Sharda Cropchem EBITDA rises 22% despite 17% PAT decline

Sharda Cropchem Limited increased revenue by 11% and earnings before interest, tax, depreciation and amortisation (EBITDA) by 22% in the first half of financial year 2027 (H1 FY27). EBITDA reached Rs 342.9 crore and margin rose 140 basis points to 16.1%, but profit after tax (PAT) fell 17% to Rs 179.7 crore because the prior-year half included a much larger foreign-exchange gain.

How did Sharda Cropchem revenue change in H1 FY27?

Sharda Cropchem's revenue from operations rose 11% year on year to Rs 2,125.5 crore in H1 FY27 from Rs 1,913.9 crore in H1 FY26. Agro-chemical revenue increased 6% to Rs 1,755 crore, while non-agro-chemical revenue rose 40% to Rs 371 crore. Non-agro growth therefore exceeded both group revenue growth and agro-chemical growth during the half.

Product data showed insecticides as the fastest-growing disclosed agro-chemical category, increasing 16% to Rs 496 crore. Herbicides remained the largest disclosed category at Rs 890 crore, up 4%, while fungicides rose 2% to Rs 369 crore. All three disclosed product categories grew, although insecticides grew faster than herbicides and fungicides.

The second quarter showed a similar segment pattern at a smaller scale. Q2 FY27 revenue rose 13% to Rs 1,051.7 crore, including Rs 840 crore of agro-chemical revenue, up 5%, and Rs 212 crore of non-agro-chemical revenue, up 68%. Non-agro revenue therefore expanded faster in Q2 than in H1, while agro-chemical growth was positive in both periods.

Did Sharda Cropchem operating margins improve in H1 FY27?

Yes, Sharda Cropchem's gross margin improved to 36.3% in H1 FY27 from 35.0% in H1 FY26, an increase of 130 basis points. Gross profit rose 15% to Rs 771.9 crore, ahead of the 11% revenue increase, while cost of goods sold rose 9% to Rs 1,353.5 crore. Gross profit thus increased faster than revenue in the half-year comparison.

EBITDA increased 22% to Rs 342.9 crore from Rs 281.1 crore, and the EBITDA margin rose to 16.1% from 14.7%. Employee expenses increased to Rs 35.5 crore from Rs 27.3 crore, while other expenses rose to Rs 393.5 crore from Rs 361.5 crore. The Rs 102 crore increase in gross profit exceeded the combined increase in these two operating-expense lines.

Quarterly margins also improved, although the EBITDA-margin expansion was lower than in the half year. Q2 FY27 gross margin was 35.9%, up 140 basis points from 34.5%, and EBITDA margin was 15.6%, up 70 basis points from 15.0%. Q2 EBITDA rose 18% to Rs 164.5 crore, compared with 22% growth in H1 FY27.

Why did Sharda Cropchem PAT fall despite higher EBITDA?

Sharda Cropchem's PAT fell because its foreign-exchange gain was materially lower than in the comparable half, even as EBITDA increased. The company recorded a Rs 7.2 crore foreign-exchange gain in H1 FY27, compared with a Rs 67 crore gain in H1 FY26. The reported comparison therefore includes a Rs 59.8 crore reduction in the gain year on year.

Earnings before interest and tax (EBIT) declined 11% to Rs 228.6 crore from Rs 255.8 crore despite the EBITDA increase. Depreciation and amortisation rose to Rs 200.6 crore from Rs 154.3 crore, while other income increased to Rs 79.2 crore from Rs 61.9 crore. Higher depreciation and amortisation, alongside the lower foreign-exchange gain, meant EBIT did not follow EBITDA higher.

Profit before tax (PBT) fell 11% to Rs 225.9 crore from Rs 254.9 crore, while tax expense increased to Rs 46.2 crore from Rs 37.7 crore. PAT consequently declined to Rs 179.7 crore from Rs 217.2 crore, and PAT margin narrowed to 8.5% from 11.3%, a 290-basis-point change. Earnings per share fell to Rs 19.9 from Rs 24.1.

Sharda Cropchem separately reported PBT excluding foreign-exchange gains of Rs 219 crore, up 16% year on year, in its H1 FY27 highlights. This differs from the reported PBT of Rs 225.9 crore in the detailed financial table because it excludes foreign-exchange movements. The presentation also notes that the H1 FY26 PBT and PAT comparison reflected higher foreign-exchange gains in that earlier half.

Which regions contributed to Sharda Cropchem H1 FY27 growth?

Sharda Cropchem's agro-chemical growth was led by Latin America and NAFTA, the North American Free Trade Agreement region, while Europe declined. Latin America agro revenue rose 69% to Rs 199 crore and NAFTA agro revenue increased 21% to Rs 567 crore. Europe, the largest disclosed agro geography at Rs 896 crore, declined 9%, while Rest of World agro revenue rose 22% to Rs 93 crore.

Non-agro revenue was concentrated in NAFTA, where sales rose 60% to Rs 273 crore. Europe non-agro revenue increased 3% to Rs 48 crore and Rest of World revenue rose 36% to Rs 33 crore, but Latin America non-agro revenue fell 28% to Rs 17 crore. NAFTA therefore grew in both disclosed segments, whereas Latin America had contrasting agro and non-agro outcomes.

The balance sheet provides context on working capital at September 2026. Trade receivables fell to Rs 1,460.9 crore from Rs 2,389.3 crore at March 2026, while inventories increased to Rs 1,529 crore from Rs 1,119.6 crore. Working-capital days declined to 70 at September 2026 from 98 at March 2026, with receivable days falling to 90 from 151.

Cash and cash equivalents increased to Rs 299 crore at September 2026 from Rs 219.8 crore at March 2026. Net cash from operating activities was Rs 564.2 crore for the period ended September 2026, compared with Rs 605.1 crore a year earlier, while net cash used in investing activities was Rs 405.8 crore. Cash, bank balances and liquid investments totalled Rs 846 crore at September 2026, versus Rs 702 crore at March 2026.

Conclusion

Sharda Cropchem's H1 FY27 results separate operating progress from reported earnings. Revenue reached Rs 2,125.5 crore, gross profit increased 15%, and EBITDA gained 22% as margin rose to 16.1%. PAT nevertheless declined to Rs 179.7 crore, reflecting the smaller Rs 7.2 crore foreign-exchange gain versus Rs 67 crore in H1 FY26, as well as higher depreciation and amortisation.

The presentation discloses no forward target, plan or scheduled event. The next reported comparison will show whether the 9% decline in Europe agro revenue, the 21% NAFTA agro increase and the 69% Latin America agro increase persist, and whether working-capital days remain below the 98 days reported at March 2026 after reaching 70 days at September 2026.