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Sumitomo Chemicals reported revenues of ₹1,063 crore, flat YoY

ICICIdirect Research 28 Jul 2026 DISCLAIMER

News: Sumitomo Chemicals reported revenues of ₹1,063 crore, flat YoY. Segmentally, Insecticides contributed 35% of the revenue but was flat YoY whereas herbicides which contributes 31% of the revenue was down by 8% YoY. However metal phosphates and AND & EHD contributing 10% & 13% of the revenue was up by 26% & 19% YoY respectively. Domestic revenues attributed to 84% of the revenue for the quarter. GPM came at 39.2%, up ~110 bps YoY. EBITDA came in at ₹233 crore, up 6% YoY, translating to margins of 21.9%, up ~120 bps YoY. PAT for the quarter stood at ₹214 crore, up ~20% YoY.

View: In the backdrop of strong headwinds, the performance was commendable. Other than a very hight base of last year (early onset of monsoon and inventory filling), the performance faced challenges from delayed monsoon causing ~ 20% decline in kharif sowing area during the early part of the season. Domestic demand remained subdued owing to delayed monsoon and lower acreage, while exports registered healthy growth of 26% YoY, increasing their contribution to 16% of revenues. GPM expansion was achieved on the back of price revisions during April and May to mitigate input cost inflation. Moreover, during the quarter the company y recognized an insurance claim of ₹27 crore towards business interruption arising from the FY23 Bhavnagar plant fire incident. Despite quarterly gyrations we see Sumitomo as the main growth driver for the Japanese parent in the long run.

Impact: Positive

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