Sharda Cropchem Limited has reported a 13% year-on-year revenue growth for the second quarter of FY27, reaching INR1,052 crores. The company also saw an 18% increase in EBITDA to INR164 crores and a 23% rise in profit after tax to INR92 crores. The positive performance was driven by increased prices, positive forex impact, and an improved product mix, particularly in the NAFTA and LATAM regions. The company maintains its revenue growth guidance of 10% to 15% for FY27.
Sharda Cropchem Announces Q2 FY27 Financial Highlights
Sharda Cropchem Limited has disclosed its financial results for the second quarter and the first half of the financial year ending March 31, 2027 (FY27). The company reported a robust 13% year-on-year increase in revenue for Q2 FY27, amounting to INR1,052 crores, compared to INR929 crores in Q2 FY26. This growth was primarily attributed to higher prices, a positive forex impact, and an improved product mix, which collectively offset a marginal volume degrowth of 5.1%.
EBITDA and Profit Growth
The company’s operational performance saw a significant improvement, with EBITDA growing by 18% to INR164 crores in Q2 FY27, up from INR139 crores in the prior year. The EBITDA margin stood at 15.6%, an increase of 70 basis points from 15% in Q2 FY26. Profit after tax (PAT) surged by 23% to INR92 crores in the quarter, compared to INR74 crores in the same period last year. This performance reflects the company’s strong execution and strategic focus.
Regional Performance Drivers
Geographically, the NAFTA region emerged as a standout performer, with revenue growing approximately 30% year-on-year and exhibiting significantly better margins. The LATAM region also demonstrated strong growth, with agrochemical revenue increasing by over 80%. These gains helped compensate for a softer quarter in Europe, the company’s largest market, which experienced a slight moderation following an exceptionally strong financial year ’26, attributed to weather challenges and a cautious restocking approach by distributors.
First Half FY27 Performance
For the first half of FY27 (H1 FY27), Sharda Cropchem reported a 11% revenue growth, reaching INR2,125 crores compared to INR1,914 crores in H1 FY26. The agrochemical business grew by 6% year-on-year to INR1,755 crores, while the non-agrochemical business saw substantial growth of 40% year-on-year, reaching INR371 crores. Gross margins improved by 130 basis points to 36.3%, and EBITDA grew by 22% to INR343 crores, with an EBITDA margin of 16.1%.
Future Outlook and Guidance
Sharda Cropchem reiterated its FY27 revenue growth guidance of 10% to 15%. The company also anticipates EBITDA margins to improve through the year, expecting them to remain between 18% to 20% for FY27, supported by a better product mix and operating leverage in the second half. The company plans to increase product registrations with a planned capital expenditure of INR550 crores to INR600 crores for FY27, backed by a strong pipeline. The company continues to be debt-free with substantial cash and bank liquid investments standing at INR846 crores as of September 30, 2026.
Registration and Capex Focus
The company is actively pursuing registrations for its products, with 3,044 products registered as of September 30, 2026, and an additional 946 applications in the pipeline. A significant capex of approximately INR400 crores was invested in H1 FY27, with a portion allocated towards US registrations and data compensation. The company is also exploring opportunities in the B2C segment, aiming to scale up its presence in specific geographies over the next three to five years.
Source: BSE
