Chemical stock jumps 15% after reporting 366% YoY increase in net profit; Announces dividend

Synopsis: Sharda Cropchem Ltd’s shares jumped 15% after reporting a 366% YoY PAT surge to Rs. 145.1 crore in Q3FY26 on 39% revenue growth, alongside improved margins and an interim dividend of Rs. 6 per share.

This is a fast-growing global agrochemicals company with a peer position in the crop protection chemicals industry is now in the sporlithg tafter it reported its Q3 results with profit growth surge of 366%

With a market capitalisation of Rs. 8,804 cr, the shares of Sharda Cropchem Ltd are currently trading at Rs. 983 per share, surging 15% in today’s trading session making a high of Rs. 1,000, up from its previous close of Rs. 870.50 per share. The stock has rallied 75% over the past year, gained 13% year-to-date, declined 14% over the last six months, and slipped 17% in the past month.

Q3FY26 Results and Dividend 

YoY performance

Sharda Cropchem Ltd reported strong Q3 FY26 results, with revenue rising 39% year-on-year to Rs. 1,288.8 crore from Rs. 929.3 crore in Q3 FY25. Gross profit increased 48% to Rs. 450.3 crore, with margins improving to 34.9% from 32.7%. 

EBITDA rose 59% to Rs. 245.5 crore from Rs. 154.2 crore, with margins expanding to 19.1% from 16.6%. Profit after tax (PAT) surged 366% to Rs. 145.1 crore from Rs. 31.1 crore, while EPS jumped to 16.09 year-on-year.

QoQ performance

Revenue increased by 39% from Rs. 929 crore in Q2FY26 to Rs. 1,288.8 crore in Q3FY26, while net profit surged 96% to Rs. 145.1 crore from Rs. 74 crore.  Profit before tax rose by 108% from Rs. 85.72 crore to Rs. 178.56 crore. EPS also rose to Rs. 16.09 from Rs. 8.24 which is a increase of 95%. The Board of Directors has approved an interim dividend of Rs. 6.00 per equity share (face value Rs. 10 each) for the financial year 2025-26.

Segment, Product, and Region-wise revenue breakup 

Segment-wise, Sharda Cropchem Ltd’s agrochemical business drove growth, with revenue rising 48% year-on-year to Rs. 1,141 crore in Q3 FY26, while the non-agro segment declined 8% to Rs. 148 crore.

Product-wise, all major agrochemical categories reported strong growth: herbicides and insecticides both grew 43% to Rs. 663 crore and Rs. 218 crore respectively, while fungicides led the momentum with a 71% jump to Rs. 260 crore.

Region-wise, the agrochemical business saw a significant surge in Europe, with revenue more than doubling to Rs. 654 crore, up 123%, while LATAM grew 68% to Rs. 90 crore. Revenues in NAFTA declined 7% to Rs. 336 crore, and the Rest of the World remained largely flat at Rs. 61 crore.

Sharda Cropchem Ltd is a leading Indian agrochemical company engaged in the development, manufacturing, and marketing of crop protection products, including herbicides, insecticides, and fungicides. With a strong domestic and global presence, the company focuses on delivering innovative and sustainable solutions to enhance agricultural productivity while supporting farmers worldwide.

It demonstrates solid financial health with a ROCE of 16.5% and ROE of 12.6%, reflecting efficient capital utilization. The stock trades at a P/E of 19.4, below the industry average of 27.8, and the company is nearly debt-free. It also maintains a healthy dividend payout of 42.5%, highlighting consistent shareholder returns.

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