Sumitomo Chemical India reported its highest-ever profitability performance in financial year 2026, navigating a challenging agrochemical industry landscape characterized by adverse weather and regulatory constraints. The company achieved a profit after tax (PAT) of INR543 crores, a growth of more than 7% year-on-year, while profit before tax (PBT) before exceptional items grew by over 9%. This performance was supported by a gross profit margin of 42% and an EBITDA margin of 20.7%, with net profit margins reaching 16.8%, all record levels in the company's history.

For the quarter ended March 31, 2026, revenue from operations stood at INR684 crores, a 1% increase year-on-year. Gross profit for the quarter grew 6% to INR289 crores with a margin of 42.3%, while EBITDA rose 12% to INR134 crores. PAT for the quarter increased 12% to INR111 crores. On a full-year basis, revenue from operations was INR3,238 crores, up 3% year-on-year. The company’s business mix improved, with branded formulations constituting 81% of domestic sales. Herbicides registered strong growth of 19% for the year, while metal phosphates grew 11%.

Financial Performance Summary

The company’s balance sheet remained essentially debt-free, with cash and cash equivalents of approximately INR2,113 crores as of March 31, 2026. Return on capital employed improved to 31% from 29% in the previous year, and net worth grew to INR3,394 crores, a 17% year-on-year increase. The company recorded an exceptional charge of INR16.1 crores in FY26 regarding newly notified labor codes.

Management highlighted that the Indian agrochemical industry faced one of its most challenging years due to excess rainfall during the kharif season and regulatory constraints affecting biostimulants. Despite these headwinds, the company maintained pricing integrity and recorded negligible returns of goods. Looking ahead to FY27, the company expressed cautious optimism, citing resilient agriculture sector demand but noting risks related to monsoon forecasts and geopolitical tensions impacting costs. The company is calibrating inventory buildup and channel stocking based on a normal kharif season assumption.

Significant leadership transitions were announced, effective September 1, 2026. Chetan Shah, Managing Director, will transition to a non-executive role and is proposed to be appointed Chairman. Dr. Suresh Ramachandran, currently Deputy Managing Director, will be elevated to Managing Director. The company also announced plans to restart the distribution of animal nutrition products following a prior discontinuation, driven by global supply chain challenges and customer demand, though the profitability of this segment is expected to remain limited.

Sumitomo Chemical India has reported a consolidated net profit of ₹543 crore for the financial year ended March 31, 2026, an increase of 7% from ₹506.4 crore in the previous year. Revenue from operations for the year rose 3% to ₹3,238.3 crore, compared to ₹3,148.5 crore in FY25. Profit before tax for the year stood at ₹727.6 crore, up from ₹680.2 crore in the prior year. The Board of Directors has declared a final dividend of ₹1.30 per equity share, subject to shareholder approval, aggregating to ₹648.89 million. The company has scheduled an earnings call with investors and analysts to discuss the financial performance for the quarter and year ended March 31, 2026, on May 28, 2026, at 2:00 pm IST.

The company's standalone net profit for FY26 was ₹543.1 crore, compared to ₹501.9 crore in the previous year. Standalone revenue from operations increased to ₹3,185.8 crore from ₹3,090.4 crore in FY25. The financial results were reviewed by the Audit Committee and approved by the Board on May 26, 2026. An investor presentation for the quarter and year ended March 31, 2026, was submitted to the exchanges on May 27, 2026.

Annual Financial Performance

Q4 Quarterly Performance

Sumitomo Chemical India's quarterly performance also reflected improvement. The company's Q4 EBITDA rose to ₹134.2 crore versus ₹119.6 crore in the same period of the previous year, with the EBITDA margin expanding to 19.6% from 17.6% year-on-year.

Segment and Operational Details

Sumitomo Chemical India operates a single reportable segment, agro-chemicals. The company noted that its business is seasonal in nature and performance depends on monsoon and climatic conditions. During the quarter ended December 31, 2025, the company recognised an exceptional item of ₹16.1 crore related to the incremental impact of the new Labour Codes notified by the Government of India.

Board Reconstitution

The Board of Directors has approved the reconstitution of the board effective September 1, 2026. Mr. Mukul Govindji Asher's current and final term as Independent Director and Chairman will be till August 31, 2026. Mr. Chetan Shantilal Shah's current and final term as Managing Director will be till August 31, 2026, following which he is proposed to be appointed as Non-Executive Non-Independent Director. Dr. Suresh Ramachandran is proposed to be appointed as Managing Director with effect from September 1, 2026.