Sumitomo Chemical India Limited (SCIL) has reported a 9% year-on-year growth in consolidated revenue, reaching INR 1,987.00 crores for the first half of fiscal year 2026 (H1 FY26). The company's profit after tax increased by 11% to INR 356.00 crores during the same period, demonstrating resilience in the face of challenging weather conditions.

Q2 FY26 Performance

The second quarter (Q2) of FY26 saw a decline in revenue to INR 930.00 crores from INR 988.00 crores in the previous year. This decrease was primarily attributed to excessive rainfall from July to September, which disrupted farming activities and delayed spray applications. Despite these challenges, SCIL maintained its gross margins at 43.1% in Q2.

H1 FY26 Highlights

• EBITDA margins were sustained at 22% for H1 FY26
• Domestic business contributed 85% of revenue with 11% growth
• Exports declined by 4% due to reduced sales in South America and Africa
• Cash and cash equivalents stood at INR 2,089.00 crores, providing strong liquidity

Product Performance and Launches

SCIL successfully launched two new products:

1. Lentigo: A rice herbicide
2. Excalia Max: A fungicide

Both products are reportedly performing ahead of targets, showcasing the company's commitment to innovation and market responsiveness.

Segment-wise Performance

Future Outlook

Management expects a recovery in the Rabi season due to improved field conditions and adequate water reserves. The company plans a capex of INR 500.00-600.00 crores over five years for seven products at the upcoming Dahej facility, pending approvals from the parent company.

Strategic Initiatives

1. Strengthening Domestic Franchise: SCIL continues its 'Every Day Farmers Day' initiative to deepen farmer connections and enhance brand recall.

2. Scaling Up New Products: The company is focusing on expanding the reach of recently launched products like Lentigo and Excalia Max.

3. Enhancing Export Competitiveness: Despite temporary softness in certain export destinations, SCIL is working on broadening its global footprint.

4. Manufacturing and Integration: The company has commenced backward integration for selected molecules at its Tarapur facility and is progressing with the Dahej expansion project.

5. Financial Discipline: SCIL maintains a strong focus on liquidity management and working capital efficiency, with total inflows of INR 2,277.00 crores in H1 FY26.

Mr. Chetan Shah, Managing Director of SCIL, commented on the performance: "Despite the climatic challenges, our H1 performance reflects healthy underlying strength. Our disciplined approach in the market has proved to be really good and working. We'll come out stronger from this experience."

The company remains optimistic about the upcoming Rabi season, citing full water storage in reservoirs and moist soil conditions as positive indicators for agricultural activity.

Sumitomo Chemical India Ltd (SCIL) has unveiled ambitious financial and operational targets for FY27, alongside reporting a resilient performance for the second quarter of FY26. The company aims to achieve a revenue of ₹6,500-7,000 crore by FY27, with an impressive 18% profit after tax growth target.

FY27 Growth Strategy

SCIL's growth strategy includes:

1. Launching 40 new agricultural molecules
2. Scaling exports to ₹2,500 crore
3. Maintaining zero debt while building cash reserves above ₹2,000 crore

These targets underscore the company's commitment to innovation, market expansion, and financial prudence.

Q2 FY26 Financial Highlights

Despite challenging weather conditions, SCIL demonstrated resilience in its Q2 FY26 performance:

The slight decline in revenue and profitability was primarily attributed to adverse weather conditions affecting agrochemical demand.

H1 FY26 Performance

For the first half of FY26, SCIL maintained its growth momentum:

These results demonstrate SCIL's ability to navigate seasonal challenges and maintain overall growth.

Operational Insights

• The South-West Monsoon, while strong overall, posed challenges during key consumption periods, impacting pesticide applications across several regions.
• SCIL's disciplined channel management and prudent working capital practices ensured business continuity without material sales returns or collection delays.
• The company's newly launched rice herbicide 'Lentigo' gained encouraging traction, while 'Excalia Max' and other key molecules maintained strong market acceptance.
• Export performance was impacted by softer offtake in select markets such as Africa and Latin America, though demand in the U.S. and Europe remained steady.

Future Outlook

SCIL remains optimistic about the upcoming rabi season, supported by healthy reservoir levels across key agricultural belts. The company expects improved rural sentiment and steady recovery in agri-input demand in H2 FY26.

The company continues to focus on portfolio differentiation, deepening farmer engagement, and operational agility to capture seasonal recovery and sustain long-term growth in India's evolving agri-input landscape.

As SCIL progresses towards its FY27 targets, the company's strategic initiatives in product innovation, export expansion, and financial management position it well for future growth in the competitive agrochemical sector.