1. Opening Hook
Just when the agrochem sector looked deader than my New Year resolutions, Sharda Cropchem walked in with a 20% revenue flex—like that one student who mysteriously tops without attending a single lecture. Markets may be confused, but Sharda is serving growth like prasad. And as theBhagavad Gitareminds us, “You have the right to work, not to the fruits thereof”—clearly, Sharda chose both this quarter.
Stick around; the real masala hits later. 😏
2. At a Glance
- Revenue up 20%– CFO swears it’s demand revival, not Excel jugglery.
- Volume up 35%– Looks like distributors finally emptied their dusty godowns.
- Gross Margin 34.5%– 690 bps jump; even AI is jealous.
- EBITDA up 71%– The sidekick became the superhero.
- PAT up 75%– Profit stopped hiding and showed up strong.
- Working capital down by 34 days– Cash cycle went to the gym.
- Cash ₹794 cr– Enough liquidity to buy half the industry’s stress.
3. Management’s Key Commentary
“Global agrochemical market is recovering with demand revival and pricing improvement.”(Translation: Everyone’s restocking finally, thank god.)
“Volume growth at 35% is across regions.”(Translation: We sold everywhere. Stop asking geography-wise doubts.)
“Gross margins expanded due to stable input costs.”(Translation: Raw materials finally stopped playing KBC with us.)
“Second half is always better due to seasonality.”(Translation: Don’t expect us to explain quarter-to-quarter mood swings. 🌦️)
“Tariffs? We pass everything to customers.”(Translation: U.S. farmers pay the bill, not us.)
“Product mix explains revenue vs. volume mismatch.”(Translation: Yes, maths looks weird, but trust us—or don’t.)
“We don’t speculate on future revenue (₹10,000 crore?).”(Translation: Bro, we aren’t astrologers. 😒)
4. Numbers Decoded
-------------------------------------------------------------
Metric Q2 FY26 Q2 FY25
-------------------------------------------------------------
Revenue (₹ Cr) 929 777
Volume Growth (%) 35% ---
Gross Margin (%) 34.5% 27.6%
EBITDA (₹ Cr) 139 81
EBITDA Margin (%) 15% 10.4%
PAT (₹ Cr) 74 42
Registrations (Nos) 2,994 ---
Pipeline Registrations 1,068 ---
Working Capital Days 84 118
Cash & Investments (₹ Cr) 794 ---
-------------------------------------------------------------- Europe GM at 43% remains the sugar daddy of margins.
- LATAM & NAFTA continue being the problem children with low GMs.
- Product mix remains the invisible villain behind “pricing degrowth.”
5. Analyst Questions
Q: Why is Europe slower and NAFTA booming?A: “Weather is good everywhere. 15% is normal.”(Translation: Stop overthinking.)
Q: What explains negative realization?A: “Don’t mix historic pricing with quarterly maths.”(Translation: Please don’t make us explain this again.)
Q: Why EBIT dropped vs Q1 despite flat sales?A: “Product mix.”(Translation: Our universal excuse.)
Q: Will tariffs impact demand?”A: “Nope. Farmers pay.”(Translation: Tariffs are everyone else’s headache.)
6. Guidance & Outlook
Management expects:
- Gross margins to stay 34–35%.
- EBITDA margin for FY26 at 15–18%(translation: second half must carry the team like Dhoni in 2011).
- Capex
