Insecticides (India) Limited (INSECTICID) — Financial Results

Investor Takeaways

FY26 gross profit margin improved to 31.5% from 23.1%

ROCE increased to 16.1% from 10.4%

PAT declined slightly to INR139 crores from INR142 crores due to tax provisions

⚠️ Finance costs rose to INR16.87 crores due to inventory buildup

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹2,140 Cr	7%
Net Profit	₹139 Cr	-2.1%
EBITDA	₹227 Cr	6.8%
EPS	₹13.90	-2.1%
OPM	31.5%	+8.4 pp

What Changed

The filing reveals a clear shift toward higher-margin premium products and operational efficiency. Gross profit margin expanded significantly to 31.5% (from 23.1%), driven by product premiumization and R&D focus on patented formulations. ROCE improved to 16.1% (from 10.4%), reflecting better capital utilization. PAT declined marginally to ₹139 crores from ₹142 crores, solely due to higher tax provisions, with no operational deterioration indicated. EBITDA growth of 6.8% to ₹227 crores confirms underlying profitability improvement. The company is actively reducing channel inventory and working capital cycle (target: 120 days from 140 days), while targeting 10% export growth and increasing patented product share to 70% by FY30. Kaeros brand is positioned to contribute 5-8% to volume growth through revenue doubling. Finance costs rose to ₹16.87 crores due to inventory buildup but are targeted for 25-30% reduction by FY27.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Insecticides (India) Limited	15.74	N/A	16.1%	2,103.19
Solar Industries India Limited	132.27	N/A	N/A	1,56,674.48
Pidilite Industries Limited	75.73	N/A	N/A	1,49,378.89
SRF Limited	69.51	N/A	N/A	79,723.46

Insecticides (India) demonstrates a significantly lower P/E ratio compared to peers, indicating relatively cheaper valuation, while its ROCE of 16.1% outperforms the sector's typical capital efficiency metrics.