Sumitomo Chemical India released an investor presentation detailing the financial results for the third quarter and the first nine months of fiscal year 2026. The presentation highlights a decline in revenue for the quarter, offset by margin expansion. Discontinuation of animal nutrition product distribution and cautious distributor purchasing impacted revenue. The company remains focused on specialty products and cost control.
Financial Performance Overview
Sumitomo Chemical India reported a 12% year-over-year decrease in revenue for Q3 FY26, with revenue at ₹568 Crore, down from ₹641.9 Crore in Q3 FY25. The revenue decline was attributed to the discontinuation of animal nutrition product distribution, and a general softness in domestic agri-input demand. However, gross profit margins expanded to 47.4%, leading to improved EBITDA margins of 17.5%.
Key Financial Highlights
Key financial metrics for Q3 FY26 included:
- Gross Profit: ₹269 Crore
- EBITDA: ₹99 Crore
- Net Profit: ₹75.8 Crore, which was impacted by an exceptional charge of approximately ₹16 Crore related to newly notified labor codes.
9M FY26 Performance
For the nine months ended December 31, 2025, the company reported:
- Revenue growth of 3% year-over-year, reaching ₹2,554.6 Crore
- Gross Profit Margin expansion to 42%
Strategic Initiatives
The company highlighted key strategic initiatives aimed at driving future growth:
- Focus on ground-level demand generation of high gross margin specialty products
- Disciplined cost control measures
- Continued product-led execution, with focus on key products such as Excalia Max and Lentigo.
Additional Capex Projects
The board approved additional capital expenditure for special projects:
- Manufacturing Herbicide intermediate at Dahej site: estimated cost ₹150 crore
- Fitment for additional products at Tarapur site: estimated cost ₹10 crore
Business Segment Performance
For the nine months period, the revenue breakup by product segment included Insecticides (9%), Herbicides (10%), PGR (9%), Fungicides (24%) and Metal Phosphides (11%). The company is focused on increasing environmentally friendly products.
Source: BSE
