Sharda Cropchem Q1 FY27 Results (NSE: SHARDACROP)
Signal: Growth decelerated
The read
Revenue grew 9% YoY but EBITDA fell 11% due to higher costs; gross margin expanded 120bps but operating margin compressed; earnings quality flagged by high other income share; Europe weakness a concern; guidance maintained.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,073.77 Cr | 9.0% | -79.6% |
| EBIT | ₹120.23 Cr | -29.2% | |
| Net profit | ₹88.04 Cr | -38.3% | |
| EPS | ₹9.76 | -38.3% | |
| EBIT margin | 20.5% |
P&L walk
Revenue grew 9% YoY but EBITDA fell 11% due to higher costs; gross margin expanded 120bps, yet operating margin compressed; PAT decline amplified by high base of forex gains in Q1FY26.
Segments
Agrochemical segment grew 8% YoY, Non-Agro grew 15%, but agrochemical volumes declined 0.6% – growth is price/mix driven.
Key positives
- Gross margin expanded 120bps YoY to 36.7% on improved product mix (high-value molecules).
- NAFTA and LATAM revenue grew 33% and 52% respectively, offsetting Europe weakness.
- Debt-free with cash ₹767 Cr, providing financial flexibility.
Key concerns
- EBITDA declined 11% YoY despite revenue growth, indicating cost pressure or margin compression.
- Europe revenue fell 11% YoY due to heat wave/drought and reduced distributor restocking.
- Other income contributed 29.2% of PBT, distorting underlying operational performance.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.