Sharda Cropchem's Q1 net profit falls 38 pc to Rs 88 crore
Mumbai, July 29
Sharda Cropchem Limited on Tuesday reported a 38.34 per cent year-on-year decline in its consolidated net profit to Rs 88.03 crore for the first quarter ended June 30, 2026.
The company's revenue from operations rose 9.03 per cent to Rs 1,073.76 crore in the April-June quarter from Rs 984.81 crore in the corresponding period last financial year (Q1 FY26), according to its stock exchange filing.
Profit before tax declined 29.98 per cent to Rs 118.42 crore from Rs 169.13 crore a year earlier.
Operating performance strengthened during the quarter, with earnings before interest, taxes, depreciation and amortisation (EBITDA) increasing 25 per cent year-on-year to Rs 178 crore from Rs 142 crore.
EBITDA margin expanded to 16.6 per cent from 14.4 per cent in the year-ago period, supported by an improved product mix and higher contribution from value-added agrochemical products.
The agrochemical business, which accounted for 85 per cent of total revenue, generated Rs 915 crore during the quarter, an increase of 8 per cent over the previous year.
Revenue from the non-agrochemical business grew 15 per cent year-on-year to Rs 159 crore, as per its regulatory filing.
Within the agrochemical portfolio, herbicides revenue increased 9 per cent to Rs 457 crore, while insecticides revenue rose 13 per cent to Rs 233 crore.
Fungicides revenue edged up 2 per cent to Rs 225 crore. Agrochemical volumes, however, declined marginally by 0.6 per cent during the quarter.
On the geographical front, agrochemical revenue from Europe, the company's largest market, fell 11 per cent year-on-year to Rs 467 crore.
In contrast, the NAFTA region recorded a strong 33 per cent increase in revenue to Rs 339 crore, while Latin America and the Rest of the World posted growth of 52 per cent and 78 per cent, respectively.
In the non-agrochemical business, Europe registered a 12 per cent decline in revenue to Rs 19 crore.
Revenue from the NAFTA region increased 31 per cent to Rs 121 crore, while Latin America declined 60 per cent to Rs 5 crore.
Revenue from the Rest of the World rose 13 per cent to Rs 14 crore, according to its filing.
— IANS
Reader Comments
Looking at this from an investor's perspective, the profit decline is definitely a red flag. But the revenue growth and EBITDA improvement are positive signs. The agrochemical business still contributing 85% to revenue shows their core strength. However, the volume decline of 0.6% in agrochemicals needs watching. Let's see how Q2 performs.
Good to see that herbicides grew 9% and insecticides 13%. Indian agriculture is the backbone of our economy, and companies like Sharda Cropchem play a crucial role. But 38% profit drop is alarming - hope they can recover in the coming quarters. The agrochemical industry is competitive, so they need to innovate constantly.
The geographical diversification is interesting - while Europe fell 11%, NAFTA grew 33% and Latin America 52%. This shows they're not dependent on one market. But Latin America non-agri biz dropping 60%?? That's a huge swing. Overall, mixed results. I'd say hold the stock and watch next quarter carefully.
As a small farmer, I use their products sometimes. 38% less profit? Maybe they're spending too much on marketing or something. But if they make good quality stuff, we'll keep buying. Indian farmers need better agrochemicals that don't harm our soil. Hope they focus on sustainable solutions too.
The EBITDA margin expansion from 14.4% to 16.6% is the real story here. It suggests better cost control and product mix. Profit drop might be due to one-time items or higher depreciation
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