Sumitomo Chemical India Q2 Results: Profit Falls 12% as a Weak Monsoon Hits Agrochemical Demand

Sumitomo Chemical Q2 results show what a bad monsoon does to a crop protection company. Sumitomo Chemical India’s standalone net profit for the September quarter fell to ₹156 crore from ₹178 crore a year ago, a drop of about 12%, according to the results it filed with NSE on October 26. Revenue from operations slipped to ₹890.9 crore from ₹914.4 crore, down roughly 2.6%.

The CNBC-TV18 results liveblog carried the same picture: revenue down 2.5% at ₹891 crore and net profit down 12.4% at ₹156 crore. Per-share earnings came in at ₹3.13 against ₹3.56 a year earlier.

Sumitomo Chemical Q2 results: where the margin went

Revenue held up far better than profit, and the company’s investor presentation explains why. Selling prices were largely stable in the quarter, but volumes fell by a high-single-digit percentage. On top of that, inventory bought at higher cost between April and June 2026 flowed into the cost of sales this quarter.

On consolidated numbers, the presentation puts revenue at ₹907 crore, down 2%, and EBITDA at ₹186 crore against ₹218 crore, down 15%. EBITDA margin shrank 297 basis points to 20.5%, and gross margin fell 240 basis points to 40.7%. Consolidated profit was ₹157 crore against ₹178 crore, down 11%.

The company says the inventory-cost mismatch had largely normalised by the end of September, with procurement costs and selling prices back in line with the market. That matters, because it means part of this quarter’s margin hit was timing rather than a lasting change.

Weather did the damage

Management blamed a tough season for the whole industry: a delayed monsoon, long dry spells and a 13% rainfall deficit that hurt sowing and the use of insecticides, herbicides and fungicides. Domestic revenue still grew 2% to ₹774 crore. Exports were the weak spot, falling 23% to ₹127 crore.

For the first half, revenue was ₹1,971 crore, down 1%. Note that the June quarter included a one-time gain of about ₹26.9 crore, an insurance claim for business interruption from the fire at its Bhavnagar plant in FY23, so first-half profit is not a clean comparison.

What it means

We would not read too much into one quarter for an agrochemical business, and the company itself says its performance is best judged over a full year. The worry is the outlook. Sumitomo expects the second half to stay difficult because of low reservoir levels, an extended El Niño effect and possible pressure on crop acreage. So the margin recovery it is pointing to depends a lot on how the coming season plays out.

For another October 26 result where one-offs muddied the headline, see our report on Dalmia Bharat’s Q2 numbers. And if you want to check a filing like this yourself, our guide on how to analyse quarterly results walks through the main lines.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.