Insecticid.India Q2 FY27 Results (NSE: INSECTICID)
Signal: Growth reaccelerated
The read
Q2 marked a revenue recovery to +8% YoY from Q1FY27's -11.4%, but the quality of growth weakened: gross margin contracted 80bps to 33.7%, EBITDA margin fell 50bps to 13.5%, and PAT declined 5% to ₹56.17 crore as higher interest cost offset premiumisation and cost optimisation; H1 revenue was still down 2%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹686.31 Cr | 8% | N/A |
| Net profit | ₹56.17 Cr | -5% | |
| EBIT margin | 13.5% |
P&L walk
Q2 revenue rose 8% to ₹686.31 crore, while gross margin narrowed 80bps to 33.7% and EBITDA grew only 3% to ₹92.44 crore with margin down 50bps to 13.5%; higher interest cost then pushed PAT down 5% to ₹56.17 crore.
Key positives
- Q2 revenue grew 8% YoY to ₹686.31 crore, a recovery from Q1FY27's 11.4% YoY decline.
- EBITDA margin remained at a double-digit 13.5% despite muted demand and weather-related disruptions; management cited premiumisation and effective cost optimisation.
- The company launched Granuvia and Spinoace in H1FY27 and expanded the IIL Crop Solutions programme to 16 states across four crops.
- Manufacturing investment continued at Sotanala and Dahej, with capacity expansion and backward integration intended to strengthen the product platform.
Key concerns
- PAT fell 5% YoY to ₹56.17 crore despite 8% revenue growth because higher interest cost absorbed operating gains.
- Gross margin compressed 80bps YoY to 33.7% and EBITDA margin declined 50bps to 13.5%, indicating that Q2 revenue recovery did not translate into margin expansion.
- H1 revenue declined 2% YoY to ₹1,297.84 crore and H1 EBITDA fell 8% to ₹160.05 crore, keeping the first-half trajectory below the prior year.
- Working capital days increased to 158 in H1FY27 from 151 in H1FY26, potentially constraining cash generation as the company invests in capacity.
Research and educational content only. Not investment advice.