Sharda Cropchem (SHARDACROP) investor relations material

Executive summary

• Achieved 20% year-over-year revenue growth in Q2 FY26 to INR 929 crores, with 35% overall volume growth, driven by global demand recovery and normalized inventories.

• Q2 and H1 FY26 saw strong revenue and profit growth, supported by high volume increases across all regions and segments, especially in agrochemicals.

• Maintained an asset-light, IP-driven business model with a global presence in 80+ countries and a robust pipeline of product registrations.

• The group operates primarily in agrochemicals and non-agrochemicals, with performance influenced by seasonality and global cropping patterns.

• Focused on operational efficiencies, margin improvements, and expanding distribution and sales force globally.

Financial highlights

• Q2 FY26 revenue rose 20% YoY to INR 929 crores; H1 FY26 revenue up 23% YoY to INR 1,914 crores.

• Q2 FY26 EBITDA grew 71% YoY to INR 139 crores; H1 FY26 EBITDA up 69% YoY to INR 281 crores.

• Q2 FY26 PAT increased 75% YoY to INR 74 crores; H1 FY26 PAT surged 212% YoY to INR 217 crores.

• Gross margins improved to 34.5% in Q2 FY26 and 35% in H1 FY26, supported by lower input costs and better price realization.

• Earnings per share for H1 FY26 at INR 24.06, up from INR 7.72 in H1 FY25.

Outlook and guidance

• Expectation to maintain healthy EBITDA margins in the 15%-18% range for FY26, with potential for margins to exceed 18%-19% in the second half due to seasonality.

• Gross margins expected to remain stable for FY26, supported by cost efficiencies and improved realizations.

• Continued focus on expanding global reach, investing in product registrations, and operational efficiency.

• Planned CapEx of INR 450-500 crores for further product registrations.

• Management notes that agrochemicals are seasonal and performance is subject to cropping patterns and weather globally, making quarterly results not fully indicative of annual performance.