HomeMarket NewsSumitomo Chemicals Q1 Results: Strong revenue growth, better profitability aids margin expansion
Sumitomo Chemicals' Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 36% on a year-on-year basis to ₹219 crore.
Sumitomo Chemicals India Ltd. reported its June quarter results on Monday, August 4, following which, the stock surged, but gave up most of those gains soon after.
The company's net profit increased by 41% from last year to ₹178.3 crore, while revenue for the quarter stood at ₹1,057 crore, a 26% increase from the ₹839 crore figure it reported during the same quarter last year.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 36% on a year-on-year basis to ₹219 crore.
EBITDA margin for the quarter expanded by 150 basis points from the year-ago period to 20.7% from 19.2%. Margins expanded courtesy of operating leverage and improved profitability across businesses.
Sumitomo Chemicals in its investor presentation said that it benefitted from timely agro chemical applications and front-loaded consumption, which contributed to the topline growth during the quarter.
The company's domestic business grew by 30% from last year, led by sustained demand across product categories, while exports grew 7% year-on-year, driven by gains in Japan, North America, which was partly offset by South America and Asia Ex-India.
"While Q1FY26 reflects a strong momentum, it is important to view performance trends in the context of seasonal variability and the timing of application cycles, which may vary across quarters. The company remains focused on sustaining growth through differentiated offerings, enhanced channel engagement, and operational agility aligned with agronomic realities," the company's investor presentation said.
Shares of Sumitomo Chemicals are trading 2.4% higher at ₹645. The stock has risen 21% in the last one month.