Transcript of Conference call held on Wednesday, June 04, 2025.
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Aimco Pesticides reported a challenging FY25 with flat top line and marginal degrowth, though EBITDA losses narrowed compared to the previous year. The active ingredients (technical) division faced severe margin pressure from Chinese competition, with gross margins falling from 20-30% to 12-20% on key products, despite volumes growing ~25%. In contrast, the domestic branded formulation business (~50% of revenue) performed well with 30-35% gross margins and 15% growth, with management targeting 20% growth in FY26. For FY26, the company has guided revenue of ~225 crore and prioritised returning to profitability after two years of EBITDA losses. Management noted prices have shown upward movement since April and new product registrations in Brazil (Bifenthrin received, Triclopyr expected soon) could unlock ~100 crore in export opportunity. Promoters infused capital via a preferential issue of 2 lakh shares to support growth.
Short-term outlook remains cautious as the company prioritises margin recovery and a return to profitability over aggressive top-line growth. The shift towards higher-margin branded business and stabilisation of Chinese-driven pricing pressure are positive signals, but investors should note that significant earnings recovery hinges on Brazil registration outcomes and successful scale-up of new molecules like Ethiprole.