Archive · 1 Dec 2025
Agrochemical Industry Sees 6-7% Revenue Growth
India's agrochemical industry is growing by 6-7% this year, mostly because more products are being sold to other countries.
This growth is happening even though sales within India are not doing well because of too much rain.
The industry makes things like insecticides and herbicides, and it sells almost as much abroad as it does in India.
The money made from selling these products is expected to keep growing, but the profits are not as high as they were before the pandemic.
The industry is also investing money to make better products and reduce the need to import certain materials.
India's agrochemical industry is projected to grow by 6-7% in FY26, driven by a rebound in exports.
Domestic sales are subdued due to a prolonged monsoon affecting the kharif season and causing product returns.
Exports are recovering, with a marginal increase to $4.27 billion in FY25 and $2.09 billion in the first half of FY26.
Operating margins are expected to remain steady at 12.5-13% in FY26, supported by stable raw material prices and limited impact from US tariff hikes.
The industry is investing ₹5,500 crore annually in import substitution, new registrations, and debottlenecking.
- Who
- India's agrochemical industry, including major manufacturers like UPL, PI Industries, and Rallis India
- What
- A 6-7% revenue growth in FY26 driven by exports, with domestic sales subdued due to excess monsoon
- When
- FY26 (current fiscal year)
- Where
- India, with significant exports to Latin America, North America, and Europe
- Why
- Due to a revival in global demand, clearing of excess stocks, and stable raw material prices
- Revenue Growth
- 6-7% in FY26
- Export Revenue Growth
- 8-9% in FY26
- Operating Margins
- 12.5-13% in FY26
- Debt-to-Ebitda
- 1.3 times in FY26
- Interest Coverage
- 7 times in FY26
- Annual Investments
- ₹5,500 crore
- Key Markets
- Latin America, North America, Europe
Sources
Exports buoy agrichem firms, revenue growth seen consolidating to 6-7% in FY26: Crisil
Rebound in exports to offset agrochem makers’ weak domestic sales hit by excess monsoon
Pharma exports set for healthy growth as innovator drugs go off patents in five years: Pharmexcil Vice-Chairman