Sharda Cropchem Limited , a leading global agrochemicals company, has announced its financial results for the second quarter, showcasing strong growth across key financial metrics.

Financial Highlights

The company reported a significant improvement in its financial performance for Q2:

Revenue Growth

Sharda Cropchem's revenue for the quarter rose to ₹9,291.00 crore, marking a substantial increase of 19.6% compared to ₹7,769.00 crore in the same period last year. This growth indicates strong demand for the company's products and effective market penetration strategies.

Profitability Improvement

The company's profitability saw a remarkable improvement:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 33% to ₹1,330.00 crore from ₹1,000.00 crore in the corresponding quarter of the previous year.
• EBITDA margin expanded by 134 basis points to 14.30%, reflecting enhanced operational efficiency.
• Net profit surged by an impressive 76.9% to ₹743.00 crore, compared to ₹420.00 crore in Q2 FY2024-25, demonstrating the company's ability to translate revenue growth into bottom-line results.

Outlook

The strong Q2 results position Sharda Cropchem favorably for the remainder of the fiscal year. The company's ability to grow revenue and expand margins in a competitive agrochemicals market demonstrates its strong market presence and operational capabilities.

Note: The financial results were approved by the Board of Directors at their meeting held on October 30, 2025, as per the LODR (Listing Obligations and Disclosure Requirements) filing.

Sharda Cropchem , a leading agrochemical company, has set its sights on achieving EBITDA margins exceeding 18% in FY26, buoyed by a combination of favorable market trends and operational improvements. The company's optimistic outlook comes as a relief after two years of challenges in the agrochemical sector.

Factors Driving Growth

Chairman and Managing Director Ramprakash V Bubna highlighted several key factors contributing to the company's positive forecast:

1. Improving Pricing Trends: After facing pricing pressures in recent years, the market is showing signs of stabilization.
2. Stable Euro-Dollar Exchange Rates: As 95% of Sharda Cropchem's sourcing is from China in dollars, while the majority of sales are in Europe, stable exchange rates are crucial for the company's performance.
3. Operational Efficiencies: The company is focusing on streamlining its operations to enhance profitability.
4. Normalization of Global Inventory Levels: The destocking pressures that affected the industry over the past two years have eased, with inventory levels returning to normal.

Strong Q1 Performance and Future Outlook

Sharda Cropchem reported robust growth in the first quarter of the current fiscal year. Bubna expressed confidence that this positive momentum is expected to continue, supporting the company's ambitious EBITDA margin target for FY26.

Cash Position and Dividend Policy

The company maintains a strong financial position with approximately Rs 790.00 crore in cash and cash equivalents. While there are no immediate acquisition plans, Sharda Cropchem has demonstrated its commitment to shareholder returns:

• Doubled dividends in FY25
• Considering further increases in dividend payouts

Impact of U.S. Tariffs

Despite concerns about potential impacts from U.S. tariffs, Sharda Cropchem remains unperturbed. Bubna explained that due to strict U.S. government approval requirements for their products, the company can pass on any tariff increases to customers without significantly affecting their business.

Conclusion

Sharda Cropchem's optimistic outlook for FY26, driven by improving market conditions and operational efficiencies, signals a potential turnaround after recent challenges in the agrochemical sector. The company's strong cash position and favorable dividend policy further underscore its financial health and commitment to shareholder value.