Sumitomo Chemical India (SUMICHEM) Q1 26/27 earnings summary

Executive summary

• Revenue grew 1% year-over-year to Rs. 1,063 crore (₹10,633.46 million) in Q1FY27, despite adverse agro-climatic conditions and subdued domestic demand.

• Gross profit increased 4% YoY, with margin expansion to 39.2% due to pricing actions and favorable product mix.

• EBITDA rose 6% YoY to Rs. 233 crore, with margin up 120 bps to 21.9%.

• Net profit surged 20% YoY to Rs. 215 crore (₹2,148.30 million), aided by a Rs. 27 crore (₹268.96 million) insurance claim from a prior plant fire.

• Export revenues grew 26% YoY, now comprising 16% of total revenue, offsetting weak domestic sales.

Financial highlights

• Q1FY27 revenue: Rs. 1,063.3 crore (₹10,633.46 million, +1% YoY); gross profit: Rs. 416.7 crore (+4% YoY); gross margin: 39.2% (+111 bps YoY).

• EBITDA: Rs. 233.3 crore (+6% YoY); EBITDA margin: 21.9% (+120 bps YoY).

• Net profit: Rs. 215 crore (₹2,148.30 million, +20% YoY); net margin: 20.2% (+332 bps YoY).

• Cash & equivalents at June 2026: Rs. 2,549 crore; net working capital days increased to 56 (from 43 YoY) due to seasonal inventory build-up.

• Basic and diluted EPS for Q1 FY27 stood at ₹4.30, compared to ₹3.57 in Q1 FY26.

Outlook and guidance

• Focus remains on sustainable growth via differentiated products, disciplined execution, and enhanced channel engagement.

• Launches of Topgrain and Helibax planned for Q2FY27 to support future growth.

• Performance is seasonal and depends on monsoon and climatic conditions.

• Regulatory uncertainty remains regarding glyphosate usage, pending court resolution.

• Improved monsoon progress and sowing activity expected to aid recovery in domestic demand.