Buy

Beating Consensus estimates and ARe, UPL’s revenue/EBITDA rose 8/40% y/y to Rs120.2/22bn in Q2. It posted Rs4.4bn PAT vs. Rs4.3bn loss in Q1 FY25.

SCL reported a robust performance in 2Q FY26, driven by strong volume growth and margin expansion. The Company remains optimistic about a gradual recovery in the global agrochemical market, noting that inventories have normalized across distribution channels.

We upgrade our rating from HOLD to BUY on the stock as the current valuations appear attractive considering the company's long-term growth prospects.

Less than the consensus but in line with ARe, Dhanuka Agritech’s Q2 revenue/EBITDA/PAT fell 9/14/20% y/y.

Healthy, 35% y/y, volume growth and market-share gains in its key regions drove Sharda Cropchem’s Q2 results. Growth improved on better demand particularly in NAFTA and Europe coupled with near complete de-stocking across major regions.

Below consensus and as we estimated, Sumitomo’s Q2 was weak; revenue/EBITDA/PAT fell 6/11/8% y/y. Domestic revenue down 4% y/y to Rs7.7bn; exports down 13% y/y to Rs1.6bn.

Rallis India Q2FY26: Weak topline performance, Margins remain stable Revenues stood at 861 crore, down 7.2% YoY on account of erratic and prolonged rains which impacted field activities and spray applications. The crop care business (88% of the revenues) reported a decline of 3% YoY at 760 crore, as growth in B2B business (14% YoY) was undone by 10% degrowth in B2C business due to weather disruptions. The seeds business (12% of the revenues) reported a decline of 28% YoY, at 101 crore. EBITDA for the quarter stood at 154 crore, down 7% YoY translating into margins of 18%, up ~220 bps QoQ/ flat YoY. EBITDA for the crop care...

Sharda Cropchem Limited (SCL) reported a 25% y-o-y increase in total revenue for 1Q FY26, reaching Rs 984.8 crore.

Broadly in line with consensus and our estimates, Dhanuka Agritech’s Q1 revenue/EBITDA/PAT grew 7%/16%/14% y/y.

Ahead of consensus & our estimates, Sumitomo’s Q1 was robust; revenue/EBITDA/PAT grew 26/36/41% y/y. Domestic revenue up 29% y/y; exports 9% y/y.

Healthy, 13% y/y, volume growth and market-share gains in its key regions drove Sharda Cropchem’s Q1 results. Growth improved on the back of better demand scenario particularly in Europe and a near complete destocking across major regions.

We recommend a BUY rating on the stock with a TP of Rs 955/share, implying an upside of 10% from the CMP.

Transforming India Through Agriculture

Sumitomo Chemical (Sumitomo) reported subdued 4Q numbers below our and consensus estimates with flat revenue growth while EBITDA and PAT declined by 15% and 9% y/y respectively.

Quarterly Update Q4FY25

We recently met Sharda Cropchem’s Chairman and MD, Mr R V Bubna to gauge the business outlook. Management is confident of achieving double-digit revenue growth (guidance raised 26% y/y post Q3 results vs. 15-20% earlier) in FY25, particularly due to volumes and penetration into new markets.

Diagnostics business to see strong growth

Broadly in line with consensus and our estimates, Dhanuka Agritech reported a decent set of Q3 figures. Revenue/EBITDA/PAT grew 10%/22%/21% y/y.

We maintain our BUY rating on the stock.

We maintain our BUY rating on the stock.