Sharda Cropchem Limited (SCL) reported solid growth in 2Q FY25 as revenues increased by 33.8% y-o-y to Rs 776.9 crore. A volume growth of 21% y-o-y was driven by strong performance at the agrochemical segment with Europe being the key contributor.

Net Interest Income (NII) for Q2FY25 stood at INR 29,483 Mn, a growth of 20.7% YoY (-1.9% QoQ). The yields on advances improved by 40 bps YoY (-20 bps QoQ) at 13.7%.

For Q2FY25, the revenue increased 17.9% YoY (+2.1% QoQ) to INR 144,605 Mn, which is in line with our estimate of 0.8%.
The Food & FMCG segment recorded a strong revenue growth of 34.0% YoY (+12.1% QoQ), fueled by increased outlet penetration, and repeat purchases of food products.

Volume-driven revenue growth as realisation weakens by 6.0% YoY due to weak demand in key markets

SUNP reported 11% domestic sales growth led by 5% volume growth from ~14,000 MRs; leads in Rx count across 13 doctor categories

Sharp contraction in GREENP EBITDA (-57% YoY) for eight straight quarters on supply overhang in MDF industry

Topline broadly in line; but sharp miss on EBITDA due to steep sequential contraction in MDF margin (-487bps QoQ to 11.8%)

Q2 results was better than weak expectations, supported by lower loss on iron ore and inventory valuation. Imports had a significant impact

We maintain our HOLD rating on the stock.