Highlights
| Issue Size – 12,500,000 shares | Issue Open/Close – 16 Mar/ 18 Mar 2026 |
| Price Band (Rs.) 304 – 320 | Issue Size (Rs.) ~4,000 mn |
| Face Value (Rs) 10 | Lot Size (shares) 46 |
GSP Crop Science Limited (GSP), incorporated in 2003, is engaged in the development and manufacturing of insecticides, herbicides, Fungicides, and plant growth regulators in India, with over 40 years of experience in agrochemical industry.
GSP provides its customers with crop protection solutions designed to support farmers in maximizing productivity and achieving optimal agricultural output through development, manufacturing, supply and distribution of formulations and technicals.
Company, as of H1FY26, had received registrations for 524 across its formulations and technicals for agrochemicals manufactured by them, and been granted 102 patents over the years though its research and development efforts, additionally they have 108 patent applications under process.
Out of the total proceeds from the offer of Rs. 4,000 mn, ~Rs. 1,700 mn would go towards debt repayment and ~Rs. 700 mn would go towards general corporate purposes. While ~Rs. 1,600 mn would go towards existing selling shareholders of the company.
Key Highlights
- The size of Agrochemicals market in India reached to ~Rs. 366.2 bn in FY25 clocking a CAGR of 12.4 pct over FY20-25 and is expected to grow to ~Rs. 592.4 bn by FY30 at CAGR of 10.4 pct for period FY26-30, driven by factors including growth in India’s agriculture sector, rising population, low manufacturing and labour cost among others.
- Company’s well-diversified product portfolio includes a wide range of insecticides, herbicides, fungicides, and plant growth regulators, making them comprehensive solution provider for their customers, catering both domestic and international customers spread across 37 countries.
- GSP operated 5 manufacturing facilities as of H1FY26, 4 being in Gujrat region and 1 being in union territory of Jammu and Kashmir, with aggerated installed capacity of 15,120 MTPA for technicals, 43,672 MTPA for formulations and 5,400 MTPA for intermediates.
- The company’s core strategies include (i) Leveraging its diverse offerings to expand into international markets and capitalize on the growing agrochemical industry (ii) Continuing to expand its product offerings by leveraging its R&D capabilities (iii) Continue to diversify customer base by adding new customers and increase wallet share with existing customers (iv) Optimization of manufacturing capabilities through backward integration and focusing on improving operational efficiencies (v) Reduction of borrowings and leverage.
- Sales of the company has grown by 3.4 pct CAGR in over FY23-25 and EBITDA and Profit grew by 38.4 pct CAGR and 115.2 pct CAGR over same period. During FY25 the sales of the company jumped by 11.7 pct YoY to Rs. 12,874 mn. While EBITDA of the company grew by 20.9 pct YoY to Rs. 1,504 mn and EBITDA margin expanded by 89 bps to 11.7 pct YoY in FY25. During FY25, the company reported profit of Rs. 814 mn, which grew 46.6 pct YoY.
Key Risk
- Company is dependent on China for imports of its raw materials, with imports of raw materials from China constituting 42.1 pct and 38 pct of their purchases for continuing operations in H1FY26 and FY25 respectively. Any interruption in imports, specifically from China, may have an adverse impact on manufacturing operations and results of operations.
- The increasing usage and adaptation of organic farming and bio-pesticides could have an adverse impact on their business.
- Company’s Odhav Facility and Samba Facility have experienced low-capacity utilization in the last 3 fiscals and H1FY26.
Financial Performance
| (In Rs. million, unless otherwise stated) | FY23 | FY24 | FY25 | H1FY26 |
| Sales | 12,033 | 11,522 | 12,874 | 8,443 |
| EBITDA | 785 | 1,243 | 1,504 | 1,355 |
| EBITDA Margin % | 6.5% | 10.8% | 11.7% | 16.1% |
| Profit | 176 | 555 | 814 | 811 |
| Profit Margin % | 1.5% | 4.8% | 6.3% | 9.6% |
| ROE % | 4.8% | 15.0% | 18.4% | 15.6% |
| ROCE % | 9.0% | 18.9% | 19.8% | 15.5% |
Peer Comparison
| Peer Comparison | GSP Crop | PI Industries | Sumitomo Chemicals | Dhanuka Agritech | Rallis India |
| Sales (Mn) | 12,874 | 79,778 | 31,485 | 20,352 | 26,629 |
| EBITDA (Mn) | 1,504 | 25,275 | 7,522 | 4,527 | 3,185 |
| EBITDA Margin % | 11.7% | 31.7% | 23.9% | 22.2% | 12.0% |
| Profit (Mn) | 814 | 16,602 | 5,064 | 2,970 | 1,251 |
| Profit Margin % | 6.3% | 20.8% | 16.1% | 14.6% | 4.7% |
| ROE % | 18.4% | 16.4% | 17.4% | 21.2% | 6.6% |
| ROCE % | 19.8% | 23.5% | 24.1% | 30.8% | 11.9% |
Valuation
GSP Crop Science Limited is research-driven agrochemical company, specializing in the development and manufacturing of insecticides, herbicides, fungicides and plant growth regulators in India, with over 39 years of experience in the agrochemical industry. At the upper end of the price of Rs. 320, the issue quotes PE of 9.2x on FY26 annualized earnings. The issue looks fully priced.
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a Financial Advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
