Insecticides India expands margin as Q2 revenue growth outpaces costs
Consolidated operating margin rose 2.41 percentage points QoQ to 13.47%, while higher interest costs limited the conversion into net profit.
Filed 05 Nov 2026, 15:17 IST · Insecticides India Ltd (INSECTICID)
Key takeaways
- Consolidated revenue rose +12.23% QoQ to Rs 686.31 cr, outpacing the +9.19% increase in expenses.
- Operating margin expanded 2.41 percentage points QoQ to 13.47% as revenue growth exceeded cost growth.
- Net profit increased +28.04% QoQ to Rs 56.17 cr despite interest costs rising +40.30%.
Price around the results
Q2 revenue growth lifted operating profit
Insecticides India’s consolidated revenue grew +12.23% QoQ, while operating profit rose faster at +36.73%, indicating operating leverage in the quarter. Expenses increased +9.19%, below revenue growth, which drove the 2.41-percentage-point expansion in operating margin. Net profit still grew more slowly than operating profit at +28.04% as financing costs increased.
Higher interest costs offset part of the operating gain
Interest expense rose +40.30% QoQ, compared with a +1.85% increase in depreciation, adding pressure below the operating line. The tax rate was broadly unchanged, rising just 0.06 percentage points to 25.47%, so the net profit increase was not driven by a lower tax rate. Other income was negative at Rs 0.61 cr and represented -0.81% of pre-tax profit, so it did not support reported earnings quality.
Margin was just above the reported peer median
The company’s 13.47% operating margin was 0.25 percentage points above the 13.22% median for 114 reported Commodities-sector peers. Management said the company has annual formulation capacity of 70,000 MT/KL. The presentation said Insecticides India is developing new-generation formulations, along with biopesticides, biofertilizers and nanotechnology products.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹686 cr | ₹612 cr | +12.23% |
| Other income | ₹-1 cr | ₹6 cr | — |
| Expenses | ₹594 cr | ₹544 cr | +9.19% |
| Operating profit | ₹92 cr | ₹68 cr | +36.73% |
| Operating margin (%) | 13.47% | 11.06% | — |
| Interest | ₹7 cr | ₹5 cr | +40.30% |
| Depreciation | ₹10 cr | ₹10 cr | +1.85% |
| Profit before tax | ₹75 cr | ₹59 cr | +28.12% |
| Tax | ₹19 cr | ₹15 cr | +28.36% |
| Net profit | ₹56 cr | ₹44 cr | +28.04% |
| EPS (₹) | ₹19.30 | ₹15.08 | +27.98% |
Operating margin of 13.47% compares with a Commodities sector median of 13.22% across 114 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company has annual formulation capacity of 70,000 MT/KL.
New products
- The company is developing new-generation formulations and synergistic combinations.
- The company is developing new biopesticides, biofertilizers and nanotechnology products.
New initiatives
- IIL Foundation expanded Project Green in FY26 with Miyawaki plantations across four locations.
What to watch
- Whether operating margin holds above 13.47% after the 2.41-percentage-point QoQ expansion.
- Whether expense growth remains below the +12.23% QoQ revenue growth rate.
- Whether interest-cost growth moderates from +40.30% QoQ.