Insecticides India Ltd

We believe that real progress begins at the grassroots in the fields where India grows. Our journey has led us across the length and breadth of the nation, engaging directly with farmers, understanding their needs, and supporting their aspirations. With innovation as our tool and trust as our core, we remain committed to helping farmers grow better, earn more, and envision a more prosperous future.

Dear Shareholders,

As I reflect on the year gone by, I take great pride in the dynamic and eventful journey we undertook in FY25. With the Indian economy maintaining its strong growth momentum, business sentiment remained upbeat, fuelling expansion across sectors. This positive environment also invigorated growth in the agriculture sector. While the year brought its share of challenges, such as international geopolitical issues, volatile exchange rates, unpredictable climatic conditions, and erratic rainfalls, yet we remained steadfast in our performance.

Macroeconomic scenario

The macroeconomic environment for the agriculture and agrochemical sector is showing renewed strength, underpinned by a series of farmer-centric reforms and favourable government initiatives. Government policies & programmes such as the Prime Minister Dhan-Dhaanya Krishi

Yojana, Rural Prosperity and Resilience Programme, National Food Security

Mission (NFSM) which promotes maize under the Coarse Cereals component along with other crops and the

Mission for Aatmanirbharta in Pulses, are reinvigorating rural growth and boosting agricultural productivity. Enhancements to the Kisan Credit Card (KCC) loan limit and consistent increases in Minimum Support Prices (MSP) have further reinforced farmer sentiment and spending capacity. On the industry front, the stabilisation of raw material prices and the easing of de-stocking pressures have brought much-needed price stability, paving the way for a more resilient and growth-ready agrochemicals sector.

At IIL, we are strategically poised to capitalise on the favourable macroeconomic environment through a focused and forward-looking approach. We are accelerating the launch of innovative and end-to-end crop protection and nutrition solutions to meet evolving farmer needs, while strengthening our manufacturing and

R&D infrastructure to enhance agility and scale. Our deep-rooted connect with the farming community, built on trust, service, and knowledge-sharing, continues to be a key enabler in translating opportunity into on-ground impact. This integrated strategy ensures we remain future-ready, responsive, and aligned with the Company's vision of ‘Value beyond Protection'.

Strategic focus

IIL has a world-class asset base and a resilient business model that is built to withstand economic uncertainty and to perform in all sets of market conditions. We operate in an evolving business environment and changing consumer preferences that has led companies like us to evolve and adapt to match steps with changing farmer needs. In a world that is increasingly complex, having a clear vision and strategy is vitally important.

First, we are enhancing our product portfolio with a sharp focus on end-to-end innovative solutions, leading to strong traction in premium products. Second, we are embracing operational excellence by adopting cutting-edge technologies across our value chain to drive efficiencyand scalability across organisation. Third, we are accelerating innovation by sustained investments in R&D to strengthen our competitive edge, resulting in 12 new launches in FY25. And finally, we are deepening our connect with the farming community by evolving into a trusted partner, offering comprehensive solutions, and leveraging digital tools to improve accessibility, service, and impact on the ground.

Taken together, this strategy is focused on strengthening our core and positioning the company to structurally grow earnings and improve our capital return ratios. This means we need to be unwavering in our efforts to preserve our commitment towards our farmer community. It includes further strengthening our distribution network to ensure we can most efficiently serve our customers and deliver on our growth opportunities in the premium products segment. Thus, it requires investing in highly targeted farmer engagement opportunities that enhance our unique relationship with the farmer.

Measuring our success

As we reflect on the past year, it is evident that India's agricultural landscape is undergoing a profound transformation. Changing dietary preferences, increasing health consciousness, and a growing demand for quality produce are reshaping consumption patterns across the nation. In response, farming practices are also evolving, becoming more specialised, knowledge-driven, and technology-oriented. This shift presents both an opportunity and a responsibility for us at IIL.

At the heart of this transformation stands the Indian farmer community. Our unwavering commitment to placing farmers at the centre of every decision we make, has guided our journey for two and a half decades. In FY25, more than ever, we have intensified our efforts to support them with cutting-edge agri-solutions, advanced formulations, and value-added services designed for today's dynamic conditions. From sowing to harvesting, we are enabling farmers to grow more efficiently, sustainably, and profitably.

This year, we made significant strides across our strategic pillars. Under our product premiumisation strategy, we launched several new Focused Maharatna products in FY25, thus further strengthening our high performing portfolio. We also reinforced our position as a cost-effective manufacturer by expanding our production capabilities and embracing modern technologies to drive operational excellence. At the same time, we continued to strengthen our R&D ecosystem and forged strategic collaborations with leading global players, bringing cutting-edge, off-patent technologies within reach of Indian farmers and enriching our solution portfolio like never before.

Our focused strategic efforts bore strong results in FY25. Demand for our premium product range gained momentum, driving profitability at a pace that outstripped revenue growth. While our topline registered a modest 2% increase, we delivered an impressive 36% rise in EBITDA and a 39% surge in PAT, underscoring our sharpened focus on operational efficiency and value-led execution.

Staying true to our commitment to value creation, we also enhanced shareholder returns in FY25 through the successful completion of our share buyback initiative.

Throughout the year, we made significant progress in strengthening our distribution network, widening our market footprint, and sharpening our positioning as a comprehensive solutions provider. Together, these initiatives have bolstered our product presence and deepened our technical capabilities, setting the stage for sustainable and scalable growth in the years ahead.

Journey of transformation

We believe true progress begins in the field. Our journey has taken us to every corner of the nation, listening to the farmers, understanding their needs, and standing by them. With innovation and trust, we are helping them grow more, earn more, and dream bigger.

Over the past few years, IIL has embarked on a transformative journey aimed at energising our premium product portfolio, driving breakthrough expansion of our premium segment, engage effectively with the farmer community to better understand their needs and cultivating an organisational culture that's built for long-term success.

This journey has not only accelerated profitable growth but also reshaped our business strategy, supported by targeted investments in technology, talent, and capability building. Strengthened by long-standing, trust-based relationships, we are now entering a more value-accretive phase, driven by innovation, quality, and a strong brand connect with the farming community.

Responsible marketing

At Insecticides (India) Limited, responsible marketing is an integral part of our commitment to sustainable and ethical business practices. We go beyond promoting products, we prioritise transparency, accuracy, and farmer empowerment in every communication.

Transforming responsibly

Sustainability and innovation are vital enablers of our strategy, and we continued to make progress this year on our environmental, social and governance (ESG) commitments. ESG issues are increasingly relevant as commercial considerations for our customers, alongside the ever-growing part they play in the regulatory and corporate responsibility agendas.

A promising horizon

As we look to the future, we do so with confidence, especially in the strong growth potential of our premium product portfolio. The early results of our premiumisation journey are evident in enhanced profitability, improved return ratios, and efficient capital deployment. Our recent share buyback underscores both our robust cash generation and our commitment to rewarding shareholders while building long-term value.

With a growing presence across India and key global markets, we are well-positioned to capture emerging opportunities and drive sustainable growth. Our achievements in FY25 are a testament to the dedication and resilience of our team, and we are grateful to all stakeholders for their continued trust and support. Backed by a strong foundation and a clear strategic vision, we are poised to navigate future challenges, create enduring value across our ecosystem, and contribute meaningfully to the transformation of Indian agriculture for a more sustainable tomorrow.

Before, I close, I would like to express my sincere gratitude to the Government of India for its policy support and infrastructure push, which continue to create a fertile ground for economic growth. I extend my heartfelt thanks to our Board members for their vision and guidance, to our channel partners and vendors for being strong pillars of our supply chain, and most importantly to Team IIL for their unwavering commitment and passion. I am equally grateful to the farming community, whose trust in our Company continues to inspire innovation, and to our fellow shareholders for their enduring confidencein our journey. Your support fuels our purpose, and together, we are building a future of sustainable progress.