27-Oct-2026 08:54:45
SUMITOMO CHEMICAL Q2: REVENUE DOWN 2% YOY; EBITDA MARGIN DECLINES 297 BPS, H2 OUTLOOK CHALLENGING
• Revenue: Down 2% YoY to ₹907 Cr in Q2 FY27; H1 revenue down 1% to ₹1,971 Cr • Volume Pressure: Sales volumes declined by high-single-digit percentage amid weak agrochemical demand • Domestic Business: Revenue up 2% YoY to ₹774 Cr, showing resilience despite challenging industry conditions • Export Business: Revenue down 23% YoY to ₹127 Cr due to weak international demand • Gross Margin: Declined 240 bps YoY to 40.7%, impacted by higher-cost inventory • EBITDA Margin: Contracted 297 bps YoY to 20.5%, reflecting elevated raw material costs • Inventory Costs: Higher-cost inventory purchased during Q1 impacted Q2 margins; mismatch largely normalised by quarter-end • Industry Challenges: Delayed monsoon, 13% rainfall deficit and prolonged dry spells impacted crop sowing and agrochemical consumption • Product Launches: Introduced Topgrain biostimulant and Helibex, strengthening the differentiated product portfolio • Capacity Expansion: Ongoing capex progressing as planned, with production expected within previously announced timelines • H2 FY27 Outlook: Management expects challenging demand conditions due to lower reservoir levels, extended El Niño impact and potential crop acreage constraints • Growth Strategy: Focus on differentiated products, dynamic pricing, cost management and priority molecules to support performance
SUMITOMO CHEM INDIA LTD