Sumitomo Chemical India Limited has disclosed a violation of its Code of Conduct under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, involving a senior executive who failed to obtain mandatory pre-clearance for share pledging.

Violation Details

The violation involved Mr. Kaushal Shah, General Manager of the Bhavnagar Plant, who pledged company shares without following proper procedures. The key details of the violation are presented below:

Regulatory Action and Penalty

Sumitomo Chemical India Limited took immediate action following the identification of the violation. The company imposed a penalty of ₹5,000.00 on Mr. Kaushal Shah for failing to obtain pre-clearance from the Compliance Officer before pledging the shares. This violation directly contravened the company's Code of Conduct for Prevention of Insider Trading.

The penalty amount was recovered from the designated person and subsequently transferred to SEBI's Investor Protection and Education Fund (IPEF) through online mode on January 2, 2026.

Payment Transfer Details

The company completed the regulatory compliance by transferring the penalty amount to SEBI-IPEF with the following transaction details:

Compliance Framework

The report was submitted to both BSE Limited and the National Stock Exchange of India as part of the company's regulatory obligations. Company Secretary and Compliance Officer Deepika Trivedi signed the disclosure, emphasizing the company's commitment to maintaining transparency in regulatory compliance matters.

The company confirmed that this represents an isolated incident, with no previous instances of Code of Conduct violations reported since the implementation of the current regulatory framework. The swift action taken demonstrates Sumitomo Chemical India's adherence to corporate governance standards and regulatory requirements under SEBI's insider trading prevention regulations.

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.