Insecticides India Limited (IIL) Q4 profit soars 85%: Premium products drive growth

Insecticides India Limited (IIL) announced its financial results for the quarter and full year ended March 31, 2025. The company reported a robust 85% year-on-year growth in Profit After Tax (PAT) for Q4FY25, backed by strong execution, premium product performance, and improved margins.

Consolidated Financial Performance

The company delivered a significant improvement in profitability during Q4FY25 and FY25 as a whole. Here is a snapshot of the consolidated financials:

Strong Q4 Performance and Focus on Premiumization

IIL achieved a 32% rise in revenue in Q4FY25 compared to the same quarter last year, while gross profit rose by 51%. This was mainly driven by a continued emphasis on premium products such as those under the Focus Maharatna and Maharatna portfolio, which recorded a 13% growth in FY25. Flagship products like Shinwa, Izuki, Mission SC, Mycoraja, and other recent launches contributed notably to this growth.

The company’s gross profit margin for FY25 improved substantially to 32%, up by 655 basis points year-on-year. This was attributed to an optimized product mix, refined pricing strategy, and successful launches. Simultaneously, the EBITDA margin also expanded by 281 basis points to 11.1% in FY25, reflecting effective marketing campaigns and field promotions supporting the premium product strategy.

Operational Developments and Strategic Moves

In FY25, IIL launched 11 new products, including those based on patented technologies. A major highlight of the year was the acquisition of Kaeros Research Pvt. Ltd., a strategic move to streamline sourcing, reduce dependency on third-party imports, and ensure long-term supply chain reliability.

The company also executed a successful buyback of 500,000 fully paid-up equity shares at ₹1,000 per share, amounting to ₹50 crore, signaling confidence in its future outlook and commitment to returning value to shareholders.

Managing Director’s Commentary

Commenting on the annual performance, Mr. Rajesh Kumar Aggarwal, Managing Director, Insecticides (India) Ltd., stated, ″We are pleased to report a robust performance of the Company, marked by strong execution and strategic discipline, resulting in a profit growth of 39% in FY25. This performance underscores the success of the strategic framework we established—centered around profitable growth, a sharper focus on premium products, and margin enhancement.″

He further added that favorable macro conditions, including good monsoon, stable raw material prices, and healthy rural demand, played a crucial role. ″Our consistent focus on premiumization, value over volume, and improving return metrics like ROCE and ROE has proven effective. For FY25, ROCE and ROE stood at 18% and 13%, respectively, reflecting our operational efficiency and prudent capital allocation.″

Looking Ahead: Innovation and Expansion

IIL remains optimistic for the upcoming fiscal year, buoyed by positive macro tailwinds such as a favorable monsoon forecast and expected stability in input costs. The company is focused on expanding its portfolio of premium offerings and recently introduced Altair, a patented pre-emergent herbicide for paddy developed by Nissan Chemical Corporation, Japan. IIL will exclusively market this product in India, reinforcing its commitment to providing innovative solutions tailored for Indian farmers.

Looking forward, the company has committed significant investments in future-readiness, particularly in its Dahej capacity expansion and technical/formulation facility upgrades at Sotanala, Rajasthan. These initiatives aim to enhance production capabilities and align with the company’s long-term growth plans.

Commitment to Sustainability and Stakeholder Value

As it continues to evolve, IIL emphasized its commitment to sustainability, innovation, and responsible growth. ″We are confident in building a resilient and promising future for our business, delivering long-term value for our stakeholders while positively impacting the environment and farming communities,″ Mr. Aggarwal concluded.