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Sumitomo Chemical India (SUMICHEM) investor relations material
Sumitomo Chemical India Q3 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved 5% year-over-year revenue growth for 9MFY26, reaching Rs 2,555 crore, despite a challenging demand environment and a 12% YoY revenue decline in Q3FY26 due to discontinued low-margin businesses and softer domestic demand.
Gross profit remained stable YoY in Q3FY26, with gross margin expanding by 522 bps to 47.4% due to a favorable product mix and discontinuation of low-margin Animal Nutrition distribution.
EBITDA margin improved to 17.5% in Q3FY26, supported by disciplined cost control and margin expansion.
PAT for Q3FY26 declined 13% YoY, impacted by a one-time exceptional charge of Rs 16 crore related to new Labour Codes; excluding this, PBT was stable.
Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025 were approved by the Board on 27 January 2026, with no material misstatements identified.
Financial highlights
9MFY26 revenue: Rs 2,555 crore (+5% YoY); gross profit: Rs 1,072 crore (+5% YoY); EBITDA: Rs 537 crore (+5% YoY); PAT: Rs 432 crore (+6% YoY).
Q3FY26 consolidated revenue: Rs 568 crore (-12% YoY); gross profit: Rs 269 crore (-1% YoY); EBITDA: Rs 99.5 crore (-6% YoY); PAT: Rs 75.8 crore (-13% YoY).
Gross margin in Q3FY26: 47.4% (+522 bps YoY); EBITDA margin: 17.5% (+98 bps YoY); PAT margin: 13.3% (-27 bps YoY).
Net working capital days increased to 80 as of Dec 2025, mainly due to seasonal inventory build; receivable days improved to 75, reflecting strong collection efficiency.
Cash & cash equivalents as of Dec 2025: Rs 2,163 crore.
Outlook and guidance
Management is focused on demand generation for high-margin specialty products and disciplined cost control, aiming to recoup sales momentum in FY26-27, assuming a normal monsoon and demand environment.
Performance is seasonal and depends on monsoon and climatic conditions.
Additional capex of Rs 150 crore for a new herbicide intermediate plant at Dahej and Rs 10 crore for new molecules at Tarapur, with commercialization expected in FY28-29 and FY27-28, respectively.
Board approval for a second plant for a key SCC innovated product at Bhavnagar and a new molecule at Tarapur, targeting global and domestic demand.
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