Sharda Cropchem Q1 FY27 net profit drops 38% to ₹88 crore despite revenue rise
Synopsis
Sharda Cropchem's Q1 FY27 earnings reveal a paradox: EBITDA margins hit a multi-quarter high of 16.6%, yet net profit cratered 38% to ₹88 crore. Europe's 11% agrochemical revenue slump is the central drag, while NAFTA's 33% surge and Rest of World's 78% jump signal that the company's geographic pivot is gathering pace — but hasn't yet plugged the profit gap.
Key Takeaways
Sharda Cropchem net profit fell 38.34 per cent YoY to ₹88.03 crore in Q1 FY27 (April–June 2026).
Revenue from operations rose 9.03 per cent to ₹1,073.76 crore from ₹984.81 crore in Q1 FY26.
EBITDA grew 25 per cent to ₹178 crore ; EBITDA margin expanded to 16.6 per cent from 14.4 per cent .
Agrochemical segment — 85 per cent of revenue — generated ₹915 crore , up 8 per cent YoY.
Europe agrochemical revenue fell 11 per cent to ₹467 crore ; NAFTA surged 33 per cent to ₹339 crore .
Agrochemical volumes declined marginally by 0.6 per cent , indicating price/mix-led revenue growth.
Sharda Cropchem Limited on Tuesday, 29 July 2026 reported a 38.34 per cent year-on-year decline in consolidated net profit to ₹88.03 crore for the first quarter ended 30 June 2026 (Q1 FY27), even as revenue from operations climbed 9.03 per cent to ₹1,073.76 crore. The divergence between a rising topline and a falling bottomline points to elevated costs and tax-related pressures offsetting operational gains.
Revenue and Operating Performance
Revenue from operations grew to ₹1,073.76 crore in Q1 FY27 from ₹984.81 crore in the corresponding quarter of the previous financial year. Operating performance, however, told a more encouraging story: EBITDA rose 25 per cent year-on-year to ₹178 crore from ₹142 crore, while EBITDA margin expanded to 16.6 per cent from 14.4 per cent, supported by an improved product mix and higher contribution from value-added agrochemical products.
Profit before tax, however, declined 29.98 per cent to ₹118.42 crore from ₹169.13 crore a year earlier, indicating that below-the-EBITDA costs — including depreciation and financing charges — weighed on the final figure.
Agrochemical Business Breakdown
The agrochemical segment, which accounted for 85 per cent of total revenue, generated ₹915 crore during the quarter, an increase of 8 per cent over Q1 FY26. Within the portfolio, herbicides revenue rose 9 per cent to ₹457 crore, while insecticides climbed 13 per cent to ₹233 crore. Fungicides edged up 2 per cent to ₹225 crore. Agrochemical volumes, however, dipped marginally by 0.6 per cent during the quarter, suggesting that revenue growth was largely price- and mix-driven rather than volume-led.
The non-agrochemical business grew 15 per cent year-on-year to ₹159 crore, according to the company's regulatory filing.
Geographical Performance
Europe, Sharda Cropchem's largest market, recorded an 11 per cent decline in agrochemical revenue to ₹467 crore — a notable headwind given its dominant share. In contrast, the NAFTA region posted a strong 33 per cent jump to ₹339 crore, while Latin America and the Rest of the World surged 52 per cent and 78 per cent, respectively, reflecting the company's active geographic diversification strategy.
In the non-agrochemical segment, Europe fell 12 per cent to ₹19 crore, while NAFTA rose 31 per cent to ₹121 crore. Latin America declined 60 per cent to ₹5 crore, and the Rest of the World grew 13 per cent to ₹14 crore.
What This Signals Going Forward
The sharp contraction in net profit despite robust EBITDA growth underscores that margin expansion at the operating level is yet to fully translate to the bottomline. Europe's continued weakness — both in agrochemical and non-agrochemical segments — remains a key risk, particularly as regulatory headwinds in the region persist for generic crop-protection products. The strong showing from NAFTA and emerging markets, however, suggests that Sharda Cropchem's diversification is beginning to yield results. Investors and analysts will closely track whether volume recovery and geographic rebalancing can restore net profit growth in the quarters ahead.
Point of View
Yet that operational progress is not reaching shareholders. A 25 per cent EBITDA jump alongside a 38 per cent net profit collapse suggests the issue lies below the operating line — in depreciation, finance costs, or tax provisioning — and warrants scrutiny. Europe's structural weakness in generic crop-protection markets is not a one-quarter story; it reflects tightening regulatory timelines and pricing pressure from Chinese generic suppliers. The real strategic question is whether NAFTA and emerging-market gains can scale fast enough to compensate, or whether Sharda Cropchem faces a prolonged profitability squeeze until its European pipeline clears.
NationPress
29 Jul 2026
Frequently Asked Questions
Why did Sharda Cropchem's net profit fall in Q1 FY27?
Sharda Cropchem's consolidated net profit declined 38.34 per cent to ₹88.03 crore in Q1 FY27 despite a 9 per cent revenue rise, as profit before tax fell nearly 30 per cent to ₹118.42 crore. The gap between strong EBITDA growth and weak net profit points to elevated below-the-line costs including depreciation and financing charges.
How did Sharda Cropchem's EBITDA perform in Q1 FY27?
EBITDA rose 25 per cent year-on-year to ₹178 crore from ₹142 crore, with the EBITDA margin expanding to 16.6 per cent from 14.4 per cent. This improvement was driven by a better product mix and higher contribution from value-added agrochemical products.
Which geographies drove Sharda Cropchem's growth in Q1 FY27?
The NAFTA region posted a 33 per cent surge in agrochemical revenue to ₹339 crore, while Latin America and the Rest of the World grew 52 per cent and 78 per cent respectively. Europe, the company's largest market, fell 11 per cent to ₹467 crore, acting as the primary drag on overall growth.
How did Sharda Cropchem's agrochemical segment perform by product?
Herbicides revenue rose 9 per cent to ₹457 crore and insecticides climbed 13 per cent to ₹233 crore, while fungicides edged up 2 per cent to ₹225 crore. Overall agrochemical volumes dipped marginally by 0.6 per cent, suggesting revenue growth was price- and mix-driven rather than volume-led.
What is Sharda Cropchem's non-agrochemical business revenue for Q1 FY27?
The non-agrochemical segment generated ₹159 crore in Q1 FY27, up 15 per cent year-on-year. Within this, NAFTA grew 31 per cent to ₹121 crore, while Europe declined 12 per cent to ₹19 crore.
