Insecticides (India) Limited (NSE: INSECTICID) shares fell 9.43% to close at ₹582.10 on Friday following the release of third-quarter financial results. The stock has traded in a 52-week range of ₹531.60 to ₹1,096.30 and is currently approximately 47% below its annual peak, extending a six-month bearish trend.
Quarterly Financial Performance
For the quarter ended Dec. 31, 2025, the agrochemical firm reported a consolidated net profit of ₹10.49 crore, a 39.6% decline from ₹17.36 crore in the same period last year. The drop in earnings occurred despite a 7.6% increase in consolidated revenue from operations, which rose to ₹384.92 crore from ₹357.85 crore.
Profitability was impacted by significant margin erosion. The operating margin (EBITDA margin) contracted by 150 basis points to 7.12%, the lowest level in eight quarters. Management attributed the squeeze to elevated input costs and higher operating expenses, which offset gains from increased sales volumes. Consolidated expenses for the quarter rose 11% year-on-year to ₹371.62 crore.
Year-to-Date and Dividend Update
For the nine months ended Dec. 31, 2025 (9M FY26), consolidated revenue stood at ₹1,713.75 crore, up 4.3% from ₹1,643.12 crore in the previous year. Nine-month net profit remained relatively flat at ₹127.71 crore.
The Board of Directors declared an interim dividend of ₹2 per equity share (20% of face value) for the financial year 2025-26. The company set Feb. 6, 2026, as the record date, with payments scheduled to commence on or after Feb. 11, 2026.
Corporate Developments and Analyst View
The company confirmed the successful dissolution of its Dubai-based subsidiary, IIL Overseas DMCC, effective Sept. 19, 2025. Analyst sentiment remained cautious following the earnings release. While ICICI Securities previously maintained an “ADD” rating with an ₹800 target and HDFC Securities held a “BUY” rating with a ₹1,062 target, no immediate upgrades or price-target revisions were issued today. Market participants noted that while the company achieved topline growth, the inability to translate volume into bottom-line profit remains a key concern.