Sharda Cropchem Limited (SHARDACROP) share price
₹765.55 on NSE as of 2026-09-11. -2.02% on the day. market cap ₹6,907 Cr. P/E 11.0. 52-week range ₹760.90 to ₹1256.00. Chemicals.
Sharda Cropchem Q1 FY27: Revenue Up 9%, PAT Down 38%, and a ₹7.5 Crore Forex Line Doing All the Talking
At a glance
Sharda Cropchem closed the June 2026 quarter with revenue of ₹1,074 Cr, up 9% from ₹985 Cr a year earlier. Operating profit came in at ₹186 Cr against ₹215 Cr in the same quarter last year. Net profit was ₹88 Cr versus ₹143 Cr, and EPS ₹9.76 against ₹15.83.
The gap between a rising top line and a falling bottom line sits in one line item. Management disclosed a forex gain of ₹7.5 Cr this quarter against ₹73.1 Cr in Q1 FY26, and stated that the lower gain "resulted in a corresponding impact on EBIT, Profit Before Tax (PBT), and PAT." The company also disclosed PBT prior to forex gains of ₹111 Cr against ₹96 Cr, up 16%. Management described last year's figure as mostly an unrealised gain from a sharp currency move.
Segment-wise, agrochemicals contributed ₹915 Cr (+8% YoY) and non-agrochemicals ₹159 Cr (+15%). Region-wise, Europe agro revenue fell 11% to ₹467 Cr while NAFTA rose 33% to ₹339 Cr, LATAM 52% to ₹72 Cr and Rest of World 78% to ₹37 Cr. Management attributed the European moderation to distributors cutting back stocking after heat wave conditions, and said European agrochemical margins improved even as volumes softened.
Depreciation and amortisation rose to ₹100 Cr from ₹78 Cr. Capex for the quarter — almost entirely product registrations — was ₹263 Cr. The company remains debt-free, with cash, bank and liquid investments of ₹767 Cr.
For a company that manufactures nothing anywhere on earth, the quarter's swing factor turned out to be the exchange rate. More on that oddity below.
Introduction
Sharda Cropchem was formed in 2004 by merging two proprietorships, Sharda International and Bubna Enterprises, founded in 1987 and 1988 respectively. The company exports agrochemicals — technical grade and formulations — plus non-agro products including conveyor belts, rubber belts and sheets, dyes and dye intermediates.
Its structure is a sprawl. As of 30 June 2026 the company had 36 subsidiaries, including nine step-down entities under one of them, scattered from Skopje to Guatemala to Taiwan. A Dubai subsidiary set up in fiscal 2013 was redomiciled to the Dubai Airport Freezone and renamed Sharda International FZCO effective June 2024. A new Australian subsidiary was formed on 19 November 2025.
The June 2026 results were approved by the board on 29 July 2026, with B S R & Co. LLP issuing an unmodified limited review conclusion on both standalone and consolidated statements. On the same day the company filed an investor presentation and a media release, and two days later an earnings call recording.
The recent operating record is a V. FY24 revenue fell to ₹3,163 Cr and net profit collapsed to ₹32 Cr. FY25 recovered to ₹4,320 Cr and ₹304 Cr. FY26 landed at ₹5,268 Cr revenue and ₹681 Cr profit — the largest of the decade on both lines. CRISIL reaffirmed a Crisil A1+ rating on ₹456 Cr of short-term bank facilities on 23 February 2026, noting the company operates in over 80 countries and that its working capital operations peak during January–March.
Older filings note tax demands from the Income Tax Department of ₹78.56 Cr in March 2024 and ₹101.31 Cr in May 2024, with the company filing appeals, followed by favourable tax orders in January 2025 reducing contingent liability by ₹145.60 Cr.
Management has maintained FY27 revenue growth guidance of 10–15%.
Business model
Here is the sentence that explains everything, from management's own mouth on the July call: "We don't manufacture anything anywhere in the world, including India… We get everything manufactured as per requirement from the manufacturers mainly from China."
So what is Sharda? It is a paperwork company with a global distribution arm bolted on. The actual product is the dossier — the regulatory file that lets a molecule be legally sold in a given country. Sharda watches which agrochemical patents are about to expire, gets the generic version registered in its own name across jurisdictions, and then sells it. The chemistry happens elsewhere. The value, per the company's own framing, sits in registration ownership and customer access.
The scoreboard: 3,016 product registrations as of 30 June 2026, up from 3,011 at March 2026 — five in a quarter. Another 1,027 applications sit pending at various stages. Regionally, Europe went 1,679 → 1,682 registrations, LATAM held flat at 760, Rest of World flat at 249. A company spent ₹263 Cr in three months to add five certificates. That is roughly ₹53 Cr per new piece of paper, which management pre-empted by explaining approvals are lumpy: registration is "full of all the uncertainties… 'Nobody can say when will you receive the registration and at what cost.'"
The product side splits into herbicides at ₹457 Cr for the quarter, insecticides ₹233 Cr and fungicides ₹225 Cr, plus biocides. The non-agro half is a genuinely unrelated grab bag — rubber and conveyor belts for material handling, dyes and dye intermediates for textiles, and industrial chemicals for water treatment and food processing — riding the same sourcing and logistics rails. It did ₹159 Cr this quarter, 15% of revenue.
Distribution runs through 525+ third-party distributors and 500+ sales professionals across 80+ countries. CRISIL notes the supplier base in China is wide enough that no single supplier accounts for 3–5% of sales, and no single molecule contributes more than 10% of revenue.
The balance sheet shows what asset-light means literally: property, plant and equipment of ₹2.5 Cr at March 2026, against other intangible assets of ₹986 Cr. The registrations are the factory.
Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Sharda Cropchem Limited.
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