Indogulf Cropsciences reports a significant drop in profit for the June quarter, driven by weaker revenue and increased financing costs, highlighting margin pressures in the agro-chemical industry amid challenging input costs.
Indogulf Cropsciences reported a sharp drop in profit for the quarter ended June 30, as weaker revenue and higher financing costs offset a modest improvement in operating efficiency. According to the company’s results released after a board meeting on August 12 in New Delhi, consolidated net profit fell to ₹24.14 million from ₹38.67 million a year earlier, while revenue from operations declined to ₹1,685.45 million from ₹1,893.72 million.
The company said EBITDA slipped only slightly to ₹96 million from ₹99 million, lifting the EBITDA margin to 5.7% from 5.24%. That suggests the business held up at an operating level better than the fall in sales might imply, even though absolute profit still weakened. Revenue was down 11% on a consolidated basis and 12.3% on a standalone basis, underscoring a softer quarter across both reporting lines.
Costs remained a pressure point. Consolidated expenses totalled ₹1,662.75 million, with raw materials and components accounting for the largest share at ₹1,465.84 million. Employee costs rose to ₹137.13 million from ₹126.71 million, while finance costs increased to ₹45.10 million from ₹37.85 million. The company also recorded a small exceptional loss linked to the disposal of fixed assets, adding to the drag on the bottom line.
The latest results come after a much stronger March quarter, when Business Standard reported that Indogulf Cropsciences posted double-digit growth in both sales and consolidated net profit. For the full year to March 2026, the company had reported higher revenue and profit as well, but the June quarter shows how quickly margin pressure can return in the agro-chemical sector when input costs stay elevated and sales soften. A conference call summary for the June quarter also pointed to higher gross profit and EBITDA on the back of volume growth and a richer product mix, although the published financial statements show that those gains were not enough to prevent a year-on-year decline in net earnings.
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