Sumitomo Chemical India Limited (SUMICHEM)

Chemicals · Fertilizers & Agrochemicals · NSE · Updated 15 July 2026

₹535.2 ↓ 5.42% (1Y)

🎯 Key Takeaways

Sumitomo Chemical India Limited is transitioning from a period of volatility into a phase of structural profitability and strategic reinvestment, marked by record earnings and deliberate capital allocation. The company has demonstrated resilience amid macro headwinds, with profitability expanding significantly despite flat top-line growth in recent quarters.
Revenue declined 35% QoQ to ₹642 in Q3FY25.
⚠️ Monsoon variability and its impact on agricultural demand and pricing power.

Market Cap

₹22,898

P/E Ratio

44.4

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Sumitomo Chemical India Limited is transitioning from a period of volatility into a phase of structural profitability and strategic reinvestment, marked by record earnings and deliberate capital allocation. The company has demonstrated resilience amid macro headwinds, with profitability expanding significantly despite flat top-line growth in recent quarters. Management is focused on long-term growth levers, including new product launches and board-level governance enhancements, while maintaining shareholder returns.

📰 What's Happening

In Q3FY26, the company achieved record profitability with ₹543 crores PAT and 42% gross margin, driven by 3% YoY revenue growth despite monsoon and geopolitical pressures. This follows a pattern of fluctuating quarterly performance, with Q2FY25 showing strong revenue of ₹988 crores and OPM of 24.8%, though subsequent quarters saw margin compression. Management highlighted structural resilience and new product momentum, particularly from Top Grain biostimulant, as key growth drivers. The upcoming AGM will vote on director appointments, including Dr Suresh Ramachandran as Managing Director, and approve a related party transaction representing 50.59% of consolidated turnover.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	652	724	903	542	674	839	988	642
Operating Profit	97	98	213	93	167	187	277	137
OPM %	12.4%	11.1%	20.8%	12.1%	20.8%	19.2%	24.8%	16.5%
Net Profit	72	62	143	55	110	127	193	87
EPS	₹1.45	₹1.24	₹2.87	₹1.10	₹2.20	₹2.54	₹3.85	₹1.74

The financial trajectory reflects a shift from erratic quarterly performance to sustained profitability, with PAT growth of 7% YoY in FY26 despite modest top-line expansion. EBITDA margin remained stable at 20.7%, and gross margin improved to 42%, indicating operational efficiency and pricing resilience. However, quarterly revenue declined from ₹988 crores in Q2FY25 to ₹642 crores in Q3FY25, suggesting seasonality or demand softness that management attributes to external factors rather than structural weakness. The company is investing capital aggressively, with ₹3,290 crores in investing outflows in FY26, likely tied to expansion or efficiency initiatives.

🔮 Management Outlook & What's Next

Management expressed cautious optimism for FY27, citing monitoring of monsoon distribution through September as a key variable for near-term performance. No formal forward guidance on revenue or margin was provided, but structural resilience and new product adoption are positioned as long-term growth pillars. The absence of explicit guidance suggests a conservative approach to forecasting amid climate and currency volatility.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Fertilizers & Agrochemicals

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Fertilizers and Chemicals Travancore Limited	57,117	-630.5	—	—	—
Coromandel International Limited	55,044	33.3	—	—	—
UPL Limited	53,373	-157.3	—	—	—
PI Industries Limited	47,259	27.8	—	—	—
Sumitomo Chemical India Limited	22,898	44.4	—	—	—
Bayer Cropscience Limited	21,796	—	—	—	—
Chambal Fertilizers & Chemicals Limited	18,025	11.1	—	—	—
Paradeep Phosphates Limited	12,506	30.3	—	—	—
Sharda Cropchem Limited	8,742	35.8	—	—	—
Rashtriya Chemicals and Fertilizers Limited	6,876	25.9	—	—	—

🔗 Peer Stock Analyses

FACT COROMANDEL UPL PIIND BAYERCROP

⚠️ Risk Factors

1. Monsoon variability and its impact on agricultural demand and pricing power. 2. Rupee depreciation pressures affecting import costs and input expenses. 3. Overreliance on a single large related party transaction, representing over 50% of consolidated turnover, which raises governance and negotiation risk. 4. Margin pressure in recent quarters despite strong profitability, potentially signaling input cost inflation or competitive dynamics.

📋 Recent Filings

🧠 Analyst's Read

Sumitomo Chemical India is executing a disciplined strategy focused on profitability and product innovation, supported by strong cash flows and governance updates. Investors should monitor monsoon progress, the outcome of the AGM votes, and early traction of new products like Top Grain, which could be pivotal in sustaining growth momentum.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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