Sumitomo Chemical India Ltd
Sumitomo Chemical India Ltd
CommoditiesSumitomo Chemical India Ltd. (SCIL) is one of the leading players in the industry which has a balanced portfolio of technical as well as formulation products along with backward integration for some products. The Company is known for domestic marketing of proprietary products of its Japanese parent -Sumitomo Chemical Company Limited in agrochemicals, animal nutrition, and environmental health business segments. With the integration of Excel Crop Care Limited, the Company now has a strong portfolio of generics in addition to specialty products and a strong combined marketing network. With this integration, the Company has moved up several notches in the pecking order of the Indian crop protection industry. SCIL has also marked its presence in Africa and several other geographies of the world.[1] [2]
Sumitomo Chemical India is a debt-free, high-quality agrochemical franchise with 18% ROE and strong analyst support (80% buy ratings), but its premium valuation at 40.4x PE and weak sales CAGR of -3% over 3 years demand patience. The stock has underperformed with -14% returns over 1 year, making fresh entry at current levels risky without visible revenue acceleration.
Key Fundamentals
SmallcapPesticides & AgrochemicalsChemicalsTechnical Indicators
Key Insights
Strengths
2- Company is almost debt free.
- Company has been maintaining a healthy dividend payout of 34.5%
Weaknesses
1- The company has delivered a poor sales growth of 3.81% over past five years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoSumitomo Chemical India is a debt-free, high-quality agrochemical franchise with 18% ROE and strong analyst support (80% buy ratings), but its premium valuation at 40.4x PE and weak sales CAGR of -3% over 3 years demand patience. The stock has underperformed with -14% returns over 1 year, making fresh entry at current levels risky without visible revenue acceleration.
- Company is virtually debt-free, providing strong balance sheet resilience and flexibility for future capex or acquisitions
- Consistent ROE of 17-20% over 3, 5, and 10-year periods (last year 18%) demonstrates high capital efficiency and quality of business
- 80% of analysts (8 out of 10) have a buy rating with zero sell ratings, indicating strong institutional conviction
- Long-term compounded profit growth of 24% over 10 years shows the business has structural earnings power
- Healthy dividend payout ratio of 34.5% signals management confidence in sustained cash generation
- Compounded profit growth of 10% TTM indicates earnings recovery is underway after a subdued period
- Backed by Sumitomo Chemical Japan, providing access to proprietary molecules, R&D pipeline, and global technical expertise
- PE ratio of 40.4x is expensive for a company delivering only 3% TTM sales growth, implying stretched valuations
- Compounded sales CAGR of -3% over 3 years reflects a material revenue de-growth cycle in the core business
- Stock price CAGR of -14% over 1 year and just 1% over 3 years shows sustained underperformance versus broader markets
- Price-to-book ratio of 6.47x is elevated for a commodities/agrochemical business with cyclical demand patterns
- Dividend yield of only 0.3% offers negligible income support while waiting for capital appreciation
- 5-year sales CAGR of only 3.81% is significantly below the 10-year CAGR of 16%, indicating structural slowdown in revenue momentum
- 5-year stock CAGR of just 3% versus 10-year profit CAGR of 24% suggests the market has already de-rated the stock on growth concerns
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- FY26 net profit up 8.2% Jun 11
Sumitomo Chemical India reported FY26 net profit of ₹5,431.39 million, an 8.2% rise from ₹5,019.48 million in FY25. Revenue from operations increased to ₹31,857.62 million.
- New MD promoted May 26
Dr. Suresh Ramachandran promoted to Managing Director effective September 1, 2026, subject to shareholder approval, signaling leadership continuity.
- Q4FY26 earnings call scheduled May 28
Sumitomo Chemical India hosted an earnings call on May 28, 2026 at 2:00 pm IST to discuss Q4 and full-year FY26 financial performance.
- Board reappoints directors May 26
Board approved reappointment of Mr. N. Sivaraman and appointment of Mr. Anand Mohan Tiwari as Independent Directors, and Mr. Chetan Shah as Non-Executive Non-Independent Director, subject to shareholder approval.
TL;DR: Sumitomo Chemical India delivered steady growth in FY26 with net profit rising 8.2% to ₹5,431 million and revenue climbing to ₹31,858 million. Leadership stability is reinforced with a new MD appointment and refreshed board. No visible headwinds emerged in recent news flow. The trend is modestly positive, though investors will watch for margin trajectory and segment-level performance in upcoming quarters.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 652 | 724 | 903 | 540 | 664 | 832 | 971 | 622 | 665 | 1,048 | 914 | 552 | 671 |
| Expenses | 571 | 643 | 715 | 474 | 526 | 670 | 729 | 521 | 548 | 828 | 697 | 456 | 539 |
| Operating Profit | 81 | 81 | 188 | 66 | 139 | 162 | 242 | 101 | 117 | 220 | 217 | 96 | 133 |
| OPM % | 12% | 11% | 21% | 12% | 21% | 19% | 25% | 16% | 18% | 21% | 24% | 17% | 20% |
| Other Income | 17 | 18 | 25 | 27 | 27 | 26 | 31 | 31 | 31 | 39 | 39 | 22 | 32 |
| Interest | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 |
| Depreciation | 14 | 14 | 16 | 16 | 16 | 14 | 15 | 18 | 16 | 15 | 16 | 16 | 16 |
| PBT | 82 | 83 | 196 | 76 | 149 | 173 | 257 | 113 | 132 | 242 | 238 | 100 | 147 |
| Tax % | 12% | 26% | 27% | 27% | 26% | 26% | 26% | 25% | 25% | 26% | 25% | 25% | 25% |
| Net Profit | 72 | 62 | 144 | 55 | 109 | 128 | 191 | 84 | 98 | 180 | 178 | 75 | 111 |
| EPS in Rs | 1.45 | 1.24 | 2.88 | 1.1 | 2.19 | 2.57 | 3.82 | 1.69 | 1.97 | 3.6 | 3.56 | 1.5 | 2.22 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 671 | 724 | 799 | 1,911 | 2,223 | 2,423 | 2,643 | 3,060 | 3,511 | 2,833 | 3,090 | 3,186 |
| Expenses | 614 | 635 | 698 | 1,691 | 1,932 | 2,088 | 2,155 | 2,458 | 2,843 | 2,358 | 2,467 | 2,521 |
| Operating Profit | 57 | 89 | 101 | 219 | 291 | 335 | 488 | 603 | 668 | 474 | 623 | 665 |
| OPM % | 8% | 12% | 13% | 11% | 13% | 14% | 18% | 20% | 19% | 17% | 20% | 21% |
| Other Income | 8 | 26 | 10 | 31 | 0 | -20 | 19 | 36 | 45 | 96 | 119 | 131 |
| Interest | 1 | 1 | 1 | 5 | 5 | 7 | 7 | 8 | 6 | 5 | 6 | 7 |
| Depreciation | 6 | 7 | 7 | 24 | 28 | 41 | 47 | 45 | 52 | 61 | 63 | 63 |
| PBT | 58 | 107 | 103 | 221 | 258 | 267 | 453 | 586 | 655 | 503 | 674 | 727 |
| Tax % | 40% | 40% | 40% | 34% | 35% | 23% | 24% | 26% | 23% | 27% | 26% | 25% |
| Net Profit | 35 | 65 | 62 | 145 | 167 | 206 | 345 | 434 | 503 | 370 | 502 | 543 |
| EPS in Rs | — | — | — | — | — | 4.12 | 6.92 | 8.69 | 10.09 | 7.41 | 10.06 | 10.88 |
| Div. Payout % | 0% | 0% | 0% | 0% | 38% | 18% | 12% | 12% | 12% | 80% | 12% | 12% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 233 | 233 | 275 | 275 | 275 | 499 | 499 | 499 | 499 | 499 | 499 | 499 |
| Reserves | -2 | 63 | 360 | 665 | 761 | 710 | 1,029 | 1,425 | 1,881 | 1,941 | 2,397 | 2,885 |
| Borrowings | 0 | 0 | 0 | 10 | 20 | 36 | 33 | 38 | 34 | 25 | 45 | 53 |
| Other Liabilities | 234 | 280 | 288 | 695 | 791 | 848 | 1,097 | 1,047 | 955 | 822 | 988 | 997 |
| Total Liabilities | 466 | 576 | 922 | 1,644 | 1,846 | 2,093 | 2,658 | 3,009 | 3,368 | 3,287 | 3,930 | 4,434 |
| Fixed Assets | 51 | 52 | 53 | 267 | 279 | 319 | 309 | 390 | 430 | 489 | 482 | 516 |
| CWIP | 0 | 1 | 7 | 9 | 8 | 10 | 14 | 35 | 71 | 23 | 28 | 3 |
| Investments | 0 | 0 | 277 | 2 | 1 | 87 | 291 | 357 | 239 | 425 | 601 | 1,226 |
| Other Assets | 415 | 523 | 585 | 1,367 | 1,558 | 1,676 | 2,043 | 2,227 | 2,628 | 2,351 | 2,819 | 2,690 |
| Total Assets | 466 | 576 | 922 | 1,644 | 1,846 | 2,093 | 2,658 | 3,009 | 3,368 | 3,287 | 3,930 | 4,434 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 4 | 52 | -21 | 49 | 75 | 222 | 424 | 223 | 389 | 756 | 459 | 443 |
| Investing | -8 | -5 | -289 | -40 | -35 | -118 | -282 | -281 | -327 | -426 | -404 | -329 |
| Financing | 0 | 0 | 276 | 7 | -65 | -61 | -47 | -63 | -73 | -331 | -66 | -81 |
| Net Cash Flow | -4 | 47 | -34 | 16 | -26 | 43 | 95 | -120 | -10 | -1 | -11 | 33 |
| Free Cash Flow | -6 | 44 | -310 | 6 | 36 | 184 | 382 | 111 | 270 | 695 | 432 | 404 |
| CFO/OP | 44 | 102 | 14 | 60 | 56 | 90 | 109 | 61 | 83 | 187 | 100 | 91 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 83 | 92 | 101 | 105 | 110 | 128 | 117 | 101 | 98 | 91 | 90 | 81 |
| Inventory Days | 135 | 169 | 191 | 202 | 193 | 133 | 185 | 198 | 157 | 135 | 154 | 149 |
| Days Payable | 109 | 132 | 115 | 176 | 136 | 112 | 145 | 110 | 87 | 96 | 107 | 77 |
| Cash Conversion Cycle | 109 | 130 | 177 | 131 | 167 | 150 | 157 | 189 | 168 | 131 | 136 | 153 |
| Working Capital Days | 69 | 79 | 113 | 113 | 116 | 109 | 95 | 127 | 136 | 173 | 183 | 256 |
| ROCE % | 27% | 41% | 22% | 29% | 27% | 26% | 33% | 34% | 30% | 21% | 25% | 23% |
Documents
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Company Information
Sumitomo Chemical India Ltd. (SCIL) is one of the leading players in the industry which has a balanced portfolio of technical as well as formulation products along with backward integration for some products. The Company is known for domestic marketing of proprietary products of its Japanese parent -Sumitomo Chemical Company Limited in agrochemicals, animal nutrition, and environmental health business segments. With the integration of Excel Crop Care Limited, the Company now has a strong portfolio of generics in addition to specialty products and a strong combined marketing network. With this integration, the Company has moved up several notches in the pecking order of the Indian crop protection industry. SCIL has also marked its presence in Africa and several other geographies of the world.[1] [2]