Sharda Cropchem FY26 EBITDA margin rebounds to 19.7%

Sharda Cropchem Limited lifted its FY26 earnings before interest, tax, depreciation and amortisation (EBITDA) margin to 19.7%, from 10.1% in FY24, as revenue from operations rose to Rs 5,267.6 crore and EBITDA reached Rs 1,039.5 crore. Profit after tax was Rs 681.0 crore and return on capital employed was 30.4%.

How did Sharda Cropchem restore its FY26 EBITDA margin?

Sharda Cropchem reported an EBITDA margin of 19.7% in FY26, up 9.6 percentage points from FY24 and 5.5 percentage points from FY25. Revenue from operations increased to Rs 5,267.6 crore in FY26 from Rs 3,163.0 crore in FY24, while EBITDA increased to Rs 1,039.5 crore from Rs 318.1 crore. The FY26 margin was 0.7 percentage points below the 20.4% reported in FY22.

The reported gross margin rose to 35.9% in FY26 from 25.9% in FY24, while gross profit increased to Rs 1,890.4 crore from Rs 820.6 crore. Cost of goods sold was Rs 3,377.2 crore in FY26, compared with Rs 2,342.4 crore in FY24. Employee expenses rose to Rs 66.7 crore from Rs 42.4 crore and other expenses increased to Rs 784.2 crore from Rs 494.9 crore over the same period.

What changed in Sharda Cropchem's profit and returns?

Sharda Cropchem's profit after tax increased to Rs 681.0 crore in FY26 from Rs 31.9 crore in FY24 and Rs 304.4 crore in FY25. Its profit after tax margin reached 12.9%, compared with 1.0% in FY24 and 7.0% in FY25. Profit before tax was Rs 855.5 crore in FY26, against Rs 71.9 crore two years earlier, while tax expense was Rs 174.5 crore versus Rs 40.0 crore.

Earnings before interest and tax increased to Rs 857.3 crore in FY26 from Rs 75.5 crore in FY24, and the corresponding margin rose to 16.3% from 2.4%. Depreciation and amortisation was Rs 324.5 crore in FY26, compared with Rs 267.1 crore in FY24, while finance cost declined to Rs 1.8 crore from Rs 3.6 crore. Return on capital employed rose to 30.4% from 3.4%, and return on equity rose to 24.2% from 1.4%; the FY25 readings were 16.0% and 12.8%, respectively.

How did Sharda Cropchem's balance sheet change by March 2026?

Sharda Cropchem reported total equity of Rs 3,137.0 crore at March 2026, up from Rs 2,237.5 crore at March 2024 and Rs 2,501.0 crore at March 2025. Other equity accounted for Rs 3,046.3 crore of the March 2026 total, compared with Rs 2,146.9 crore at March 2024. Total assets increased to Rs 5,780.3 crore from Rs 4,038.3 crore over those two years.

The March 2026 balance sheet shows no current or non-current borrowings, compared with Rs 3.4 crore of current borrowings at March 2024. Trade receivables increased to Rs 2,389.3 crore from Rs 1,498.0 crore, while inventories rose to Rs 1,119.6 crore from Rs 991.6 crore. Other intangible assets reached Rs 986.2 crore, up from Rs 690.0 crore, whereas intangible assets under development declined to Rs 247.2 crore from Rs 282.9 crore.

Did Sharda Cropchem convert FY26 profit into operating cash?

Sharda Cropchem generated net cash from operating activities of Rs 655.7 crore in FY26, compared with Rs 603.6 crore in FY25 and Rs 341.3 crore in FY24. Cash generated from operations was Rs 720.7 crore before net direct tax payments of Rs 65.0 crore. The cash-flow statement records a Rs 453.9 crore change in working capital in FY26, following a Rs 30.5 crore change in FY25.

Investing activities used Rs 513.1 crore in FY26, compared with an outflow of Rs 510.1 crore in FY25, while financing activities used Rs 118.3 crore against Rs 67.9 crore. Cash and cash equivalents closed at Rs 219.8 crore at March 2026, up from Rs 127.2 crore a year earlier. The separate cash, bank and liquid investments measure was Rs 702.0 crore at FY26, compared with Rs 558.0 crore at FY25; it includes fixed deposits grouped within non-current other financial assets.

Conclusion

Sharda Cropchem's FY26 figures show a recovery from FY24 across revenue, profitability, returns and operating cash generation. Revenue increased by Rs 2,104.6 crore between FY24 and FY26, EBITDA increased by Rs 721.4 crore and profit after tax increased by Rs 649.1 crore. Gross margin expanded by 10.0 percentage points, while return on capital employed rose by 27.0 percentage points.

What to watch next is the working-capital position disclosed at September 2026. Sharda Cropchem reported working capital of 70 days at September 2026, down 28 days from 98 days at March 2026, while cash, bank and liquid investments increased to Rs 846 crore from Rs 702 crore. The presentation discloses no forward financial target, operating plan or scheduled event.