Sharda Cropchem slides as Q1 PAT tanks 38% YoY to Rs 88 cr

However, revenue from operations rose 9.03% to Rs 1,073.76 crore in Q1 FY27 as against Rs 984.81 crore in Q1 FY26.

Profit before tax slipped 29.98% year on year to Rs 118.42 crore in Q1 FY27 as against Rs 169.13 crore in Q1 FY26.

EBITDA improved 25% YoY to Rs 178 crore in Q1 FY27 from Rs 142 crore in Q1 FY26. EBITDA margin improved to 16.6% in Q1 FY27 from 14.4% a year earlier.

On a segmental basis, the agrochemical business reported revenue of Rs 915 crore in Q1 FY27, up 8% from Rs 846 crore in Q1 FY26, while the non-agro business recorded a 15% YoY increase in revenue to Rs 159 crore from Rs 139 crore.

Within the agrochemical portfolio, herbicides revenue rose 9% YoY to Rs 457 crore in Q1 FY27 from Rs 420 crore in Q1 FY26. Insecticides revenue increased 13% to Rs 233 crore from Rs 205 crore, while fungicides revenue edged up 2% to Rs 225 crore from Rs 221 crore.

Geographically, the agrochemical business reported an 11% YoY decline in revenue from Europe to Rs 467 crore in Q1 FY27 from Rs 523 crore in Q1 FY26. Revenue from the NAFTA region climbed 33% to Rs 339 crore, while Latin America (LATAM) and the Rest of the World (RoW) posted strong growth of 52% and 78%, respectively, with revenues of Rs 72 crore and Rs 37 crore.

In the non-agrochemical business, revenue from Europe declined 12% YoY to Rs 19 crore in Q1 FY27 from Rs 22 crore in Q1 FY26. NAFTA revenue increased 31% to Rs 121 crore from Rs 93 crore, while LATAM revenue fell 60% to Rs 5 crore from Rs 12 crore. Revenue from the Rest of the World (RoW) rose 13% YoY to Rs 14 crore from Rs 12 crore.

The agrochemical segment remained the company's primary revenue driver, contributing 85% of total revenue in Q1 FY27, while the non-agrochemical segment accounted for the remaining 15%. Agrochemical volumes declined marginally by 0.60% during the quarter.

The company incurred capital expenditure (capex) of Rs 263 crore in Q1 FY27. As of 30 June 2026, it had 3,016 product registrations, with 1,027 registration applications pending at various stages of approval.

The company also maintained a debt-free balance sheet, with cash, bank balances and liquid investments totalling Rs 767 crore as of 30 June 2026.

Ramprakash Bubna, Chairman and MD, said, ?We delivered a strong start to FY27, with healthy improvements across our key operating metrics. During the quarter, revenue grew by 9% year-on-year to Rs. 1,074 crores, while gross margins expanded by 120 basis points to 36.7%. EBITDA increased 25% to Rs. 178 crores, with EBITDA margin improving 220 basis points to 16.6%. This was mainly due to improved product mix ? several of high value agrochemical molecules grew stronger with NAFTA and LATAM delivering robust growth and improved profitability Europe, our largest and historically highest-margin market, witnessed a temporary moderation during the quarter following an exceptionally strong FY26.

This was mainly due to reduced re-stocking by distributors due to the heat wave across Europe even surfaced drought situation in the central eastern part of Europe. Despite the same, Agrochemical margins in Europe improved. We remain confident of a recovery in European volumes over the coming quarters, backed by our extensive registration portfolio and long-standing customer relationships.

We continue to maintain our FY27 revenue growth guidance of 10?15% and remain focused on strengthening our long-term growth platform through sustained investments in our registration pipeline. Our balance sheet remains robust, with a debt-free position and cash, bank balances, and liquid investments of Rs. 767 crores, providing us with ample financial flexibility to pursue future growth opportunities.?

Sharda Cropchem (SCL) is a fast-growing global agrochemicals company with a peer position in the crop protection chemicals industry.

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