Sharda Cropchem has delivered a strong start to FY27, reporting a 9% year-on-year increase in consolidated revenue to Rs. 1,074 crore for the quarter ended June 30, 2026, driven by robust growth in the NAFTA and LATAM markets and continued expansion in operating margins.
The company posted 25% growth in EBITDA to Rs. 178 crore, with EBITDA margin improving 220 basis points to 16.6%, reflecting a stronger product mix and higher contribution from value-added agrochemical molecules. Gross profit rose 13% to Rs. 394 crore, while gross margin expanded 120 basis points to 36.7%.
Profit before tax (excluding forex gains) increased 16% to Rs. 111 crore. However, reported profit before tax and profit after tax declined 30% and 38%, respectively, due to higher foreign exchange gains recorded in the corresponding quarter last year.
The agrochemical business, which accounted for 85% of total revenue, grew 8% to Rs. 915 crore, while the non-agrochemical segment recorded 15% growth to Rs. 159 crore.
Among product categories, herbicides grew 9%, insecticides 13%, and fungicides 2%.
Regionally, the agrochemical business was led by strong performances in NAFTA, where revenue surged 33%, LATAM with 52% growth, and the Rest of the World, which expanded 78%. Europe, the company's largest market, declined 11% during the quarter.
Sharda Cropchem ended the quarter debt-free, with cash, bank balances and liquid investments of Rs. 767 crore. The company also strengthened its long-term growth pipeline, increasing product registrations to 3,016, while 1,027 registration applications remain under various stages of approval. Capital expenditure during the quarter stood at Rs. 263 crore.
Commenting on the results, Chairman and Managing Director Ramprakash Bubna 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 crore, while gross margins expanded by 120 basis points to 36.7%.
"EBITDA increased 25% to Rs. 178 crore, 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."
He added: "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 crore, providing us with ample financial flexibility to pursue future growth opportunities.”
