Sharda Cropchem Ltd: Sharda Cropchem is principally engaged in export of agrochemicals (technical grade and formulations) and non-agro products such as conveyor belts, rubber belts/sheets, dyes and dye intermediates to various countries across the world.
1) Agrochemicals (82% in Q2 FY25 vs 84% in FY22): The company supplies formulations and generic active ingredients across the fungicide, herbicide, and insecticide segments. It also partners with third-party manufacturers to obtain completed formulations and generic active ingredients for resale. Revenue from the agrochemical segment declined by 21% yoy in FY24, owing to slowdown in demand with distributors/customers delaying purchases because of excess inventory, and a sharp dip in realizations.
2) Non-Agrochemicals (18% in Q2 FY25 vs 16% in FY22): The company offers belts, general chemicals, dyes, and dye intermediates. The segment revenue also declined by 25% yoy in FY24 due to lower product price realizations across all regions.
Overall, revenue in Q2 FY25 increased by 34% YoY primarily driven by higher volumes and a gradual price increase. Overall volumes have increased by 20.6% YoY in Q2 FY25 including agrochemical volumes growth of 24.6%
I will review the company in 3 parts; 1) Growth 2) Risk 3) Cashflows
Growth:
- Total registrations: 2,994 (Sep 30, 2025) with 1,068 applications pending.
- By region (existing): Europe 1,670; NAFTA 317; LATAM 759; RoW ~250.
- Pipeline: Europe 710; NAFTA 100; LATAM 160; RoW ~100.
- H1 FY26 capex: INR 250 cr.
- FY26 planned capex: INR 450–500 cr “to increase the product registrations… backed by strong pipeline.”
Management repeatedly emphasized regulatory barriers as competitive moat.
Registration process is very expensive and highly time consuming as agrochemical products are not freely tradeable registration is must.
