India Pesticides has reported a sharp decline in its financial performance for the second quarter of FY2027, as weak overseas demand, erratic monsoon conditions in India and volatile raw material prices weighed on sales and profitability.

 

The agrochemical manufacturer posted revenue from operations of Rs 231 crore in Q2 FY27, down 21.6% from Rs 295 crore in the corresponding quarter of the previous fiscal year.

 

Net profit (PAT) fell to Rs 18 crore from Rs 32 crore a year ago, while EBITDA declined to Rs 33 crore from Rs 54 crore. The EBITDA margin also contracted to 14.4% from 18.2%, reflecting mounting pressure on operating profitability.

 

The company attributed the revenue decline to softer overseas demand for its herbicide products, regional instability and volatility in key raw material prices.

 

Domestic sales also took a hit as deficient and erratic rainfall disrupted agricultural activity across several states, including Maharashtra, Andhra Pradesh, Karnataka, Telangana, and parts of Punjab and Haryana. The resulting stress on paddy and other kharif crops reduced demand for herbicide applications.

 

The subdued quarterly performance dragged down the company's first-half numbers.

 

For H1 FY27, revenue from operations declined 15.9% to Rs 487 crore from Rs 579 crore in the corresponding period last year.

 

EBITDA dropped to Rs 73 crore from Rs 108 crore, while the EBITDA margin narrowed to 14.9% from 18.6%.

 

The company said lower sales, coupled with higher employee expenses and raw material price volatility, weighed on profitability. However, it indicated that a strong export order book could provide some support in the coming quarter.

 

Amid the challenging business environment, India Pesticides secured two important regulatory milestones during the quarter, strengthening its international expansion prospects.

 

The company received Technical Equivalence approval for one of its insecticide products in the United Kingdom and registration for one of its herbicide products in Argentina.

 

The approvals are expected to open doors to new customers, expand the company's export portfolio and facilitate commercialisation across additional international markets.

 

CARE Ratings also reaffirmed the company's credit ratings during the quarter.

 

Dheeraj Kumar Jain, Chief Executive Officer of India Pesticides, acknowledged the pressure on business operations but underscored the company's focus on cost management, operational discipline and international expansion.

 

“The second quarter of FY27 presented a challenging operating environment, with geopolitical uncertainty, softer overseas demand and volatility in key raw material prices affecting business conditions. In India, deficient and erratic rainfall across several agricultural states disrupted cropping cycles and reduced herbicide application. As a result, our focus remained on managing costs, maintaining operational discipline and progressing our international growth strategy."

 

Looking ahead, India Pesticides plans to strengthen its manufacturing capabilities through process optimisation, backward integration, research and development, and the development of differentiated molecules and intermediates.

 

The company is also targeting further registrations in regulated international markets and deeper engagement with overseas customers to increase the contribution of exports to its business.