Sumitomo Chemical India reports resilient H1 results, plans capex

Sumitomo Chemical India Ltd. (SCIL) reported consolidated revenue of ₹930 crores in Q2 FY '25-'26, a slight decline from ₹988 crores in the same period last year, primarily due to volume contraction caused by erratic rainfall. Despite this, gross margins were maintained at 43.1%, and EBITDA stood at ₹218 crores, with a margin of 23.4%. Profit after tax was ₹178 crores, achieving a 19.1% margin.

For H1 FY '25-'26, SCIL's revenue grew 9% year-on-year to ₹1,987 crores, with domestic agrochemical revenue contributing 85%. Export revenue degrew by 4% due to sales decline in South America. H1 gross margin was 40.4%, and EBITDA increased by 8% to ₹437 crores, with profit after tax rising 11% to ₹356 crores. The company launched new products like Lentigo and Excalia Max, which are performing ahead of targets.

SCIL plans significant capex, with ₹500-600 crores expected to be invested over the next five years for developing a global manufacturing site at Dahej and expanding capacity at Bhavnagar and Tarapur. The company also confirmed ₹2,000 crores in cash and cash equivalents as of September 30, 2025, which it plans to deploy into the business rather than returning to shareholders via special dividends.