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Sharda Cropchem Ltd
NSE: SHARDACROP BSE: 538666 INE221J01015 Commodities Chemicals 🔎 Screen
Microcap 250
₹8,190 Cr
Market Cap
12.8
P/E
0.50
PEG
30.4%
ROCE
24.2%
ROE
0.00
D/E
19.8%
OPM
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Sharda Cropchem is principally engaged in export of agrochemicals (technical grade and formulations) and non-agro products such as conveyor belts, rubber belts/sheets, dyes and dye intermediates to various countries across the world.

✓ Strengths 4
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has delivered good profit growth of 24.9% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 43.8%
! Concerns 2
  • Company has a low return on equity of 13.6% over last 3 years.
  • Company has high debtors of 166 days.
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
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Strong beat: revenue +13% YoY, EBITDA margin surged 880bps to 24.8%, and PAT +57%, driven by agrochemical growth and gross margin expansion. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹2,064.9 Cr
+13% YoY (volume +4.3%, mix benefit)
EBITDA Margin
24.8%
+880bps YoY (vs 16.0%)
PAT
₹318.7 Cr
+57% YoY
Gross Margin
37.3%
+750bps YoY, driven by better product mix & cost pass-through
What Went Right
  • Agrochemical segment revenue grew 14% to ₹1,927 Cr, led by Europe (+20% to ₹1,342 Cr) and LATAM (+17% to ₹46 Cr).
  • Gross margin expanded 750bps to 37.3% – the highest in at least 5 quarters – supported by favorable mix and pricing.
  • EBITDA jumped 75% to ₹512.9 Cr, with margin improving to 24.8% from 16.0%.
  • PAT surged 57% to ₹318.7 Cr, a record quarterly profit.
  • Working capital reduced by 20 days to 98 days, improving cash conversion.
What to Watch
  • NAFTA agrochemical revenue fell 6% YoY to ₹461 Cr, with volumes shrinking in a key region.
  • Non‑agrochemical segment revenue was flat at ₹138 Cr (0.3% growth), dragged by Europe (–27%) and LATAM (–1%).
  • Forex loss of ₹25.8 Cr reversed a gain of ₹10.5 Cr in Q4 FY25, adding a headwind to profitability.
  • Capex surged to ₹505 Cr in FY26 (vs. prior year ₹??? not disclosed quarterly), which may pressure free cash flow if not matched by returns.
Management Guidance
  • Management expects gross margins to remain at current levels (~35-37%) in FY27 (stated on slides 17 and 23).
Investor Lens
The asset-light thesis remains intact after a stellar quarter: gross margins hit a multi-year high and EBITDA margins surpassed 24%. However, the reliance on Europe (70% of agrochem revenue) and the 6% decline in NAFTA are notable risks. The company’s record PAT and strong balance sheet (₹702 Cr cash) provide a cushion, but investors should watch whether gross margins sustain above 35% and whether NAFTA can rebound as forex volatility continues. Next quarter, key focus: volume growth in non-Europe regions and any change in management’s explicit revenue guidance.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: revenue up 13% YoY, OPM at 24%, PAT up 56%
Revenue
Revenue stood at ₹2,065 Cr, up 12.9% YoY and a sharp 60.2% QoQ. The sequential surge indicates strong seasonal demand in the March quarter.
Profitability
Net profit jumped 56.4% YoY to ₹319 Cr, with EPS rising from ₹22.56 to ₹35.32. PBT margin improved to 20.4% versus 14.7% a year ago.
Margins
Operating profit margin expanded to 24% from 17% in Q4 FY25 and 19% in the previous quarter. Improved cost efficiency and pricing helped boost margins.
Balance Sheet
The company maintains a debt-free balance sheet with reserves of ₹3,046 Cr and total assets of ₹5,780 Cr. Zero borrowings provide financial flexibility.
Key Risks
1) Revenue seasonality – the 60% QoQ jump may not sustain, and the next quarter could see a decline. 2) Commodity price volatility could pressure margins if input costs rise.
Outlook
With robust margin expansion and a debt-free balance sheet, the company is well-placed to capture upcoming demand. However, near-term growth may moderate due to seasonal factors.
Generated by AI · Mar 2026 results · Not investment advice
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Revenue by Segment

Segment Q4FY26 Trend
Agrochemicals
1,927
EBIT 380
Non-Agrochemicals
138
EBIT 34
Total 2,065

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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