Sharda Cropchem reported a 9% year-on-year rise in consolidated revenue for Q1FY27 to ₹1,074 crore, but net profit fell 38% to ₹88 crore as significantly lower forex gains offset strong operational improvements. The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, on July 29, 2026. Despite the bottom-line dip, the company’s core operational metrics strengthened, with EBITDA growing 25% to ₹178 crore and margins expanding by 220 basis points.

Consolidated Financial Performance

Consolidated revenue from operations stood at ₹1,074 crore in Q1FY27, compared to ₹985 crore in the corresponding period of the previous year. Gross profit rose 13% to ₹394 crore, with gross profit margin expanding by 120 basis points to 36.7%. EBITDA grew 25% to ₹178 crore, with EBITDA margin improving to 16.6% from 14.4%. However, Profit Before Tax (PBT) declined 30% to ₹118 crore from ₹169 crore, primarily due to a sharp drop in forex gains. Consequently, net profit attributable to equity holders fell to ₹88 crore from ₹143 crore.

The following table summarises the key consolidated financial metrics:

Operational Strength vs. Forex Volatility

The company’s core operational performance improved significantly, driven by better product mix and pricing power. Ramprakash Bubna, Chairman and Managing Director, attributed the margin expansion to stronger growth in high-value agrochemical molecules, particularly in North America (NAFTA) and Latin America (LATAM). However, this operational strength was masked at the bottom line due to forex volatility. Forex gains stood at significantly lower levels in Q1FY27 compared to ₹73.1 crore in Q1FY26. This reduction directly impacted PBT, which would have grown 16% to ₹111 crore excluding forex effects. Agrochemical volumes de-grew by 0.60% in Q1FY27, indicating that revenue growth was largely value-driven rather than volume-led.

Segment and Regional Performance

The Agrochemicals segment, constituting 85% of the business, reported segment revenue of ₹915 crore, up 8% from ₹846 crore in Q1FY26. The Non-agrochemicals segment saw revenue rise 15% to ₹159 crore. Region-wise, NAFTA emerged as a key growth driver, with agrochemical revenues surging 33% to ₹339 crore. LATAM also saw robust growth, with agrochemical revenues up 52% to ₹72 crore. In contrast, Europe saw an 11% decline in agrochemical revenues to ₹467 crore, attributed to reduced re-stocking by distributors due to heat waves and drought conditions in central eastern Europe. Rest of World (ROW) posted a 78% increase in agrochemical revenues to ₹37 crore.

Standalone Results and Balance Sheet

On a standalone basis, revenue from operations grew 17.5% to ₹968.9 crore from ₹824.9 crore in Q1FY26. Standalone net profit increased 23.7% to ₹140.6 crore from ₹113.6 crore, driven largely by other income. Standalone other income surged to ₹107.0 crore from ₹31.9 crore, primarily due to dividend income from subsidiaries amounting to ₹75.4 crore. The company remains debt-free with cash, bank balances, and liquid investments of ₹767 crore. Capital expenditure in Q1FY27 stood at ₹263 crore. Product registrations increased to 3,016, with 1,027 applications pending at various stages as on June 30, 2026.

What the Numbers Show

The divergence between standalone and consolidated performance highlights the impact of subsidiary operations on overall group profitability. While the parent company benefited from significant dividend inflows boosting standalone profits, the consolidated bottom line suffered from reduced forex gains compared to the prior year’s exceptional levels. The expansion in EBITDA margin despite a slight de-growth in volumes indicates effective cost management and a shift towards higher-margin products. The strong growth in NAFTA and LATAM regions suggests successful market penetration strategies, offsetting declines in Europe. Management maintains its FY27 revenue growth guidance of 10–15%, confident in a recovery in European volumes backed by an extensive registration portfolio.

Sharda Cropchem Limited will host a conference call to discuss its financial results for the first quarter of FY27. The meeting is scheduled for July 30, 2026, at 3:30 PM IST, providing analysts and investors an opportunity to review the company's quarterly performance.

The discussion will be led by the senior management team, including Mr. Ramprakash V. Bubna, Chairman & Managing Director, and Mr. Shailesh Mehendale, CFO. Mr. Jetkin Gudhka, Company Secretary & Compliance Officer, will also be present during the call.

Participants can join the discussion using specific dial-in details provided for India and international locations. The event is being coordinated by Antique Stock Broking Limited.

Conference Call Details

The disclosure was made to the National Stock Exchange of India Limited and BSE Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Further information regarding the earnings call will be available on the company's official website.