Sharda Cropchem Limited (NSE: SHARDACROP; BSE: 538666), a leading global agrochemicals player, reported a nearly five-fold jump in its third-quarter profit on Thursday, driven by robust volume growth and a significant expansion in the European market.
The company’s consolidated profit after tax (PAT) surged 366% to 145.1 crore rupees for the quarter ended Dec. 31, 2025, compared with 31.1 crore rupees in the same period last year. Revenue from operations climbed 39% to 1,288.8 crore rupees, supported by a 14.4% increase in overall volumes and a favorable change in product mix.
Record Performance and Dividend
For the first nine months of the fiscal year (9M FY26), Sharda Cropchem achieved its highest-ever annual PAT of 362.3 crore rupees, surpassing previous full-year records within just three quarters. Nine-month revenues rose 29% to 3,202.7 crore rupees, while EBITDA grew 64% to 526.7 crore rupees.
In light of the strong performance, the company’s board declared an interim dividend of 6 rupees per equity share.
Regional and Segmental Drivers
The Agrochemical segment, which contributes 89% of total Q3 revenue, saw a 48% year-on-year growth. Performance was particularly dominant in Europe, where agrochemical revenues skyrocketed 123% to 654 crore rupees. Growth was also notable in the LATAM region, which saw a 68% increase in agrochemical revenue.
Conversely, the Non-Agrochemical segment faced headwinds, with Q3 revenue declining 8% to 148 crore rupees, primarily due to double-digit drops in the NAFTA and LATAM regions.
Operational Strength
Sharda Cropchem continues to operate an asset-light business model, focusing on identifying generic molecules and securing registrations while outsourcing manufacturing. As of Dec. 31, 2025, the company remains debt-free with cash, bank, and liquid investments totaling 826 crore rupees. Its global library of registrations stands at 3,004, with an additional 1,076 applications pending.
Margins and Outlook
Gross profit margins expanded by 220 basis points to 34.9% in Q3, aided by stabilizing input costs and improved price dynamics. EBITDA margins rose to 19.1% from 16.6% a year ago.
Europe has led as the key contributor in both volume and value terms. The company expects price increases going forward and anticipates the growth momentum to remain strong through FY27.