SUMICHEM
Large CapSumitomo Chemical India Limited
Industrials
Sumitomo Chemical India Limited (SCIL) is an Indian agrochemical company, a formidable player in crop protection. It offers a diversified portfolio of insecticides, herbicides, fungicides, PGR, and metal phosphides, with 5 manufacturing facilities and a strong distribution network across India, exporting to ~50 countries.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 60/100Rev +1% YoY · PAT +11% YoY · margin expansion · +20% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹684 Cr | +0.7% | +20.4% |
| EBITDA | ₹134 Cr | +11.7% | +35.4% |
| Operating margin | 20.0% | +200 bps | +200 bps |
| PAT | ₹111 Cr | +11.0% | +46.0% |
| PAT margin | 16.2% | +150 bps | +285 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
SCIL delivered highest-ever profitability in FY26 despite challenging agrochemical industry conditions, with PAT up 7% YoY. Revenue grew 3% YoY, driven by domestic business and strong herbicide sales, while exports faced softer demand.
Despite significant industry headwinds like adverse weather and regulatory challenges, SCIL demonstrated resilience, achieving revenue growth and record profitability in FY26. Margin expansion was driven by product mix and disciplined management. Strategic capex for new products and export focus, particularly in Africa, support future growth, though working capital days increased.
Revenue by Product Breakup (FY26)
Latest issuer-disclosed distribution across 6 reported categories.
Domestic Business Growth
Domestic business grew 4% YoY in both Q4FY26 and FY26 despite adverse agro-climatic conditions.
Herbicides Portfolio
Herbicides registered strong growth of 87% YoY in Q4FY26 and 19% YoY in FY26, supported by healthy traction in rice herbicide portfolio including Lentigo.
Africa Exports
Africa exports continued to witness strong momentum with 30% YoY growth in Q4FY26 and 26% YoY growth in FY26.
New Product Launches
Newly launched products including Lentigo, Excalia Max, Powerpull, Advika, Envoy and Oslava received encouraging market response. Registration of Topgrain completed.
Herbicide Intermediate Plant at Dahej
Capex budget of ~Rs 150 crore for a new plant at Dahej for herbicide intermediate supply to parent company. Estimated commercialization: Q2 FY2028-29.
Tarapur Facility Expansion
Capex budget of ~Rs 10 crore for fitment to manufacture two additional molecules (fungicide and herbicide) at existing Tarapur facility for parent company supply. Estimated commercialization: Q4 FY2027-28.
Second Plant for SCC Innovated Product at Bhavnagar
Board approved ~Rs 55 crore for a second plant for an important SCC innovated product for global requirements at existing Bhavnagar site. Target completion: Q4FY27.
Production of Newly Launched SCC Innovated Molecule at Tarapur
Board approved ~Rs 10 crore for equipment modification and line readiness at Tarapur for a newly launched SCC innovated molecule. Target completion: Q4FY27.
Favourable Product Mix
Margin expansion was supported by favourable product mix and lower contribution from low-margin businesses.
Disciplined Pricing and Channel Management
SCIL demonstrated remarkable stability through disciplined pricing and disciplined channel management.
Strong Execution Focus
SCIL demonstrated remarkable stability in business performance through strong execution focus.
Adverse Agro-Climatic Conditions
Prolonged and excess rainfall during peak kharif consumption period and delayed rabi demand recovery impacted the Indian agrochemical industry.
Regulatory Challenges
Bio-stimulant regulatory challenges and temporary regulatory constraints in certain bio-rational products impacted the industry.
Softer Demand and Channel Sentiments
Softer agri-input demand and cautious channel sentiments affected the industry. Export revenues declined due to softer demand and shipment delays.
Weather Conditions and El-Nino
Management remains watchful of weather conditions and El-Nino related uncertainties.
Raw Material Inflation
Management remains watchful of raw material inflation.
Geopolitical Developments
Management remains watchful of geopolitical developments.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company explicitly states that due to seasonality in the business, performance is best monitored on an annual basis.
Revenue from Operations
FY26 revenue grew 3% YoY to Rs. 3,238 crore. Q4FY26 revenue stood at Rs. 684 crore, broadly stable YoY (+1%).
Operating EBITDA
FY26 Operating EBITDA increased 6% YoY to Rs. 671 crore. Q4FY26 Operating EBITDA increased 12% YoY to Rs. 134 crore.
EBITDA Margin
FY26 EBITDA Margin improved to 20.7% from 20.1% in FY25. Q4FY26 EBITDA Margin improved to 19.6% from 17.6% in Q4FY25.
Net Profit (PAT)
FY26 PAT increased 7% YoY to Rs. 543 crore. Q4FY26 PAT increased 12% YoY to Rs. 111 crore.
Cautiously Optimistic Outlook
Management remains cautiously optimistic while remaining watchful of weather conditions, El-Nino related uncertainties, raw material inflation and geopolitical developments.
Strategic Focus for FY27
Company continues to focus on demand generation, differentiated product offerings, calibrated pricing actions, operational agility and strengthening of channel partnerships.
Board Reconstitution
Dr. Suresh Ramachandran is proposed to be appointed as Managing Director with effect from 1st September 2026.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Domestic Business Growth | 4% YoY in FY26 | Sustained growth despite agro-climatic conditions and market sentiment. |
| Export Revenue Growth | -1% YoY in FY26 (Africa +26%) | Recovery in overall export revenues and continued strong momentum in Africa. |
| Working Capital Management | Net Working Capital Days at 103 (FY26) | Improvement in working capital days, particularly inventory and payables, while maintaining receivable efficiency. |
| Capex Project Execution | Multiple projects announced for Dahej, Tarapur, Bhavnagar | Timely commissioning and ramp-up of new manufacturing capacities and fitments. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
54NeutralSMA20 +9.7% / mo
Technical chart
SUMICHEMdaily · 1Y-2.5%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 47. Wait for confirmation.
- SMA20 rising (~5.2% over last month) — short-term momentum positive.
- RSI(14) at 47 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 10% off 52W high · 27% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 11/15 to the score.
- Quality contributes 13/20 to the score.
Main drags
- Fair-value margin of safety is negative at -0.3%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Growth is weaker at 11/25; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +2 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 90th percentile of the scored universe and 89th percentile within Industrials. Main check: results consistency is weak at 55/100.
High Trust Lite: Promoter holding is 75%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 89th pctile, median 68 · Large: 74th pctile, median 74
88 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 75%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.5%.
- ▸8 years of positive FCF.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 41.40
- P/B
- 6.77
- EV/EBITDA
- 31.25
- Market Cap
- 22968.00Cr
Profitability
- ROE
- 17.60%
- ROCE
- 23.40%
- ROA
- 12.14%
- Dividend Y
- 0.26%
Growth (CAGR)
- Revenue 5Y
- 4.00%
- EPS 5Y
- 10.00%
- Revenue 3Y
- -3.00%
- EPS 3Y
- 5.00%
Balance Sheet
- Debt/Equity
- 0.02
- Interest Coverage
- 83.88×
- Altman Z
- 8.40
- Book Value
- 67.90
Cash Flow
- FCF Yield
- 0.50%
- FCF Positive Y
- 8/5
- OCF
- 446.00 Cr
- EPS TTM
- 10.88
Shareholding
- Promoter Hold
- 75.00%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 32%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.