Sumitomo Chemical India Limited, a leading agrochemical company, has reported a decline in its financial performance for the second quarter. The company's results reflect the challenges faced in the agrochemical sector during this period.

Revenue and Profit

Sumitomo Chemical India's consolidated revenue for Q2 stood at ₹9,298.15 crore, down from ₹9,882.97 crore in the same quarter of the previous year, marking a 5.9% decrease. The company's consolidated net profit also saw a decline, falling to ₹1,777.63 crore from ₹1,925.38 crore year-over-year, representing a 7.7% decrease.

Key Financial Metrics

The company's financial performance for Q2 can be summarized as follows:

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 was ₹2,568.36 crore, compared to ₹2,765.09 crore in the same quarter last year, showing a 7.1% decrease. The EBITDA margin slightly contracted to 27.62% from 27.98% in the prior year period.

Half-Yearly Performance

For the first half of the fiscal year, Sumitomo Chemical India reported:

• Consolidated revenue of ₹19,865.94 crore, up 8.7% from ₹18,271.84 crore in H1 of the previous year
• Net profit of ₹3,558.59 crore, an increase of 11.5% from ₹3,192.28 crore in the previous year's first half

Operational Highlights

The company's Board of Directors approved these results at their meeting held on October 27. Sumitomo Chemical India acknowledged that its business is seasonal in nature, with performance closely tied to monsoon and other climatic conditions.

Regulatory Update

The company provided an update on the regulatory front regarding Glyphosate, a key product for Sumitomo Chemical India. In October 2022, the Central Government issued a notification mandating that Glyphosate be used only through Pest Control Operators. Industry players have challenged this notification in the Delhi High Court, and the government has stated that the notification will not be implemented until the petitions are disposed of.

Business Segment Changes

Sumitomo Chemical India announced the discontinuation of its animal nutrition products distribution business in India. This change follows a shift in the global business strategy of its parent company, Sumitomo Chemical Co., Ltd., Japan. The company stated that this discontinuation is not expected to materially impact the Group's results due to the relatively low margins of this trading activity.

Outlook

While Sumitomo Chemical India faced challenges in Q2, the company's half-yearly performance shows resilience with growth in both revenue and profit. The company continues to navigate the seasonal nature of its business and regulatory changes in the agrochemical sector.

Sumitomo Chemical India Limited (SCIL) has announced the reappointment of Anil Nawal as Chief Financial Officer (CFO) and released its unaudited financial results for the first quarter, showcasing robust growth across key financial metrics.

CFO Reappointment

The Board of Directors of SCIL has approved the reappointment of Anil Nawal as CFO, effective August 15, 2025. Nawal, a Chartered Accountant and Company Secretary with 37 years of experience in finance, tax, and allied laws, has been serving as the company's CFO since 2019. His reappointment follows his retirement under the company's policy, with the terms remaining unchanged from his existing role.

Q1 Financial Highlights

SCIL reported impressive financial results for the quarter ended June 30:

All financial figures in Rs. crore

Performance Drivers

The company's strong performance can be attributed to several factors:

1. Favorable Agri-Environment: An early and well-progressed South-West monsoon, delivering a 6% surplus rainfall in the first two months, supported early sowing and application activities across many regions.

2. Increased Kharif Acreage: As of July 25, the total kharif acreage stood at 829.44 lakh hectares, a 5% increase over the corresponding period last year.

3. Robust Domestic Demand: The domestic business delivered a strong 30% YoY growth, driven by sustained demand across key product categories.

4. Export Growth: Exports grew by 7% YoY, supported by gains in Japan and North America, despite softness in South America and Asia (excluding India).

5. Product Mix Performance: Insecticides and Herbicides grew by 23% and 26% YoY respectively, while the high-value Animal Nutrition Division (AND) and Environmental Health Division (EHD) category surged 69% YoY.

Operational Highlights

SCIL's 'Every Day Farmers Day' (EDFD) campaign strengthened brand recall and seasonal preparedness through enhanced farmer engagements and field-level demonstrations. The company recorded a 35% increase in farmer and channel partner connects compared to the previous year's Mega Week, with meetings rising by 10%, indicating better planning and stronger execution.

Market Outlook

The Indian Meteorological Department (IMD) has reaffirmed its outlook for a normal to above-normal monsoon in the remaining two months, which bodes well for kharif crop cultivation and agrochemical demand. Steady monsoon progress and supportive reservoir levels provide a constructive backdrop for the coming quarters.

Management Commentary

While specific management quotes were not provided, the company emphasized that the first quarter reflects strong momentum. However, it cautioned that performance trends should be viewed in the context of seasonal variability and the timing of application cycles, which may vary across quarters.

SCIL remains focused on sustaining growth through differentiated offerings, enhanced channel engagement, and operational agility aligned with agronomic realities.

The financial results were approved at a Board meeting held on August 4, which commenced at 12:01 P.M. and concluded at 12:35 P.M.

Sumitomo Chemical India Limited continues to demonstrate its strong position in the Indian agrochemical sector, with a positive outlook for the remainder of the fiscal year, supported by favorable agricultural conditions and strategic business initiatives.