India Agrochemical Market Updates - January 2026

Key Insights

• Pulses increased by +3.65 lakh ha mainly due to a massive rise in Gram (+4.66), with support from Lentil (+0.21), while Fieldpea (–0.35), Kulthi (–0.54), Urdbean (–0.23) and Other Pulses (–0.11) declined.
• Rice (Rabi) acreage grew significantly by +1.89 lakh ha, strengthening demand for rice insecticides (BPH/WBPH) and fungicides (sheath blight).
• Oilseeds expanded by +1.04 lakh ha, led by Rapeseed & Mustard (+1.23), supported by Safflower (+0.19), Sunflower (+0.11) and Other Oilseeds (+0.06), while Groundnut (–0.52), Sesamum (–0.02) and Linseed (–0.01) declined.
• Wheat increased slightly by +0.19 lakh ha, but due to its huge base it remains a high-volume driver for herbicides and fungicides.
• Shri Anna & Coarse Cereals grew by +0.10 lakh ha as Maize (+0.80), Barley (+0.70), Ragi (+0.20) and Small Millets (+0.03) expanded, offsetting a large decline in Jowar (–1.62).
• Top five sub-segment gainers across all crops are Gram (+4.66), Rice (+1.89), Rapeseed & Mustard (+1.23), Maize (+0.80) and Barley (+0.70).
• Major declining crops are Jowar (–1.62), Groundnut (–0.52), Kulthi (–0.54), Fieldpea (–0.35), Urdbean (–0.23), along with small dips in Sesamum (–0.02) and Lathyrus (–0.02).

1. In January 2026, FMC India launched new products for rice and sugar cane crops

Between December 2025 and January 2026, FMC India strengthened its position in key crop segments such as rice and sugarcane by launching four strategic products that align directly with rising acreage and strong crop fundamentals during the 2025–26 season.

FMC introduced below products:

• Resonex™ Insecticide (Chlorantraniliprole), developed with FMC’s proprietary AQRION™ technology, offering improved application and effective control of rice stem borer.
• Rhyme™ Fungicide (Flutriafol), designed for strong systemic action and long-lasting control of sheath blight in rice.
• Vytegris® BO-LA, a high-load boron-based crop nutrition formulation that enhances nutrient uptake during flowering and supports better yields.

Rabi sowing data shows rice acreage increased by +1.89 lakh hectares, boosting the need for pest, disease, and nutrition solutions.

These innovations strengthen FMC’s portfolio in rice cultivation by addressing key pest, disease, and micronutrient challenges.

Sugarcane remains one of India’s largest crops, with ~57.31 lakh hectares sown in 2025 and production projected at ~4756 lakh tonnes for 2025–26.

FMC’s launch strategy is strongly aligned with national sowing trends, ensuring its new offerings meet the emerging needs of India’s expanding rice and sugarcane cultivation.

2. In December 2025, Crystal Crop IPO: IFC-backed agrochemical player files draft papers

Crystal Crop Protection has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an IPO consisting of a Inr 600 crore fresh issue and an Offer for Sale of 74.1 lakh shares by promoters and investors including IFC. Most of the proceeds will be used to repay debt at both the parent company and its subsidiary Saffire Crop Science.

Founded in 1994, Crystal has evolved into a fully integrated agri-inputs platform spanning crop protection, natural crop solutions, and seeds, supported by strong R&D, backward-integrated manufacturing, and a nationwide distribution network.

The core crop protection and natural solutions segment contribute over 80% of FY25 revenues, with a portfolio of 174+ branded products and strong export presence. The seeds business is a fast-growing engine (FY23–FY25 CAGR: 24.9%), with leadership in pearl millet and mustard and an expanded flower seeds portfolio through it’s I&B Seeds acquisition.

Financially, the company has demonstrated improving performance with FY25 revenue of Inr2,690 crore, EBITDA margin rising to 11.7%, and PAT increasing to Inr118 crore. For 6M FY26, margins expanded further to 16.85%, reflecting operational efficiency.

Crystal Crop Protection – Domestic vs International Business Insight

Crystal Crop Protection’s business is overwhelmingly domestic, with India contributing over 98% of total revenue consistently across FY23–FY26, while international sales remain small but stable at 1.5–2.2% of total revenue.

• In H1 FY26 (up to Sept 2025), domestic sales were Inr18,849 million (95.29%), while exports contributed only Inr296 million (1.50%).
• For FY25, domestic revenue stood at Inr26,226 million (97.48%), with international revenue at Inr462 million (1.72%).
• In FY24, domestic business formed 80%, and exports 2.20%.
• In FY23, domestic revenue accounted for 94%, with exports at 2.06%.

Crystal Crop Protection is a highly India-centric company, with domestic operations forming the core of its business. International sales contribute only 1.5–2% of revenue, highlighting huge untapped export potential, especially as the firm expands registrations across Asia, Africa, and LATAM.

Crystal Crop IPO: Financial Performance

Particulars	FY23	FY24	FY25	6M FY26
Revenue from Operations (Inr Cr)	2,513.30	2,229.93	2,690.51	1,978.05
EBITDA (Inr Cr)	2,318.60	2,090.61	3,152.76	3,332.24
EBITDA Margin (%)	9.23	9.38	11.72	16.85
PAT (Inr Cr)	76.60	87.24	118.39	153.51
EPS (INR)	6.09	7.02	9.37	12.02

 

Revenue Mix: Gradual Diversification

Segment	FY25 Revenue (Inr Cr)	Contribution (%)
Crop protection & natural solutions	2,201.01	81.74
Seeds	469.88	17.45
Others	21.73	0.81
Total	2,692.62	100

 

Crystal’s competitive strengths include GLP-certified R&D facilities, 28 patents (18 granted), strong manufacturing capabilities, and a new automated plant planned in Gujarat. Its governance is supported by an experienced promoter group and an A+/Stable credit rating.

Overall, the IPO highlights a scaled, diversified, and R&D-led agri-input company focused on deleveraging, strengthening ROE, and capturing structural growth opportunities in crop protection, seeds, and biologicals.

3. In December 2025, Indian agrochemical sector to grow 6–7% in FY26

India’s agrochemical industry is projected to grow 6–7% in FY26, primarily driven by a rebound in exports after two weak years and stabilising global demand and inventories, even as domestic offtake remains subdued due to prolonged monsoon impacts on kharif sales.

Past performance & context:

• In FY24, the industry experienced a decline in revenue of up to ~3%, marking the first slip in a decade due to weak demand and inventory destocking.
• Crisil had earlier projected that following a modest ~5–6% growth in one fiscal, the sector could expand 7–9% in the subsequent year supported by stable domestic demand and export recovery.

For FY26, exports—which contribute roughly half of industry revenue are likely to grow 8–9%, supported by improved global farm sentiment and normalised supply chains, with key markets in Latin America, North America, and Europe. Domestic realisations have stabilised after significant adjustments over the past two years.

Margins & leverage:

Operating margins are expected to remain steady at around 12.5–13%, below pre-pandemic peaks but supported by stable raw material costs and cost controls. Leverage is forecast to improve with debt-to-EBITDA near 1.3x and interest cover around 7x due to disciplined working capital and modest capex.

Looking ahead, returning to 8–10% growth in FY27 will depend on continued export momentum and a pickup in domestic demand. Persistent risks include weather volatility, regulatory scrutiny, and currency fluctuations.

4. In November 2025, Coromandel to build major industrial complex in Andhra Pradesh

Coromandel International has signed a Inr2,000 crore MoU with the Government of Andhra Pradesh to develop a 500–1,000-acre port-based industrial complex focused on fertilisers, phosphate-based speciality chemicals, and EV battery intermediates. The project is expected to generate significant employment and strengthen the state’s industrial corridor.

During the event, Chief Minister N. Chandrababu Naidu also invited Coromandel to invest in Drone City, supporting drone manufacturing and advanced agri-technology development. The initiative highlights Coromandel’s commitment to innovation, sustainability, and farmer-focused agri-solutions in Andhra Pradesh.

5. In January 2026, Parijat Industries (India) Limited introduces a new patented insecticide NILANIX SC for brown plant hoppers management in paddy

Parijat Industries (India) Limited has launched NILANIX SC, a new patented three-way combination insecticide (Pymetrozine 14.8% + Fipronil 7.5% + Dinotefuran 4.8% SC) for effective control of Brown Plant Hopper (BPH) and White Backed Plant Hopper (WBPH) in paddy.

The product addresses increasing hopper outbreaks that have caused severe yield losses across Asia. Company leaders highlighted that NILANIX SC strengthens Parijat’s paddy portfolio, supports sustainable agriculture, and will be rolled out nationwide through its distribution network. This launch adds to Parijat’s growing patented product range, which includes Velektin, Xyfen Ultra, and Dahan.

6. In January 2026, Tagros acquires Bayer’s global Flubendiamide (FLB) business

Tagros Chemicals India has signed a definitive agreement to acquire Bayer AG’s global Flubendiamide (FLB) business, covering assets across Latin America, Europe, the Middle East, Africa, and Asia-Pacific. The deal includes solo and mixture formulations, globally recognized brands such as BELT, FAME, FENOS, FENOS QUICK, BELT EXPERT, and TIHAN, as well as product registrations, regulatory dossiers, technical know-how, formulation expertise, and inventories.

This acquisition gives Tagros access to 25+ regulated markets, significantly boosts its position in the diamide insecticide segment, and marks its strategic entry into the B2C formulations business under its new entity Arqivo. EY India acted as the transaction advisor, while Khaitan & Khaitan served as legal counsel.

Why Is Bayer Selling This Product PortfolioInr

• Flubendiamide is off-patent, margins have fallen, and competition from Indian & Chinese generics has increased making it less profitable for a global innovator like Bayer.
• Bayer is exiting mature, low-margin molecules to focus on new chemistries, biologicals, and digital agriculture, which offer higher long-term returns.
• Selling the portfolio helps Bayer simplify its product mix and redeploy capital into high-growth R&D areas.

How Tagros Benefits

• Gains instant access to 25+ global markets with ready registrations, brands, and dossiers—no long approval delays.
• Strengthens its position in the diamide insecticide segment, a large, fast-growing category.
• Marks Tagros’ entry into the branded B2C formulations business through its new entity Arqivo, moving beyond technical manufacturing.
• Acquires strong global brands (BELT, FAME, FENOS, TIHAN), giving it immediate farmer trust and market presence.

7. In January 2026, Heranba Industries to Establish Fully Owned Subsidiary in UAE with Inr2.00 Crore Investment

Heranba Industries has announced the establishment of a fully owned subsidiary in the UAE with an initial investment of up to Inr2 crore. The move requires no government approval, allowing faster execution of its international expansion strategy.

The UAE subsidiary will strengthen Heranba’s presence in the Middle Eastern and North African markets, offering strategic advantages and improved service to regional customers. The fully owned structure ensures complete operational control as the company builds its global footprint.

Analyst Insight:

The proposed UAE entity is best interpreted as a market-access subsidiary, designed to strengthen Heranba’s trading, sales, and distribution footprint across the Middle East and North Africa. The modest investment size and absence of manufacturing-related disclosures indicate that this subsidiary will function as a commercial hub rather than a production facility, helping Heranba accelerate regional business development and improve customer proximity without heavy capital deployment.

8. In January 2026, Sumitomo Chemical Q2 FY26 Revenue Slips

Sumitomo Chemical India reported Q2 FY26 revenue of Inr9,298 million, down from Inr9,883 million last year, mainly due to lower volumes caused by heavy, prolonged rainfall which restricted harvesting and reduced crop protection sprays. Importantly, price realisations remained stable, confirming that the decline was volume-driven only.

Despite the weak quarter, H1 FY26 performance was strong:

• Domestic business grew 11% YoY, contributing 85% of total revenue.
• Key brands Sumimax, and new launches Excalia Max (fungicide) and Lentigo (rice herbicide) showed strong farmer acceptance and continued market leadership.
• H1 FY26 Revenue reached Inr22,770 million, up from Inr19,990 million last year.

Exports declined 4% YoY due to soft demand in Africa (Kenya, Ethiopia) and shipment deferrals in Brazil, although U.S. and Europe demand remained steady. The company is expanding registrations across Asia and the Middle East to diversify away from regional volatility.

Margins remained solid, with:

• Gross margin at 43.1%,
• EBITDA margin at 22% in H1, broadly in line with expectations.

Sumitomo Chemical India continues to demonstrate strong financial discipline:

• Working capital days improved to 55 days, better by 7 days YoY.
• Cash balance of Inr20,890 million as of 30 Sept 2025 reflects very strong liquidity.

On the strategic front:

• The company plans to scale Lentigo and Excalia Max across more geographies.
• Launch of Top Grain (from Valent BioSciences) is planned for H2 FY26.
• Backward integration has begun at Tarapur for selected molecules.
• Dahej greenfield expansion is progressing with regulatory clearances.
• Bhavnagar capacity expansion and new products at Tarapur align with Sumitomo’s global innovation pipeline.

These facilities will manufacture multiple Sumitomo-origin molecules, deepening India’s role as a key manufacturing hub for the global Sumitomo network.

Looking ahead, the company expects a strong recovery in H2 FY26, supported by healthy reservoir levels, adequate soil moisture, and improved rural sentiment. Analysts remain bullish, projecting ~25% stock upside over the next year.

9. In January 2026, Vanguard Invests Over Inr800 Crore in GHCL and UPL During Q3FY26

Global investment giant Vanguard Fund invested over Inr800 crore in India during Q3FY26, signaling strong confidence in the country’s long-term growth story. The fund acquired a 1.04% stake in GHCL Limited for Inr52.79 crore and a 1.15% stake in UPL Limited for Inr749 crore.

GHCL, a major soda ash and textiles player, reported Q2FY26 revenue of Inr721 crore and net profit of Inr107 crore, though its stock has declined 17.6% over the past year. In contrast, UPL a global agrochemical and crop protection leader with operations in 130+ countries posted Inr12,019 crore revenue and Inr612 crore profit in Q2FY26, with its stock gaining 45% over the past year.

These investments reinforce Vanguard’s diversified India strategy, backed by strong fundamentals, steady earnings visibility, and sectoral strength across manufacturing and agrochemicals.

10. In January 2026, Agri sector companies likely to report soft Q3FY26 performance due to seasonal factors

The agriculture and agrochemical sector is expected to deliver a soft Q3 FY26, according to Nuvama, primarily due to seasonal weakness and excess rainfall during Aug–Sept 2025. The heavy rains disrupted spraying cycles, causing lower demand, sales returns, and elevated channel inventory, which will limit fresh dispatches in Q3. Despite strong fundamentals healthy reservoir levels, improved soil moisture, and broad-based growth in Rabi acreage (oilseeds up 3.2%) these benefits will not immediately convert into volume growth. Nuvama expects flat to negative volumes for the industry in Q3.

Q2 FY26 was also impacted by erratic and excess rainfall, which reduced farmer field activity and spray cycles across India. As a result:

• Several agrochemical companies might report volume contraction, despite stable pricing.
• Domestic demand was weak due to crop damage and delayed field readiness.
• Export demand was uneven but began showing early signs of stabilisation in key markets.
• Inventory at distributors remained elevated, setting the stage for cautious channel stocking in Q3.

While Q2 was soft, margins held steady for many companies due to disciplined pricing, improved operating leverage, and lower raw material costs. This stability is expected to continue into Q3 even as volumes remain under pressure.

11. In December 2025, Indovinya unveils new formulation platform to accelerate biopesticide adoption

Indovinya, the specialty chemicals and surfactants division of Indorama Ventures, has launched SURFOM ETHOS, a new formulation platform designed to accelerate the adoption of biopesticides. The platform provides a customizable toolbox of surfactants, thickeners, antifreeze agents, and polymers engineered specifically to improve stability, efficacy, and ease of use of biological crop protection products.

Biopesticides face unique challenges higher production costs, shorter shelf life, and sensitivity to environmental conditions and SURFOM ETHOS aims to address these through advanced formulation science that preserves biological integrity. The launch comes amid tightening global regulations on synthetic pesticides and rapid growth in biological inputs, with the global bioinput market projected to reach $45 billion by 2032.

Supported by Indovinya’s dedicated biological R&D lab and field-simulation tools like a Spray Chamber, the platform enables formulators to develop reliable, scalable, and sustainable biological products. Indovinya emphasises collaborative, purpose-driven innovation to help customers bring next-generation biological solutions to market.

EC Reports - 2025

12. In January 2026, Heranba Organics Seeks Environmental Clearance for Expansion of Pesticide & Specialty Chemical Manufacturing at Sarigam

M/s Heranba Organics Pvt. Ltd. has applied for prior Environmental Clearance (EC) for its proposed expansion project involving the manufacturing of pesticide intermediates, fungicides, herbicides, insecticides, and specialty chemicals at Plot No. 2817/1/2, GIDC Sarigam, Valsad, Gujarat. The proposal, submitted to MoEF&CC on 08.11.2025, falls under Category A of items 5(b) and 5(f) of the EIA Notification 2006 and is therefore appraised at the Central Level by the EAC (Industry-3).

The site already holds an Environmental Clearance dated 29 June 2021, later amended in 2024 to reflect company name change and splitting of the original plot (2817/1) into 2817/1/1 and 2817/1/2. Plot 2817/1/2 (current project site) received a split EC and valid CC&A (AWH-137477), enabling ongoing production of approved pesticide products.

The company now proposes to add specialty chemicals, modify product groups, and enhance production capacity within the existing land area (34,601.53 m²), with no additional land requirement. Terms of Reference (ToR) for the expansion were issued by MoEF&CC on 23.04.2025, and the project was presented before the EAC in its 117th meeting on 26.11.2025, along with consultant Eco Chem Sales & Services (NABET accredited).

Source: PBI India Agrochemical Market Updates - January 2026