Sharda Cropchem CMD Confident Of Surpassing 18% Ebitda Margins In FY26
The company logged strong growth in the first quarter and expects the momentum to sustain unless there is any adverse geopolitical development.
Sharda Cropchem Ltd. may record its Ebitda beyond 18% in FY26, driven by improving pricing trends, stable euro-dollar exchange rates, and operational efficiencies, despite global uncertainties, Chairman and Managing Director Ramprakash V Bubna, told NDTV Profit on Friday.
When asked if the company can exceed its earlier projections of around 15-18% due to a strong outlook in either FY26 or FY27, Bubna said, “It could be.”
He explained that concerns on pricing, volume, and destocking pressures from the past two years have now stabilised. Global inventory levels are normal, with a good balance between consumption and production, leading to an improving business environment.
“What happened about two years back or last year is the past. Now the global trend is normal, the global uh inventory levels are also normal and there's a…..good match between the consumption and production,” the CMD explained.
Sharda Cropchem logged strong growth in the first quarter and expects the momentum to sustain unless any major geopolitical development impacts its forex gains.
“We should be able to sustain it (growth). See, our business is also dependent upon the cross currency exchange rate….sourcing is all in dollars… Around 95% of sourcing is from China and our majority sales are in Europe. So, the euro-dollar exchange rate has a very critical impact on our performance. This year the euro dollar exchange rate is very stable and very respectable that is why the performance is good,” Bubna noted.
The chemical manufacturing company does not expect Donald Trump’s tariffs to hurt its business. This is because their products require strict US government approval and registration, making them less tradable.
"So, the customer has no choice but to buy the products from the same source…so, we are able to pass on all the tariff increase to our customers and he then is able to also pass it on to his customers and finally the citizens of the US are going to pay,” he added.
On cash utilisation, the company currently holds approximately Rs 790 crore in cash and cash equivalents as of Q1. There are no immediate plans for acquisitions.
“We do not have any acquisition in mind okay as far as dividend is concerned we have doubled the dividend in the uh in FY25 the last quarter we could consider increasing the dividend if the other factors are able to support it,” Bubna added.
Sharda Cropchem shares closed at Rs 897.80, up 0.56% on Sept. 19 on NSE. Meanwhile, the Nifty 50 declined by 96.55 points, or 0.38%, to settle at 25,327.05 at market close.
