Indogulf Cropsciences Q2 Revenue Up 3%, EBITDA Rises 27%

Revenue from operations: INR 255.8 crores (compared to INR 248.3 crores in Q2 FY26), representing 3% year-on-year growth
Sequential revenue growth: 52% from INR 168.5 crores in Q1 FY27
Gross profit: INR 76.8 crores (compared to INR 73.1 crores in Q2 FY26), growth of 5%
Gross profit margin: 30% (compared to 29% in Q2 FY26)
EBITDA: INR 40.6 crores (compared to INR 32 crores in Q2 FY26), growth of 27%
EBITDA margin: 16% (compared to 13% in Q2 FY26)
Employee expenses: INR 13.3 crores, declined 8% year-on-year
Other expenses: INR 22.9 crores, declined 14% year-on-year
Operating cost: 14.2% of revenue (compared to 16.6% in Q2 FY26)
Finance cost: INR 4.1 crores, 11% lower than Q2 FY26
Profit after tax: INR 25.7 crores (compared to INR 20.7 crores in Q2 FY26), growth of 24%
PAT margin: 10% (compared to 8% in Q2 FY26)

Channel mix: B2C 59%, B2B 35%, Exports 6%
Product category contribution: Crop Protection 85%, Plant Nutrients 5%, Biologicals 6%, Other products 4%
Manufacturing capacity utilization: Averaged 60% in H1 FY27 (compared to 52% in FY26)
Quarterly utilization: Q1 FY27 70%, Q2 FY27 approximately 50%

Export product mix (Q2 FY27): Fungicide 57%, Herbicide 28%, Insecticide 15%
Egypt: Recorded 129% year-on-year growth
Market reactivation: Successfully reactivated sales in Sudan
New market entries: Entered Taiwan market; entered Israeli market for plant nutrition business
New orders: Secured new orders through Germany for Latin America business
Recent developments: Positive field trial results and import permission for Indo Apache in Sri Lanka; formulation registration in Thailand for Spiromesifen 24% SC; repeat order of 44 MT from Venezuela following successful export of 95 MT of NutriX
Field trials: Initiated field trials for Empire and Indo Apache in Brazil through agreement with Brazilian CRO

Growth recorded in multiple states: Gujarat, Chhattisgarh, Haryana, Punjab, Tamil Nadu, Telangana
New product commercialization: Commercialized 3 new specialty products during H1 FY27

Board proposed reallocation of INR 8.34 crores of unutilized IPO proceeds originally earmarked for in-house DF plant
New allocation: Towards specialty machinery and dedicated production facility for climate stress management and plant growth regulators
Location: Barwasni facility in Sonipat on 9,000 square feet area
Rationale: DF line facing pricing pressure and shrinking margins; climate stress management emerged as fastest-growing category due to heat waves, droughts, erratic rainfall
Technology: Phosphorus derived from rhodophytes designed to help crops withstand heat stress through osmotic regulation, antioxidant activation, heat stress mitigation, and improved flower retention
Expected operational timeline: Q4 FY27

Inventory levels: INR 349.6 crores at end of September 2026 (compared to INR 343.5 crores at end of March 2026)
Working capital: Increased due to below-plan sales during season
Cash flow: Negative operating cash flow in H1 FY27 due to increased debtors and inventory
Recovery expectation: Operating cash flow expected to turn positive in second half FY27
Management actions: Closely monitoring debt collections and stock liquidation

Southwest monsoons: 13% below long period average, weakest since 2015
El Nino conditions: Persisted throughout the quarter, expected to persist through winter and ease by February 2027
Impact: Affected sowing patterns, crop development, timing of crop protection application, and purchasing decisions
Drought conditions: Declared in parts of Southern India and Maharashtra
Price pressures: Generic agrochemical prices increased 15-20% between March-May due to Middle East conflict, supply chain disruptions, rupee depreciation, higher freight, packaging and solvent costs
Price correction: Since June, prices corrected to pre-conflict levels

Q3 FY27: Expected to remain challenging quarter
Industry expectation: Agri input earnings to bottom out between October-December 2026 with recovery from Q1 FY28
Key monitorables: Rabi soil moisture, channel inventory liquidation, farmer economics, input cost movements
Company priorities: Richer product mix, new product introduction, disciplined cost control, deepening farmer engagements, expanding differentiated product portfolio, pursuing selective international opportunities, maintaining procurement/inventory/manufacturing discipline

3-5 year focus: Biologicals and nutrients expansion
Subsidiary growth: Abhiprakash Globus expansion across 7-8 states with potential for exponential growth
Geographic expansion: Domestic market focus with both companies (Indogulf and Abhiprakash)
Product development: Working with ICAR for three years on stress management products; working with Pusa Institute for product development
Brand building: Aggressive plans for 4-5 brands with different crop stage applications