Shares of Insecticides (India) Ltd. declined over 2% on Monday, February 2, following management's decision to significantly reduce revenue growth guidance for the financial year 2026. According to reports from CNBC-TV18, the company's managing director Rakesh Aggarwal announced that revenue growth guidance has been reduced to 5-6% from 10% that was previously guided for FY26. The stock was trading 2.4% lower at ₹593.95, with shares having fallen as much as 15% in January.
The company also revised its premium product growth expectations, with Aggarwal telling CNBC-TV18 that premium products will see 10% growth compared to the previous guidance of 20% in FY26. As reported by CNBC-TV18, the company does not see further room for margin improvement in premium products, indicating potential challenges in this segment despite earlier optimistic projections.
According to CNBC-TV18, Insecticides India reported a net profit of ₹10 crore for the third quarter, which was down 40% from the previous year's ₹17 crore. The company's revenue increased 8% to ₹385 crore from ₹358 crore in the third quarter of the previous year. However, gross profit declined 3%, with gross profit margin contracting 370 basis points to 32.4% from 36.1% in the year-ago period, impacted by higher B2B mix and industry-led pressure on B2C margins.
As reported by CNBC-TV18, the company saw good performance in the B2B segment, while B2C sales were impacted by macro industry headwinds led by erratic rainfall and a muted spraying season. The company's earnings before interest, tax, depreciation and amortisation declined 13% to ₹27 crore from ₹31 crore, while EBITDA margin contracted 150 basis points to 7.1% from 8.6% in the year-ago period. The company stated that margin compression is temporary and is expected to improve over time.
