Sumitomo Chemical India Limited (SCIL) announced its financial performance for the quarter and year ended March 31, 2026. The company reported its highest ever profitability in FY26, achieving record absolute terms and margins, despite a challenging agrochemical industry landscape marked by adverse weather conditions and global uncertainties. In FY26, SCIL's Profit After Tax (PAT) grew by over 7% year-on-year to ₹543 crore, with Profit Before Tax (PBT) before exceptional items increasing by over 9%. The company achieved record gross profit margin of 42%, EBITDA margin of 20.7%, and net profit margin of 16.8%. This was accomplished while growing the top line by 3%, maintaining pricing integrity, and recording negligible returns of goods. Significant leadership transitions are proposed to take effect from September 1, 2026. Dr. Mukul Asher, the current chairman and independent director, will complete his term. Mr. N. Sivaraman is proposed for reappointment as an independent director, and Mr. Anand Mohan Tiwari is proposed as a new independent director. The current Managing Director, Mr. Chetan Shah, will transition to a non-executive, non-independent director role and may be considered for the Chairman position. Mr. Sushil Marfatia will retire from his Executive Director role. Dr. Suresh Ramachandran is proposed to be elevated to the position of Managing Director. The company's revenue from operations for FY26 was ₹3,238 crore, a 3% increase year-on-year. Herbicides showed strong growth of 19% for the full year, driven by products like flumioxazin and the newly launched Lentigo. Metal phosphates grew 11% year-on-year. Insecticides remained resilient, while the biostimulant segment, though impacted by regulatory constraints, is expected to grow with new product approvals and launches, including the new biostimulant 'Top Grain'. SCIL is also enhancing its digital outreach to farmers and has received recognition for innovation-led marketing. The company's balance sheet remains debt-free, with cash and cash equivalents of approximately ₹2,113 crore as of March 31, 2026. Return on capital employed improved to 31%, and net worth grew by 17% year-on-year. Looking ahead to FY27, the company anticipates headwinds from a depreciating rupee and escalating costs but plans to manage these through calibrated, market-sensitive price increases. SCIL is cautiously optimistic about the upcoming season, with supply chain planning based on a normal kharif season, while closely monitoring monsoon forecasts and geopolitical developments. New initiatives include elevating India to a tier for early-stage testing and introduction of new molecules from the parent company's global discovery pipeline. The company also plans to restart the distribution of animal nutrition products due to global supply chain challenges. Furthermore, SCIL is discussing a new royalty arrangement with its parent company for select products, which is expected to enhance the margin profile and expand business, with an immaterial royalty cost expected.
