Sharda Cropchem has reported a strong performance for the second quarter of FY27, with consolidated revenue rising 13% year-on-year to Rs 1,052 crore and EBITDA climbing 18% to Rs 164 crore, driven by improved margins and robust growth in key overseas markets.
Profit after tax (PAT) increased 23% to Rs 92 crore in Q2 FY27, compared with Rs 74 crore in the corresponding quarter last year. Gross profit grew 18% to Rs 378 crore, while gross profit margin expanded by 140 basis points to 35.9%.
EBITDA margin also improved by 70 basis points to 15.6%, against 15% in Q2 FY26. Profit before tax, excluding forex gains, rose 17% to Rs 108 crore.
For the first half of FY27, revenue grew 11% to Rs 2,125 crore, while EBITDA surged 22% to Rs 343 crore. Gross profit increased 15% to Rs 772 crore, with margins improving 130 basis points to 36.3%.
However, H1 FY27 PAT declined 17% to Rs 180 crore from Rs 217 crore in the year-ago period, while reported profit before tax fell 11% to Rs 226 crore. The company attributed the year-on-year movement in reported profitability to higher forex gains in the corresponding period last year.
Geographically, NAFTA and LATAM emerged as the key growth engines during the quarter, compensating for a softer performance in Europe, the company's largest market.
Agrochemical revenue from NAFTA increased 6% to Rs 227 crore in Q2 FY27, while LATAM delivered an impressive 81% growth to Rs 128 crore. Europe, however, registered a 7% decline in revenue to Rs 429 crore.
The company said extended heat and drought conditions in parts of central and eastern Europe continued to weigh on distributor restocking during the September quarter.
In the non-agrochemical business, NAFTA revenue nearly doubled, surging 94% to Rs 152 crore. Europe also recorded 16% growth to Rs 29 crore, while the Rest of the World (RoW) region grew 59% to Rs 19 crore.
Segment-wise, the agrochemical business generated Rs 840 crore in Q2 FY27, up 5%, and accounted for 80% of total revenue. The non-agrochemical segment delivered a sharper 68% growth to Rs 212 crore, contributing the remaining 20%.
Among agrochemical product categories, insecticides led the growth with an 18% increase in revenue to Rs 263 crore. Fungicide revenue rose 2% to Rs 144 crore, while herbicide revenue remained largely flat at Rs 432 crore.
Commenting on the results, Ramprakash Bubna, Chairman and MD, said, “I am pleased to report another quarter of healthy growth. In Q2 FY27, revenue grew 13% year-on-year to Rs. 1,052 crores. Gross margins expanded by 140 basis points to 35.9%, and EBITDA rose 18% to Rs. 164 crores. Profit after tax grew 23% to Rs. 92 crores.
"NAFTA was the standout this quarter. Revenue from the region grew about 30% year-on-year, with significantly better margins. LATAM also did well, with agrochemical revenue up over 80%. Together, these regions more than made up for a softer quarter in Europe."
He added: "Europe, our largest market, saw a slight moderation this quarter, coming off an exceptionally strong FY26. The weather challenges we highlighted last quarter continued through the September quarter, with extended heat and drought conditions in parts of central and eastern Europe.
"As a result, distributors have taken a cautious approach to restocking. We see this as a temporary, weather-led impact rather than any change in underlying demand. Our registration portfolio and customer relationships in Europe remain strong, and as conditions normalise, we expect the region to do well in the second half, which is seasonally our stronger period.
"We continue to maintain our FY27 revenue growth guidance of 10–15%. We also expect EBITDA margins to improve through the year and remain between 18% and 20% for FY27, supported by a better product mix and operating leverage in the second half."
Sharda Cropchem continued to invest in expanding its product portfolio and strengthening its global market presence. As of September 30, 2026, the company had secured 3,044 product registrations, with another 946 applications pending at various stages of approval.
Capital expenditure during H1 FY27 stood at Rs 419 crore, reflecting the company's continued investment in its long-term growth platform.
The company also maintained a strong balance sheet, remaining debt-free with cash, bank balances and liquid investments totalling Rs 846 crore.
Reaffirming its outlook for the full financial year, Sharda Cropchem maintained its revenue growth guidance of 10-15% for FY27. It expects EBITDA margins to improve progressively through the year, reaching the guided range of 18-20%, supported by a favourable product mix and operating leverage in the second half.
