Sumitomo Chemical India profit up by 40% in June quarter

Mumbai, August 4, 2025: Sumitomo Chemical India Ltd (NSE: SUMICHEM, BSE: 542920) reported a strong 40% year-on-year (YoY) growth in standalone net profit for the quarter ended June 30, 2025 (Q1 FY26), reaching ₹1,798.06 crore. This impressive growth was underpinned by a 26% YoY rise in total income, which climbed to ₹10,866.88 crore, up from ₹8,575.46 crore in Q1 FY25.

Following the announcement, the shares of the company jumped to their all-time high of ₹637.80, up by 1.13% or ₹7.15.

Standalone Financial Performance (₹ in crore)

For Q1 FY26, Sumitomo Chemical India Ltd reported a revenue from operations of ₹10,480.69 crore, marking a 26.0% year-on-year increase from ₹8,317.84 crore in Q1 FY25 and a substantial 57.6% quarter-on-quarter increase from ₹6,648.02 crore in Q4 FY25. Other income contributed ₹386.19 crore, growing by 49.9% year-on-year from ₹257.62 crore and 23.1% quarter-on-quarter from ₹313.55 crore. This led to a total income of ₹10,866.88 crore, a 26.7% year-on-year rise from ₹8,575.46 crore and a 56.1% quarter-on-quarter increase from ₹6,961.57 crore.

Total expenses amounted to ₹8,447.98 crore, up 23.3% year-on-year from ₹6,849.70 crore and 49.6% quarter-on-quarter from ₹5,644.84 crore. Profit Before Tax (PBT) soared to ₹2,418.90 crore, showing a 40.2% year-on-year surge from ₹1,725.76 crore and an 83.7% quarter-on-quarter jump from ₹1,316.73 crore. Consequently, Profit After Tax (PAT) reached ₹1,798.06 crore, reflecting a 40.0% year-on-year increase from ₹1,283.91 crore and an 82.7% quarter-on-quarter rise from ₹984.07 crore. Total Comprehensive Income also grew significantly to ₹1,785.37 crore, up 38.5% year-on-year from ₹1,288.98 crore and 81.0% quarter-on-quarter from ₹986.71 crore. Basic and Diluted EPS for Q1 FY26 stood at ₹3.60, compared to ₹2.57 in Q1 FY25 and ₹1.97 in Q4 FY25.

Expense Breakdown (Q1FY26)

• Cost of materials consumed: ₹4,420.88 crore
• Purchases of stock-in-trade: ₹1,132.17 crore
• Changes in inventories: ₹974.39 crore
• Employee benefit expense: ₹662.98 crore
• Other expenses: ₹1,093.71 crore

Tax and Equity Snapshot

• Total tax expense for the quarter stood at ₹620.84 crore, up from ₹441.85 crore in Q1FY25.
• The company maintained a stable equity base with paid-up equity share capital at ₹4,991.46 crore and other equity at ₹23,974.69 crore.

Seasonal & Regulatory Outlook

Sumitomo Chemical reaffirmed that its performance remains seasonal, with significant dependence on monsoon patterns due to its core agrochemical operations. The company also continues to monitor developments around the regulatory treatment of Glyphosate, a key product. An October 2022 government notification restricted Glyphosate for use only by Pest Control Operators, and this directive is currently under legal review, which could impact future operations depending on the outcome.

What Does This Mean For The Investors?

• Strong Profit Growth: The company posted an impressive 40% YoY increase in net profit to ₹1,798 crore, indicating strong operational momentum and effective cost management amid rising demand in the agrochemical sector.
• Record-Breaking Stock Performance: After the results, shares touched an all-time high of ₹637.80, reflecting positive market sentiment and investor confidence in the company’s long-term fundamentals.
• Robust Revenue Expansion: Revenue from operations grew 26% YoY and nearly 58% QoQ, supported by favourable monsoon-linked demand and seasonal strength in agrochemical sales.
• Improved Margins & Cost Control: Despite a rise in total expenses, the profit before tax jumped 40.2% YoY, aided by effective inventory management, scale efficiencies, and higher other income.
• Healthy EPS Growth: Earnings per share rose to ₹3.60, up from ₹2.57 in Q1 FY25 — a solid return indicator for shareholders, especially with profits rising faster than expenses.
• Regulatory Uncertainty on Glyphosate: The company faces a regulatory overhang related to Glyphosate usage restrictions in India. Investors should monitor the legal proceedings closely, as the outcome may impact future sales of this key product.
• Monsoon-Dependent Business: Being seasonal in nature, Sumitomo’s performance is closely tied to monsoon outcomes. A poor monsoon can dampen demand, so investors should track weather forecasts and agri-sector trends.
• Stable Equity & Financial Health: The company’s strong equity base and rising retained earnings suggest financial resilience, giving it flexibility for future investments or dividend payouts.

About the Company

Sumitomo Chemical India Ltd is a major player in the Indian agrochemicals sector, engaged in the manufacture and sale of a diverse range of crop protection products. These include insecticides, herbicides, fungicides, and plant growth regulators, vital for agricultural productivity. The company leverages a robust pan-India distribution network and is actively expanding its international presence. Listed on both the NSE and BSE, Sumitomo Chemical India Ltd benefits from its association with the global Sumitomo Chemical Group, bringing advanced technology and research capabilities to the Indian market.

REF:https://nsearchives.nseindia.com/corporate/SUMICHEM_04082025125123_Outcome_of_BM_DSC.pdf

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