Sumitomo Chemical India Stock Falls 1.55% as Q2FY26 Profit Slips 8% YoY

Mumbai, October 28, 2025: The share price of Sumitomo Chemical India Ltd (NSE: SUMICHEM) fell 1.55% to ₹509 following an underwhelming September quarter performance (Q2FY26), with revenue and profits slipping 6% and 8% YoY, respectively.

Sumitomo Chemical India Ltd, incorporated in 2000, is part of Japan’s Sumitomo Chemical Co. The company is engaged in manufacturing and marketing various products such as crop protection, plant growth regulators, and specialty chemicals across insecticides, herbicides, fungicides, and fumigants. The stock is listed on both BSE and NSE and is a constituent of the Nifty Smallcap 250 index.

Quarterly Earnings Summary

Sumitomo Chemical India Ltd delivered weaker Q2FY26 results due to adverse weather conditions that affected agricultural activity, and as a result, demand for crop protection products remained subdued.

The company reported revenue from operations of ₹929.8 crore for the quarter, marking a 6% decline from ₹988.3 crore in Q2 FY25. EBITDA stood at ₹218 crore, down 11% year-on-year, with the EBITDA margin contracting to 23.4% from 24.8% in the same period last year. Net profit for the quarter fell 8% YoY to ₹177.8 crore, compared to ₹192.5 crore a year ago, while the net profit margin narrowed by 36 basis points to 19.1%.

While H1FY26 revenue year-on-year was up 9%, the quarterly numbers were impacted adversely by inclement weather affecting crop protection activity across key agricultural regions.

Management Commentary

The company remarked that while the South-West monsoon was strong on average, it became erratic during the critical crop cycles and delayed pesticide sprays. Repeated rains from mid-July to September impeded field access, which caused a decrease in pest population and pressured agrochemical demand.

Sumitomo Chemical India said that strong channel management and careful handling of working capital helped it cope with wider industry challenges such as rising inventories and delayed payments. Meanwhile, export demand from Africa and Latin America slowed because of shipment delays, though demand in the U.S. and Europe stayed steady.

Business & Outlook

• New product launches such as ‘Lentigo’ (rice herbicide) and ‘Excalia Max’ continued to gain strong traction in the market.
• The company’s cash stood at ₹2,089 crore with zero debt in September 2025.
• Reservoir levels and soil moisture are favourable for the rabi season, and the management expects recovery in rural sentiment and steady demand from H2FY26.
• SCIL plans to deepen farmer engagement and further drive product difference with its 15,000+ distributors and 60 depots nationwide distribution network.

Stock Price Update

As of 12:36 PM, shares of Sumitomo Chemical India Ltd were trading at ₹509.95, down 1.55%. The stock opened at ₹509, hitting an intraday high of ₹514 and a low of ₹506. The company’s market capitalisation stood at ₹25,450 crore. Sumitomo Chemical India currently trades at a P/E ratio of 45.71 and offers a dividend yield of 0.24%. Over the past year, the stock has ranged between a 52-week high of ₹665 and a low of ₹446.20. The company has also declared a quarterly dividend of ₹0.31 per share.

REF: https://nsearchives.nseindia.com/corporate/SUMICHEM_27102025174657_InvestorPresentation.pdf

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