Sumitomo Chemical India Ltd(SUMICHEM)

NSE: SUMICHEMBSE: 542920

₹ 359.25-0.36%refreshed 26 Oct, 10:14 am ISTMarket cap: ₹ 17,932 crNext results: 26 Oct 2026Website: www.sumichem.co.inUpdated: 24 Oct 2026

About

Sumitomo Chemical India Ltd (SCIL) is a subsidiary of Sumitomo Chemical Company (SCC) Japan, focused on agrochemicals including insecticides, herbicides, fungicides, metal phosphides and bio-rationals for the Indian and export markets. Agro Chemicals account for 92.7% of revenues, with the balance from an Others segment that includes animal nutrition distribution.^[1][2][3]

Business segments

Agro Chemicals segment generated Rs. 2,840.53 crore in revenue (92.7% share) at an EBIT margin of 21.6% in the FY2020 - FY22 window reported.^[2]
Others segment (including animal nutrition distribution) contributed Rs. 224.07 crore (7.3% of revenue) at an EBIT margin of 5.9% in the same reported window.^[2]
Animal nutrition distribution was discontinued in FY26 then restarted immediately due to global supply chain challenges faced by parent-appointed third-party distributors; margin on this business is approximately 4 - 5%.^[3]

Products and brands

Portfolio spans insecticides, herbicides, fungicides, metal phosphides, plant growth regulators (PGR), bio-rationals and animal nutrition products.^[4][3]
Flagship herbicide brand Mera 71 (glyphosate) and newly launched rice herbicide Lentigo and fungicide Excalia Max contributed to herbicide growth of 19% YoY in FY26.^[3][5]
Branded formulation share in domestic sales was 81% in FY26, up from 79% in FY25; specialty products reached 30% of domestic revenues in FY26.^[3]
Biological/bio-rational revenues (including Barrix portfolio) accounted for 8 - 10% of revenues in FY26, with growth expected from FY27 as new regulatory frameworks take effect.^[3]
Two new products - Topgrain (bio-rational) and Helibax (Pyridalyl + Emamectin) - were on track for launch in Q2 FY27 (by September 2026).^[4]
Products launched in the past three years contributed approximately 8% of domestic revenue in FY26.^[3]

Manufacturing and operations

Manufacturing sites include Tarapur, Bhavnagar, and a new greenfield site at Dahej; capacity utilisation at TGAI (technical grade active ingredient) facilities ran at approximately 80 - 90% in FY26 and Q1 FY27.^[3][4]
Custom synthesis and manufacturing (CSM) revenues for parent company SCC currently run at Rs. 100 - 150 crore per year, with growth expected from FY28 as Dahej and other capex projects are commissioned.^[3]
India has been elevated by SCC Japan to the same tier as Japan, Brazil, North America and Europe for early-stage testing of new molecules from SCC's global discovery pipeline; two molecules already received for trials.^[3]

Key operating numbers

Gross margin was 39.2% in Q1 FY27 (+111 bps YoY) and 42.0% for full-year FY26 (+107 bps YoY).^[4][3]
Metal Phosphides grew 21% YoY in Q1 FY27 and 11% YoY in FY26; Herbicides grew 87% YoY in Q4 FY26 and 19% for full-year FY26.^[4][3]
Export revenues were 16% of total revenue in Q1 FY27, growing 26% YoY, led by South America, Asia (ex-India) and Africa.^[4]
Net working capital days were 56 days in June 2026 vs. 43 days in June 2025, driven by seasonal inventory build; trade receivable days improved to 68 days from 76 days in June 2025.^[4]
Inventory days stood at 124 days in June 2026, up 34 days from 90 days in June 2025.^[4]
ROCE was 31% in FY26, up from 29% in FY25.^[3]

Customers and distribution

Exports in FY26 grew 26% YoY in Africa and the company targets further growth in Africa, Latin America, Asia and Europe leveraging SCC's global supply chain and marketing network.^[3][4]
A new royalty arrangement (annual cap of Rs. 2 crore) for 2 - 3 products allows SCIL to source technical goods from outside suppliers at better pricing, expected to improve margin profile and expand domestic product business.^[3]

Expansion and capex

Rs. 150 crore herbicide intermediate greenfield plant at Dahej site (for SCC parent supply) has commenced development work and is targeted for commercialisation by Q2 FY2028-29.^[3]
A series of additional capex projects at Dahej is planned, with one project of broadly similar quantum (~Rs. 150 crore) expected to be announced roughly annually over the next several years.^[3]
Rs. 55 crore brownfield second plant for an SCC innovated product at Bhavnagar site targets Q4 FY27 commercialisation.^[3]
Rs. 10 crore equipment modification at Tarapur to produce a newly launched SCC innovated molecule for domestic demand targets Q4 FY27.^[3]
Total potential investment of Rs. 500 - 600 crore at Dahej over five years for 7 approved products was indicated as of Q2 FY26.^[5]
Company targets investing approximately 15% of consolidated EBITDA annually into manufacturing upgrades and capacity expansion.^[4][3]

Recent developments

Dr. Suresh Ramachandran (27 years experience in crop protection) was appointed Managing Director effective 1 September 2026, succeeding Chetan Shah and Sushil Marfatia whose terms concluded 31 August 2026.^[4]
Semiconductor / high-purity chemicals for India's semiconductor industry were being explored jointly with SCC Japan's ICTM department as of Q4 FY26, with a formal announcement expected.^[3]
Animal nutrition distribution, discontinued in FY26, was restarted as of Q4 FY26 after global supply chain difficulties for the parent's third-party distributors.^[3]

Market Cap

₹17,932 Cr

High / Low

₹573 / 358

Stock P/E

31.0

Price / Book

5.3

Book Value

₹68

EPS

₹10.9

No. of Shares

49.91 Cr

ROCE

23.3%

ROE

17.3%

OPM

22.2%

Debt / Equity

0.00

Sales

₹3,238 Cr

Net Profit

₹543 Cr

Promoter holding

75.0%

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Sumitomo Chemical India Ltd(SUMICHEM)

About

Business segments

Products and brands

Manufacturing and operations

Key operating numbers

Customers and distribution

Expansion and capex

Recent developments

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