INST's long-term story remains intact; however the rise in raw material costs may lead to pressure on margins, hence we have marginally reduced our earnings estimates for FY19E/20E by 3.3/1.4% respectively. Accordingly reduced the target price to Rs 914 (vs. Rs 927) (17x FY20E EPS). Insecticides Indias (INST) reported muted results for 4QFY18; revenues stood at Rs 1.68bn (+2.5% YoY), largely driven by volume growth. The introduction of few specialty products led to an improvement in gross margins by 394bps YoY to 31.0%. Consequently, EBITDA grew by 55.2% YoY to Rs 187mn, and EBITDAM improved by 375bps to 11.0% for the quarter.