Sharda Cropchem Ltd (NSE:SHARDACROP)

Q1 2027 Sharda Cropchem Ltd Earnings Call Transcript

Jul 30, 2026 / 10:00 AM GMT

Release Date Price: ₹820 (-0.57%)

Transcript

Key Points

Positve

Revenue for Q1 FY27 rose 9% year-on-year to Rs 1,074 crores, with agrochemical business growing 8% and non-agrochemical 15%.
Gross margins expanded by 120 basis points to 36.7%, driven by favorable product mix and improved profitability in NAFTA, LATAM, and rest of the world.
EBITDA grew 25% to Rs 178 crores, with EBITDA margin up 220 basis points to 16.6%.
The company remains debt-free with cash and liquid investments of Rs 767 crores as of June 30, 2026, up from Rs 702 crores in March 2026.
Working capital days improved by 10 days to 88 days, reflecting better efficiency.
Management maintained FY27 guidance of 10-15% revenue growth and expects volume growth of 5-10%.
Product registrations increased to 3,016, with 1,027 applications pending approval, supporting long-term growth.
Pricing trends are improving after a severe downturn two years ago, with prices stabilizing and slowly rising.
Europe's agrochemical margins improved to 44.2% despite revenue softening, indicating strong pricing power.
The company expects Europe volumes to recover in coming quarters as distributor restocking normalizes.

Negative

Europe, the largest market, saw a temporary softening in revenue due to distributors cutting back stock amid unusual heat wave conditions.
Volume growth was negative at -1.6% in Q1, with product mix impact of -2.1%, offsetting some revenue gains.
ForEx gains dropped sharply to Rs 7.5 crores from Rs 73.1 crores in the prior year, impacting reported EBIT, PBT, and PAT.
LATAM gross margins declined to 16.9% from 28% year-on-year, despite strong volume growth, indicating pricing pressure.
Depreciation and amortization are expected to rise to around Rs 370-375 crores for FY27, up from Rs 325 crores last year, due to higher registration investments.
The company faces uncertainty in registration timelines and costs, which are subject to regulatory approvals and can be unpredictable.
Management acknowledged that precise forecasting is difficult due to uncontrollable factors like weather, politics, and currency fluctuations.
The effective tax rate in Q1 was higher at 26%, though expected to normalize to 18-20% on an annualized basis.
The company's asset-light model relies heavily on contract manufacturing from China, exposing it to supply chain and geopolitical risks.
New product contributions are limited initially as they require time to gain market acceptance, with older products fading away.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SHCR.NS - Sharda Cropchem Ltd
Q1 2027 Sharda Cropchem Ltd Earnings Call
Jul 30, 2026 / 10:00AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and Gentlemen, Good day and welcome to Sharda Croptem Limited Q1 FY27 Earnings Conference Call hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing then 0 on your touchstone telephone.

Please note that this conference is being recorded.

I now hand the conference over to Mr. Riju Diloi.

Thank you and over to you, sir.

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Unidentified_2 [2]
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