Sharda Cropchem (SHARDACROP) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 consolidated revenue increased 9% year-over-year to INR 1,074 crore, with both agrochemical and non-agrochemical segments contributing to growth and strong operating performance in NAFTA and LATAM.

• Gross profit rose 13% YoY to INR 394 crore, and EBITDA increased 25% YoY to INR 178 crore, with margin expansion of 220 bps to 16.6%.

• Europe experienced a temporary revenue decline due to distributor destocking and weather, but margins improved; management expects recovery.

• The company remains debt-free with cash, bank, and liquid investments of INR 767 crore as of June 30, 2026.

• Profit before tax (excluding forex gains) grew 16% YoY to INR 111 crore, but lower forex gains led to a 38% YoY decline in PAT to INR 88 crore.

Financial highlights

• Gross margin expanded by 120 bps to 36.7% YoY; EBITDA margin up 220 bps to 16.6%.

• EBIT at INR 120 crore, PBT at INR 118 crore, and PAT at INR 88 crore for Q1 FY27.

• Forex gains were INR 7.5 crore in Q1 FY27, significantly lower than INR 73.1 crore in Q1 FY26, impacting reported profit growth.

• Working capital days improved to 88 days, down by 10 days from March 2026.

• PAT margin decreased to 8.2% from 14.5% YoY due to lower forex gains.

Outlook and guidance

• FY27 guidance maintained: revenue growth of 10%-15%, gross margin in the 35%-37% range, and EBITDA margin of 18%-20%.

• Expected volume growth for the year is 5%-10%.

• Effective tax rate for the year projected at 18%-20%.

• Depreciation and amortization expected to rise to INR 370-375 crore for FY27 due to ongoing investment in product registrations.

• Focus on expanding distribution, investing in registrations, and operational efficiencies to drive sustainable growth.