Sumitomo Chemical India Ltd (SUMICHEM)

Chemicals · Agro Chemicals · NSE · Updated 1 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹515.95 ↓ 9.16% (1Y)

🎯 Key Takeaways

Sumitomo Chemical India Ltd is in a recovery and strategic expansion phase, transitioning from a period of operational disruption to structured growth driven by capital deployment and margin improvement. Despite a -9.
Revenue grew 55.5% QoQ to ₹1,063 in Q1FY27.
⚠️ Monsoon and agricultural seasonality remain material, as evidenced by 40% rainfall deficit and 20% lower kharif sowing in Q1 FY27, which pressured vol

Market Cap

₹25,753

P/E Ratio

44.4

P/B Ratio

7.60

ROE

17.1%

ROCE

23.1%

Debt/Equity

0.00

Div Yield

0.25%

Promoter

75.0%

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📖 The Story

Sumitomo Chemical India Ltd is in a recovery and strategic expansion phase, transitioning from a period of operational disruption to structured growth driven by capital deployment and margin improvement. Despite a -9.16% one-year return, recent financials show strong profitability recovery and resilience amid monsoon-related volume pressures. Management is actively investing in capacity expansion and product diversification to reduce reliance on seasonal cycles and regulatory-exposed segments.

📰 What's Happening

In Q1 FY27, revenue grew 1% YoY to ₹1,063.3 crores, but net profit surged 20% to ₹215 crores, supported by ₹26.9 crores in insurance recoveries from the Bhavnagar plant fire and improved operational efficiency. Despite a 40% monsoon rainfall deficit and 20% lower kharif sowing, margins expanded significantly—net profit margin rose 332 bps to 20.2% and EBITDA margin to 21.9%. Management highlighted ongoing CAPEX of ₹160 crores for new herbicide and Tarapur expansions, targeting commercialization by Q2 FY28 and Q4 FY27 respectively. The company also reported strong cash reserves of ₹2,549 crores to fund working capital and strategic investments. Earlier filings confirm a ₹268.96 crore insurance claim related to the fire incident was recognized as an exceptional item, contributing to profitability. Board-level updates include reappointment of Dr. Suresh Ramachandran as Managing Director and approval of ₹1.30 dividend per share at the AGM. Additionally, a Non-Executive Director resigned effective August 2026, though for personal reasons. These developments reflect a company focused on rebuilding profitability, managing regulatory headwinds, and executing a phased expansion strategy.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	930	568	684	1,063
Operating Profit	201	83	117	216
OPM %	21.6%	14.6%	17.1%	20.3%
Net Profit	178	76	111	215
EPS	₹3.56	₹1.52	₹2.23	₹4.30

The company’s financial trajectory shows a clear inflection point: after years of muted growth and margin pressure, profitability has sharply improved with net profit margin expanding from 14.6% in Dec 2025 to 20.2% in Mar 2026, despite flat revenue growth in Q1 FY27. This margin expansion is attributed to operational efficiency and insurance recoveries, not volume growth, which remained constrained by monsoon delays. Revenue has stabilized after a volatile FY26, with quarterly revenues holding firm at ₹1,063 crores (Mar 2026) and ₹930 crores (Sep 2025), indicating resilience. The consistent rise in operating profit and margins, coupled with disciplined cash management, suggests management’s turnaround initiatives are bearing fruit. However, the lack of top-line growth underscores that performance is being driven by cost control and favorable itemization, not organic demand recovery. The ₹160 crore CAPEX plan signals intent to catalyze future growth, but execution risk remains tied to timelines and macro-agricultural conditions.

🔮 Management Outlook & What's Next

Management expressed confidence in operational resilience and long-term growth prospects, citing successful navigation of monsoon disruptions and effective cash deployment. They highlighted the ₹160 crore CAPEX program for new herbicide and Tarapur expansions, targeting commercialization by Q2 FY28 and Q4 FY27 respectively, as pivotal to future earnings visibility. While no formal long-term guidance was provided, management emphasized that margin expansion and capital efficiency would remain central to strategy, with investments focused on high-margin products and capacity augmentation. The reappointment of Dr. Suresh Ramachandran as Managing Director reinforces continuity in leadership. Management also acknowledged seasonal and regulatory risks but positioned the company’s diversified portfolio and strong balance sheet as buffers against headwinds.

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

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	499	499	499	499
Reserves	2,214	2,402	2,698	2,891
Borrowings	29	52	58	2
Total Liabilities	3,843	3,964	4,439	4,474
Fixed Assets	477	489	478	594
Investments	546	524	1,219	1,153
Total Assets	3,843	3,964	4,439	4,474

The balance sheet reflects a highly conservative and cash-rich capital structure, with total assets growing from ₹3,964 crores in Mar 2025 to ₹4,474 crores in Mar 2026, driven by rising reserves and stable equity. Borrowings remain negligible (₹2 crores), indicating no leverage-driven growth, while equity and reserves have steadily increased, supporting financial flexibility. The company holds ₹2,549 crores in cash, which management is deploying selectively into CAPEX (₹160 crores) and working capital, while maintaining ample liquidity. This suggests a strategy of reinvestment without over-leveraging, aligning with a long-term value preservation mindset. The absence of debt and growing reserves reduce financial risk, but also imply limited external financing for expansion, relying instead on internal cash generation and retained earnings to fund growth initiatives.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2026
Operating	+446
Investing	-332
Financing	-83
Net Cash Flow	+31

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	75.0%	75.0%	75.0%	75.0%
FII	3.6%	3.4%	3.4%	3.0%
DII	8.5%	8.7%	9.0%	9.3%
Public	9.8%	9.8%	9.7%	9.1%
# Shareholders	1,15,793	1,14,878	1,11,892	1,10,464

Shareholding patterns show stable promoter holding at 75% over the last four quarters, with slight increases in FII and DII stakes from 3.37% to 3.65% and 8.47% to 8.98% respectively, indicating growing institutional confidence. The number of public shareholders has slightly declined from 1,15,793 to 1,10,464, suggesting consolidation rather than retail exit. No significant dilution or insider selling was observed. The consistent promoter stake and gradual institutional accumulation may signal long-term confidence, especially given the company’s improving profitability and dividend declaration. The lack of major share buybacks or pledging further supports a stable capital structure. However, the modest rise in public float and shareholder count indicates limited retail engagement, which could affect liquidity in secondary markets.

⚖️ Peer Comparison — Agro Chemicals

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
UPL	47,485	23.3	11.4%	6.7%	0.64
PIIND	36,382	31.2	13.3%	10.4%	0.02
SUMICHEM	25,753	44.4	23.1%	17.1%	0.00
BAYERCROP	17,844	369.7	3.3%	1.2%	0.00
SHARDACROP	6,918	11.1	25.8%	20.0%	0.00
DHANUKA	4,360	14.9	27.5%	21.2%	0.03
RALLIS	4,041	24.6	12.9%	9.7%	0.03
NACLIND	3,988	340.5	6.0%	1.8%	0.44
BHAGCHEM	3,683	134.0	6.1%	3.9%	0.33
GSPCROP	2,976	26.0	22.5%	21.9%	0.66

🔗 Peer Stock Analyses

UPL PIIND BAYERCROP SHARDACROP DHANUKA

⚠️ Risk Factors

1. Monsoon and agricultural seasonality remain material, as evidenced by 40% rainfall deficit and 20% lower kharif sowing in Q1 FY27, which pressured volume growth despite margin resilience. 2. Ongoing regulatory scrutiny over glyphosate usage poses potential compliance and market access risks, as highlighted in board discussions. 3. Execution risk around CAPEX timelines — delays in Tarapur and Dahej plant commercialization (targeted for FY27-FY28) could defer expected growth catalysts. 4. Reliance on exceptional items, such as insurance recoveries, for profitability normalization introduces volatility, as future claim availability is uncertain. These factors could impact earnings visibility and investor sentiment despite strong recent fundamentals.

📋 Recent Filings

🧠 Analyst's Read

Sumitomo Chemical India is transitioning from a turnaround phase to a strategic investment phase, with improving profitability and disciplined cash management supporting its expansion ambitions. The key watchpoint is execution of CAPEX projects and resilience of margins amid agricultural volatility. Investors should monitor monsoon impact, regulatory developments, and progress on plant commercialization timelines for forward guidance signals.

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 2026-09-01.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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