India Pesticides Q1 profit falls 35% YoY to ₹22.8 Cr as margins compress, revenue slips 8%
PAT -34.77% YoY · revenue -8.51% · margins compressing
₹251.76 Cr
-8.51% YoY
₹22.77 Cr
-34.77% YoY
8.9%
-3.4pp YoY
₹1.98
India Pesticides opened FY27 on a weak note: consolidated revenue from operations fell 8.5% YoY to ₹251.76 Cr (down 5.5% QoQ), and consolidated PAT dropped 34.8% YoY to ₹22.77 Cr (down 25.6% QoQ). Profit fell far faster than the topline because margins compressed sharply — net margin narrowed to ~9.0% from 12.3% a year ago and 11.3% last quarter, while operating margin slipped to roughly 14% versus the 18–20% band management guided on its last concall. The squeeze sits on the gross line: cost of materials consumed rose to ₹185.12 Cr even as revenue declined, so the print reflects both softer volumes/realisations and input-cost pressure rather than a one-off. The decline is not a base-effect illusion — the year-ago quarter carried a ₹2.29 Cr insurance-settlement gain in other income, and even adjusting that out, PAT is still down ~31% YoY. The standalone set tells the same story (PAT ₹23.07 Cr, −34.8% YoY; revenue ₹252.56 Cr, −8.3%), so there is no material divergence between the two bases.
Q1 FY-2027 vs prior quarters
The quarter contradicts management's confident November guidance of at least 20% standalone FY27 growth and 18–20% EBITDA margins — Q1 standalone revenue actually shrank ~8% YoY, leaving that full-year bar dependent on a steep H2 ramp, with the Shalvis subsidiary's promised ₹100 Cr contribution yet to show (the unlisted subs together posted a small ₹0.34 Cr net loss this quarter). No brokerage consensus is on record for this small-cap for the June quarter, and the company issued no accompanying management commentary with the numbers. The concurrent corporate news — EU and Morocco fungicide approvals flagged in July — is a forward revenue lever, not a Q1 driver. Separately, the filing discloses a ₹7.10 Cr income-tax demand from a block assessment (FY19–FY25), which the company believes is not tenable and has appealed; it is a contingent overhang, not charged to this quarter's P&L.
The stock went into the print at ₹154.15, down 5.7% over the past month of trading.
Management is confident in achieving its full-year FY26 revenue guidance of approximately INR 1,000 crores, supported by strong export recovery and a favorable domestic Rabi season. They reiterate their commitment to maintaining EBITDA margins within the 18%-20% range. For FY27, the company expects at least 20% standal
— This quarter: missed
W1
FY27 20% standalone-growth guidance vs Q1 standalone revenue down ~8% YoY — needs a sharp H2 recovery to hold
W2
EBITDA-margin path back toward the guided 18–20% band from Q1's ~14%
W3
Shalvis subsidiary ramp toward its promised ₹100 Cr FY27 contribution — subs still net-loss (₹0.34 Cr) this quarter
Clean digital filing, headers unambiguous. Consol PAT 22.77 (owners' share 22.74, NCI 0.03). Prior-year Q1 other income included a one-off Rs2.29 Cr insurance-claim settlement (Note 2) — inflates YoY base. Separate Rs7.10 Cr income-tax block-assessment demand disclosed (Note 4), under appeal, not in P&L.
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