Sharda Cropchem (SHARDACROP) Q2 25/26 earnings summary

Executive summary

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

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

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

• Unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2025, were approved by the Board and reviewed by auditors with an unmodified opinion.

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

Financial highlights

• Q2 FY26 revenue: INR 929 crores (up 20% YoY); H1 FY26 revenue: INR 1,914 crores (up 23% YoY).

• Q2 FY26 EBITDA: INR 139 crores (up 71% YoY); H1 FY26 EBITDA: INR 281 crores (up 69% YoY).

• Q2 FY26 PAT: INR 74 crores (up 75% YoY); H1 FY26 PAT: INR 217 crores (up 212% YoY).

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

• Working capital days improved to 84 days as of 30th September 2025, down 34 days from March 2025.

Outlook and guidance

• EBITDA margin guidance for FY26 maintained at 15%-18%, with expectations of higher margins in H2.

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

• CapEx planned at INR 450-500 crores for FY26, focused on increasing product registrations.

• Management expects H2 to be stronger due to seasonality and robust demand, with potential to reach INR 5,200 crores in annual revenue.

• 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.