Sharda Cropchem shares tank 9% even as Q2 profit jumps 75%; FY26 margin seen in 15–18% range

Sharda Cropchem Ltd, an agrochemicals company in the generic crop protection chemicals industry, on Thursday saw its shares plunging 9 per cent as a knee-jerk reaction to corporate earnings. The fall was seen even as profit after tax for the quarter surged 75 per cent year-on-year (YoY) to Rs 74.40 crore compared with Rs 42.40 crore in the same quarter last year. Sharda Cropchem said its revenue for the quarter grew 20 per cent YoY to Rs 929.1 crore from Rs 776.90 crore in the year-ago quarter. Ebitda came in at Rs 138.90 crore, with Ebitda margin expanding 450 basis points to 15 per cent from 10.5 per cent YoY. 

“In Q2 FY26, we delivered robust revenue growth of 20 per cent YoY to Rs. 929 crores, mainly driven by volumes. NAFTA and Europe remains a key contributors in both volume and value terms. With input costs stabilising and improving price dynamics, gross margins expanded by 690 basis points to 34.5 per cent and we expect GP Margins to remain in a similar range going ahead," Chairman and MD Ramprakash Bubna said.

Bubna expects product prices for Sharda Cropchem to go up going forward. Bubna said his company is on track to maintain healthy Ebitda margin in the range of 15–18 per cent for FY26.

"We remain committed to accelerating product registrations in FY26, supported by a planned
capital expenditure of Rs 450–500 crore. Our strong registration pipeline of 1,068 underscores our resilience and sustained growth focus, positioning us well for the long term,” he said.

Sharda Cropchem said its agrochemical segment contributed 86 per cent of the revenue. Overall volume increased 23.7 per cent YoY in H1FY26. Agrochemical volumes grew 23.4 per cent and Non-agrochemical volumes 31.2 per cent in H1.  Capex in H1FY26 stood at Rs 250 crore

Product registrations stood at 2,994 with 1,068 applications pending at various stages as on 30th September 2025
The company said it remained debt free with cash, bank and liquid investments of Rs 794 crore
ROCE and ROE stood at 21.6 per cent and 17.5 per cent, respectively as on 30th September 2025.