Sharda Cropchem (SHARDACROP) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue rose 47% year-over-year to INR 929 crores, driven by a 49% increase in overall volumes, with the agrochemical segment up 50% and non-agrochemical up 42%.

• EBITDA for Q3 FY25 surged 232% to INR 157 crores, with a margin of 16.9%; PAT reached INR 31 crores, up from INR 4.6 crores in Q3 FY24.

• 9M FY25 revenue increased 35% year-over-year to INR 2,491 crores, with agrochemical up 46% and non-agrochemical down 4%.

• The company operates an asset-light, IP-driven model, focusing on global marketing and distribution of generic crop protection chemicals.

• Interim dividend of INR 3 per equity share declared for FY25.

Financial highlights

• Q3 FY25: Revenue INR 929 crores (+47% YoY), gross margin 32.7% (+660 bps YoY), EBITDA INR 157 crores (+232% YoY), EBITDA margin 16.9%, PAT INR 31 crores.

• 9M FY25: Revenue INR 2,491 crores (+35% YoY), gross margin 30%, EBITDA INR 330 crores, EBITDA margin 13.2%, PAT INR 101 crores (vs loss of INR 112 crores in 9M FY24).

• EPS for Q3 FY25 was INR 3.45; for 9M FY25, INR 11.17.

• Working capital days improved to 98 days, down 60 days from March 2024.

• Net debt-free with INR 742 crores in cash and liquid investments as of December 31, 2024.

Outlook and guidance

• Management expects Q4 and FY26 to maintain high growth momentum, with FY25 EBITDA margin guidance of 15%-18%.

• Revenue for FY25 projected to reach around INR 4,000 crores, with Q4 expected to outperform last year.

• Focus on forward integration by building sales force and expanding distribution in key markets.

• Continued investment in product registrations and operational efficiencies to drive margin improvements.

• Agrochemicals segment is seasonal, with performance influenced by cropping patterns and global weather conditions.