Sumitomo Chemical India Limited (NSE:SUMICHEM) announced unaudited financial results for the quarter ended 30 June 2026 on 27 July 2026. The board approved standalone net profit of Rs 2,165.29 million for Q1 FY27, representing a 95.6 per cent year-on-year increase from Rs 1,106.10 million in the corresponding quarter of FY26. Revenue from operations grew 57.9 per cent YoY to Rs 10,540.75 million.
Key Highlights
- Standalone net profit for Q1 FY27 stood at Rs 2,165.29 million, up 95.6 per cent YoY from Rs 1,106.10 million in Q1 FY26.
- Revenue from operations increased 57.9 per cent to Rs 10,540.75 million in Q1 FY27 compared to Rs 6,714.91 million in Q1 FY26.
- Total income for Q1 FY27 was Rs 11,011.38 million, up 56.4 per cent YoY from Rs 7,034.26 million in the year-earlier quarter.
- Profit before tax after exceptional items reached Rs 2,912.61 million in Q1 FY27, driven by an insurance claim of Rs 268.96 million for business interruption from the Bhavnagar plant fire incident of FY23.
- Basic and diluted earnings per share for Q1 FY27 was Rs 4.34 per equity share of face value Rs 10, compared to Rs 2.22 in Q1 FY26.
- Total expenses rose 50.4 per cent to Rs 8,367.73 million in Q1 FY27 from Rs 5,562.98 million in Q1 FY26, reflecting higher material costs and inventory purchases.
- The company operates in the agro-chemicals segment and noted that its performance depends on monsoon and climatic conditions due to the seasonal nature of its business.
About the Company
Sumitomo Chemical India Limited (NSE:SUMICHEM) is a chemical manufacturing company incorporated in Maharashtra and headquartered in Mumbai. The company operates in the agro-chemicals segment, producing broad-spectrum weedicides and related chemical products for agricultural applications. Its manufacturing facility is located in Bhavnagar. The company is listed on the National Stock Exchange of India under scrip symbol SUMICHEM (scrip code 542920). With a paid-up equity share capital of Rs 4,991.46 million comprising equity shares of face value Rs 10 each, the company serves the Indian agricultural sector and is exposed to seasonal demand patterns linked to monsoon cycles and climatic conditions.
Announcement in Detail
The board of directors of Sumitomo Chemical India Limited, in its meeting held on 27 July 2026, considered and approved the unaudited standalone and consolidated financial statements for the quarter ended 30 June 2026 after review by the Audit Committee. The standalone statement shows revenue from operations of Rs 10,540.75 million for Q1 FY27 against Rs 6,714.91 million in Q1 FY26. Other income contributed Rs 470.63 million, resulting in total income of Rs 11,011.38 million. Cost of materials consumed was Rs 5,493.47 million, purchases of stock-in-trade amounted to Rs 1,330.66 million, and employee benefits expense stood at Rs 688.70 million.
Profit before exceptional items and tax reached Rs 2,643.65 million in Q1 FY27. The company recognised an exceptional item of Rs 268.96 million representing an insurance claim received for business interruption due to a fire incident at the Bhavnagar plant during FY23. After this exceptional item, profit before tax was Rs 2,912.61 million. Total tax expense was Rs 747.32 million, comprising current tax of Rs 742.92 million and deferred tax charge of Rs 4.40 million. Net profit for the quarter stood at Rs 2,165.29 million.
The unaudited consolidated financial results were also filed alongside the standalone statement. Other comprehensive income for Q1 FY27 was negative Rs 8.67 million, net of tax. Total comprehensive income for the quarter was Rs 2,156.62 million. The results have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013. The board meeting commenced at 11:10 A.M. and concluded at 01:10 P.M.
Impact on Investors
Investors will note that the reported Q1 FY27 net profit of Rs 2,165.29 million represents a significant 95.6 per cent YoY increase, substantially outpacing the 57.9 per cent revenue growth. This margin expansion reflects operational leverage and cost management. The exceptional insurance claim of Rs 268.96 million materially contributed to the profit before tax figure. The standalone basic and diluted EPS of Rs 4.34 per share for Q1 FY27 compares to Rs 2.22 in Q1 FY26, representing a 95.5 per cent increase on a per-share basis. Shareholders should be aware that this quarter's profitability benefited from one-time recovery of the insurance claim; normalised recurring profitability should be assessed by excluding this item.
The filing indicates the company's agro-chemicals business performance remains dependent on monsoon and climatic conditions, introducing seasonal variability. Additionally, the company has disclosed that Glyphosate, a broad-spectrum weedicide and an important product, is subject to a Government notification issued in October 2022 restricting its use to licensed Pest Control Operators. Industry players have challenged this notification before the Delhi High Court; counsel for the Government has stated the notification will not be implemented pending the court's disposal. Investors should monitor the outcome of this legal matter, as a full implementation of the restriction could affect the company's product demand and revenue composition. The financial results show total comprehensive income of Rs 2,156.62 million, with other comprehensive loss of Rs 8.67 million on a net-of-tax basis.
Sector / Market Context
The Indian agro-chemicals sector comprises manufacturers of pesticides, herbicides, fungicides, and allied products that serve agriculture across diverse geographies and crop types. The sector is governed by regulatory bodies including the Central Insecticide Board and the Ministry of Agriculture. Seasonal demand patterns in agro-chemicals are pronounced, with peaks during monsoon preparation and planting seasons. Companies operating in this space face regulatory oversight regarding active ingredient approvals, usage restrictions, and environmental compliance. The Government notification restricting Glyphosate usage through Pest Control Operators, as noted in the company's filings, reflects ongoing policy evolution in agrochemical regulation. Industry data from commodity-linked businesses such as agro-chemicals typically correlate with agricultural output cycles, government subsidy regimes, and climatic patterns including rainfall distribution and timing.