Synopsis:
Sharda Cropchem reported 25 percent YoY revenue growth and 429 percent profit surge in Q1 FY26, driven by global demand recovery, strong margins, and strategic growth focus.
During Friday’s trading session, shares of one of the leading players in the generic crop protection chemicals industry hit a 20 percent upper circuit, after reporting financial results for Q1 FY26 with a net profit growth of around 429 percent YoY, along with guidance for FY26.
With a market cap of Rs. 9,836 crores, shares of Sharda Cropchem Limited hit a 20 percent upper circuit to a new 52-week high at Rs. 1,090.25 on BSE, as against its previous closing price of Rs. 908.55. The stock has delivered positive returns of more than 97 percent in the last year, and has gained by about 34 percent in the last month.
What’s the News
According to the latest regulatory filings on the stock exchanges, Sharda Cropchem Limited announced the financial results for Q1 FY26 on Friday during market hours.
For Q1 FY26, Sharda Cropchem reported a consolidated revenue from operations of Rs. 984.8 crores, marking around a 46 percent QoQ decline compared to Rs. 1,828.5 crores in Q4 FY25, but a year-on-year increase of about 25 percent from Rs. 785 crores recorded in Q1 FY25.
The 25 percent YoY revenue growth and 13 percent volume growth were primarily driven by a global demand revival and improved pricing across key markets. Europe continued to be a major contributor, both in terms of volume and value.
The company’s net profit for the quarter stood at Rs. 142.8 crores, reflecting a decline of around 30 percent QoQ compared to Rs. 203.6 crores in Q4 FY25, and a year-on-year impressive rise of about 429 percent from Rs. 27 crores recorded in Q1 FY25.
Additionally, Gross Profit Margin increased by over 630 bps to 35.5 percent in Q1 FY26 from 29.2 percent recorded in Q1 FY25, while EBITDA Margin grew by 350 bps from 10.9 percent to 14.4 percent over the same period.
In Q1 FY26, the Agrochemical segment accounted for 86 percent of total revenues, while the Non-Agrochemical segment contributed 14 percent. Overall volumes grew by 13.2 percent YoY, with Agrochemical volumes increasing by 11.4 percent and Non-Agrochemical volumes surging by 59 percent.
Capital expenditure (capex) during the quarter stood at Rs. 114 crore. The Company remains debt-free with cash, bank, and liquid investments totalling Rs. 791 crore.
Looking ahead, Sharda Cropchem remains focused on increasing product registrations throughout FY26, supported by a planned capex of Rs. 400-450 crore. The company’s strong pipeline of registrations underscores its resilience and long-term commitment to sustainable growth. For FY26, the company targets topline growth of about 15 percent, while aiming to maintain healthy EBITDA margins in the range of 15-18 percent.
Sharda Cropchem Limited is an Intellectual Property (IP) driven company engaged in the export of agrochemicals (technical grade and formulations) and non-agro products such as conveyor belts, rubber belts/sheets, dyes & dye intermediates, and general chemicals to various countries across the world.SCL offers a diverse range of products, including fungicides, herbicides, insecticides, and biocides, to a global clientele.
Written by Shivani Singh
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