Sharda Cropchem (SHARDACROP) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue grew 25% year-over-year to INR 985 crore, driven by global demand recovery, price improvement, and strong volume increases in both agrochemical and non-agrochemical segments.

• Gross margin expanded by 630 bps to 35.5%, with EBITDA up 67% to INR 142 crore and PAT up 424% to INR 143 crore year-over-year.

• Expanded global presence to 80+ countries, leveraging an asset-light model and robust distribution network.

• Product registrations reached 2,981 as of June 30, 2025, with 1,021 applications pending approval.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, with an unmodified review report from auditors.

Financial highlights

• Q1 FY26 revenue: INR 985 crore (₹984.8 Cr), up from INR 785 crore (₹785.1 Cr) in Q1 FY25 (25% YoY growth).

• Agrochemical segment revenue rose 25% to INR 846 crore; non-agrochemical segment up 31% to INR 139 crore.

• Gross margin: 35.5% (up from 29.2% YoY); EBITDA margin: 14.4%; PAT: INR 143 crore (up 424% YoY); EPS: ₹15.83, up from ₹3.02.

• Working capital days improved by 18 days to 100 days; company remains debt-free with INR 791 crore in cash and liquid investments.

• CapEx for the quarter: INR 114 crore.

Outlook and guidance

• FY26 revenue expected to grow by 15% with EBITDA margin guidance of 15%-18%.

• Gross margins expected to remain in the 35%-36% range for the year.

• Focus on expanding sales force, operational efficiencies, and further market penetration in NAFTA, Europe, LATAM, and ROW.

• Planned CapEx of INR 400-450 crore for FY26, focused on product registrations.

• Management expects current margin and demand trends to sustain, barring major external shocks.