Financial Performance Summary

Sumitomo Chemical India Limited (SCIL) reported strong financial results for FY 2025-26 with revenue from operations increasing 3% to ₹3,238 crore from ₹3,061 crore in FY 2024-25. Profit After Tax reached ₹543 crore, a 7-8% increase from ₹502 crore in the previous year, marking the highest-ever profitability in the Company's history.

Key Financial Metrics:

  • Gross Profit Margin: 42% (highest in history)
  • EBITDA Margin: 20.7% (highest in history)
  • Net Profit Margin: 16.8% (highest in history)
  • Return on Capital Employed: 31% (improved from 29%)
  • Net Worth: ₹3,394 crore (17% growth, funded entirely through retained earnings)
  • Market Capitalization (as on 31 March 2026): ₹182,038.45 million

Segment Performance:

  • Domestic sales increased from ₹2,384.19 crore to ₹2,484.73 crore
  • Exports decreased marginally from ₹676.64 crore to ₹670.73 crore
  • Branded formulations constitute 81% of domestic sales
  • Specialty portfolio接近 30% of domestic revenues

Operational Highlights

FY 2025-26 was characterized by climatic challenges including prolonged and excess rainfall across several regions, which impacted crop productivity and agrochemical consumption. Despite these challenges, the Company delivered stable performance through disciplined execution.

The Company successfully launched 7 new products during the year, including Excalia Max® (Paddy Fungicide) and Lentigo (Herbicide), which met or exceeded internal expectations. SCIL operates 5 manufacturing facilities in Gujarat, Maharashtra and Silvassa, accompanied by three DSIR-approved R&D labs.

Leadership and Governance Changes

The Annual Report outlines significant leadership transitions effective September 2026:

  • Dr Mukul Govindji Asher concludes his term as Chairman on 31 August 2026
  • Mr Chetan Shah to transition from Managing Director to Non-Executive Non-Independent Director
  • Dr Suresh Ramachandran to be elevated to Managing Director (subject to shareholder approval)
  • Mr Sushil Marfatia to retire from the Board
  • Mr N Sivaraman proposed for reappointment as Independent Director
  • Mr Anand Mohan Tiwari proposed as new Independent Director

The Board has approved payment of up to ₹30 million to Mr Chetan Shah for advisory fees for the period from 01 September 2026 up to 31 August 2027.

Dividend Declaration

The Board has recommended a dividend of ₹1.30 (13%) per equity share on 499,145,736 shares of ₹10 each, aggregating ₹648.89 million (previous year: ₹598.97 million). Record Date is Friday, 17 July 2026 with payment on or after Monday, 3 August 2026.

Financial Risk Management

The Group is exposed to foreign exchange risk and uses forward contracts to hedge this exposure. An expected credit loss (ECL) provision of ₹603.68 million was held against gross trade receivables of ₹7,959.77 million. The Group disclosed contingent liabilities of ₹600.73 million and a net defined benefit obligation for gratuity of ₹141.70 million.

Subsidiary Performance

Material subsidiaries include Barrix Agro Sciences Private Limited (85% ownership) and Excel Crop Care (Africa) Limited (99.94% ownership, under liquidation process). Consolidated revenue stood at ₹32,383.15 million with 3.1% growth, while consolidated profit reached ₹5,429.75 million with 7.2% growth.

Audit and Compliance

Auditor B S R & Co. LLP issued an unmodified opinion confirming adequate internal financial controls and compliance with accounting standards. The Company has complied with all applicable statutory requirements and received unmodified audit opinions from statutory auditors.

Outlook

The Company enters FY 2026-27 with cautious optimism due to India Meteorological Department's forecast of below-normal southwest monsoon (92% of long-period average), cost headwinds from depreciating rupee and elevated input prices, though increase in minimum support prices supports farmer sentiment.