India Pesticides Q1 FY27 Results (NSE: IPL)
Signal: Revenue declined
The read
Q1FY27 marks the first YoY revenue decline after a strong FY26 (₹1,000 Cr+ revenue, 28% top-line growth). Revenue fell 8.5%, PAT dropped 34.9% due to higher opex and absence of one-time other income. Raw material cost % improved, providing some buffer, but employee and other expenses rose sharply. The EBITDA margin slipped 30bps to 15.7%. The trajectory inflects downward, demanding close watch on volume recovery and cost control.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹251.76 Cr | -8.5% | -5.4% |
| EBIT | ₹33.62 Cr | -31.3% | |
| Net profit | ₹22.74 Cr | -34.9% | |
| EPS | ₹1.98 | -34.7% | |
| EBIT margin | 15.7% |
P&L walk
Revenue and profit declined YoY, breaking a multi-quarter growth streak; EBITDA margin slipped 30bps but raw material tailwind partly offset revenue pressure.
Segments
Single operating segment – agrochemicals; no segment breakdown.
Key positives
- Raw material cost as % of revenue dropped 550bps YoY to 51.5%, indicating input cost tailwind or pricing power.
- Gross margin expanded to 48.5% from 43% YoY, the highest in recent quarters.
- Low debt (D/E 0.11) and clean earnings quality (other income <20% of PBT).
Key concerns
- First YoY revenue decline after 8+ quarters of growth; top-line trajectory needs monitoring.
- Employee cost grew ~20% YoY, outpacing revenue; % of sales rose to 6.9% from 5.3%.
- Other expenses (overheads) jumped 19% YoY, partly fixed cost nature.
- PAT decline of ~35% YoY amplified by absence of prior year insurance settlement (₹2.29 Cr one-off).
Research and educational content only. Not investment advice.