Indogulf Cropsciences Ltd Management Discussions

Management Discussion and Analysis Report

Global economy overview

The year 2026 has commenced amid a climate of heightened global uncertainty, shaped by a convergence of geopolitical, financial, and macroeconomic challenges. Recent developments across regions such as Latin America, Iran, and Greenland have underscored the persistence of geopolitical tensions, while financial markets continue to navigate pressures arising from elevated debt levels and stretched asset valuations in a prolonged high-interest rate environment.

At the macroeconomic level, policy uncertainties in major economies, particularly the United States, alongside the potential for renewed trade disputes, have added further complexity to the global economic landscape. Intensifying international competition and weakening multilateral cooperation have also contributed to an increasingly fragile global outlook.

In addition, several regions are witnessing rising social and political tensions, driven by deep-seated economic and societal concerns among segments of the population, particularly in parts of Europe. These challenges are compounded by ongoing global health concerns and the accelerating risks associated with climate change, reinforcing the need for resilience and strategic adaptability across economies and industries.

The global economic environment continues to reflect uneven growth patterns across major regions. In the United States, economic activity is expected to expand by approximately 2.2%, supported by resilient consumer spending, despite a notable increase in corporate bankruptcies during the second half of 2025. In the eurozone, growth is projected to remain modest at around 1%, driven largely by Germanys economic rebound supported by a significant investment stimulus. France, however, continues to face fiscal pressures, with its public deficit remaining above 5% of GDR resulting in a comparatively moderate growth outlook of about 0.9%.

Central Europe has demonstrated relatively stronger economic momentum, with Poland leading the region with an estimated growth rate of 3.8%. in Asia, Chinas economic expansion is expected to moderate to approximately 4.4%, which may exert some pressure on regional growth dynamics. Southeast Asia continues to exhibit mixed economic performance across markets, in contrast, India has reaffirmed its position as one of the fastest-growing major economies globally, supported by strong domestic demand, structural reforms, and proactive public policy measures, with growth projected at around 6.6%.

Outlook

Global GDP growth is expected to remain stable at 2.9% in 2026, improving slightly to 3.0% in 2027, supported by technology-led investments and easing tariff pressures. However, geopolitical tensions in the Middle East continue to pose risks to global demand and trade.

Inflation is likely to stay elevated in the near term due to higher energy prices, with G20 inflation projected at 4.0% in 2026 before easing to 2.7% in 2027 as energy market pressures gradually moderate. While current projections assume temporary disruption in energy markets, prolonged supply shocks or tighter financial conditions could weaken global growth and further increase inflation. Overall, the global economy remains resilient, though uncertainties linked to geopolitics and energy prices continue to shape the outlook.

Indian economy overview

Indias economy is expected to maintain a strong growth trajectory, with real GDP projected to expand by 7.6% in FY26, according to estimates by the Ministry of Statistics and Programme Implementation (MoSPI). This outlook underscores the countrys robust macroeconomic fundamentals despite prevailing global uncertainties. Nominal GDP, which incorporates price movements including inflation, is estimated to grow by 8.6% during the year, reflecting a balanced expansion in both economic output and price levels.

The growth momentum has been supported by consistent quarterly performance, with real GDP growth of 8.4% recorded in Q2 and 7.8% in Q3 (October-December), indicating resilience across key sectors of the economy. In recent years, India has sustained stable growth levels, with real GDP growth of 7.2% in FY2023-24 and 7.1% in FY2024-25. During the same period, nominal GDP growth stood at 11.0% and 9.7%, respectively.

The manufacturing sector continues to play a pivotal role in driving economic expansion, registering double-digit growth, and reinforcing Indias position as a key industrial hub. This momentum has been further supported by steady contributions from the secondary and tertiary sectors, reflecting the broad-based nature of the countrys economic growth.

Domestic demand continued to underpin Indias economic growth in FY26. According to the First Advance Estimates, the share of Final Private Consumption Expenditure (PFCE) in GDP increased to 61.5% during the year. The sustained strength in consumption reflects a supportive macroeconomic environment characterised by relatively low inflation, stable employment conditions, and improving real purchasing power. Rural consumption remained resilient, supported by strong agricultural performance, while urban consumption gradually improved, aided by the rationalisation of direct and indirect taxes. Together, these factors indicate that consumption-led growth remains broad-based across the economy.

61.5%

The share of Final Private Consumption Expenditure (PFCE) in GDP is expected to increase to 61.5% in FY26.

In addition to consumption, investment activity continued to play a significant role in driving economic expansion during FY26. Gross Fixed Capital Formation (GFCF) is estimated to account for approximately 30.0% of GDP Investment momentum strengthened during the fi rst half of the fiscal year, with GFCF growing by 7.6%, surpassing the pace recorded in the corresponding period of the previous year and remaining above the pre-pandemic average growth rate of 7.1 %.

30%

Gross Fixed Capital Formation (GFCF) is estimated to account for approximately 30.0% of GDP

The agriculture and allied sectors are estimated to grow by 3.1% in FY26. Agricultural performance during the first half of the fiscal year was supported by a favourable monsoon, leading to agricultural GVA growth of 3.6%, higher than the 2.7% growth recorded during the same period in FY25, though still below the long-term average of 4.5%. Allied activities, particularly livestock and fisheries, have demonstrated relatively stable growth in the range of 5-6%. With the increasing share of allied activities in agricultural GVA, overall agricultural growth is increasingly shaped by the interplay between the relatively volatile crop segment and the more stable expansion in allied sectors.

3.1%

The agriculture and allied sectors are estimated to grow by 3.1% in FY26.

The industrial sector has shown encouraging signs of strengthening during FY26. Manufacturing activity expanded by 8.4% in the first half of the fiscal year, exceeding the full- year estimate of 7.0%. The construction sector also remained resilient, supported by sustained public capital expenditure and continued momentum in infrastructure development. The share of manufacturing in GDP has remained broadly stable at around 17-18% in real terms, while its Gross Value of Output (GVO) has held steady at approximately 38%, comparable to that of the services sector. Overall, the industrial sector is projected to grow by 6.2% in FY26, up from 5.9% in FY25. High-frequency indicators for the third quarter of FY26, including PMI Manufacturing, IIP Manufacturing, and e-way bill generation, suggest a strengthening of manufacturing activity supported by robust demand conditions. Construction-related indicators such as steel consumption and cement production have also registered steady growth. Looking ahead, industrial activity is expected to remain buoyant, supported by GST rationalisation and a favourable demand outlook.

On the supply side, the services sector continues to remain the primary driver of economic growth. During the first half of FY26, Gross Value Added (GVA) in services expanded by 9.3%, with full-year growth estimated at 9.1%. This reflects broad-based expansion across most service segments. Within the sector, nearly all sub-segments recorded growth exceeding 9%, with the exception of the trade, hospitality, transport, communication, and related services segment, which continues to recover from the impact of the pandemic and remains approximately 50 basis points below its pre-pandemic growth average.

Indias economic outlook remains resilient, supported by strong macroeconomic fundamentals and broad-based demand. Real GDP and GVA are projected to grow by 7.4% and 7.3% respectively in FY26, driven by robust agricultural performance and improving urban consumption. Indias medium-term growth remains stable, with FY27 growth expected in the range of 6.8%~7.2%. Inflation has moderated significantly, with average headline inflation at 1.7% during April-December 2025, among the lowest levels recorded. The RBI has revised its FY26 inflation forecast to 2.0%, supported by favourable agricultural output, while IMF estimates remain moderate for FY26 and FY27. Looking ahead, inflation is expected to remain benign, providing a stable macroeconomic environment conducive to sustained economic growth and investment.

Indian agriculture industry overview

Indias agricultural sector remains the backbone of the nation, sustaining rural livelihoods, strengthening economic resilience, and ensuring food security for mill ions. Contributing nearly one-fifth of the countrys gross value added, the sector employs about 46.1% of the workforce and supports close to 55% of the population, highlighting its deep-rooted socioeconomic importance.

Over the past five years, agriculture has grown at an average annual rate of around 4.4% (at constant prices), driven by better farming practices, increased adoption of technology, and more resilient production systems. This steady progress reflects a sector that is not only enduring but evolving to meet the demands of a changing world.

In the agricultural year 2024-25, India achieved a historic milestone, with foodgrain production reaching an unprecedented 357.73 million metric tonnes, an increase of 25.43 million metric tonnes over the previous year. This strong growth reflects sustained improvements in farm productivity, better input management, and continued institutional support for farmers. The surge was largely driven by higher output of key crops such as rice, wheat, maize, and coarse cereals, including millets, now proudly recognised as ShreeAnna.

At the same time, horticulture has emerged as a powerful engine of transformation, driving both value addition and diversification within the sector. Total horticulture production touched 362.08 million tonnes in 2024-25, signalling a clear shift towards high-value crops. As per second advance estimates, production has risen significantly, from 280.70 million tonnes in 2013-14 to 367.72 million tonnes in 2024-25. This includes approximately 114.51 million tonnes of fruits, 219.67 million tonnes of vegetables, and 33.54 million tonnes of other horticultural produce.

Together, the steady rise in both foodgrain and horticultural output highlights the growing resilience of Indias agricultural foundation, while reinforcing its expanding role in the global agri-food landscape.

At the macro level, the sector continued to serve as a steady anchor rather than a high-growth driver. The Economic Survey 2025-26 pegs agriculture and allied services growth at 3.1 % for FY26, with agricultural GVA expanding by 3.6% in the first half of the year, supported by a favourable monsoon and consistent gains in livestock and fisheries. According to the Ministry of Statistics and Programme Implementation (MoSPI)s first advance estimates, nominal agricultural GVA rose modestly to around 7 54.28 lakh crore in FY26, up from Rs. 53.85 lakh crore in FY25, reaffirming the sectors enduring role as a cornerstone of Indias economy, contributing close to one-sixth of the total nominal GVA.

FY26 is shaping up to be a strong year for agricultural production. According to the Ministry of Agricultures second advance estimates for 2025-26, Indias foodgrain output is not only robust but poised to reach record levels. Kharif foodgrain production is estimated at 1,741.44 LMT, reflecting a 2.8% year-on-year increase, while rabi production is projected at 1,745.13 LMT, up 3.2%. Key crops have shown particularly encouraging trends. Kharif rice is estimated at 1,239.28 LMT, wheat at 1,202.10 LMT, kharif maize at 302.47 LMT, and rabi maize at 159.03 LMT. Oilseeds such as rapeseed and mustard are expected to reach 133.31 LMT, while sugarcane production is projected at an impressive 5,001.97 LMT, many of these figures marking all-time highs.

Indias rising agricultural exports

Indias agricultural exports have witnessed a steady and encouraging rise over the past few years, growing from USD 34.5 billion in FY20 to USD 51.9 billion in FY25, translating into a healthy CAGR of 8.2%. In FY25 alone, agri-food exports, including processed products, stood at USD 49.43 billion, contributing nearly 11.2% to the countrys total exports. More importantly, the share of processed food within this basket has steadily expanded, from 14.9% in FY18 to 20.4% in FY25, signalling a clear shift towards higher value-added offerings.

India is the second-largest producer of fruits (114.51 million tonnes) and vegetables (219.67 million tonnes), with strong output across states like Andhra Pradesh, Maharashtra, and Uttar Pradesh. Exports stood at USD 1.82 billion, highlighting the growing role of high-value horticulture in global trade.

Key focus points of the Union Budget 2026

The Union Budget FY26 underscores the Governments continued commitment to strengthening Indias agricultural ecosystem, with an allocation of 71.30 lakh crore towards the Department of Agriculture & Farmers Welfare.

This evolution reflects more than just growth in numbers; it highlights Indias transition towards a more resilient and value-driven agricultural export ecosystem. The rising prominence of processed and diversified agri-products is enhancing global competitiveness while unlocking opportunities across the entire value chain, from farm-level production to processing and international market access.

Backed by vast agricultural resources and region-specific strengths, India continues to hold a strong position on the global stage. With the worlds second-largest agricultural land base and a diverse crop portfolio spanning cereals, pulses, horticulture, and plantation crops, the country ranks among the leading producers of several key commodities, demonstrating both the scale and sustainability of its agricultural prowess.

India remains a global agricultural powerhouse, ranking second in both rice (150.18 million tonnes) and wheat (117.94 million tonnes) production in 2024-25, led by states such as Uttar Pradesh, Telangana, and Punjab. The country also leads globally in pulses (25.68 million tonnes) and millets (18.59 million tonnes), driven by Madhya Pradesh, Maharashtra, and Rajasthan. On the export front, rice shipments reached USD 12.95 billion, while pulses and millets contributed USD 855 million and USD 59.20 million, reflecting rising global demand for climate-resilient, nutritious crops.

Public investment in Indias agriculture sector has risen significantly over the past decade, reflecting a strong commitment to farmer welfare and rural prosperity. The allocation for the Department of Agriculture and Farmers Welfare has increased nearly six-fold, from 21,933.50 crore (USD 2.64 billion) in 2013-14 to 1,27,290.16 crore (USD 15.34 billion) in 2025-26, and further to 1,30,561.38 crore (USD 15.73 billion) in 2026-27, underscoring continued policy focus on strengthening the agricultural ecosystem.

This is supported by 1.71 lakh crore in fertiliser subsidies to ensure input affordability, along with 9,967 crore allocated to agricultural research and education to drive productivity and technology adoption. Additionally, 19,200 crore has been earmarked for rural livelihoods under DAY-NRLM, promoting women-led enterprises and income diversification, alongside targeted support for pulses, high-value crops, and allied sectors.

Further, key initiatives include 10,000 crore under the SME Growth Fund and 2,000 crore under the Self-Reliant India Fund to strengthen MSME-led agri value chains, development of 500 reservoirs to boost fisheries and water infrastructure, and credit support for livestock and dairy. Investments in horticulture, plantation crops, digital agriculture, Al-led platforms, and rural logistics, including waterways and women-led market access models, are expected to enhance supply chain efficiency, improve farmer realisations, and drive sustainable, technology-led, export-oriented growth.

Outlook on the Indian markets

The Indian agriculture sector entered 2026 at a structural inflection point, transitioning from a volume-led model to one driven by value creation, digital integration and export competitiveness. Growth momentum remains supported by increased government spending, enhanced credit access and expanding digital infrastructure, enabling more efficient and data-driven farming practices. Policy measures such as the increase in the Kisan Credit Card limit to 5 lakh and the PM Dhan-Dhaanya Krishi Yojana, targeting 100 low-productivity districts with irrigation, precision farming and risk mitigation support that are further strengthening sector fundamentals. The fruits and vegetables segment continues to be a key growth driver, projected to expand at a CAGR of 7.42% through 2031, supported by changing consumption patterns and export opportunities.

However, structural challenges including climate variability, water scarcity, fragmented landholdings and inadeguate cold-chain infrastructure persist. Despite these headwinds, the sectors ongoing transition towards technology- enabled, resource-efficient systems, supported by rising private investment and FDI inflows, is expected to drive sustained productivity improvements and enhance global competitiveness over the long term.

Overview of the Indian agrochemical industry

Indias agrochemical sector is steadily shaping up as one of the most compelling investment avenues within agriculture. Estimated at USD 9-9.6 billion in FY 2025-26, the market is projected to grow to USD 13-13.25 billion by 2031, reflecting a healthy CAGR of 5.5-6.6%. Today, India stands as the worlds fourth-largest producer and the second-largest exporter of agrochemicals, supplying crop protection products worth over USD 3.3 billion to more than 150 countries in FY25. Yet, domestic consumption remains significantly underpenetrated at just 0.38-0.6 kg per hectare, compared to the global average of 2-2.6 kg per hectare. This gap between production strength and on-ground usage presents a sizeable, untapped opportunity, particularly for MSMEs and first-generation entrepreneurs looking to scale in a high-potential sector.

At the same time, the industry is undergoing a meaningful structural shift. The domestic agrochemical market was valued at approximately t 69,000 crore in FY24, with exports contributing 51% of the total value, while domestic formulations accounted for the remaining 49%. Over the past decade, Indias agrochemical exports have nearly tripled, reinforcing its position among the top global exporters, just behind China and the United States. Segment-wise, insecticides continue to dominate with a 41% share, while herbicides are emerging as the fastest-growing category, registering a CAGR of around 10% between FY21 and FY24. This surge is largely driven by increasing labour shortages in rural India, where manual weeding can take up to 8-10 hours per acre, making herbicides a more efficient alternative.

Consumption patterns remain concentrated, with nearly 65% of domestic demand coming from eight key crops, including rice, cotton, wheat, soybean, and select horticultural produce such as grapes and chillies. Geographically, demand is also clustered, with states like Maharashtra, Goa, Andhra Pradesh, Telangana, Madhya Pradesh, Karnataka, Uttar Pradesh, and Uttarakhand collectively accounting for nearly three-fourths of the domestic market. Together, these trends underscore a sector that is not only expanding in scale but also evolving in structure, creating fertile ground for sustained growth and innovation.

Key growth drivers for the Indian agrochemicals sector

Increasing demand for food production Indias population, nearing 1.54 billion in 2026, is placing increasing pressure on agricultural systems. Ensuring food security will require food grain production to reach nearly 300 million tonnes by 2025, as estimated by the Food and Agriculture Organization. This challenge is further intensified by rapid urbanisation, with around 600 million people expected to live in cities by 2031. As rural-to-urban migration accelerates, the need for smarter, more efficient agricultural practices and technologies becomes critical to sustain productivity and maximise yields.

Technological advancements

Technological advancement is transforming Indian agriculture, driving higher productivity and sustainability. By 2025, nearly half of Indias farmers are expected to adopt precision agriculture, enabling more efficient use of inputs like fertilizers and pesticides. Government initiatives such as the Pradhan Mantri Krishi Sinchai Yojana are further supporting this shift by improving irrigation efficiency and crop yields. This momentum is reinforced by rising investments, with agri-tech attracting nearly USD 4 billion in 2022. Together, these trends reflect a clear transition towards smarter, technology-led farming, enhancing output while building a more sustainable and resilient agricultural ecosystem.

Expansion of organic fanning

Indias organic farming sector is emerging as a strong growth driver, with the market projected to reach USD 1.5 billion by 2025. The country has over 1.5 million hectares of certified organic farmland and 1.5 million certified farmers, reflecting a 20% year-on-year growth. This expansion is driven by rising consumer preference for safer, healthier food, supported by government initiatives such as the National Programme for Organic Production (NPOP), which promotes sustainable farming practices.

Development of sustainable agrochemicals The global biopesticides market was valued at around USD 6.2 billion in 2024 and is expected to reach over USD 10.6 billion by 2030, supported by rising awareness around sustainable farming practices and increasing adoption of biological crop protection products. With increasing focus on environmentally responsible solutions, Indian companies are investing nearly USD 1 billion in R&D to develop products that meet regulatory standards while improving farm productivity, positioning the sector for long-term growth.

Off-patent opportunities fuelling export momentum A structural shift is reshaping the agrochemical landscape, with nearly 75% of active ingredients now off-patent, opening strong opportunities for cost-efficient Indian manufacturers to scale. With exports contributing -60%of industry revenues, players, particularly in Gujarats Dahej and Maharashtras Tarapur clusters, are strengthening backward integration to secure intermediates and optimise logistics costs. This tailwind is expanding Indias global footprint, driving technology upgrades, and reinforcing the sectors long-term growth and global competitiveness.

Growing collaborations to drive growth Indian companies are increasingly forging collaborations with global partners to accelerate product innovation and expand market reach, while simultaneously pursuing strategic domestic acguisitions to strengthen their capabilities and competitive edge. This dual approach is enabling Indian players to broaden their product portfolios, enhance operational synergies, and deepen their presence across key markets. As a result, the sector is witnessing a phase of consolidation and transformation, driven by a clear focus on scale, integration, and long-term value creation in an increasingly competitive global landscape.

Major challenges for the Indian agrochemical industry

Environmental Concerns

Rising environmental concerns around agrochemical use are posing significant challenges. Excessive pesticide application has led to soil and water contamination, impacting nearly half of Indias rivers. This has prompted stronger policy focus on sustainable farming and reduced chemical dependency, while increasing public awareness is accelerating the shift towards eco-friendly alternatives.

Regulatory Compliance

Stringent regulatory requirements continue to challenge agrochemical manufacturers. Complex and time- consuming approval processes for pesticide registration often delay market entry, slowing innovation and disrupting supply chains, ultimately affecting farmers timely access to critical inputs.

Company overview

Indogulf Cropsciences Limited (IGCLs) is a leading Indian manufacturer of crop protection products, plant nutrients and biologicals, with over three decades of industry experience. Established in 1993, the Company has built a strong presence across domestic and global markets, driven by a diversified product portfolio of over 300 products catering to varied agricultural needs.

The Company operates four manufacturing facilities across Haryana and Jammu & Kashmir, supported by a backward- integrated infrastructure with a formulation capacity of 42,500+ MT and technical capacity of 1,360 TPA. Its strong distribution network spans 22 states and 3 Union Territories in India, supported by over 7,000 B2C distributors and 192 institutional partners, while its global footprint extends to 34+ countries with a growing base of international partners.

IGCLs business model is anchored in a balanced mix of B2B and B2C operations, enabling broad-based growth across verticals. With a strong focus on innovation, the Company has developed robust R&D capabilities, supported by NABL- certified laboratories, strategic partnerships and a growing portfolio of patents and product registrations. Its continued emphasis on product development, expansion into new geographies, and strengthening of its multi-brand strategy positions it well to capitalise on emerging opportunities in the agrochemical sector.

Our Core Strengths

Diversified and innovation-led product portfolio: IGCL offers a well-diversified portfolio of over 300 products spanning crop protection, plant nutrients, and biologicals, enabling it to cater to a wide range of agricultural needs. Continuous innovation remains a key differentiator, with 12 new product launches and over 990 registrations in FY26, supported by a robust pipeline and increasing contribution from recently launched products.

Extensive distribution network with strong market reach:

The Company has built a wide and deeply penetrated distribution network, comprising over 7,000 distributors (B2C) and 192 active B2B partners, with presence across 22 states, 3 Union Territories and 34+ countries. This extensive reach, supported by 30 depots and sales offices, enables strong market penetration and consistent demand generation across geographies.

Backward integrated manufacturing capabilities: With four manufacturing facilities spread across key locations and a total formulation capacity of 42,500+ MT and technical capacity of 1,350 TPA, the Company benefits from backward integration that enhances cost efficiency and supply security. Partial captive consumption of technicals also mitigates raw material risks, particularly from global supply dependencies.

Strong research & development: The Companys threepronged R&D strategy, spanning short-term registrations, mid-term technology collaborations, and long-term molecule development, supports sustained innovation. Backed by NABL-accredited laboratories, strategic partnerships with research institutions, and multiple patents, the Company continues to strengthen its product differentiation and future readiness.

Experienced leadership and professional management team: Led by promoters and senior management with over 30 years of industry experience, the Company benefits from strong domain expertise and strategic vision. A well-rounded leadership team across functions such as strategy, finance, production, and marketing ensures disciplined execution and long-term value creation.

Resilient business model with multi-segment presence:

IGCLs presence across B2B and B2C segments, along with contributions from multiple verticals including crop protection, plant nutrients and biologicals, ensures diversified revenue streams. This balanced portfolio enables the Company to navigate sectoral cyclicality while maintaining steady growth momentum.

Our operational excellence

At IGCL, we take pride in our integrated operations, where research, design and precision manufacturing come together to deliver high-quality crop protection solutions. This end-to- end model enables agility in developing in-demand products while delivering strong value to farmers. Our manufacturing units operate at optimal efficiency, consistently meeting rising demand with quality and reliability.

Our long-standing success is rooted in a strong commitment to operational excellence and continuous innovation. With a focused investment in research and development, we bring new products to market swiftly within our existing infrastructure. Leveraging real-time data and advanced analytics, we enable faster, smarter decision-making, helping us stay ahead in a dynamic industry landscape.

Financial review

ICGL has developed a diverse product portfolio, with solid process expertise to provide complete crop solutions. In the last couple of years, the Company emphasized on being more agile, while it remained committed to its long-term sustainable growth strategies.

Revenue from operation achieved during FY26 was Rs. 704 crores, as against Rs. 590 crores in the previous year, registering 19% year-on-year growth.

The revenue from B2C segment for FY26 reached Rs. 365 crores, showing a 13% growth year over year. While gross revenue from B2B segment stood at Rs. 278 crores, up 23% on a YoY basis.

Profit before tax (PBT) was recorded at Rs. 53 crores in FY26 against Rs. 45 crores during the previous year. Profit after tax (PAT) for the year stood at Rs.40 crores against Rs. 31 crores in the previous year.

For FY26, EBITDA grew by 15% YoY to Rs. 74 crores in FY2026, compared to Rs. 64 crores in FY2025. EBITDA margin for FY26 stood at 10.4%, impaired by 50 bps on a YoY basis. Various cost control measures coupled with better market dynamics led to higher growth in EBITDA.

Revenue contribution from the domestic market stood at 89% in FY26 while 11 % came in from exports. The Company witnessed robust demand from key international markets. Steady demand in key export geographies resulted in higher export revenues. Domestic Revenues for FY26 stood at Rs. 645 crores, compared to Rs. 553 crores in FY25. Revenue contribution from exports stood at Rs. 83 crores in FY26, up by 24% compared to Rs. 67 crores in the previous financial year. Steady revival in economic activity, combined with cost excellence initiatives undertaken by the Company, helped increase market share in both domestic and internal markets.

P&L analysis
Particulars	FY26 ( Rs. in crore)	FY25 ( Rs. in crore)	Growth (change in %)
Revenue from operations	704	590	19%
Raw-material cost	486	414	17%
Employee Benefits Expense	56	46	23%
Interest cost	17	14	18%
EBITDA	74	64	15%
PBT	52	43	22%
PAT	40	31	27%
EPS (in Rs.)	6.72	6.45	4%

Key Financial Ratios

Ratios	FY26	FY25	% Change	Reason for change
Trade Receivables Turnover (times)	3.40	2.66	14.00%	-
Inventory Turnover Ratio (times)	1.59	1.78	(11.00)%	-
Interest Coverage Ratio (times)	5.05	5.03	0.40%	-
Current Ratio (times)	1.94	1.53	25.00%	-
Debt-Equity Ratio (times)	0.40	0.82	(52.00)%	Decreased due to accretion of profits to reserves and simultaneous reduction in total outstanding debt via repayment
Operating Profit Margin (%)	9.93	9.78	1.50%	-
Net Profit Ratio (%)	5.68	5.33	6.56%	Owing to higher profits
Return on Equity Ratio (%)	10.90	12.42	(12.24)%	-

Analysis of Balance Sheet

Particulars	FY26 ( Rs. in crore)	FY25 ( Rs. in crore)	Growth (change in %)
Total equity	459	275	67%
Long-term borrowings	3	36	(92)%
Short-term borrowings	174	185	(6)%
Total non-current assets	1,58	122	30%
Trade receivables	241	223	8%
Cash and cash equivalents	12	9	27%
Land	0.49	0.49	-

As on March 31^a March, 2026, the Companys Equity Capital stood at Rs.459 crores compared to Rs.275 crores as of 31^a March, 2025.

Total long-term borrowings of ICGL as of 31^st March, 2026, stood at Rs.3 crore vis-a-vis Rs.36 crore as on 31^st March, 2025. We repaid debt worth Rs.33 crore during the year.

Our non-current assets as of 31^st March, 2026, stood at Rs.158 crore vis-a-vis M 28 crore as on 31^st March, 2025, an increase of 23%. Cash and cash equivalents as of 31 * March, 2026, stood at Rs.12 crore vis-a-vis Rs.9 crore as on 31^st March, 2025, an increase of 27%.

Risk management

Indogulf Cropsciences Limited operates in a dynamic and evolving agrochemical landscape, where multiple external and internal factors influence performance. The Company has adopted a proactive and structured approach to risk management, aimed at identifying, assessing, and mitigating key business risks while ensuring long-term sustainability.

One of the primary risks impacting the business is demand volatility linked to agricultural cycles. Variations in crop prices, farmer sentiment, and agrochemical demand, can influence sales performance. To mitigate this, the Company has built a diversified portfolio across B2B and B2C segments, supported by strong on-ground distribution and calibrated product positioning.

The business is also exposed to raw material supply and pricing risks, particularly given global dependencies. However, backward integration at the technical manufacturing level, with 20%captive consumption in FY26, helps partially mitigate supply-side disruptions, especially those linked to imports.

Regulatory and compliance risks remain inherent to the agrochemical sector, given stringent product approvals and environmental norms. The Company addresses this through continuous investment in R&D, adherence to regulatory frameworks, and strategic collaborations with research institutions to strengthen product registrations and pipeline visibility.

Additionally, climatic and monsoon-related risks continue to influence agricultural output and input demand. At IGCL, we closely monitors monsoon trends, reservoir levels and crop planning cycles, aligning its production and distribution strategies accordingly to minimise impact.

The Company also faces competitive intensity and pricing pressures in both domestic and export markets. To address this, it focuses on product innovation, expanding its portfolio (with 12 new launches in FY26), and strengthening its multi- brand strategy to enhance market penetration and margins.

Further, geographical and market expansion risks are managed through a calibrated approach. While entry into new markets such as Venezuela and Taiwan opens growth avenues, the Company ensures risk mitigation through phased execution, regulatory compliance and localized strategies.

Overall, Indogulfs risk management framework is anchored in diversification, operational efficiency, backward integration, and continuous innovation. This enables the Company to navigate uncertainties effectively while sustaining growth momentum and strengthening its competitive position.

Internal control systems and their adequacy

At ICGL, robust internal control systems are in place to ensure financial integrity and regulatory compliance, aligned with the Companys evolving scale and operational complexity. These controls encompass a wide range of policies, procedures, and statutory requirements, forming a strong foundation for sustainable growth.

The framework is designed to continuously evaluate and manage risks across all aspects of the business, including scientific and R&D-related risks, partner, and stakeholder interests, as well as commercial and financial exposures. Comprehensive management reporting systems further support the oversight of strategy, performance, operations, risk, funding, and governance. Internal auditors conduct detailed, year-round audits across all locations and departments, with their findings reported to a dedicated Committee for timely review and action.

Human resource and industrial relations

In todays fast-evolving and competitive business environment, ICGL firmly believes that its people are its greatest asset. Acknowledging that employees form the backbone of the organisations success, ICGL has adopted a holistic approach to workforce development. By integrating industry the best practices and standard operating procedures across departments, the company ensures operational consistency, enhances team efficiency, and drives collective performance.

But ICGLs commitment goes beyond process. With a strong focus on future-readiness, the company continuously invests in skill development through structured learning and training programs. These initiatives are designed not just to upskill employees but to cultivate a mindset of curiosity, adaptability, and continuous growth. As of March 31,2026, the company had 742 employees on its payroll.

Cautionary statement

The statements made in this report describing the Companys objectives, estimations, expectations, projections, outlooks, constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ from such expectations, projections, among others, whether express or implied. The statements are based on certain assumptions and future events over which the Company has no direct control. The Company assumes no responsibility to publicly amend, modify and revise any of the statements based on any subsequent developments, information or events.