Sharda Cropchem September Profit Rises 23%, H1 Falls 17%

Sharda Cropchem Limited reported consolidated net profit of Rs 91.73 crore for the quarter ended September 30, 2026, up 23% from Rs 74.36 crore a year earlier, on revenue growth of 13% to Rs 1,051.68 crore. For the half year, however, net profit fell 17% to Rs 179.74 crore despite revenue increasing 11%.

How did Sharda Cropchem perform in the September quarter?

Sharda Cropchem increased September-quarter net profit by 23% year on year to Rs 91.73 crore from Rs 74.36 crore. Profit before tax rose 25% to Rs 107.49 crore from Rs 85.72 crore, while total income increased 14% to Rs 1,096.31 crore from Rs 958.49 crore. The board approved the unaudited consolidated results on October 30, 2026, and the statutory auditors gave an unmodified conclusion.

Revenue from operations rose 13% to Rs 1,051.68 crore in the quarter ended September 30, 2026, from Rs 929.11 crore in the year-earlier quarter. Other income increased to Rs 44.63 crore from Rs 29.37 crore. Basic and diluted earnings per share, which are not annualised for quarterly reporting, were Rs 10.17, compared with Rs 8.24 a year earlier.

Sharda Cropchem’s net profit was also 4% above Rs 88.02 crore in the June 30, 2026 quarter, although revenue declined 2% from Rs 1,073.77 crore and profit before tax declined 9% from Rs 118.43 crore. Tax expense fell to Rs 15.76 crore in the September quarter from Rs 30.41 crore in the June quarter, contributing to the sequential movement in post-tax profit.

Why did Sharda Cropchem’s first-half profit decline despite higher sales?

Sharda Cropchem’s first-half net profit declined 17% to Rs 179.74 crore for the half year ended September 30, 2026, from Rs 217.15 crore in the previous-year period. Revenue from operations nevertheless increased 11% to Rs 2,125.45 crore from Rs 1,913.93 crore. Profit before tax fell 11% to Rs 225.91 crore from Rs 254.86 crore, while total tax expense rose to Rs 46.17 crore from Rs 37.71 crore.

The six-month cost mix shifted as purchases of stock in trade increased 25% to Rs 926.09 crore from Rs 739.21 crore. Employee benefit expense rose 30% to Rs 35.51 crore, depreciation and amortisation increased 30% to Rs 200.63 crore, and other expenses rose 9% to Rs 393.50 crore. These changes occurred alongside a decline in cost of materials consumed to Rs 641.79 crore from Rs 766.77 crore.

Foreign exchange generated a net gain of Rs 7.16 crore in the latest half year, compared with a gain of Rs 67.02 crore in the corresponding period a year earlier. The company also recorded fair-value gains on investments of Rs 6.08 crore in the latest half, compared with Rs 5.17 crore previously. The lower foreign-exchange gain coincided with the decline in pre-tax profit despite higher sales.

Which segments drove Sharda Cropchem’s revenue growth?

Sharda Cropchem’s non-agrochemicals segment delivered the faster September-quarter revenue growth, increasing 68% to Rs 211.96 crore from Rs 126.37 crore a year earlier. Agrochemicals, the larger segment, increased revenue 5% to Rs 839.73 crore from Rs 802.74 crore. Together, the two segments accounted for consolidated revenue from operations of Rs 1,051.68 crore.

Agrochemicals segment result doubled to Rs 68.85 crore in the September quarter from Rs 34.44 crore a year earlier. Non-agrochemicals segment result declined 5% to Rs 37.36 crore from Rs 39.46 crore, despite the segment’s revenue growth. Non-agrochemicals comprises belts, dyes and dye intermediates, and general chemicals, while total segment result increased to Rs 106.21 crore from Rs 73.91 crore.

For the half year ended September 30, 2026, agrochemicals revenue rose 6% to Rs 1,754.58 crore and non-agrochemicals revenue increased 40% to Rs 370.87 crore. Agrochemicals segment result, however, declined 11% to Rs 151.18 crore from Rs 170.44 crore. Non-agrochemicals segment result increased 2% to Rs 73.45 crore, leaving total segment result 7% lower at Rs 224.62 crore.

What do Sharda Cropchem’s balance sheet and cash flows show?

Sharda Cropchem reported total assets of Rs 5,659.13 crore on September 30, 2026, compared with Rs 5,780.30 crore on March 31, 2026. Inventories increased to Rs 1,528.96 crore from Rs 1,119.57 crore, while trade receivables declined to Rs 1,460.94 crore from Rs 2,389.28 crore. Cash and cash equivalents increased to Rs 299.01 crore from Rs 219.82 crore.

Total equity rose to Rs 3,250.49 crore from Rs 3,137.04 crore over the same period, while total liabilities declined to Rs 2,408.64 crore from Rs 2,643.26 crore. Trade payables to creditors other than micro and small enterprises declined to Rs 1,431.08 crore from Rs 1,490.99 crore. Other current liabilities fell to Rs 74.93 crore from Rs 149.62 crore.

Net cash generated from operating activities for the first half was Rs 564.20 crore, compared with Rs 605.14 crore a year earlier. A Rs 876.65 crore decrease in trade receivables was partly offset by a Rs 409.39 crore increase in inventories. Investing cash outflow was Rs 405.76 crore, compared with Rs 523.78 crore in the earlier half, while purchases of intangible assets increased to Rs 418.83 crore from Rs 252.82 crore.

How does seasonality affect Sharda Cropchem’s results?

Sharda Cropchem states that agrochemicals, one of its major segments, is seasonal and can be affected by cropping patterns and weather conditions across global markets. Agrochemicals revenue was Rs 839.73 crore in the September 2026 quarter, lower than Rs 914.86 crore in the June 2026 quarter but above Rs 802.74 crore in the September 2025 quarter. The company says quarterly figures are not representative of other quarters or full-year performance.

The group had 36 subsidiaries, including eight step-down subsidiaries of one subsidiary, as of September 30, 2026. Agrochemicals accounted for Rs 4,493.92 crore of segment assets, against Rs 188.89 crore for non-agrochemicals and Rs 976.32 crore of unallocated assets. Agrochemicals also represented Rs 2,025.34 crore of segment liabilities, compared with Rs 114.54 crore for non-agrochemicals.

Conclusion

Sharda Cropchem produced a higher September-quarter profit as revenue grew and the agrochemicals segment result increased from the year-earlier level. The first-half comparison showed a different outcome: revenue increased by Rs 211.52 crore, but net profit declined by Rs 37.41 crore as pre-tax profit fell, the foreign-exchange gain was smaller and tax expense increased.

The next results will show how seasonal cropping patterns and weather conditions affect the agrochemicals business, which generated Rs 1,754.58 crore of first-half revenue. The company’s inventory level of Rs 1,528.96 crore, its Rs 418.83 crore first-half purchase of intangible assets and the relative segment contribution to profit remain disclosed measures to track.