Sumitomo Chemical India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sumitomo Chemical India Ltd filed with BSE on 04 Jun 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
Sumitomo Chemical India reported its highest-ever profitability in FY26, with PAT growing over 7% year-on-year to Rs 543 crores despite revenue growth of only 3% amid a challenging monsoon and regulatory environment. Management announced a leadership transition effective September 2026, with Dr. Suresh Ramachandran set to become Managing Director and Chetan Shah moving to a non-executive Chairman role. The company also outlined FY27 plans including new product launches, continued capex at Dahej, and cautious optimism tempered by monsoon and geopolitical risks.
Numbers mentioned
PAT: INR543 crores (FY26)
p. 3
“Our PAT grew by more than 7% year-to-year to INR543 crores.”
Chetan Shah, page 3 of the filed PDF · View the filing
PBT before exceptional items growth: more than 9% year-on-year (FY26)
p. 3
“PBT before exceptional items grew by more than 9% year-on-year.”
Chetan Shah, page 3 of the filed PDF · View the filing
Gross profit margin: 42% (FY26)
p. 3
“Our gross profit margin stands at 42% and our EBITDA margin stands at 20.7%.”
Chetan Shah, page 3 of the filed PDF · View the filing
Net profit margin: 16.8% (FY26)
p. 3
“And also, our net profit margins are 16.8%.”
Chetan Shah, page 3 of the filed PDF · View the filing
Revenue growth: 3% (FY26)
p. 3
“We achieved all of this while growing top line by 3%, maintaining complete pricing integrity, recording negligible returns of goods from the channel”
Chetan Shah, page 3 of the filed PDF · View the filing
Domestic revenue growth: 4% year-on-year (Q4 FY26 and FY26)
p. 5
“On business mix, domestic revenue grew by 4% year-on-year in both Q4 and the full year, with the domestic franchise demonstrating genuine resilience.”
Suresh Ramachandran, page 5 of the filed PDF · View the filing
Branded formulation share in domestic sales: 81% (FY26)
p. 5
“Our branded formulation share in domestic sales improved to 81% in FY '26 from 79% in FY '25, reflecting the ongoing structural shift towards higher quality, higher margin revenue.”
Suresh Ramachandran, page 5 of the filed PDF · View the filing
Export revenue decline: 7% in Q4, 1% for full year (Q4 FY26 and FY26)
p. 5
“Export revenues declined 7% in Q4 and 1% for the full year, primarily due to shipment difference in select geographies and softer demand conditions in certain markets.”
Suresh Ramachandran, page 5 of the filed PDF · View the filing
Herbicides growth: 87% in Q4, 19% for full year (Q4 FY26 and FY26)
p. 5
“On product categories, in FY '26, herbicides registered a strong growth 87% year-over-year in Q4 and 19% for the full year driven by healthy traction of our soybean herbicide flumioxazin”
Suresh Ramachandran, page 5 of the filed PDF · View the filing
Metal phosphates growth: 16% in Q4, 11% for full year (Q4 FY26 and FY26)
p. 5
“Metal phosphates grew 16% in Q4 and 11% for the full year.”
Suresh Ramachandran, page 5 of the filed PDF · View the filing
Cash and cash equivalents: approximately INR2,113 crores (as on 31st March 2026)
p. 7
“Our cash and cash equivalents, including liquid investments as on 31st March 2026, were at approximately INR2,113 crores.”
Kunal Mittal, page 7 of the filed PDF · View the filing
Return on capital employed: 31% (FY26)
p. 7
“Return on capital employed improved to 31% from 29% the year before.”
Kunal Mittal, page 7 of the filed PDF · View the filing
Net worth: INR3,394 crores (FY26)
p. 7
“And our net worth grew to INR3,394 crores, a 17% year-on-year increase, funded entirely through retained earnings.”
Kunal Mittal, page 7 of the filed PDF · View the filing
Q4 revenue: INR684 crores (Q4 FY26)
p. 9
“For Q4 FY '26, revenue from operation was INR684 crores, up 1% year-on-year.”
Anil Nawal, page 9 of the filed PDF · View the filing
Q4 gross profit: INR289 crores (Q4 FY26)
p. 9
“Gross profit grew 6% to INR289 crores at a gross margin of 42.3%, expanding 223 basis points.”
Anil Nawal, page 9 of the filed PDF · View the filing
Q4 EBITDA: INR134 crores (Q4 FY26)
p. 9
“EBITDA grew 12% to INR134 crores at a margin of 19.6%, expanding 202 basis points.”
Anil Nawal, page 9 of the filed PDF · View the filing
Q4 PAT: INR111 crores (Q4 FY26)
p. 9
“PAT,(profit after tax), grew 12% to INR111 crores at a PAT margin of 16.3%, expanding 159 basis points.”
Anil Nawal, page 9 of the filed PDF · View the filing
FY26 revenue: INR3,238 crores (FY26)
p. 9
“For FY '26, revenue from operation was INR3,238 crores, up 3% year-on-year.”
Anil Nawal, page 9 of the filed PDF · View the filing
FY26 EBITDA: INR671 crores (FY26)
p. 9
“EBITDA was INR671 crores, up 6% year-on-year, at an EBITDA margin of 20.7%, an improvement of 64 basis points.”
Anil Nawal, page 9 of the filed PDF · View the filing
FY26 Profit before tax: INR728 crores (FY26)
p. 9
“Profit before tax was INR728 crores, up 7% year-on-year at a PBT margin of 22.5%.”
Anil Nawal, page 9 of the filed PDF · View the filing
FY26 Net profit: INR543 crores (FY26)
p. 9
“Net profit was INR543 crores, up 7% year-on-year at a net profit margin of 16.8% and improvement of 68 basis points.”
Anil Nawal, page 9 of the filed PDF · View the filing
Net working capital days: 103 days (as of 31st March 2026)
p. 9
“On working capital, our net working capital stood at 103 days as of 31st March 2026 versus 89 days a year ago.”
Anil Nawal, page 9 of the filed PDF · View the filing
Total collections: approximately INR3,726 crores (FY26)
p. 10
“Receivable days improved meaningfully from 91 days to 83 days and total collection during FY '26 were approximately INR3,726 crores as compared to INR3,534 crores in FY '25, an increase of approximately 5%.”
Anil Nawal, page 10 of the filed PDF · View the filing
CRAMS/CSM revenue: INR100 crores to INR150 crores
p. 11
“It is roughly in the range of INR100 crores to INR150 crores, depending upon the market situation in terms of volumes at this current level.”
Kunal Mittal, page 11 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.
Price increases on 1st June — 1st June
stated conditionally by Chetan Shah
p. 12
“So it is a very, very cautious approach.”
Chetan Shah, page 12 of the filed PDF · View the filing
Royalty cap disclosure — INR2 crore cap · annual report
stated firmly by Kunal Mittal
p. 9
“In our annual report, we plan to disclose a cap of INR2 crore, but the actual number of royalty is expected to be lower than this.”
Kunal Mittal, page 9 of the filed PDF · View the filing
Biologicals revenue share — from FY27 onwards
stated as an aspiration by Suresh Ramachandran
p. 5
“We expect this share and absolute revenue contribution to grow meaningfully from FY27 onwards as the new framework takes full effect.”
Suresh Ramachandran, page 5 of the filed PDF · View the filing
Dahej capex commercialization — next 2 years
stated firmly by Kunal Mittal
p. 14
“This is the first project coming at Dahej, and it is expected to be commercialized in next 2 years or so, and that continues on the track.”
Kunal Mittal, page 14 of the filed PDF · View the filing
Additional Dahej-style capex announcements — every year for next few years
stated as an aspiration by Kunal Mittal
p. 18
“So let's say, every year for next few years, we can keep announcing one project.”
Kunal Mittal, page 18 of the filed PDF · View the filing
CRAMS/CSM revenue maintenance — INR110 crores to INR130 crores, INR140 crores level · current financial year
stated as an aspiration by Kunal Mittal
p. 16
“So current financial year, our endeavor will be to maintain the sales which we have, like as I mentioned earlier, it is between INR110 crores to INR130 crores, INR140 crores level at this point of time.”
Kunal Mittal, page 16 of the filed PDF · View the filing
FY27 outlook — FY27
stated conditionally by Suresh Ramachandran
p. 7
“Overall, for FY '27, we are cautiously optimistic of the upcoming season based on the situations I described above.”
Suresh Ramachandran, page 7 of the filed PDF · View the filing
Q1 FY27 outlook — Q1 FY27
stated conditionally by Suresh Ramachandran
p. 7
“The situation in Q1 FY '27 looks constructive overall, though we acknowledge that Q2 FY '27 and the second half of the year will be largely shaped by monsoon outcomes and global dynamics, particularly in the context of the ongoing geopolitical environment.”
Suresh Ramachandran, page 7 of the filed PDF · View the filing
Capex pipeline over next decade — next decade
stated as an aspiration by Kunal Mittal
p. 7
“Our expectation and endeavor is that we can continue sustained pipeline of capex projects and investments over the next decade.”
Kunal Mittal, page 7 of the filed PDF · View the filing
New biostimulant molecule commercialization — coming kharif
stated firmly by Suresh Ramachandran
p. 13
“We got the registration towards the end of last year, which we expect to commercialize in the coming kharif.”
Suresh Ramachandran, page 13 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 said they are working closely with the parent's ICTM department and expect to make an official announcement soon.
Answered by Chetan Shah
Asked by Rajas Joshi: What are the company's plans regarding the parent's semiconductor materials commercialization in India?
p. 10
“So far, all the meetings with the government officials, the customers, or whatever you may call, it's all happened jointly with us.”
Chetan Shah, page 10 of the filed PDF · View the filing
Management said price realization improved but cost increases largely offset the benefit, keeping margin impact roughly neutral.
Answered by Suresh Ramachandran
Asked by Rajas Joshi: How will Middle East tensions and price increases affect export margins?
p. 11
“But it may not translate completely into percentage margin because the cost is going up and the price is going up.”
Suresh Ramachandran, page 11 of the filed PDF · View the filing
Management said they remain confident in sustaining margins through calibrated pricing actions and product mix management.
Answered by Chetan Shah
Asked by Probal Sen: Should margins be viewed more cautiously for FY27 given monsoon and geopolitical uncertainty?
p. 12
“we are able to give or ensure the margins on a sustainable basis. And we will do the same thing continuously to ensure that margins are sustainable.”
Chetan Shah, page 12 of the filed PDF · View the filing
Management said they deliberately built higher inventory levels in Q4 to buffer against extended lead times.
Answered by Chetan Shah
Asked by Probal Sen: Has inventory strategy changed given raw material and logistics uncertainty?
p. 12
“So instead of 90 days inventory, we went for more number of days of inventory.”
Chetan Shah, page 12 of the filed PDF · View the filing
Management said the required price increase varies widely by product, ranging up to 20-25% in some cases.
Answered by Suresh Ramachandran
Asked by Siddharth Gadekar: What price hikes are needed to pass on the full raw material cost increase?
p. 13
“On a large scale, can we say maybe 10%, 15% cost escalation depending on the product. Some products have even gone up to 20%, 25%.”
Suresh Ramachandran, page 13 of the filed PDF · View the filing
Management said prices were largely stable and most revenue growth came from volume.
Answered by Suresh Ramachandran
Asked by Ankur Periwal: What drove FY26 revenue growth - volume or price?
p. 15
“Most of the increase that you see in terms of revenue is primarily from volume.”
Suresh Ramachandran, page 15 of the filed PDF · View the filing
Management said growth was primarily volume-driven, with some pre-buying due to concerns about availability given the war situation.
Answered by Suresh Ramachandran
Asked by Riju Dalui: Was Q4 herbicide growth driven by pre-buying ahead of price hikes and war-related uncertainty?
p. 17
“probably to some extent, I would say that since the war situation was emerging, channel was little bit skeptical about the availability of herbicides and probably they bought little early compared to what they would have done in a normal year.”
Suresh Ramachandran, page 17 of the filed PDF · View the filing
Management said there is no supply constraint and they have prudently stocked materials to ensure no customer order is turned down.
Answered by Chetan Shah
Asked by Animesh Jain: Is there any disruption in raw material or technical procurement?
p. 13
“We are not facing any constraint on our supply chains. We are getting the materials as we want.”
Chetan Shah, page 13 of the filed PDF · View the filing
Risks flagged
Below-normal monsoon forecast
p. 6
“IMD has forecast the southwest monsoon to be 92% of the long period average, placing it in the below normal category.”
Suresh Ramachandran, page 6 of the filed PDF · View the filing
El Nino emergence probability
p. 6
“And global weather agencies, including NOAA, are indicating 82% probability of El Nino emergence during the May to July period.”
Suresh Ramachandran, page 6 of the filed PDF · View the filing
Fertilizer supply timing risk affecting cropping patterns
p. 6
“First of them is timely and adequate supply of fertilizers for Indian farmers, which may influence farming activities and cropping patterns or crop shifts can happen during the upcoming season.”
Suresh Ramachandran, page 6 of the filed PDF · View the filing
Rupee depreciation and rising input costs
p. 6
“On cost and pricing, FY '27 will be characterized by headwinds from depreciating rupee, escalating cost across raw materials, packaging materials, solvents, transportation, driven by geopolitical developments.”
Suresh Ramachandran, page 6 of the filed PDF · View the filing
Global container availability and shipment delays
p. 5
“On logistics specifically, global container availability remained somewhat constrained towards the end of Q4, especially in March and into the early part of FY '27, with some shipment delays experienced, including to Africa.”
Suresh Ramachandran, page 5 of the filed PDF · View the filing
Regulatory constraints on biostimulant and PGR categories
p. 3
“Biostimulants, regulatory constraints affected the PGR and biological categories for a significant part of the year.”
Chetan Shah, page 3 of the filed PDF · View the filing
West Asia geopolitical tension and trade uncertainty
p. 3
“West Asia geopolitical tension and global trade uncertainties added further complexity to the operating environment in the month of March '26.”
Chetan Shah, page 3 of the filed PDF · View the filing
Excess rainfall damaging kharif crops
p. 3
“The long and excess rainfall through the peak kharif consumption window from mid-July to September and into October curtailed farmers field activity across the country.”
Chetan Shah, page 3 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.