Sumitomo Chemical India Sets Ambitious FY27 Targets Amid Solid Q2 Performance

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:

Launching 40 new agricultural molecules
Scaling exports to ₹2,500 crore
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:

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	₹929.80	₹988.30	-5.9%
EBITDA	₹218.00	₹245.30	-11.1%
EBITDA Margin	23.4%	24.8%	-140 bps
Net Profit	₹177.80	₹192.50	-7.6%
Net Profit Margin	19.1%	19.5%	-40 bps

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:

Metric	H1 FY26	H1 FY25	YoY Change
Revenue	₹1,986.60	₹1,827.20	+8.7%
EBITDA	₹437.20	₹406.40	+7.6%
Net Profit	₹355.90	₹319.20	+11.5%

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.02%	-1.10%	-2.52%	+1.56%	+0.70%	+88.30%

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:

Metric	Q2 Current	Q2 Previous	YoY Change
Revenue	₹9,298.15 crore	₹9,882.97 crore	-5.9%
Net Profit	₹1,777.63 crore	₹1,925.38 crore	-7.7%
EBITDA	₹2,568.36 crore	₹2,765.09 crore	-7.1%
EBITDA Margin	27.62%	27.98%	-36 bps

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.