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What is the story about?
Shares of Insecticides (India) Ltd. declined over 2% on Monday, February 2, after the company's management cut its guidance by around half.
The company's managing director Rakesh Aggarwal told CNBC-TV18 that the revenue revenue growth guidance has been reduced to 5% - 6% from 10% that the management had guided for earlier for the financial year 2026.
The company also does not see further room for margin improvement in premium products. Premium products will see 10% growth compared to the previous guidance of 20% in FY26, Aggarwal added.
Insecticides' third quarter earnings were largely in-line, while its net profit was slightly below estimates.
It reported a net profit of 10 crore, down 40% from the previous year's 17 crore.
Its gross profit declined 3%, while its gross profit margin was down 370 basis points to 32.4% from 36.1% in the year-ago period. The gross profit margins were impacted by higher B2b mix and industry-led pressure on B2C margins.
Its revenue increased 8% to 385 crore from 358 crore in the third quarter of the previous year.
The company's earnings before interest, tax, depreciation and amortisation declined 13% to 27 crore from 31 crore, while its EBITDA margin contracted 150 basis points to 7.1% from 8.6% in the year-ago period.
The company said it saw good performance in the B2B segment. Its B2C sales were impacted by macro industry headwinds, led by erratic rainfall and a muted spraying season. Its growth during the quarter was predominantly volume-led, driven by a higher contribution from the B2B segment, while B2C demand remained muted amid broader sectoral pressures, it said. Its margin compression is temporary and is expected to improve over time, the company added.
Shares of Insecticides India were trading 2.4% lower at ₹593.95. The stock fell as much as 15% in the month of January.
Also Read: Power Grid shares jump 5% after company raises FY26 capex guidance in earnings call
The company's managing director Rakesh Aggarwal told CNBC-TV18 that the revenue revenue growth guidance has been reduced to 5% - 6% from 10% that the management had guided for earlier for the financial year 2026.
The company also does not see further room for margin improvement in premium products. Premium products will see 10% growth compared to the previous guidance of 20% in FY26, Aggarwal added.
Q3 earnings
Insecticides' third quarter earnings were largely in-line, while its net profit was slightly below estimates.
It reported a net profit of 10 crore, down 40% from the previous year's 17 crore.
Its gross profit declined 3%, while its gross profit margin was down 370 basis points to 32.4% from 36.1% in the year-ago period. The gross profit margins were impacted by higher B2b mix and industry-led pressure on B2C margins.
Its revenue increased 8% to 385 crore from 358 crore in the third quarter of the previous year.
The company's earnings before interest, tax, depreciation and amortisation declined 13% to 27 crore from 31 crore, while its EBITDA margin contracted 150 basis points to 7.1% from 8.6% in the year-ago period.
What the company said
The company said it saw good performance in the B2B segment. Its B2C sales were impacted by macro industry headwinds, led by erratic rainfall and a muted spraying season. Its growth during the quarter was predominantly volume-led, driven by a higher contribution from the B2B segment, while B2C demand remained muted amid broader sectoral pressures, it said. Its margin compression is temporary and is expected to improve over time, the company added.
Shares of Insecticides India were trading 2.4% lower at ₹593.95. The stock fell as much as 15% in the month of January.
Also Read: Power Grid shares jump 5% after company raises FY26 capex guidance in earnings call
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