By:- Aditya Arora, Research Analyst, Mirae Asset Sharekhan.
Sumitomo Chemicals reported revenue of Rs 907 crore in Q2FY27, down 2.4% YoY and marginally below estimates, amid a challenging operating environment in the Indian agrochemical sector. Gross margin declined 240 bps YoY to 40.7%, reflecting higher input costs, while disciplined execution and a favorable product mix provided some support. EBITDA declined 14.8% YoY to Rs 185.8 crore, with EBITDA margin contracting 297 bps to 20.5%. PAT stood at Rs 157.4 crore, down 11.5% YoY and 3% below estimates. Going forward, the company remains focused on strengthening commercial execution, regional marketing initiatives and product prioritisation. The upcoming Rabi season, agrochemical demand recovery and potential El Niño impact will be key monitorable.