Thank you, Bhoomi. Warm welcome to all the participants on the Q3 FY '26 earnings call of Sharda Cropchem.

We have Mr. R.

V. Bubna, Chairman and Managing Director, Mr.

Shailesh Mehendale, CFO, and Mr. Jetkin Gudhka, Company Secretary on the call.

Without any delay, I would like to hand over the call to Mr. Bubna for opening remarks.

Thank you, and over to you, Bubna.

Thank you, Manish. Good afternoon and a very warm welcome to everyone present on this call.

Along with me, I have Mr. Shailesh Mehendale, our CFO, Mr.

Jetkin Gudhka, Company Secretary, and SGA, Mr. Deven, our investor relations advisor.

Hope you have all received our investor deck by now. We are pleased to report a robust performance driven by strong volume growth and an improved product mix supported by accelerated product registrations.

This has helped us achieve our highest ever PAT for any year, even though our strongest quarter, Q4, is still ahead. The company expects this growth momentum to continue in Q4 FY '26 and remain strong through FY '27.

As you are aware, we are engaged in the marketing and distribution of wide range of agrochemical products catering to diverse global customer base. We develop comprehensive dossiers and obtain product registrations in our own name.

We continue to allocate substantial resources towards securing registrations, which strengthens our market presence and helps establish a sustainable foothold across key markets. As of 31st December 2025, our total product registrations stood at 3,004 (3-0-0-4).

Additionally, 1,076 applications for product registrations globally are in the approval stage. Coming to industry dynamics, global agrochemical market is showing signs of recovery driven by revival in demand, complemented by gradual recovery in the pricing.

Inventories have come to normal levels across distribution channels. In Q3 FY '26, our total revenues have grown by 39% to ₹1,289 crores, with overall volume growth at 14%.

We have seen volume growth in Europe and Latin America emerging as contributor. Volumes from agrochemical segment grew by approximately 15%, and non-agrochemical segment grew by approximately 40% on year-to-year basis.

With input costs stabilizing, our gross margins have expanded by 220 basis points to 34.9%. As guided earlier, we expect gross margins to be in the similar range in FY '26.

EBITDA for the quarter stood at ₹246 crores, a growth of 59% on year-to-year basis, with EBITDA margins at 19.1%. For FY '26, we are on track to maintain healthy EBITDA margins in the range of 18% to 20%.

PAT for the quarter stood at ₹145 crores, showcasing a growth of 366% on year-to-year basis. Working capital days stood at 70 days as on 31st December 2025, showing an improvement by 48 days as compared to March 2025.

Capex for 9 months FY '26 stood at ₹399 crores. Cash and bank liquid investments stood at ₹826 crores as on 31st December 2025.

For FY '26, our planned capital expenditure stands at ₹500 crores, supported by strong project pipeline that underscores our resilience and continued focus on growth. With this brief overview, I would now like to hand over the call to our CFO, Mr.

Shailesh Mehendale, for discussing our financial performance. Thank you, everybody.

Thank you, sir. Good afternoon, everyone.

Coming to the quarter 3 financial FY '26 performance, revenue stood at ₹1,289 crores in Q3 FY '26 versus ₹929 crores in Q3 FY '25, with an increase of 39% year-on-year. Coming to the split, agrochemical business grew by 48% year-on-year to ₹1,141 crores, whereas the non-agrochemical business degrew by 8.1% year-on-year to ₹148 crores.

Gross margins stood at 34.9% in Q3 FY '26 as against 32.7% in Q3 FY '25, increase of 220 basis points. EBITDA grew by 59%, which stood at ₹245.5 crores, with EBITDA margin at 19.1%.

PAT stood at ₹145.1 crores versus ₹31 crores last year, showing 366% growth year-on-year basis. Coming to the 9 months FY '26 performance, revenue stood at ₹3,203 crores in 9 months FY '26 versus ₹2,491 crores in 9 months FY '25, with an increase of 29% year-on-year.

Coming to the split, agrochemical business grew by 34% year-on-year to ₹2,790 crores, whereas the non-agrochemical business grew by 1% year-on-year to ₹413 crores. Gross margin stood at 35% in 9 months FY '26 as against 30% in 9 months FY '25, with an increase of 500 basis points.

EBITDA for 9 months period stood at ₹526.7 crores, with EBITDA margin at 16.4%, showcasing 64% year-on-year growth. PAT stood at ₹362 crores in 9 months FY '26 versus ₹101 crores in 9 months FY '25, with an increase of 259% year-on-year basis.

The company has already achieved highest ever annual PAT in 9 months of FY '26. We remain net debt-free company and have cash, bank, liquid investment of ₹826 crores as on 31st December 2025.

Looking at the performance, the board of directors declared an interim dividend of ₹6 per share. We can now open the floor for questions and answers.

Thank you.

Hello? Hello?

Hello.

Sir, congratulations for these good numbers. My question is on a long-term basis for the capex line.

With a strong global registration pipeline of 1,070 product we are planning to get registrations, can you just give an idea about typical approval timelines, and particularly in Europe, what time frame over which these registrations are expected to be active and contributing to the revenues?

Mr. Ansh, your many words were not understood.

I would request you to kindly speak slowly and loudly. Repeat your question once again.

My question was, so as you're planning to do a capex of around ₹400 crores on increasing our registration pipelines of around 1,070 products, can you give us an idea about what timeframe should we expect, particularly in Europe, in which our registrations will be expected to be active and contributing to the revenues?

Mr. Ansh, I don't know whether you have tracked the company's record and performance so far.

I have repeatedly mentioned in every conference that registration process is full of uncertainties, and nobody can predict how much time will it take. To give you an example, a registration may be obtained in 1 year or 2 years, and the same registration can take 6 to 7 years because of the uncertainties.

The government authorities keep on getting new requirements, which is keeping adding to the process of registration and also the cost of registrations. I have no answer to your question as to how much time we will get these registrations.

Thank you. Sir.

Hello, sir. Congratulations on good numbers.

Yes, sir. Thank you.

Sir, my question is related to our FY '27 next year. Let's say, what would your thought would be that will we able to see something like a 15% kind of a volume growth next year?

Hopefully, yes. We are very confident that 15% is achievable.

Okay. Second question, we have been mentioning that 35% gross margin is very much sustainable for FY '26.

Will it be sustainable for FY '27 also?

Yes, sir. Maybe it goes up still further.

Okay. Last two, sir.

One, capex guidance for FY '27, if you can help us?

Sir, again, as I told the previous speaker, the capex and the registration process is full of a lot of uncertainties. I would say it will be in the range of ₹450 to ₹500 crores.

It can be still more. I cannot say.

It will be in the same range.

Okay. One last on industry, sir.

Have we seen some pricing uptick happening across our portfolio now?

Yes, sir. As we have stated, we passed through very bad time about 2 years back when there was excess liquidity and abundance of stocks in the pipeline.

Those have all dried up, and as the things are getting normalized, the prices are also moving. The speed is less, but it is moving up.

Sir. Thank you, and all the best.

Thank you.

Hello. Am I audible, sir?

Yes, Mr. Mukherjee.

Yeah.

Sir, the agrochemical segment volume growth was roughly 15%, and the revenue growth was 48%. How much was the realization increase year-on-year, and how much was forex gain?

1 second. See, this total growth was 38.7%, out of which volume growth contributed to 14.4%, foreign exchange impact was 12.6%, price and product mix impact was 11.6%, total 38.7%.

Sir, will it be possible to share same for specifically the agrochemical segment?

No, this is total. This is total, both agro and non-agro.

Sure.

Sir, the realization growth that you mentioned, is it a function of actually prices moving up or is it a impact of product mix change?

Mr. Mukherjee, your last sentence was very low.

I would like you to repeat the question once again.

Sure, sir. Is it better now?

Yeah.

Sir, I was asking the realization growth year-on-year that you mentioned, is it driven by actual prices moving up of products, or is it more product mix change driven?

Mr. Mukherjee, I think you are new into this system.

It is driven by both: product mix as well as the prices realized.

Get that. Sir, since you also mentioned that prices are now moving up, do you see scope for significant improvement from current levels also?

See, significant is a very [laughs] ambiguous word. It will be growing, and nobody can predict how much, but it is on the way up.

We expect the growth in our total revenue to be around 15 to 15% to 20% in the year FY '27.

Get that. Sir, this quarter as well as for 9-month FY '26, Europe has shown a very good growth.

Specifically this quarter, it's almost doubled year-on-year. Can you provide some color on how Europe is doing so well?

Yeah.

See, I'll say there are three, four factors. One is good climate, good atmosphere for agriculture, and good demand for the products.

Okay.

Our ability to meet the demands of the customers on time.

Okay. Is there any element of one-offs restocking happening in Europe, or it's more demand driven?

I didn't understand this one-off point, but I would say it is demand

driven. Get that.

Sir, on the other hand, NAFTA region witnessed a decline year-on-year in this quarter. Is this any impact of tariff or anything?

Mr. Mukherjee, I have repeated on various platforms, and I'm repeating again.

Agrochemical products are not impacted by tariff. As they are not freely tradeable products.

They require to be registered first, involving a huge investment. Very few companies or people believe in this huge investment on registrations, which is an intangible asset.

Saying that, fortunately for agrochemicals, the tariff is not affecting at all, particularly to the suppliers. We are able to pass on all the tariff smoothly to our customers, and customers have no other choice to buy from anywhere.

They have to source the products only from registered sources, and registered sources are very limited for every product. The product has to be sourced from an approved manufacturer, approved factory.

It cannot be manufactured anywhere as you like. The customer knows this, and he accepts the adding of the tariff, and he smoothly and gracefully pays the payment, and the payments are also on time.

Clear?

That's great to know. Yes, sir, very clear.

Thanks. Just last question from my side.

Sure, I'll do that. Thanks.

Yeah. Congratulations, sir, for at least for sticking to whatever guidance you gave for the last period of Q1, Q2.

Sir, actually, first of all, just like to confirm that if earlier you were telling your margin is from 15% to 18%, now you are putting it on 18% to 20%, am I right, just to reconfirm

for FY '26?

Yes, sir. Yes.

This particular margin guidance is valid for FY '27 also?

Yes, please.

Okay. In terms of the, sir, in terms of the demand, you have clearly mentioned demand is improving.

Can you just give some qualitative color that what has changed from the last 6 months apart from the inventory? You mentioned that inventory has gone down significantly at whatever people are holding.

Can you just give some color? That's my only question.

Sir, I can only answer your question in very general way. The demand goes up when you are able to supply the goods in time to the customers.

They are seasonal products and seasonal demands. If you cannot supply the products on time, then it's a nuisance and hassle for the customer as well as the supplier.

We have been able to deliver the goods on time. Second is the quality.

If you can supply the goods and good quality and on right time, the demands has a natural tendency to go up.

Okay. Thanks.

Thank you.

Thank you.

Hello, sir. Congrats for a very strong set of numbers.

Sir, given you all said and it is already known that Q4 is our best quarter, given such strong demand outlook, can we expect to close this year at, say, ₹5,400 crore type?

Maybe, or in the nearby range. Could be less, could be more.

In versus as in because our last Q4 was 18 ₹1,800 type crore, which was very good year-on-year. We expect demand growth to improve on that more than that, right, in Q4?

Yes, sir. Our Q4 is the best quarter in because of the seasonality of the business.

Q4 is always the best, and this year also that same trend continues.

Got it, sir. Sir, on volume growth, you said 14% growth came.

We expect this type of volume growth to continue in Q4 as well as next year?

Yes, sir.

Got it, sir. Sir, given how USD and euro are behaving in January, I think we can have some FX gain also.

Do you like

Yes, sir. You are understood our business more minutely and good in detail.

Thank you.

Yes, sir. Thank you, sir.

Thank you, and all the best.

Yes.

Hi. Thank you very much, sir, for this opportunity.

Sir, just wanted to understand so what's the forex gain in third quarter?

Forex gain? It should be quite good.

Let me see. I'll ask Mr.

Shailesh to reply this question.

Yeah. See, in the quarter quarter 3, this quarter, we are having a loss of ₹4.53 crores forex loss.

That is mainly on account of the our forex payable trade payables realignment.

Okay. Understood.

In terms of tax rate also, I think our tax rate is lower. What should one look at going ahead in terms of tax rate?

I think if you look at on annual basis, probably it is in the range of 18% to 20%.

Okay. Why our tax rate is lower?

Huh? Why it is lower?

See, if you look at on consolidated basis, there are certain geography where there is a tax no tax. If you look at overall basket, there is a 18% to 20% tax for company on consolidated basis.

Okay. Understood.

Okay. On the growth part, 9 months, we have grown by about 29%, and we had, I think, earlier guided of 20% growth for the entire year.

How should one look at going forward? Given your fourth quarter is as strong as, you expect this 20% you want to revise it upwards?

Mr. Deepak, you must also see what is the base.

The base has been always already high in the fourth quarter. We are talking about increasing from the good growth which we achieved last year.

We maintain 20% growth rate FY '26?

Yes. Yes, sir.

Understood. Just one last thing from my side.

Any new region we are targeting? Just one small thing last.

The last one. In terms of export, I think we are very strong in Europe, NAFTA, and LatAm, right?

Any new region we are trying to build our presence?

Sir, these three regions constitutes almost 80% of the world or 90% of the world for agriculture and agrochemicals.

Correct. You want to penetrate deeper in this region only.

That's what.

Yes.

Okay. Fair point.

That would be from my side. Wish you all the very best.

Thank you so much.

Thank you, sir.

Hello, sir. Congratulations on a great set of numbers.

My first question is on the gross margin side. Can you help me with the data of gross margin geography-wise?

Again, Mr. What is your good name, sir?

Vignesh.

Vignesh. Vignesh, again, you have to be a little more specific, loud, and slow rate of speaking so that I can understand your question very well.

Surely, sir. Sir, my question is on gross margin part of the business.

I wanted to understand if you could share gross margins geography-wise for quarter 3 FY '26.

Yes, sir. Gross margin has been 43% in Europe region, 23.5% in NAFTA region, 29.2% in LatAm, and 37% overall in the rest of the world.

Overall, 35.9%.

Sir. Thank you.

Sir, and my second question is on the registration part of it. Wanted to understand the geographical breakup in terms of registrations and upcoming.

Can you repeat your question once again, sir?

Yes, sir. Sir, my question is on the registrations total registrations that we have done.

Wanted the registration breakup geography-wise: Europe, NAFTA, LatAm, and also wanted to know the registrations which are upcoming, that if you could give geographical breakup for the same.

1 minute. Give me 1 or 2 minutes.

Yeah. Registration-wise, European region, 1,675; NAFTA, 321; LatAm, 760; ROW, 248; total, 3,004.

Okay. Sir, upcoming registrations?

Oh, in the pipeline. Pipeline is Europe, 698; NAFTA, 100; LatAm, 153; and rest of the world, 125; total, 1,076.

Sir. Got it, sir.

That's all from my side. Thank you.

Thank you.

Hi, sir. I hope I'm audible.

I'm new to the sector, please bear with me. My question is related to the China export rebate policy.

They are rolling back the incentives from April this year, and the incentives on the formulation will continue. Sir, I would like your reading on the impact of this policy on the prices on technicals and on formulations and on your businesses.

Thank you.

Mr. Hitendra, again, your question is very long, and voice is low, and no what do you call?

I can repeat, sir.

I can repeat. Sorry about

that. You will put some energy in your words.

Sure, sir.

Sir,

it is related to the China export rebate policy.

Export rebate policy. What is China export rebate policy?

Yes, sir. They are rolling back the incentives on from the from April of this year on the technicals.

Like they used to provide the export incentives to their technical suppliers, which they are rolling back from this year, from April of this year. We are expecting that, that will have some impact on the prices.

Mr. Hitendra, if you have understood China and the style of working of Chinese government, you will have to understand that they are not very transparent.

Right, sir. These informations are not made available to the public, particularly foreigners.

It's very difficult for me to comment on this. The only thing I can say that China does give some incentives to the Chinese citizens for export.

Now, how much and what is their policy and what is the variation, it's very difficult to gather, and it doesn't affect us.

Right, sir.

You understand?

Because we are on the formulation side mostly. Yeah.

Okay.

Sir. Thank you so much.

Sir, the Europe for us has Europe has done very well for us this quarter and even for 9 months, even for last few quarters also. Sir, is the growth driven by getting new dealers, or probably entering new geographies or adjacent regions in the European market, or a mix of both?

Or sir, what's driving this?

Sir, it's a mix of both: new dealers and getting better access to the market.

We have also expanded the geography, say, for example, if you're operating in one part of the country, we have also started operating in other part. Is that also driving growth?

Yes, that is also there.

Sir, I understand you probably will not have this, but is it possible to share how much is probably coming from existing dealers which is driving growth and new dealers which are driving growth, if it some degree which it can give us some more comfort in terms of the growth?

Mr. Dhruv, I think I know you for last 10 years, [laughter] and I know you're very intelligent.

You already answered the question. More than me on this part of the question.

Sure, sir. Sir, just to [laughter] understand a bit on the Europe thing, is it a few molecules which are driving growth, or it is across molecules that we are seeing growth?

It is across molecules. There will be some molecules who are doing more, but then it's very difficult to differentiate.

Sure. Great, sir.

That's all. Thank you so much, and all the best.

Thank you.

Thank you.

Hi, sir. This is Sonal Minhas.

I hope I'm audible.

Yes, please.

Sir, I had a small question to ask on the working capital. We see that your working capital days have reduced from 98 days in December '24 to 70 days now.

Just wanted a subjective commentary on what is it that company has done to reduce the inventory days. If you could give us a subjective feedback on it, that'll be helpful.

Sir, I would say consistent increase in the demand and confidence of the suppliers on the credibility of Sharda Cropchem Limited. They're giving us very comfortably extended credits, and again, the demands are increasing, customers are also paying in time.

European region is known to be the most disciplined region for the question of payments. They're very punctual.

Sometimes they pay before time.

Got it, sir. This is helpful.

Sir, second question. This quarter, the NAFTA region has degrown for the agrichem segment.

If you could give any subjective commentary on what is it, is it a one-off or if you could give us any guidance on what has happened in that region as far as demand is concerned, that'll be helpful.

Sir, there's nothing that is available to us and which is open and transparent for this reason. It has degrown.

I think partly it's responsible for the climate. There's been very heavy, unpredictable, and unusual climate conditions that has affected the demand.

Got it, sir. That's it from my side.

Thank you, sir.

Thank you.

Hello.

Hello.

Sir. Am I audible?

Yes, please.

Yeah. Sir, my question is just wanted your thought process on the India-EU trade deal has happened.

How this can benefit to our company or the sector, if you can just give your view on it?

Sir, what I have seen about this treaty, there is no mention of agrochemicals anywhere. They're talking about cars and import of cars into India and all those things, which are totally unconnected with our business modeling.

As far agrochemicals are concerned, I don't think there is any mention or any impact on either tariffs or any other things. Our business remains as usual and it's growing.

Sir. Got it.

Thank you, sir.

Thank you.

Hello. Sir, am I audible?

Yes, please.

Sir, just one question. Sir, compared to pre-COVID levels, currently, price realizations, how much are they still down compared to those levels?

If you could share some color?

Sir, they are quite down compared to the pre-COVID level.

Is it some geographies are more affected or is it similar across geographies?

Sir, you are asking a very difficult question, and we don't go into so many details. We just face the situation as it comes.

We don't sit down and then analyze what geography and all that. In general, the price levels are low.

Pre-COVID level, prices were very high. Again, our sourcing cost have also gone down considerably.

In terms of percentage, we are better off than pre-COVID level, as far as margins of Sharda.

Sir, on the procurement cost from China, that you are seeing at stable levels, or is there some inflation happening there as well?

No, there is a slight improvement time to time. The prices are going up: sourcing as well as selling prices.

Margins are improving as far as Sharda is concerned.

Get that. Thanks, sir.

That's all from my side.

Thank you.

Hello, sir. Thank you for the follow-up.

Sir, recently, there was a news article that China is looking to tighten agriculture chemical exports. Hamare pe to koi issue nahi ho raha na?

Are we able to source effectively, easily from China, or is there any issue on that front?

Sir, I am hearing for the first time from you that they are trying to tighten their agrochemical resources. As far as we are concerned, we are not impacted at all.

Nice to know. That's a nice follow-up.

Sir, again harping on the same question, Q4 mein are things are looking like 18%, 20% growth can come in Q4 also, or how are we thinking? Pricings pe bhi if you can comment ki how much is it improving maybe year-on-year on trend?

Sir, you have put the question first and then also answered. I am again repeating.

We expect the same growth in Q4 also.

Both in volume and pricing?

Yes.

Sure, sir. Thank you, and all the best.

Thank you.

Hello, sir. Congratulations on the good set of numbers.

I had a simple follow-up question on what previous participant asked on European

Okay. Am I audible now?

Sir, you are audible, but you are speaking very fast. You have to also speak slowly and put more energy into your words, slowly and loudly.

Sure. My question was in continuation to previous participant who asked on the European this thing that it is not going to impact, you answered.

Just wanted to understand because from previous calls, I remember you said we still source maximum or almost 100% of our supplies from China. Are we looking at everything changing with this or no?

Hedging our resources, trying to get some supplies from India or some other country, or still we are completely reliant on China?

Mr. Rathi, I have not understood your question very clearly, but what I have understood, you are probably asking whether we are also looking for sourcing from India and China and all that.

Am I right?

Multiple countries, because I thought maximum was from China.

Now, Mr. Rathi, again, I think you're not exposed to the agrochemical business very well and in detail.

I have explained many times that registration is very critical. When the authority registers the product, they not only register the product, but also the manufacturing plant from where we are sourcing.

It is a condition that registrant can source it only from the plant which has been exposed for the purpose of registration. We cannot change the manufacturer.

We have to buy only from the same source. We are given a freedom to add another supporting manufacturer.

As far as Sharda is concerned, we are having at least three or four manufacturers for the same product and for the same registrations, which gives us a flexibility and we are not exploited by the manufacturer. I cannot have a choice that I can source one product from India and next time I from China and all that.

We have very little sources, registered sources from India. Majority of our registered sources are from China.

Have I answered your question, sir?

Yeah. You did.

Thanks a lot, and yeah, sorry for confusion. Thank you, sir.

Thank you.

Good afternoon, sir, and congratulations on delivering a very strong set of numbers. I had just one question.

We are already sitting on a very good amount of cash on hand, and going by the strong outlook we have been talking about, I think the cash in the balance sheet is going to increase further. Are we looking at some acquisitions, or we will look at increasing the dividend payout, because the very high cash on the balance sheet is then going to start impacting our return on capital employed?

Sir, we have already started looking into the line that you suggested. We are looking into increasing the dividend, but we are not looking into the acquisitions.

We have declared a very good dividend for this quarter yesterday.

Sir. Thank you very much.

Thank you.

Hi, sir. Sir, our sales from top 10 dealers last year was something around 16% to 17%.

Is that similar to that numbers this year as well?

Mr. Pratik, again, I'm sorry.

I have not understood your question. Again, I request you to speak slowly and loudly.

My question was, last year, our top revenue from top 10 dealers and distributions was something around 16% to 17%. That number in current year also it's near about that percentage?

It will be more or less near about that.

Okay. Sir, can you show some highlights on the top 10 products revenue share?

Means, what would be the top 10 products share in our revenue?

1 minute. Our top 10 product share in revenue is about 43% in this year.

43% for this year. Okay.

Have we seen 43, 43%. Great.

Sir, you have said that for the current quarter, the product registration for Europe is 698, which last quarter was somewhere around 710. This quarter, we have got approval of somewhere around 12 products in Europe.

Is that correct? My understanding is correct?

No, 698 is what do you call? Pipeline.

Mr. Shailesh will reply this question.

Can you repeat your question about the Europe registration?

Last quarter, the number for registration in Europe was something around 710, which has been reduced to this quarter at 698, if I'm not mistaken. My understanding is correct that 12 products have, we have received approvals in this quarter for the Europe registration?

Correct. You're right.

Great. Okay.

Sure. Thank you.

That's from my side. Thank you.

Yeah.

Yeah. Thank you, everyone, for joining us.

I hope we have been able to answer all your queries. We look forward to such interaction in the future.

We hope to meet your expectations in the future, too. In case you require any further details, you may contact us or SGA, our investor relationship partner.

Thank you.