Investor Presentation

Sumitomo Chemical India (SUMICHEM) reported a mixed Q3FY26. Revenue declined 12% YoY to Rs 568 crore, primarily due to discontinuing a low-margin Animal Nutrition business (Rs 72 crore impact) and weak domestic agri-input demand.

Despite this, gross profit margins significantly expanded to 47.4% (up 522 bps) and EBITDA margin improved to 17.5% (up 98 bps), driven by a favorable product mix and cost discipline.

Net profit for the quarter was Rs 76 crore, down 13%, impacted by a one-time Rs 16 crore charge for new Labour Codes.

For the nine months ending December 2025, revenue grew 3% YoY to Rs 2,555 crore, and net profit rose 6% to Rs 432 crore (including the one-time charge). Insecticides and herbicides showed 11-12% YoY growth.

The company is strategically investing Rs 150 crore for a new herbicide intermediate plant at Dahej (commercializing Q2 FY2028-29) and Rs 10 crore for new product fitments at Tarapur (by Q4 FY2027-28). New product registrations, including the bio-rational Topgrain, are secured for the upcoming kharif season.

Management is focused on boosting demand for high-margin specialty products, disciplined cost control, and leveraging digital engagement, anticipating a normal monsoon in FY26-27.