Sharda Cropchem (SHARDACROP) investor relations material

Executive summary

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

• PAT for Q2 reached INR 74 crores, up 75% YoY; H1 FY26 PAT at INR 217 crores, up 212% YoY.

• Maintained a debt-free, asset-light, IP-driven business model with cash and liquid investments of INR 794 crores as of September 30, 2025, and a global presence in 80+ countries.

• 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.

Financial highlights

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

• Q2 FY26 EBITDA grew 71% YoY to INR 139 crores; H1 FY26 EBITDA up 69% YoY to INR 281 crores; EBITDA margin at 15% in Q2 and 14.7% in H1.

• Q2 gross margin: 34.5% (vs 27.6% last year); H1 gross margin: 35% (vs 28.4%).

• Working capital days improved to 84 (down 34 days from March 2025).

• Basic and diluted EPS (consolidated) for H1 FY26 was INR 24.06, up from INR 7.72 in H1 FY25.

Outlook and guidance

• EBITDA margin guidance for FY26 maintained at 15–18%; gross margins expected to remain stable at 34–35% for FY26.

• Second half expected to be stronger due to seasonality; no substantial impact from US tariffs anticipated.

• Revenue growth for FY26 expected to be around 15%, with management noting variability due to market conditions.

• 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.