Sumitomo Chemical India (SUMICHEM) Q2 25/26 earnings summary

Executive summary

• H1 FY26 sales grew 9% year-on-year, with profits up 11%, despite Q2 being impacted by excessive rainfall and challenging monsoon conditions that disrupted field activities and volumes.

• Operational discipline and strong cash flow were maintained through prudent channel and working capital management.

• Key new product launches, including Excalia Max and Lentigo, gained strong market traction, reinforcing leadership.

• Unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2025 were approved by the Board on 27 October 2025.

• The business is seasonal, with performance influenced by monsoon and climatic conditions.

Financial highlights

• H1 FY26 consolidated revenue: ₹1,987 crore, up 9% year-on-year; EBITDA: ₹437 crore, up 8%; PAT: ₹356 crore, up 11%.

• Q2 FY26 consolidated revenue: ₹930 crore, down from ₹988 crore in Q2 FY25, due to volume contraction from erratic rainfall.

• Gross margin in H1 FY26: 40.4% (vs. 40.9% last year); EBITDA margin: 22% (vs. 22.2%); PAT margin Q2 FY26: 19.1% (vs. 19.5%).

• Cash and cash equivalents as of 30 Sep 2025: ₹2,089 crore; no borrowings.

• Standalone and consolidated net profit for H1 FY26: ₹3,577.03 million and ₹3,558.59 million, respectively.

Outlook and guidance

• Improved reservoir and soil moisture levels bode well for the Rabi season and H2 FY26 agri-input demand recovery.

• Export outlook positive, with Africa and Latin America expected to recover; U.S. demand contingent on tariffs.

• Discontinuation of animal nutrition product distribution, a low-margin business, is not expected to materially impact results.