Weak pricing offsets strong volume show of Indian agrochemical majors

Brokerages have downgraded earnings estimates for a few companies and expect only a gradual recovery over the next couple of quarters

Despite volume growth in the export segment and strong demand in the domestic market, pricing uptick is eluding Indian agrochemical companies. Most agrochemical companies missed Street estimates due to multiple headwinds. Brokerages have downgraded earnings estimates for a few and expect only a gradual recovery over the next couple of quarters. 

Companies with a significant share of exports were impacted more than domestic companies. Despite healthy volume growth, pricing pressure, and excessive dumping from China dented profitability, says IIFL Research, with export-oriented agrochemical companies like UPL, Anupam Rasayan and Rallis continuing to witness a challenging quarter.  

Ranjit