Insecticides Shares Fall After Management Cuts FY26 Growth Guidance; Check the Latest Outlook

Synopsis:- Shares slipped over 2% after FY26 growth guidance was cut to 5–6% from 10%, with premium segment growth lowered to 10%. Operating margin narrowed from 9% to 7%. Despite 890 bps margin expansion over two years, near-term demand softness and cost pressures weigh on the outlook.

The shares of the prominent agrochemical manufacturer slipped up to 4 percent in today’s trading session after the company’s downgrade in its FY26 revenue growth outlook.

With a market capitalisation of Rs 1,760.42 crore, the shares of Insecticides (India) Ltd were trading at Rs 605.00 per share, decreasing around 0.71 percent as compared to the previous closing price of Rs 609.30 apiece.

Guidance Cut

The shares of Insecticides (India) Ltd have seen bearish movement after revising its FY26 revenue growth guidance downward to 5–6% from the earlier 10%, reflecting a more cautious outlook. Management also indicated limited scope for further margin expansion in premium products. Growth in the premium segment is now expected at 10%, significantly lower than the earlier 20% projection, signalling softer demand conditions.

Looking forward to the company’s financial performance, revenue increased 8% year-on-year from  Rs 358 crore in Q3FY25 to  Rs 385 crore in Q3FY26, showing steady business growth. However, net profit fell sharply by 41%, dropping from  Rs 17 crore to  Rs 10 crore. The gap between revenue growth and profit decline indicates margin pressure and rising operating costs during the quarter.

Over the past year (Dec 2024 to Dec 2025), operating performance remained under pressure. Operating profit declined from  Rs 31 crore in Dec 2024 to Rs 27 crore in Dec 2025. Operating margin also slipped from 9% to 7%, indicating weaker cost control and margin compression despite relatively stable revenue during the period.

The company has delivered notable improvements across key financial metrics over the past two years. Gross margin expanded by 890 bps to 32%, while EBITDA margin rose 430 bps to 11.1%. ROCE improved 740 bps to 17.8,% and ROE increased 620 bps to 13.1%, supported by a stronger premium product mix.

The company has built a strong presence in the agrochemical sector with 140+ formulations and 20+ technical products backed by 25 patents. It operates 6 formulation plants and 2 technical plants, supported by 4 advanced R&D centres. With 8,500+ distributors and 70,000+ retailers, it reaches over 40 lakh farmers nationwide.

Insecticides operates strategically located manufacturing facilities across India, strengthening supply chain efficiency. Its installed capacity includes 15,800 MTPA of active ingredients and intermediates, 30,000 MTPA of granules, 30,000 KLPA of liquids, and 10,000 MTPA of powders. Multiple formulation, technical, biological, and export-oriented units support diversified production capabilities and nationwide distribution.

Additionally, the company is expanding its export footprint across 22 countries, supported by around 182 international product registrations. Recognition from FICCI and the Ministry of Chemicals & Fertilisers with an Export Excellence Award in 2023 highlights its credibility. The operational SEZ unit in Dahej further strengthens global outreach and long-term export growth potential.

Insecticides India Ltd is a leading agrochemical company engaged in the manufacturing and marketing of crop protection products. With a wide portfolio of formulations and technical products, the company serves millions of farmers across India and international markets. Backed by strong R&D, manufacturing capabilities, and distribution reach, it plays a vital role in agriculture.

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