Aggarwal — Managing Director
Thank you Masoom. Welcome to all the attendees to the Q1 earning conference call of Insecticides India Limited. I would like to narrate you the premium growth story and our profitable journey. So as you know this year the monsoons out west monsoon in particular there was early onset of these monsoons and there was strong start of the season. The reservoir level is very healthy because overall the monsoons are normal. So there is uneven distribution across states. There has been dry spells, there has been extra wet spells in various regions which has impacted a little. But overall it is very very positive.
The global demand recovery scenario is also visible with the stable raw metal prices which has also helped the organization in growing further. The statewide gaps in the sowing has impacted certain crops particularly the herbicide season. In the dry crops like cotton and soybean got some impact. But if we look at the crops like rice and maize, they are very healthy and they are going very strong. The rains have been patchy which has affected also in some parts of the country particularly pulses, cotton and oilseeds. But overall the herbicide demand has been uneven. But particularly for rice and maize it has been very very good.
So Coming down to the results of the Q1, the premium products in the Q1 has grown by almost 20%. So when I say premium products they are focused Maharatnas and the Maharatnas EBITDA margin of the company in Q1 has grown up by almost 12% versus 11% in the last year. The PAT is 18% YoY so 42 crore sales from last year’s launches was there in one whereas in the last full year the total sale was just 34 crores. I wish to tell you that we have launched about one dozen products in the last year. We didn’t wait for the season, we just launched a product as we get the registration.
That was one reason that the sale was very low. But in Q1 itself when it is just the beginning of the season, we could back more sales than the last complete fiscal for these products. And at least two of these products have entered into the Focus Mahratna range. And there are many products which have entered into Maharatnas. Our expectation particularly from these products is very very high. So here I would like to particularly name Altair, Chantran SC and Brahmos which are expected to do good. When I talk about Altair. Altair is a patented herbicide which we have got from Nissan.
It is a new generation herbicide for rice. So we have placed this product in more than 900 villages. A very strong farmer connect is being done by our sales team and the marketing team. A lot of demonstrations are being laid and they are following up each and every acre where this product is going. And we expect a lot of sentimental, a lot of support from the farmers in the long run. And of course we are expecting good sales during the Ravi season also from this product. So there are the battery of launches which are going to come into this year and also in the next fiscal we are working on lot of new generation products and we expect a lot of launches.
Particularly some products which are doing well in Q1 were Tori, Super Green, Expert, Aerox, Konochi and we have also announced launch of one more product, Sparkle which has come through Corteva which is a MNC and we have tied up with them to distribute this product in the country which is for again price and it is started very well though it has just started in the month of August which is a Q2 thing. But I thought it’s essential mention I should. There has been a strategic transformation in the business of insecticide India. We were a generic company which was supplying the farmer with their fastest brand at very aggressive prices.
Slowly we have Started converting ourselves into a solution provider by providing them the new generation products new off patented molecules and it is not just the new molecule itself but we made the mixtures which provide the complete solution to the farmer. And these are very well accepted by the farmer and they are well appreciated by the network. And all these products are becoming the brands and are the part of our focus Maharatna and Maratna range and this strategy has helped a lot the company in establishing our premium range or the focus Marathna and Maharatna range.
So these products have helped the farmer increasing their profitability and the productivity. I can say that the premiumization strategy has worked out very well because along. With the. We have also worked in detail cutting many of the generics which were not giving the desired results have been moved out from the range. There is a continuous focus on margin expansion because we when we are working with the premium products and we are going to the field and connecting with the farmer also the network we are trying to establish this connectivity in a very I would say unique fashion. When I say unique like in social media we are trying to do a lot of activity the print media, electronic media we are doing one to one contact with the farmers.
We are trying to do as many. Farmer meetings as possible. Like in Q1 itself we did thousands of meetings with the farmers and we have done so many demonstrations of our products which has helped us in execution of these plans. I would say that it’s a continued focus that how we can improve our distribution reach to the market by trapping more network. When I say working with more network we are establishing more and more retail outlets. We are working with the distribution also wherever there is a need we are trying to expand that also overall we are strengthening our farmer connect in a fashion so that we are able to grow in a.
I would say talking about the future outlook would like to continue with the double digit growth in the premium products. Already said that it will be a decent double digit growth and we still maintain that this will help in the profitability improvement in this trajectory. Expand more products pipeline. Strengthening the farmer engagement is also going to support us. We have completed our capex of the hedge part one so the technical plant has already started the production and now we are working on Sota Nala which is going to support us for further expansions. Sota Nala plan is like we are trying to establish here the formulation unit as well as the technical unit.
Formulation unit target is to start in the next Kharif season and by the end of the next fiscal. We should be starting our technical plant phase one. So before I close this I would like to tell you that we have been focusing very what the. We are driving the farmers with lot of innovative and premium solutions. The tractor brand remains number one brand in the market in the race and we are like resembling the trust and technology technology. Most of the FMs are commanding top 5 position in the market and in the digital world IELTS is more prominent than ever before.
I can just say the three words innovation, solution and farmers or I can say innovation and solutions to farmer. This has become the buzzword at IAL and we are focusing around providing the new generation technology to the farmer at competitive prices and we are getting very good response from the market for this. With this I would like to hand over the call to the CFO to explain the results.
Sandeep Aggarawal — Chief Financial Officer
Good evening everyone. So this is first quarter of FY26. The revenue has grown from 657 crore to 691 crores showing a growth of 5%. Gross profit has increased from 181 crore to 202 crore. So from 27.6% to 29.2% and then EBITDA has gone up from 72% 72 crore to 85 crore showing a growth of around 122 bps. That has increased from 49 crore to 58 crore are showing a growth of almost 100 bps. Then in B2C segment, premium versus generic. So out of B2C sales 58% is premium products and 42% are other products and sales by segment.
Out of total sales, 75% is B2C sales, 23% is B2B sales and 2% is export sales. Thank you. Thank you very much.
Rajesh Aggarwal — Managing Director
Now we can open the house for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone 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 will wait for a moment while the question queue. The first question is from the line of BARA from Amit Asset Management. Please go ahead.
Bhargav
Yeah. Good afternoon team and congratulations on a good formula. So my first question is that now that we are focusing on premiumization of the portfolio, it would be good to understand what could be the EBITDA margin trajectory maybe in the next two to three years given that obviously the margins for the premium product should be far superior. So while we understand that the revenue growth is sort of in low single digits. But obviously as more and more premium products get sold, your EBITDA margin should be on a consistent improvement. So maybe in the next two to three years what can be the EBITDA margin which one can build in.
Rajesh Aggarwal
Yes, you are correct that we are trying to grow with the premium products. And for the generics we are doing the tail cutting which are helping us in building the EBITDA better EBITDA margins. So this Q1, what we have achieved looks sustainable in this year and for the years to come. Definitely we keep a target of 100 basis points. But it will be little ugly if I say 100 basis points every year. But it looks possible actually to me if we talk about two to three years. So it looks achievable because if I have a look at my product range, it looks like that we should be able to get that type of response from the market.
Bhargav
Secondly, sir, if you can highlight the performance of Kairos which we had merged into the company. So if you can spend some time on that and if you can give some guidance in FY26 on Cairo, that would be helpful.
Rajesh Aggarwal
Cairo, we have recently started actually last year there were some products which were sold by this company in Q1. Okay. So I am not having the number pending but we have made some progress for some companies and also for iim. And very recently in the last week we have launched the brand also into the market for Kairos. So this is just an introduction in the Khalif season, in the Ravi season also we’ll be spending time in building the network and this thing. But I can say that in FY27 we should be able to do about 150 to 200 crores from Cairo.
And this year I don’t want to give a number but definitely we’ll be targeting about 100 crore of business from Kairos in totality.
Bhargav
Okay. Okay. And lastly sir, in terms of hiring of professionals, if you can share some insights, we were sort of looking at increasing our professionalism by hiring a few senior members from the larger companies. So if you can spend some thought on that part, how are we progressing on that?
Rajesh Aggarwal
Right. The process is on. We are working. So we are working at various levels. So I expect that yes, there will be some joining before Diwali and after Diwali also.
Bhargav
Okay, thank you very much and all the very best.
Rajesh Aggarwal
Thank you.
operator
Thank you. A reminder to the participant, anyone who wishes to ask a question, we press Star and one on their touchstone telephone. The next question is from the line of Bharat from Pare Value Capital. Please go ahead.
Bharat
Hi Sandeep ji and Rajeshi. Congrats for a good set of results. Sir, a couple of questions from my side.
operator
Sorry to interrupt but your voice seems to be distant. Can you come closer and speak?
Bharat
Is it better now?
operator
Yes sir,
Rajesh Aggarwal
yeah, much better.
Bharat
Yeah. Sir, I was just asking with respect to the demand scenario. So like you mentioned that there has been some sort of a mixed kind of outlook with respect to herbicide. So for us how this quarter has been placed with respect to herbicides and going forward, like how do you see this particular segment getting out place with respect to quarter two?
Rajesh Aggarwal
Yes, I said that June was little muted month. Why? Because low rains it impacted some herbicides of dry crops in particular I just mentioned two crops, cotton and soybean. So these two crops herbicide got a beating. But if you look at the other herbicides, particularly in paddy rice and maize, they are doing wonderfully well and exorbitant. All I can say that these herbicides are going to come such all time highs here. So it’s a mixed response. So overall the sales is very good at this moment with all the factories running at 100% capacity, we are not able to fulfill the market demand.
Demand is like that. But July month is 90%. Chasing is like this only July and August month where the demand is immense and meeting the demand at the right time at the right place is a challenge for all the agrobial companies. So good demand at the moment overall. So our herbicides overall are again going to be highest in this year. So overall sales. But yes there will be some good return of these products. What are pertaining to these two crops in particular?
Bharat
Right. So not a meaningful sales return we expect for quarter two.
Rajesh Aggarwal
Quarter two generally is the big quarter for us which is almost at par or little higher than Q2 from last two years. It was little muted than Q2. So it’s difficult to tell exact number at the moment. But you can consider that it should be plus minus Q1 itself. It will be a repeat of Q1.
Bharat
Sir. Also with respect to inventory position out there in the market because some of the peers are mentioning about this particular issue with respect to higher inventory position with respect to the channels. So what like how we are teasing in this, like what kind of inventory are there in the system for us as well as for the industry?
Rajesh Aggarwal
I don’t think that there is any heavy inventory position in the market because at this moment there is full demand across the country. So whatever is there, it will keep on like going to the market. So as a whole I believe we. Will be reducing our inventory month on. Month continuously in this quarter. And even for the trade, the inventory has to go down. So generally as per policy of insecticide India, whatever is left in the market, like Q1 inventory of two herbicides which will be left over will pick everything from the market. In Q2 itself will not leave anything. So generally as a strategy we don’t do that. And overall if you look at the inventory of all other herbicides, insecticide, fungicide, I don’t think anything is stuck in a big way in the market. There may be exceptions of certain companies, certain products, but in general it’s not there.
Bharat
Right? Sir, with respect to the revenue mix, like we have seen that B2B sales have remained on a lower side for us with respect to this. So is it a strategic shift where we are focused more on the premiumized category rather than focusing on the B2B side or there has been some sort of industry wide scenario where the demand has been on a stable side from China?
Rajesh Aggarwal
It is a game of psychology because I don’t know sometimes why my competition is thinking that the sales is slow and they go slow in their numbers. This year again, yes, we have lost 10%, little less, 89% sales are lesser in B2B segment and we have got about 8, 9% no little more, 12% growth in the B2C business. So that’s more a matter of psychology. I don’t know why people are going slow. But yes, at the moment B2B sales are noted but I believe that in Q2 we should make a recovery and we should beat last year’s B2B sales in six months and Q2 level also.
Bharat
And sir, with respect to the product launches like you have done with respect to Ieltair and Sparkle, any potential market size which you can highlight or share across like what kind of a market size is these products?
Rajesh Aggarwal
It is too early actually for Altair but we this year we are going to take it to few thousand acres in the Thai season and in the Ravi season it will be more. I can give it the line to the CMO who can explain how hard we are working on this and would like to explain about the market size.
Dushyant Sood
Yeah gentlemen, as far as Altair goes, the journey is a very solid start. What we are aiming right now is a 100% satisfaction of 100% users across the geographies where the product has grown and I am very pleased to share that satisfaction level has hit the target and whatever we wanted to communicate, Farmer is able to see that practically in the every single field. So this is very strong. When you launch a new technology, new herbicide going forward in two to three years time frame, our maturity volumes, standard fittings, roughly half a million acres. That is the target which we are facing and we are investing for.
Bharat
Right answer. In terms of like half a million which you’ll be targeting. So what kind of a revenue can we expect? Like with respect to the overall. I’m just asking if you look at potential for this. What kind of a potential?
Dushyant Sood
Yeah, the maturity revenue gentlemen at when we treat half a million acres would be in the range of close to 70 crores.
Bharat
70 crores. Okay. And just a last question, sir. Like we have seen a very healthy B2C mix. Like with respect to 75% are we targeting and are we sticking to it like the B2C mix? On the overall revenue for FY26 and with respect to EBITDA there has been a good amount of improvement. So can we expect throughout the year like 20% kind of a growth on EBITDA numbers will be there given out the healthy offtake of monsoon.
Rajesh Aggarwal
That is I would say healthy target what you are thinking. But again I cannot say B2C and B2B in terms of percentage because my expectation is my B2B business should also grow in terms of B2C. Yes, we will have a double digit growth in our B2C business. And we are trying to get 20% growth from our premium product. That is the vision. That is the target for which we are working. And we need to continue working for that. But at the same time B2B business is also expected to grow because we have started certain new AIs which will be selling to the market.
And also we have some good expectation from the export business. So these businesses will also grow. So I cannot say 75, 25. That can be 70, 30 or plus minus 1.2%. That is not the vision. The vision is to sell the premium products to the maximum quantities. Yes, we should be able to maintain what we have achieved if you want. That is the reason going more than that. It depends on how everything turns out actually.
Bharat
Right. But looking at the current scenario, this kind of a growth with respect to on the consolidated seems quite achievable.
Rajesh Aggarwal
Total growth and maintain my vision, what we had targeted in the beginning, about 10% plus minus. We’ll maintain that.
Bharat
And that one, the profitability trend is there.
Rajesh Aggarwal
Sir, that was the top line, not the bottom line. In the bottom line we are going to grow the premium products profitability. We have already discussed when you are talking about EBITDA margins which we are matching so that you can easily calculate, sir.
Bharat
Okay.
Rajesh Aggarwal
We are trying to maintain the EBITDA margin percentage. What we have achieved now which has already grown more than 120 basis points.
Bharat
Right. So we are sticking to achieving more than 100 basis point improvement. Like.
Rajesh Aggarwal
Yes, that type of improvement is. Yes, improvement is likely to continue going forward. Yeah, that’s it from my side, sir. Thank you so much.
Bharat
Thank you.
operator
Thank you. Before we take the next question, I would like to remind the participants. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. The next question is from the line of Ashwini Agarwal from Demeter Advisors llp. Please go ahead.
Ashwini Agarwal
Good evening and congratulations for you know, very solid show on the margin. So one question is that any update on the R and D portfolio that is under development with OAT Agrio? When might we see a product launch in India or anywhere else in the world? Can you provide an update on that?
Rajesh Aggarwal
Yes, we have filed about a dozen package from this jv. The first product, we are planning to make a filing in the year 25 and there can be a launch in the one year itself. That is the vision. So the first product will be coming. The second product development is under progress. We have finalized the product. All things are finalized. So once the product is done, then we have to work on the costing. So generally the first costings you get are about 10 lakh rupees per liter. And the target you get is to make it 5000 rupees.
So that’s a real war which happens in India and Japan actually. And it takes about one to two years in development of bringing those prices to that level. And then you can take the product to the market. So that process is on for the second product and we have the visibility of the third and fourth products also. So there is a battery of products which will be coming in years from now. So the first product. Yes, as expected in air condition.
Ashwini Agarwal
Sir, any thought on how large can it be? Would you be doing the manufacturing for the global markets for OAT or would you just focus on India and manufacturing for India? Any thoughts you can share?
Rajesh Aggarwal
The vision was very clear at the time of setting up the JV that the JV’s role will be just developing the product and filing the patent. And the first right of refusal will be with ielts to make the product or not make the product. So there are nine more than 90% probability that I will make the product for the entire world. So there are 12 countries which are with I and rest of the world is with oat. So Indian subcontinent and some countries of Middle state and Africa are with IL exclusively. So where we can appoint our own partners or work through our distribution network and rest of the world we have to supply it through oat.
So that is very well understanding. And with that understanding only we are doing the joint working. And even the data generation is happening jointly for all the products.
Ashwini Agarwal
And the first product that you will file in 25 and hopefully launch this year. What kind of a product is it? Is it a herbicide, fungicide? What is it and how large can it be?
Rajesh Aggarwal
It’s an insecticide actually. So as it gets launched, information will be public. So the launch is not in year 25, it will be in the year 26. So we are expecting to complete our file and make it because lot of documents have to come from Japan because maximum trials or tests are conducted in Japan only.
Ashwini Agarwal
The second question is now your the H plant has now fully become operational. I remember reading a press release recently that I think it has just been capitalized. Would that be in Q2? Because I don’t see a substantial increase in depreciation in the quarter on a year. On year basis.
Rajesh Aggarwal
The depreciation will be visible in the year end. Actually we have just capitalized it because we have just completed the addition of almost 100 reactors in our system. So technically it is going to be a big boost for the company. So a lot of new products we have already started from dhed. So we are distributing the products across the plants in Dahed and in Rajasthan. In Rajasthan again Sultanala we are setting up a new facility. So we are dividing the product, what products have to go where, what are the new introductions. So everything is being planned by the R and D and the plant and the results will be visible very soon.
Ashwini Agarwal
And so going back to one of the earlier comments you had made where you expect your B2B sales to pick up in Q2 and hopefully the rest of the the year, would that also mean that the margins improvement that we have seen in Q1 will become a little diluted because B2B sales are probably at a lower margin.
Rajesh Aggarwal
That’s true that they are at a little lower margin. But it depends what you are selling. If you are able to sell the new generation technology then you are able to maintain the margins. Because when you are selling B2C especially the new generation products then you have to lot of hard Work in the market. Like if I talk about this year in Q1, these CAs or what we call them, the crop advisors, generally the number goes to 900. This year it has crossed 1300 actually. So I mean to say a lot of efforts have to be made in the fields.
You have to train the farmer, you have to work with the retailers, you have to work with the distributor. So a lot of activities are there to sell these products. So the expenses, the selling expenses are very high. In case of B2C and B2B you. Have to share that portion with the partners. So for the new generation product, generally the profitability are good. So don’t. I’m not afraid that my EBITDA is going to fall in this year. I believe that I should be able to sustain what I have achieved in Q1.
Ashwini Agarwal
Perfect. Thank you sir. And all the best.
Rajesh Aggarwal
Thank you.
operator
Thank you. The next question is from the line of ankita garwal from ngp advisors. Please go ahead. Ms. Ankita, please go ahead. As there is no response, move on to the next participant. The next question is from the line of Saket Kapoor from Kapoor and Co. Please go ahead.
Saket Kapoor
Yeah. And thank you for this opportunity. Hope I’m audible, sir.
operator
Yes. Yes.
Saket Kapoor
Sir. Firstly, as you alluded to the point that you are, you are experiencing improved business sentiment for the ensuing quarter also. So taking this into account, what percentage of our sales are attributed from South India? I think so. There is a season for the chili and the spices that is there for the second quarter for South India. And how is that shifting?
Rajesh Aggarwal
Okay, South India is a very large market which has all the crops. And we are acting across crop sector. Chile is important because Chile is a very small area. And with that small area has huge sales because the number of rounds of sprays which happens in Chile don’t happen in any other crop. So that is one reason. But from rice to cotton to lot of pulses and maize and everything is there in south actually. And for us, south contributes roughly about 40% of our brand business. When I say South, I mean Andhra, Telangana, Karnataka, Tamil Nadu and also Kerala.
So they are big geographies for us, important markets and we are active everywhere. This year the chili market is seen to be little declining. Chili, cotton has some impact and maize is one crop which is growing across the country. The paddy swimming is also little extra than the previous year. But still let’s hope that chili will be good actually and will be serving that market in a good way.
Saket Kapoor
And traditionally, how big is quarter two in terms of the total pie of the business that we do.
Rajesh Aggarwal
Generally if we distribute the four quarters this is 30, 30, 20, 20. So which is a general definition for with respect to check inside India because many of my competition they do lot of dumping in the last quarter and their quarter is higher. But as a strategy we never dump in the finishing quarter. So we generally are 30, 30, 20, 20. And then as per the seasonal situations 1 2% plus minus half.
Saket Kapoor
Return is also a very big component that that one one need to factor in in terms of the the revenue. So for this quarter sir, if you could just give the sales return number or what kind of provisions are we have we envisaged and so going ahead for the entire year top line as a percentage of sales, what should be that number?
Rajesh Aggarwal
Generally we expect a sales return of 3% as a normal routine. What happens to us actually so this year in Q1 as there was a disaster and particularly soybean and we have a very strong herbicide for soybean and there was a launch of a new herbicide where we made the technical also for the soybean. So the expectation is little higher. So the good return which we may expect in Q2 will maybe to an extent of about 60, 70 crores. So the provision is already made for that and we are trying to replace that with various other products.
Because there is good demand for as I told the rice herbicides and then all the check pesticides and fungicides. So that we will cover that.
Saket Kapoor
60. Crore with the sales return we are packing for Q2.
Rajesh Aggarwal
Yes, this will be pertaining to the Q1 products which will be coming in. That is the expectation.
Saket Kapoor
Exactly. And how much have been the return part for Q1 the sales return that we have reversed the sales you don’t.
Rajesh Aggarwal
Reverse generally just till you get the material. So you’ll only once the material is received then only you will do the sales return. Actually so the entire will happen in the month of August. Mostly.
Saket Kapoor
Will happen in the month of August. Okay, so there is no factor for Q1 for the June quarter as of now.
Rajesh Aggarwal
Yes.
Saket Kapoor
When you mentioned about other players also think south India is a big market. Sir, when we look at the likes of this India pesticide, Best Agro, Shivali, Grassine. Are they are on the similar field and we are competing with them in the similar product profile or we have a differentiated market and the product profile.
Rajesh Aggarwal
I don’t want to compare myself like it’s a wrong question to answer here. But I would say that we are one of the strongest companies in south India. Nobody is in comparison Whatever names you have taken, all three put together cannot compete. Okay, thank.
Saket Kapoor
Thank you sir. For all the. I was just trying to compare the margin profile for. For the other listed players. That was the reason. I was just trying whether. Likewise. Thank you sir. Thank you and honor your thoughts.
Rajesh Aggarwal
Thank you.
operator
Thank you. Before we take the next question, I would like to remind the participants. Anyone who wishes to ask a question may press star and one on their touchstone telephone. The next question is from the line of Darshir Jain from RJ Investor. Please go ahead.
Darshil Jain
Hello. Am I audible?
operator
Yes. Please go ahead.
Darshil Jain
Yeah. Thank you for taking my question, sir. So I have a couple of questions. So firstly, could you provide more details on the upcoming products and what crops or segments are they targeting on and how they expected to contribute to the revenue and margins.
Rajesh Aggarwal
I give to the CMO to share the products.
Dushyant Sood
So we are working to ensure that I, as you heard Rajeshi, establish higher level solution providers primarily in the crops. Rice, corn, soya bean, wheat, sugar cane, horticulture and pulses. So these are the areas where we are focusing. These are the areas where investments are made. And these are the areas where our pipeline is very, very strict from and healthy. So whatever we launch in the coming quarters and years it will be primarily around these crop segments only.
Darshil Jain
Understood sir. Understood. So furthermore, are there any new strategic tie ups or maybe collaborations planned for the year?
Dushyant Sood
Yeah, I just hand this back to Rajendi.
Rajesh Aggarwal
We have just launched a product with Corteva. So there are many agreements signed which I cannot declare till we launch the product section. As a strategy we only come out so. But I can just say that yes, we have signed various contracts with various companies. At least two companies are more.
Darshil Jain
Understood, sir. Understood. And secondly, could you provide insights into how raw material prices have behaved during the Q1 26.
Rajesh Aggarwal
And probably they have been very, very stable. There was a decline in the prices after Covid. After that they are stable. Some small rise sometimes in some product and. But more or less I would say that they are near the bottom.
Darshil Jain
Okay. So there were no fluctuations or any cost pressure you’re mentioning, right?
Rajesh Aggarwal
Like the fluctuations are always there but there have been minimal fluctuations. That much I can say.
Darshil Jain
Understood.
Rajesh Aggarwal
They are not to the extent that make you restless.
Darshil Jain
Understood. So understood. And additionally, what is your outlook on raw material pricing for coming quarters? And especially considering the global supply chain.
Rajesh Aggarwal
Dynamics, Very difficult to say. But we know that we are prepared for the curry season. So I have already made my buying still for this quarter. So we are very well placed in October also for Ruby season. One or two key Omegas I have already bought. So I’m not much worried about the trend. But it is very difficult to predict the trend. Because if there will be shortages then there will be rise in the prices. If there will be like flood sell prices in many areas then there can be decline. So all these things are very difficult to predict. But at the moment there’s full demand from across the country. Every state is asking for more and more.
Darshil Jain
Understood sir. And just last one question. Could you share what percentage, maybe a rough percentage of your raw materials are currently imported and whether there are any plans to reduce the dependency through backward integration or local sourcing initiative.
Rajesh Aggarwal
We are continuously working on controlling our imports. Our total imports are in the range of generally 600 plus minus 500 to 600. And this we have been maintaining for last few days. So it’s a continuous effort that we are launching more and more products. We try to make them indigenous as far as possible. So we are trying to do more and more. That’s what it intends, integration so that we are able to do the import substitution. So that is always an effort. But we are not able to go below 500 crores. Sometimes we touch 450 in certain years.
But I have seen that 5600 level is a normal level which is our import.
Darshil Jain
Understood. That’s all from my side. Thank you for taking my question. Thank you. All the best.
operator
Thank you. Ladies and gentlemen will take this as the last question for today. I would now like to hand the conference over to the management for closing comments.
Rajesh Aggarwal
Thank you for all the attendees for attending this meeting and showing such keen interest and asking very relevant questions. Thank you very much.
operator
Thank you on behalf of Insecticides India limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.