Sharda Cropchem Q1 Results: Stock jumps 18% after strong margin expansion

Shares of Sharda Cropchem Ltd. are trading with gains of 18% on Friday, July 25, after the company announced its financial results for the April-June quarter.

The company's net profit surged five times year-on-year, at ₹143 crore, compared to ₹27 crore in the same period last year.

Revenue grew 22% year-on-year to ₹958 crore, compared to ₹785 crore in the corresponding quarter last year.

Sharda Cropchem recorded a foreign exchange gain of ₹73 crore, reversing a loss of ₹8 crore in the year-ago period.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose sharply to ₹216 crore from ₹77 crore a year earlier.

The EBITDA margin improved to 21.9%, up from 9.8% in the same quarter last year.

The agrochemical segment contributed 86% to total revenue, while the non-agrochemical segment accounted for the remaining 14%. Overall volumes rose 13.2% year-on-year in Q1 FY26, with agrochemical volumes growing by 11.4% and non-agrochemical volumes surging 59%.

Capex in Q1 FY26 stood at ₹114 crore. The company remains debt free with cash, bank and liquid investments of ₹791 crore.

"In Q1 FY26, we recorded strong volume growth of 13%, with revenues rising 25% YoY to ₹985 crore. This performance was driven by a global demand revival and improved pricing. Europe remains a key contributor in both volume and value terms," said Chairman and MD Ramprakash Bubna.

With input costs stabilising, the company's gross margins has expanded by 630 basis points to 35.5% and expects GP Margins to remain in a similar range going ahead.

The company remains focused on increasing our product registrations in FY26, with planned capex of ₹400-450 crore.

For FY26, the company aims to grow its topline by 15% while maintaining healthy EBITDA Margins in the range of 15-18%.