Sumitomo Chemical India Limited Earnings Summary — Q1 FY2027
Sumitomo Chemical India Reports Strong Q1 Profit Growth Amid Seasonal Stability
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹1,063 Cr is 0.6% higher year-on-year.
- Revenue has compounded at 22.4% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹215 Cr is 20.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 34.8% annualised across the period.
- Operating margin stands at 21.9% in Q1 FY2027.
- Operating margin expanded by 120 bps year-on-year.
- Over the last two years operating margin has expanded by 274 bps.
- PBT margin is 27.1%.
- Expense growth of -0.9% remained below revenue growth of 0.6%.
- Operating profit of ₹233 Cr is 6.4% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 71/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,063 | 684 | 568 | 930 | 1,057 | 679 | 642 | 988 | 839 | 674 |
| Expenses | Improving | 830 | 550 | 469 | 712 | 838 | 560 | 536 | 743 | 678 | 534 |
| Operating Profit | Volatile | 233 | 134 | 99 | 218 | 219 | 120 | 106 | 245 | 161 | 140 |
| Operating Margin | Stable | 21.9% | 19.6% | 17.5% | 23.4% | 20.7% | 17.6% | 16.5% | 24.8% | 19.2% | 20.8% |
| Other Income | Volatile | 74 | 32 | 21 | 39 | 39 | 32 | 31 | 31 | 26 | 27 |
| Interest | Improving | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 1 | 1 | 1 |
| Depreciation | Stable | 17 | 17 | 17 | 17 | 16 | 16 | 19 | 16 | 15 | 17 |
| Profit Before Tax | Volatile | 288 | 148 | 102 | 238 | 241 | 133 | 117 | 260 | 171 | 149 |
| Tax | Volatile | 74 | 36 | 26 | 60 | 63 | 33 | 29 | 67 | 44 | 39 |
| Net Profit | Volatile | 215 | 111 | 76 | 178 | 178 | 100 | 87 | 192 | 127 | 110 |
| Net Margin | Improving | 20.2% | 16.3% | 13.3% | 19.1% | 16.9% | 14.7% | 13.6% | 19.5% | 15.1% | 16.3% |
Key Takeaways
- Consolidated Net Profit for Q1 FY2027 rose 20.45% YoY to ₹2,145.14 million, significantly outpacing flat revenue growth.
- Financial results include an exceptional gain of ₹268.96 million from a business interruption insurance claim related to a fire incident in FY22-23.
- Revenue from operations remained largely flat YoY at ₹10,633.46 million, reflecting the seasonal and monsoon-dependent nature of the business.
- EBITDA margins improved as total expenses decreased slightly YoY despite inflationary pressures in cost of materials.
- The company maintains a healthy sole-segment focus on agro-chemicals, which remains sensitive to monsoon distribution and climatic factors.
- Inventory levels showed a significant reversal (gain) of ₹399.71 million this quarter compared to a large inventory build-up in the same quarter last year.
- Management transition is underway with Dr. Suresh Ramachandran set to take over as Managing Director effective September 1, 2026.
Management Guidance
Management expects demand to be largely shaped by monsoon outcomes and global dynamics. For FY2027, the company is 'cautiously optimistic' regarding the upcoming season while acknowledging headwinds from rupee depreciation and escalating raw material and transport costs.
Sentiment Shift
Improving
While revenue growth is localized/flat, the significant jump in net profit—even when excluding the exceptional insurance gain—and margin expansion indicate resilient operational efficiency.
Outlook
The company is focusing on high-margin specialty products and biostimulants, expecting biologicals to grow meaningfully from FY2027 onwards. Capital expenditure remains on track for new proprietary product manufacturing.
From the Annual Report (Key Quotes)
“The business of the Holding Company along with its Subsidiary Companies ('the Group') is seasonal in nature and its performance depends on monsoon and other climatic conditions.”
“Sumitomo Chemical India demonstrated stability in an unstable environment.”
“India has now been elevated by our parent company, SCC, Japan, to the same tier as Japan, Brazil, North America, and Europe for early-stage testing.”
Official Quarterly Documents
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This summary is AI-generated from Sumitomo Chemical India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.