India Pesticides Q2 FY27 Results (NSE: IPL)
Signal: Revenue declined
The read
Q2FY27 marks a clear inflection after four consecutive quarters of YoY margin expansion: consolidated revenue fell 21.2% to ₹228.71 crore, calculated EBITDA margin compressed 392bps to 14.5%, and PAT fell 41.7% to ₹18.42 crore; the next test is whether the margin setback is transient or reflects renewed input-cost and utilisation pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹228.71 Cr | -21.2% | -9.1% |
| EBIT | ₹27.18 Cr | -43.6% | |
| Net profit | ₹18.42 Cr | -41.7% | |
| EPS | ₹1.6 | -41.6% | |
| EBIT margin | 14.5% |
P&L walk
Revenue declined to ₹228.71 crore, -21.2% YoY and -9.1% QoQ, while calculated EBITDA margin fell to 14.5% from 18.5% YoY as material costs and employee expenses absorbed a smaller revenue base; PAT fell 41.7% to ₹18.42 crore.
Segments
The company identifies Agro Chemicals as its sole operating segment; subsidiaries dragged consolidated quarterly PAT by ₹0.94 crore versus standalone PAT of ₹19.36 crore, with the two subsidiaries reporting combined revenue of ₹3.34 crore and a ₹0.99 crore loss.
Key positives
- Consolidated net cash was ₹16.35 crore at 30 September 2026, improving from ₹9.88 crore at 31 March 2026 despite the weak quarter.
- PPE increased to ₹422.43 crore while CWIP declined to ₹24.53 crore, and depreciation rose 12.7% YoY to ₹6.04 crore, consistent with assets moving into use rather than a flat asset base with rising depreciation.
- EPS of ₹1.60 declined 41.6% YoY, broadly matching the 41.7% PAT decline, so there is no evidence of dilution-driven EPS underperformance.
Key concerns
- Consolidated revenue fell 21.2% YoY and 9.1% QoQ to ₹228.71 crore, reversing the 25.0% and 26.6% growth recorded in Q1FY26 and Q2FY26 in the prior results series.
- Calculated EBITDA margin compressed to 14.5% from 18.5% YoY and 15.7% QoQ; raw material consumption rose to 66.0% of total income from 58.9% YoY, while the filing does not disclose the cause.
- PAT fell 41.7% YoY to ₹18.42 crore as finance cost rose 100.8% YoY to ₹2.45 crore and operating profit declined.
- Inventory increased 36.2% to ₹391.48 crore from ₹287.42 crore at 31 March 2026, while operating cash flow fell 46.4% YoY to ₹48.02 crore.
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