Sharda Cropchem Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sharda Cropchem Ltd filed with BSE on 19 May 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 Q4 FY26 revenue growth of 13% to Rs 2,065 crores with EBITDA up 75% to Rs 513 crores and PAT up 57% to Rs 319 crores. For the full year, revenue grew 22% to Rs 5,268 crores, EBITDA grew 69% to Rs 1,040 crores, and PAT grew 124% to Rs 681 crores. Management discussed gross margin expansion, working capital improvement, product registrations, and provided commentary on regional performance and geopolitical impacts on sourcing and logistics.
Numbers mentioned
Revenue: INR 2,065 crores (Q4 FY26)
p. 4
“In Q4 ‘26, our total revenues have grown by 13% to INR 2,065 crores, with annual volume growth at 4%.”
R.V. Bubna, page 4 of the filed PDF · View the filing
Gross margin: 37.3% (Q4 FY26)
p. 4
“Our gross margins have expanded by 750 basis points to 37.3%.”
R.V. Bubna, page 4 of the filed PDF · View the filing
EBITDA: INR 513 crores (Q4 FY26)
p. 4
“EBITDA for the quarter stood at INR 513 crores, which is a growth of 75% on a Y-to-Y basis with margins of 24.8%.”
R.V. Bubna, page 4 of the filed PDF · View the filing
PAT: INR 319 crores (Q4 FY26)
p. 4
“PAT for the quarter stood at INR 319 crores, showcasing a growth of 57% year-to-year basis.”
R.V. Bubna, page 4 of the filed PDF · View the filing
Working capital days: 98 days (as on 31st March 2026)
p. 4
“Working capital days stood at 98 days as on 31st March 2026, showing an improvement by 20 days as compared to March, 2025.”
R.V. Bubna, page 4 of the filed PDF · View the filing
CAPEX: INR 505 crores (FY26)
p. 4
“CAPEX for FY26 stood at INR 505 crores.”
R.V. Bubna, page 4 of the filed PDF · View the filing
Total dividend: INR 15 per share (FY26)
p. 4
“The total dividend for FY26 is aggregated to INR 15 per share.”
R.V. Bubna, page 4 of the filed PDF · View the filing
Revenue: INR 5,268 crores (FY26)
p. 4
“Revenues stood at INR 5,268 crores in FY26 versus INR 4,320 crores in FY25, with an increase of 22% year-on-year basis.”
Shailesh Mehendale, page 4 of the filed PDF · View the filing
EBITDA: INR 1,040 crores (FY26)
p. 5
“EBITDA for FY26 stood at INR 1,040 crores, with EBITDA margin at 19.7%, showcasing 69% year-on-year growth.”
Shailesh Mehendale, page 5 of the filed PDF · View the filing
PAT: INR 681 crores (FY26)
p. 5
“PAT stood at INR 681 crores in FY26 versus INR 304 crores in FY25, with an increase of 124% year-on-year basis.”
Shailesh Mehendale, page 5 of the filed PDF · View the filing
Cash-bank liquid investment: INR 702 crores (as on 31st March 2026)
p. 5
“We remain debt-free company and have cash-bank liquid investment of INR 702 crores as on 31st March 2026.”
Shailesh Mehendale, page 5 of the filed PDF · View the filing
Total product registrations: 3,011 (as on March 31, 2026)
p. 3
“As on March 31st, 2026, our total product registration stood at 3,011.”
R.V. Bubna, page 3 of the filed PDF · View the filing
Registration applications in pipeline: 1,004
p. 3
“Additionally, 1,004 applications of product registrations globally are in the pipeline.”
R.V. Bubna, page 3 of the filed PDF · View the filing
Gross margin in Europe: 41.5% (Q4 FY26)
p. 8
“The gross margins in Europe was 41.5% in this quarter and the whole year, it was also 42.5%.”
R.V. Bubna, page 8 of the filed PDF · View the filing
Top 5 products revenue contribution: about 22%
p. 14
“I think it would be possible. See, I would say top 5, the contribution is about 22%.”
R.V. Bubna, page 14 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.
Gross margin — around 35% plus or minus a few% · FY27
stated conditionally by R.V. Bubna
p. 6
“But I can say for the FY27, we expect the revenue to grow about 10% to 15%, gross margins to stay around 35% plus or minus a few%, and EBITDA will be 18% to 20%.”
R.V. Bubna, page 6 of the filed PDF · View the filing
Revenue growth — 10% to 15% · FY27
stated conditionally by R.V. Bubna
p. 6
“But I can say for the FY27, we expect the revenue to grow about 10% to 15%, gross margins to stay around 35% plus or minus a few%, and EBITDA will be 18% to 20%.”
R.V. Bubna, page 6 of the filed PDF · View the filing
EBITDA margin — 18% to 20% · FY27
stated firmly by R.V. Bubna
p. 4
“For FY27, we are on track to maintain healthy EBITDA margins in the range of 18% to 20%.”
R.V. Bubna, page 4 of the filed PDF · View the filing
Volume growth — around 15% · FY27
stated conditionally by R.V. Bubna
p. 13
“I can only project. I do not have detailed calculations to tell you what will be. It should be around 15%.”
R.V. Bubna, page 13 of the filed PDF · View the filing
Non-agrochemical segment growth — 5% to 10%
stated as an aspiration by R.V. Bubna
p. 15
“Yes, I would say we should be able to grow about 5% to 10%.”
R.V. Bubna, page 15 of the filed PDF · View the filing
Effective tax rate — 18% to 20% · FY27 and FY28
stated conditionally by Shailesh Mehendale
p. 9
“So, the effective tax rate could be between 18% to 20% because globally we are having different tax rates applied.”
Shailesh Mehendale, page 9 of the filed PDF · View the filing
Growth momentum — FY2027
stated as an aspiration by R.V. Bubna
p. 3
“The company expects this growth momentum to continue in FY2027.”
R.V. Bubna, page 3 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.
Management broke down volume, FX, and price/mix contributions for the quarter and full year.
Answered by R.V. Bubna
Asked by Anubhav Mukherjee: What was the contribution of Forex and realization to revenue growth in Q4?
p. 5
“Yes, sir., the volume growth for the Q4 FY26 was (+4.3%). FOREX impact was (+11.7%). Price and product mix impact was (- 3.0%). Total growth was (+ 2.9%).”
R.V. Bubna, page 5 of the filed PDF · View the filing
Management said there was no major overall increase in procurement prices from China.
Answered by R.V. Bubna
Asked by Anubhav Mukherjee: Is China procurement pricing spiking due to the Middle East war?
p. 5
“No, sir. I would clarify; there is no major increase. There could be a small increase in some products, but it is not an overall trend up to now.”
R.V. Bubna, page 5 of the filed PDF · View the filing
Management said limited competition allows them to pass 80-90% of raw material price increases to customers.
Answered by R.V. Bubna
Asked by Disha: What gives confidence in sustaining margins amid volatility, and can raw material price hikes be passed on?
p. 6
“And so far, it has been our experience, 80% to 90%, we have been able to pass the price increase of the raw materials and the customers have very gracefully accepted it.”
R.V. Bubna, page 6 of the filed PDF · View the filing
Management clarified 18-20% referred to EBITDA margin, not revenue growth, and revenue growth guidance is 10-15%.
Answered by R.V. Bubna
Asked by Disha: Earlier guidance mentioned 18-20% revenue growth; is 10-15% now more conservative?
p. 7
“If I have said 18% to 20%, then maybe I have misstated it. I would say it will be 10% to 15%. I was talking about EBITDA, the 18% to 20% was EBITDA and not the revenue growth.”
R.V. Bubna, page 7 of the filed PDF · View the filing
CFO explained the loss was unrealized, from revaluation of foreign currency payables at quarter-end.
Answered by Shailesh Mehendale
Asked by Rajat Setiya: Why did the company report Forex losses in Q4 despite tight USD/EUR range?
p. 8
“So, this particular Forex loss which is reported in Q4 is mainly on account of unrealized Forex loss on the realignment of foreign currency payables.”
Shailesh Mehendale, page 8 of the filed PDF · View the filing
Management said they are a marketing company relying on registrations, not commodity trading.
Answered by R.V. Bubna
Asked by Vivek Gautam: How does the company counter the perception of being a trading company rather than an IP-led business?
p. 10
“My always statement that we are a marketing company. And for this marketing, registration is the most important and very strong requirement to market the products.”
R.V. Bubna, page 10 of the filed PDF · View the filing
Management said the inventory glut was caused by market-wide overbuying post-COVID, not by company actions.
Answered by R.V. Bubna
Asked by Vivek Gautam: What were the learnings from the 2022 inventory write-off?
p. 10
“This was created by the lot of players in the market who had seen a big scarcity of products during the COVID times.”
R.V. Bubna, page 10 of the filed PDF · View the filing
Management said growth is not solely dependent on new registrations but expects some registrations during the year.
Answered by R.V. Bubna
Asked by Madhu Agrawal: Does the 10-15% revenue growth guidance assume any new molecule registrations?
p. 11
“The top-line growth is not fully dependent upon the registrations that we get.”
R.V. Bubna, page 11 of the filed PDF · View the filing
Management said there have been no supply challenges despite uncertainty from the war.
Answered by R.V. Bubna
Asked by Rohit Nagraj: Has the Middle East war caused sourcing challenges from China?
p. 12
“No, sir. There are no challenges in the sourcing of the products in view of this war or the current situation.”
R.V. Bubna, page 12 of the filed PDF · View the filing
Management said delays and cost increases have been minor since routes avoid the Hormuz area.
Answered by R.V. Bubna
Asked by Rohit Nagraj: Have there been shipping delays or higher logistics costs from China due to the conflict?
p. 12
“See, I would say that the delays have been there but very insignificant, not impacting or jeopardizing our sourcing or transport.”
R.V. Bubna, page 12 of the filed PDF · View the filing
Management acknowledged the change and said current guidance is 10-15%, with room to exceed it.
Answered by R.V. Bubna
Asked by Khush Bafna: Has FY27 revenue guidance been revised down from the 15-20% given after Q3?
p. 13
“I do not remember. I mean, maybe last time I said 15% to 20%, but today for the coming year, my feeling is that it will be about 10% to 15%. It could go up and we will not stop if it goes up.”
R.V. Bubna, page 13 of the filed PDF · View the filing
Management said growth depends more on market share and customer confidence than on new registrations, noting the company holds under 5% global market share.
Answered by R.V. Bubna
Asked by Madhur Rathi: How should the slowing pace of registration growth be viewed relative to the business outlook?
p. 18
“Mr. Madhur Rathi, we are having not more than 5% of the market share globally.”
R.V. Bubna, page 18 of the filed PDF · View the filing
Risks flagged
Uncertainty from the ongoing war affecting sourcing and market conditions
p. 12
“Only thing is there is an uncertainty in the minds of the people and that what will happen if this happens or that happens.”
R.V. Bubna, page 12 of the filed PDF · View the filing
Unpredictability of the product registration process due to regulatory bureaucracy
p. 11
“Sometimes they meet, I mean, they are supposed to meet once in a quarter, sometimes they do not meet for two-three quarters.”
R.V. Bubna, page 11 of the filed PDF · View the filing
Forex impact on financial results is unpredictable and outside company control
p. 13
“This Forex impact is not under my control. We only have to face the situation and handle it as and when the situation unfolds in front of us.”
R.V. Bubna, page 13 of the filed PDF · View the filing
Slight increase in transportation costs due to rerouting shipments away from Hormuz/Iran/Iraq area
p. 12
“Similarly, there have been a slight increase in the transport cost but that is very insignificant.”
R.V. Bubna, page 12 of the filed PDF · View the filing
NAFTA agrochemical segment revenue degrowth due to weather and economic conditions
p. 7
“No specific cause. It could be based on the weather conditions and the economic situations in the United States.”
R.V. Bubna, page 7 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.