Sharda Cropchem Ltd

Financial highlights

• Revenue rose 9% YoY to ₹1,074 crore in Q1 FY27.
• Gross profit ₹394 crore, gross margin 36.7%.
• EBITDA ₹178 crore, EBITDA margin 16.6%.
• Profit before tax (pre-forex) ₹111 crore; PBT ₹118 crore; PAT ₹88 crore.
• Capex in Q1 FY27 ₹263 crore.
• Debt-free with cash, bank balances and liquid investments ₹767 crore.
• Product registrations 3,016 with 1,027 in pipeline.
• Agrochemical contributes 85%; Non-agro 15% of revenue.
• Agrochemical volumes declined 0.6% YoY in Q1 FY27.

Outlook & strategic developments

• FY27 revenue growth guidance maintained at 10-15%.
• European volumes expected to recover in coming quarters.
• Balance sheet remains robust with debt-free status.
• Investments to strengthen the registration pipeline.

Business Overview

• IP-led agrochemical platform with asset-light, registrations-driven growth.
• Two segments: Agrochemicals and Non-agro; presence in 80+ countries.
• Partner-led manufacturing preserves registrations, customer access, and cost efficiency.

Operational Highlights

• Q1 FY27 revenue Rs 1,073.8 Cr, up 9% YoY.
• Agro revenue Rs 915 Cr, +8% YoY; Non-agro Rs 159 Cr, +15%.
• EBITDA Rs 178.4 Cr, +25% YoY; margin 16.6%.
• PAT Rs 88.0 Cr; PAT margin 8.2%.
• Forex gain Rs 7.5 Cr; prior year Rs 73.1 Cr.
• Region-wise: NAFTA +33%; Europe -11%; LATAM +52%; ROW +78%.

Financial Performance

• FY26 revenue Rs 5,267.6 Cr; EBITDA Rs 1,039.5 Cr; margin 19.7%.
• PAT Rs 681.0 Cr; PAT margin 12.9%.
• Gross margin FY26: 35.9%.

Capital Structure & Liquidity

• Borrowings nil; no long-term debt reported.
• Cash and cash equivalents Rs 219.8 Cr (Mar-26).
• Net cash from operating activities Rs 655.7 Cr.

Strategic Priorities & Outlook

• Invest in registrations and dossiers across markets.
• Expand distribution network and geographies.
• Improve operational efficiency to support margin expansion.
• Forward integration via sales force expansion.
• Maintain financial discipline and prudent working capital management.

Risks & Mitigation

• Foreign exchange volatility affects PBT and PAT; Q1 saw reduced forex gains.

Governance & Leadership

• Ramprakash V. Bubna: Chairman and Managing Director.
• Ashish Bubna and Manish Bubna: Whole-Time Directors.
• CFO: Shailesh Mehendale; investor relations contacts provided.

Financial results approved

• Approved unaudited standalone and consolidated results for quarter ended 30 June 2026; Limited Review unmodified.

Regulatory and auditor notes

• Ind AS 34 reporting; Regulation 33 SEBI LODR compliance; auditors' unmodified conclusion.

Overview

• Standalone BRSR for FY2025-26; agrochemical trading and distribution.
• 100% turnover from agrochemicals; fungicides 28%, herbicides 51%, insecticides 21%.
• Markets span 80+ countries with 1 national office.
• Total employees: 213; gender mix 44% male, 56% female.
• Exports account for 100% of turnover.

Key ESG Risks & Opportunities

• Product registrations and market authorisations are material; delays may impact revenue.
• Regulatory/compliance risk rises with tighter crop-protection rules; mitigated via enhanced oversight.
• Supply chain resilience enhances product availability; actions include stronger partnerships and visibility.
• Portfolio development/innovation offers growth via market-driven introductions and registrations.
• Environmental stewardship can drive operational savings and stakeholder confidence.
• Product quality/stewardship risks could lead to recalls; strengthen QA and supplier assessments.
• Cybersecurity risks require controls and secure digital infrastructure.

Governance & Policy Highlights

• Board oversight via Risk Management Committee; annual ESG compliance reviews by Board.
• Highest ESG authority: Chairman and Managing Director.
• ABAC policy in place with reporting and investigation mechanisms.
• Whistleblower and POSH policies; Code of Conduct extended to value chain.
• No external assurance; no penalties reported in the year.

Social Responsibility & Workforce

• Total employees: 213; gender distribution 44% male, 56% female.
• Permanent benefits include PF, Gratuity, and ESI coverage.
• Offices not fully accessible to differently abled employees; premises accessible to visitors.
• Whistleblower and HR grievance channels; POSH policy and Internal Complaints Committee in place.
• Return-to-work after parental leave: female permanent employees 100%.
• Training on code of conduct; 100% coverage for board and employees.

Environmental Performance

• Total energy use: non-renewable 848.57 units; renewable energy 0; intensity 0.0018 per turnover.
• Scope 2 emissions: 171.36 tCO2e; Scope 1: 0 tCO2e.
• Water withdrawal: 3,912.74 kL; water intensity 0.0084 per ₹ turnover.
• Waste generation is minimal due to asset-light model; waste managed via authorized vendors.
• EPR not applicable; no manufacturing activities.

Stakeholder Engagement & Complaints

• Key stakeholder groups: shareholders, employees, vendors, government, community.
• Engagement channels include AGM, meetings, emails; frequency ongoing.
• Community engagement and CSR activities ongoing; transparent stakeholder engagement.
• No unresolved stakeholder complaints reported.

Other Notable Metrics

• Related-party transactions: sales to related parties 36.98% of total sales.
• Loans/advances to related parties 100% of total; investments in related parties 1.78%.
• Inputs from MSMEs: 1.25% of total inputs.
• Affiliations with 6 trade/industry chambers; ISO 9001:2015 certification; export-house recognitions.
• No data breaches; cybersecurity controls via third-party providers; no standalone policy on data privacy.
• No product recalls; packaging labels meet regulatory disclosure requirements.

Financial highlights

• Revenue crossed 5,268 Cr; up 22% YoY.
• EBITDA 1,040 Cr; PAT 681 Cr; margins robust.
• Gross margin 35.9%; ROCE 30.4%; ROE 24.2%.
• Debt-free balance sheet; cash and liquid investments ~702 Cr.
• Net worth ~3,137 Cr; EPS 75.47.
• Dividend: Interim ₹6; Final proposed ₹9; total ₹15 per share.

Business model & growth

• Asset-light, IP-led model focused on registrations and market access.
• 3,011 registrations; pipeline 1,004; presence in 80+ countries.
• Invested 505 Cr in registrations and capability development.
• Factory-to-Farmer approach deepens customer engagement and market reach.

Geography & markets

• Europe contributed 2,981 Cr; NAFTA 1,266 Cr; LATAM 254 Cr; RoW 216 Cr.
• Geographic revenue mix: Europe 63%; NAFTA 27%; LATAM 5%; RoW 5%.
• Agrochemicals 90% of revenue; Non-Agro 10%.
• Herbicides 2,410 Cr; Fungicides 1,302 Cr; Insecticides 1,005 Cr.

Capital structure & liquidity

• No debt; lease liabilities largely settled by 2026; strong liquidity.
• Net cash from operations ~576 Cr; current investments ~36,144 Lakhs.
• Cash & cash equivalents ~21,982 Lakhs.
• Current ratio ~1.86; disciplined capital management.

Dividend & capital returns

• Interim dividend ₹6 per share; final proposed ₹9; total ₹15 per share.
• Record date 7 Aug 2026; AGM 14 Aug 2026 (virtual).
• Unclaimed dividends transferred to IEPF for 2017-18 and 2018-19 (₹79,614 Lakhs).
• Dividend Distribution Policy published on company website.
• CSR spend for 2025-26: ₹8.17 Crore; CSR lives impacted: 25,300+.

Governance & audit

• Board: 8 directors, 4 independent; 4 board meetings; 4 Audit Committee members.
• Independent Directors’ meeting held 29 Jan 2026.
• CARO observations: unfavourable remarks for Sharda Cropchem and Axis Crop Science.
• Statutory auditors: B S R & Co LLP; Internal auditors: SH B A & CO LLP; Secretarial: JMJA & Associates LLP.

ESG & CSR

• ESG metrics: energy 848.57 GJ; water 3,912.74 KL; energy intensity 0.0018 GJ/turnover; water intensity 0.008 KL/turnover.
• Women representation: 56%; total employees: 213.
• CSR focus areas: Education, Healthcare, Hunger, Women, Rural development, Animal welfare.
• No manufacturing; ABAC policy in place; waste management via authorised vendors.

Registrations & outlook

• Industry backdrop: global crop protection market US$109.7Bn in 2026, US$137.49Bn by 2031.
• Growth drivers: population demand, productivity needs, precision/agritech adoption.
• Outlook: registration-led growth, asset-light scaling, geographic expansion, disciplined capital allocation.

AGM details

• AGM scheduled for 14 August 2026 at 1:00 PM IST via VC/OAVM.
• Record date for final dividend fixed at 7 August 2026.
• Register of Members and share transfer books closed on 8 August 2026.
• Cut-off for e-voting fixed at 7 August 2026.
• Deemed venue: registered office of the company.

Key resolutions

• Adopt standalone financial statements for the year ended 31 March 2026.
• Adopt consolidated financial statements for the year ended 31 March 2026.
• Declare final dividend for FY 2025-26.
• Re-appoint Ashish R. Bubna as Director, who retires by rotation.

Director changes

• Ashish R. Bubna (Executive Director) seeks re-appointment.

Dematerialisation/Rematerialisation status

• RTA certified dematerialised/rematerialised details for quarter ended 30 June 2026 were furnished to all stock exchanges.
• This confirms reporting to all stock exchanges where shares are listed.