Sharda Cropchem Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Sharda Cropchem Ltd filed with BSE on 04 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Sharda Cropchem reported Q1 FY27 revenue of Rs.1,074 crores, up 9% year-on-year, with EBITDA growing 25% to Rs.178 crores as gross margin expanded to 36.7% and EBITDA margin rose to 16.6%. Management said NAFTA, LATAM and rest of the world markets grew and improved profitability, while Europe softened due to distributor destocking linked to an unusual heatwave. The company reiterated its FY27 guidance of 10%-15% revenue growth and gross margins around 35%, and reported it remains debt-free with cash, bank and liquid investments of Rs.767 crores as of 30th June 2026.
Numbers mentioned
Revenue: Rs.1,074 crores (Q1 FY27)
p. 3
“Revenue for the quarter rose by 9% year-on-year to Rs.1,074 crores.”
R.V. Bubna, page 3 of the filed PDF · View the filing
Gross margin: 36.7% (Q1 FY27)
p. 3
“Gross margins expanded by 120 basis points to reach 36.7% while EBITDA grew a healthy 25% to Rs.178 crores, taking the EBITDA margin up by 220 basis points to 16.6%.”
R.V. Bubna, page 3 of the filed PDF · View the filing
EBITDA: Rs.178 crores (Q1 FY27)
p. 3
“Gross margins expanded by 120 basis points to reach 36.7% while EBITDA grew a healthy 25% to Rs.178 crores, taking the EBITDA margin up by 220 basis points to 16.6%.”
R.V. Bubna, page 3 of the filed PDF · View the filing
Cash, bank and liquid investments: Rs. 767 crores (as of 30th June, 2026)
p. 4
“We remain a debt-free company with cash, bank and liquid investments of Rs. 767 crores as of 30th June, 2026 as compared to Rs. 702 crores as of 31st March, 2026.”
R.V. Bubna, page 4 of the filed PDF · View the filing
Total product registrations: 3,016 (as of 30th June 2026)
p. 3
“As on 30th June 2026, our total product registrations stand at 3,016, up from 3,011 on 31st March 2026, with an additional 1,027 applications for product registrations globally at the approval stage.”
R.V. Bubna, page 3 of the filed PDF · View the filing
Agrochemical business revenue: Rs.915 crores (Q1 FY27)
p. 4
“Agrochemical business grew by 8% year-on-year to Rs.915 crores, whereas non-Agrochemical business grew by 15% year-on-year to Rs.159 crores.”
Shailesh Mehendale, page 4 of the filed PDF · View the filing
FOREX gain: Rs.7.5 crores (Q1 FY27)
p. 4
“FOREX (Fx) gains stood at Rs.7.5 crores in Q1 FY27 as against Rs.73.1 crores in Q1 FY26.”
Shailesh Mehendale, page 4 of the filed PDF · View the filing
PAT: Rs.88 crores (Q1 FY27)
p. 4
“EBIT stood at Rs.120 crores, PBT stood at Rs.118 crores and PAT stood at Rs.88 crores.”
Shailesh Mehendale, page 4 of the filed PDF · View the filing
PBT excluding FOREX gain: Rs.111 crores (Q1 FY27)
p. 4
“On like-to-like basis, PBT prior to this FOREX gain grew by 16% year-on-year to Rs.111 crores, reflecting the underlying strength of our operating performance.”
Shailesh Mehendale, page 4 of the filed PDF · View the filing
Total equity: Rs.3,245 crores (as on 30th June, 2026)
p. 5
“Total equity stood at Rs.3,245 crores as on 30th June, 2026 as against Rs.3,137 crores as on 31st March 2026.”
Shailesh Mehendale, page 5 of the filed PDF · View the filing
Working capital days: 88 days (as on 30th June 2026)
p. 5
“Working capital days stood at 88 days as on 30th June 2026, showing an improvement of 10 days as compared to 31st March 2026.”
Shailesh Mehendale, page 5 of the filed PDF · View the filing
Europe gross margin: 44.2% (Q1 FY27)
p. 13
“In Europe, our gross margin has been 44.2% and NAFTA, 32.8%, LATAM, 16.9% and rest of the world, 30.8%, total, 36.7%.”
R.V. Bubna, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 10%-15% · FY27
stated firmly by R.V. Bubna
p. 4
“We continue to maintain our FY27 guidance of 10%-15% revenue growth, gross margins in the range of 35% and remain focused on strengthening our long-term growth platform through sustained investment in our registration pipeline.”
R.V. Bubna, page 4 of the filed PDF · View the filing
Gross margin — 35% to 37% · FY27
stated firmly by R.V. Bubna
p. 11
“Between 35% to 37%.”
R.V. Bubna, page 11 of the filed PDF · View the filing
EBITDA margin — 18% to 20% · FY27
stated firmly by R.V. Bubna
p. 7
“It will be in the same range of 18% to 20%.”
R.V. Bubna, page 7 of the filed PDF · View the filing
Volume growth — 5% to 10% · FY27
stated firmly by R.V. Bubna
p. 6
“Almost 5% to 10%.”
R.V. Bubna, page 6 of the filed PDF · View the filing
CAPEX — 500, could be 550 or 480 crores · FY27
stated conditionally by R.V. Bubna
p. 9
“It could be 500, it could be 550 or it could be 480.”
R.V. Bubna, page 9 of the filed PDF · View the filing
Effective tax rate — 18% to 20% · FY27, annualized
stated firmly by Shailesh Mehendale
p. 15
“So, our effective tax rate on annualized basis could be in the range of 18% to 20%, which you will find in the earlier years also.”
Shailesh Mehendale, page 15 of the filed PDF · View the filing
Depreciation and amortization — Rs. 370-375 crores · FY27, annualized
stated firmly by Shailesh Mehendale
p. 15
“So, on annualized basis, could be around Rs. 370-375 crores.”
Shailesh Mehendale, page 15 of the filed PDF · View the filing
Europe volume recovery — next 3 quarters
stated as an aspiration by R.V. Bubna
p. 10
“As I have told you, in the first quarter it has not been good. Not because of any human factors. This is the effect of mother nature. So, we cannot predict. But as the things are predicted, the next 3 months, the 3 quarters will be better than the first quarter.”
R.V. Bubna, page 10 of the filed PDF · View the filing
Gross margin trend — same range and level · rest of FY27
stated as an aspiration by R.V. Bubna
p. 17
“We look forward to the same range and the same level.”
R.V. Bubna, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Volume growth was negative, FOREX impact was strongly positive, and product mix was negative.
Answered by R.V. Bubna
Asked by Anubhav Mukherjee: Can the 9% revenue growth be split into volume, FOREX and realization growth?
p. 5
“Now, just take a note, the volume growth has been -1.6%, Fx impact is +12.7%, product mix impact is -2.1% and total growth is +9%.”
R.V. Bubna, page 5 of the filed PDF · View the filing
The gain arises from unrealized repricing of foreign currency trade receivables and payables on each balance sheet date.
Answered by Shailesh Mehendale
Asked by Anubhav Mukherjee: What accounting treatment leads to the FOREX gain/loss line?
p. 6
“So basically, this particular unrealized gain or losses is coming in our balance sheet on account of realignment of our foreign currency trade receivable and trade payables.”
Shailesh Mehendale, page 6 of the filed PDF · View the filing
Management said restocking has improved and largely normalized.
Answered by R.V. Bubna
Asked by Deepak Poddar: Has the European distributor restocking situation improved since Q1?
p. 6
“It has improved and has reached to normal. In most of the cases, it is reaching the normality.”
R.V. Bubna, page 6 of the filed PDF · View the filing
Sharda does not manufacture anywhere and sources contract manufacturing mainly from China.
Answered by R.V. Bubna
Asked by Deepak Poddar: Does the company import raw materials or manufacture domestically?
p. 7
“We don't manufacture anything anywhere in the world, including India. We get everything manufactured as per requirement from the manufacturers, mainly from China.”
R.V. Bubna, page 7 of the filed PDF · View the filing
Management said the registration process is inherently uncertain but investment continues to rise and yield results.
Answered by R.V. Bubna
Asked by Madhur Rathi: How should growth be viewed given fewer registrations added in the past 3 years versus FY21-23?
p. 7
“We have been investing around 450 to 500 crores all these years, and this year the investment is going to go up.”
R.V. Bubna, page 7 of the filed PDF · View the filing
Management said CAPEX guidance has not been revised and Q1 spending was unusual due to data compensation costs.
Answered by R.V. Bubna
Asked by Vikas Singh: Has CAPEX guidance of 500 crores been revised given 273 crores spent in Q1?
p. 8
“So, we have not revised our CAPEX investment for this year. Just by seeing what has happened in the first quarter. First quarter has been a little unusual.”
R.V. Bubna, page 8 of the filed PDF · View the filing
Management attributed it broadly to multiple factors including weather conditions.
Answered by R.V. Bubna
Asked by Rohit: What is driving strong volume growth in NAFTA and LATAM this year?
p. 10
“All the factors along with the weather conditions. Weather conditions also play a very important role.”
R.V. Bubna, page 10 of the filed PDF · View the filing
Management said the PBT/EBIT figures excluding FOREX impact are already disclosed in the investor presentation and would provide more clarity going forward.
Answered by Shailesh Mehendale
Asked by Nitin Shakdher: Can PAT be reported on a like-to-like basis excluding FOREX gains for easier comparison?
p. 13
“Operationally, we have done better compared to last quarter. But because of this Fx of the impact, the reported numbers, which is there in your accounts, is showing some dip. But it is not the dip.”
Shailesh Mehendale, page 13 of the filed PDF · View the filing
Management said the last month of Q2 has been better than Q1.
Answered by R.V. Bubna
Asked by Rohit Nagraj: Has pricing power been difficult to pass on to customers in NAFTA and LATAM during Q1, and how is Q2 trending?
p. 14
“Last one month of Q2 has been better than Q1.”
R.V. Bubna, page 14 of the filed PDF · View the filing
Management said prices, after a severe decline two years ago, have stabilized and are slowly improving.
Answered by R.V. Bubna
Asked by Anubhav Mukherjee: Are pricing trends improving sequentially across markets?
p. 16
“The prices have taken a very severe beating 2 years back and now they got stabilized and they are slowly improving.”
R.V. Bubna, page 16 of the filed PDF · View the filing
Management attributed the improvement mainly to product mix and to some extent price increases.
Answered by R.V. Bubna
Asked by Himanshu Binani: What is driving the margin improvement in Europe despite lower revenue?
p. 17
“I would say product mix and also to some extent price increase. But mainly because of the product mix.”
R.V. Bubna, page 17 of the filed PDF · View the filing
Risks flagged
Distributor destocking in Europe due to unusual heatwave conditions
p. 4
“The main reason behind this was the distributors' cutback on the stock largely because of unusual heatwave conditions and swept across parts of Europe this summer.”
R.V. Bubna, page 4 of the filed PDF · View the filing
Uncertainty and unpredictability in the product registration process
p. 7
“I have been telling all my friends and investors that the process of registration is full of all the uncertainties.”
R.V. Bubna, page 7 of the filed PDF · View the filing
Unpredictable FOREX/cross-currency movements affecting reported profitability
p. 11
“Now any developments can happen in US and the dollar goes up. Some development happens in Europe, the euro goes up. And they are totally unpredictable by any human being.”
R.V. Bubna, page 11 of the filed PDF · View the filing
Unpredictable political and weather impacts across regions affecting growth
p. 10
“There are a lot of political impacts, weather impacts and many other things. Economies of various countries in different regions.”
R.V. Bubna, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.