Sharda Cropchem Limited, a prominent player in the generic crop protection chemicals industry, has reported a significant growth in its financial performance for the second quarter (Q2) and first half (H1) of the fiscal year 2026.
According to an exchange filing, the company achieved a 20% year-on-year (YoY) increase in consolidated revenue for Q2 FY26, reaching ₹929.1 crore, driven primarily by volume growth in its agrochemical segment.
The company’s financial highlights reveal a robust expansion in profitability metrics. Gross profit for Q2 FY26 surged by 49% YoY to ₹320.7 crore, with the gross profit margin improving by 690 basis points to 34.5%. This improvement is attributed to stabilizing input costs and favorable pricing dynamics. The EBITDA also saw a substantial increase of 71% YoY, reaching ₹138.9 crore, with the EBITDA margin expanding by 450 basis points to 15.0%. Meanwhile, the PAT was higher by 75% YoY at ₹74.4 crore.
Segment-wise performance
Segment-wise, the agrochemical division was a significant contributor to the company’s revenue, accounting for 86% of total sales in both Q2 and H1 FY26. The agrochemical segment’s revenue grew by 27% YoY in Q2 FY26 to ₹803 crore, while the non-agrochemical segment experienced an 11% decline to ₹126 crore.
The company also reported a notable increase in agrochemical volumes, which rose by 36.1% YoY in Q2 FY26, underscoring the segment’s strong performance.
Region-wise performance
Regionally, Europe and NAFTA emerged as key markets for Sharda Cropchem’s agrochemical business. Revenue from Europe increased by 15% YoY to ₹463 crore in Q2 FY26, while the NAFTA region saw a remarkable 69% YoY growth, contributing ₹214 crore. The Latin America (LATAM) region and Rest of the World (RoW) also recorded positive growth, with revenues rising by 21% each.
For the non-agrochemical business, the performance was mixed across regions. Europe registered a modest 4% YoY growth in Q2 FY26, while the NAFTA region experienced a 15% decline. LATAM showed a strong 53% YoY increase, whereas RoW faced a 37% decrease in revenue.
Sharda Cropchem’s strategic focus on product registrations continues to gain traction, with the company reporting a total of 2,994 product registrations as of September 30, 2025. Additionally, 1,068 applications are pending at various stages, highlighting the company’s commitment to expanding its product portfolio. The company remains debt-free, with cash, bank, and liquid investments amounting to ₹794 crore, providing a solid financial foundation for future growth.
Looking ahead, plans to invest ₹450–500 crore in capital expenditure for FY26 to support its growth initiatives. The company aims to maintain healthy EBITDA margins in the range of 15–18%, driven by its strong registration pipeline and ongoing efforts to accelerate product registrations.
Ramprakash Bubna, Chairman and MD, said, “In Q2 FY26, we delivered robust revenue growth of 20% YoY to Rs. 929 crores, mainly driven by volumes. NAFTA and Europe remain key contributors in both volume and value terms. We remain committed to accelerating product registrations in FY26, supported by a planned capital expenditure of Rs. 450–500 crores. Our strong registration pipeline of 1,068 underscores our resilience and sustained growth focus, positioning us well for the long term.”
Disclaimer: This article was generated using AI tools and has undergone editorial review for clarity and coherence.