Sharda Cropchem Limited cuts working-capital days to 70

Sharda Cropchem Limited reduced working-capital days to 70 at September 2026 from 98 at March 2026. SC reported receivable days of 90, down from 151, which outweighed inventory days rising to 98 from 72 and creditor days falling to 118 from 125. Cash, bank and liquid investments reached Rs 846 crore.

How did SC reduce working-capital days to 70?

SC reduced working-capital days by 28 days between March 2026 and September 2026, to 70 from 98. Its September 2026 metrics were 98 inventory days, 90 receivable days and 118 creditor days, compared with 72, 151 and 125 days, respectively, at March 2026.

Receivable days declined by 61 days, while inventory days rose by 26 days and creditor days declined by seven days. The reduction in receivable days was larger than the increase in inventory days and the shortening of the creditor period, producing the reported 28-day reduction in working-capital days.

The movement occurred in H1 FY27, when SC reported revenue from operations of Rs 2,125.5 crore, up 11% year on year from Rs 1,913.9 crore in H1 FY26. The presentation therefore shows a shorter working-capital cycle during a period of higher revenue.

What changed in SC receivables, inventories and payables?

SC's trade receivables fell by Rs 928.4 crore to Rs 1,460.9 crore at September 2026 from Rs 2,389.3 crore at March 2026. This balance-sheet change coincided with receivable days decreasing to 90 from 151.

Inventories increased by Rs 409.4 crore to Rs 1,529.0 crore from Rs 1,119.6 crore during the same period. Inventory days consequently rose to 98 from 72, so the reported reduction in overall working-capital days occurred despite the higher inventory balance and inventory-day measure.

Trade payables other than dues to micro enterprises and small enterprises declined by Rs 59.9 crore to Rs 1,431.1 crore at September 2026 from Rs 1,491.0 crore at March 2026. Total current assets fell to Rs 4,150.8 crore from Rs 4,438.1 crore, while total current liabilities decreased to Rs 2,136.7 crore from Rs 2,386.2 crore.

How did the working-capital movement affect SC operating cash flow?

SC generated Rs 618.2 crore of cash from operations in the period ended September 2026, including Rs 252.9 crore from changes in working capital. Cash generated from operations was Rs 7.9 crore above Rs 610.3 crore in the September 2025 period, although operating profit before working-capital changes declined to Rs 365.4 crore from Rs 381.3 crore.

The working-capital contribution increased by Rs 23.9 crore from Rs 229.0 crore in the September 2025 period. The cash-flow statement does not allocate that movement between receivables, inventories and payables, but the balance sheet shows a Rs 928.4 crore decline in trade receivables alongside a Rs 409.4 crore inventory increase.

Net cash from operating activities was Rs 564.2 crore, compared with Rs 605.1 crore in the comparable prior-year period. Direct taxes paid, net of refunds, were Rs 54.0 crore against Rs 5.2 crore a year earlier; net cash from investing activities was an outflow of Rs 405.8 crore and financing activities used Rs 88.1 crore.

What happened to SC cash and liquid investments?

SC reported cash, bank and liquid investments of Rs 846 crore at September 2026, compared with Rs 702 crore at March 2026. The increase of Rs 144 crore accompanied a rise in cash and cash equivalents to Rs 299.0 crore from Rs 219.8 crore, while investments were Rs 362.9 crore compared with Rs 361.4 crore.

The cash-flow statement recorded a Rs 85.2 crore net increase in cash and cash equivalents for the period ended September 2026, against a Rs 34.0 crore increase in the September 2025 period. Closing cash was Rs 299.0 crore, compared with Rs 165.3 crore a year earlier, after a Rs 6.0 crore exchange-rate reduction in foreign-currency cash and cash equivalents.

SC also reported total equity of Rs 3,250.5 crore at September 2026, up from Rs 3,137.0 crore at March 2026. The presentation stated return on capital employed of 26.0% and return on equity of 20.2%, calculated using trailing 12-month earnings before interest and tax and profit after tax, respectively.

How did SC first-half earnings compare with the cash-cycle change?

SC reported H1 FY27 revenue of Rs 2,125.5 crore, gross profit of Rs 771.9 crore and earnings before interest, tax, depreciation and amortisation of Rs 342.9 crore. Revenue increased 11% year on year, gross profit rose 15% and earnings before interest, tax, depreciation and amortisation rose 22%, while the margin expanded by 140 basis points to 16.1% from 14.7%.

Profit before tax was Rs 225.9 crore, down 11% from Rs 254.9 crore, and profit after tax was Rs 179.7 crore, down 17% from Rs 217.2 crore. SC said the H1 FY26 profit-before-tax and profit-after-tax comparison reflected higher foreign-exchange gains in that earlier period.

Agro-chemical revenue was Rs 1,755 crore, up 6% year on year, while non-agro-chemical revenue was Rs 371 crore, up 40%. Within agro-chemicals, Europe revenue was Rs 896 crore, down 9%, compared with Rs 567 crore in North America Free Trade Agreement markets, up 21%, and Rs 199 crore in Latin America, up 69%.

Conclusion

SC's reduction in working-capital days to 70 was led by a 61-day decline in receivable days and a Rs 928.4 crore reduction in trade receivables. That movement exceeded the 26-day increase in inventory days, the Rs 409.4 crore inventory build and the seven-day reduction in creditor days, while changes in working capital contributed Rs 252.9 crore to cash from operations.

The next balance-sheet update will show whether receivable days remain near 90 and whether inventory days move from 98, compared with 72 at March 2026. It will also show how cash, bank and liquid investments develop after the Rs 405.8 crore investing cash outflow recorded for the period ended September 2026.