Sharda Cropchem Aims for 15-18% EBITDA Margins in FY26 Amid Strong Q2 Performance
Sharda Cropchem Limited expects to achieve EBITDA margins of 15-18% for FY26. Q2 FY26 results show significant growth with revenue up 20% to Rs. 929.10 crores and EBITDA increasing 71% to Rs. 138.90 crores. The agrochemical segment, contributing 86% of total revenue, grew 27% YoY. Strong performance was seen across all key markets. The company plans Rs. 450-500 crores in capital expenditure for FY26 and has a robust product registration pipeline.
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Sharda Cropchem Limited , a prominent player in the generic crop protection chemicals industry, has set its sights on maintaining healthy EBITDA margins for the fiscal year 2026. The company's Managing Director has confirmed that Sharda Cropchem expects to achieve EBITDA margins in the range of 15-18% for FY26, signaling confidence in the company's operational efficiency and market position.
This target comes on the heels of a robust financial performance in the second quarter of the fiscal year 2026. According to the company's recently released financial results, Sharda Cropchem has demonstrated significant growth and improved profitability.
Q2 FY26 Financial Highlights
| Particulars (in Rs. Crores) | Q2 FY26 | Q2 FY25 | Y-o-Y Growth |
|---|---|---|---|
| Revenue | 929.10 | 776.90 | 20.00% |
| Gross Profit | 320.70 | 214.70 | 49.00% |
| Gross Profit Margin | 34.50% | 27.60% | 690 bps |
| EBITDA | 138.90 | 81.30 | 71.00% |
| EBITDA Margin | 15.00% | 10.50% | 450 bps |
| PAT | 74.40 | 42.40 | 75.00% |
The company has shown impressive year-on-year growth across key financial metrics. Revenue increased by 20% to Rs. 929.10 crores, while EBITDA saw a substantial 71% jump to Rs. 138.90 crores. The EBITDA margin for Q2 FY26 stood at 15.00%, a significant improvement of 450 basis points compared to the same quarter in the previous year.
Segment Performance
Sharda Cropchem's growth was primarily driven by its agrochemical segment, which contributed 86% of the total revenue. The segment reported a 27% year-on-year increase in revenue, reaching Rs. 803 crores in Q2 FY26.
Regional Performance
The company continued to see strong performance across its key markets:
- Europe: Revenue grew by 15% to Rs. 463 crores
- NAFTA: Showed remarkable growth of 69% to Rs. 214 crores
- LATAM: Increased by 21% to Rs. 71 crores
- Rest of the World: Also grew by 21% to Rs. 55 crores
Future Outlook
Ramprakash Bubna, Chairman and MD of Sharda Cropchem, commented on the results: "We expect prices to go up going forward. For FY26, we are on track to maintain healthy EBITDA margins in the range of 15–18%. We remain committed to accelerating product registrations in FY26, supported by a planned capital expenditure of Rs. 450–500 crores."
The company's strong registration pipeline of 1,068 products underscores its focus on sustained growth and market expansion. As of September 30, 2025, Sharda Cropchem had 2,994 product registrations, with 1,068 applications pending at various stages.
With a debt-free status and cash, bank, and liquid investments of Rs. 794 crores, Sharda Cropchem appears well-positioned to fund its growth initiatives and maintain its competitive edge in the global agrochemical market.
As the company aims to maintain its EBITDA margins between 15-18% for FY26, investors and industry observers will be keenly watching Sharda Cropchem's performance in the coming quarters to see if it can achieve this target amidst global market dynamics and potential challenges in the agrochemical sector.
Historical Stock Returns for Sharda Cropchem
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.14% | -2.83% | +5.22% | +57.10% | +14.51% | +232.83% |
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