Sharda Cropchem’s margin trails the Commodities peer median
Other income supported consolidated pre-tax profit, while high depreciation reduced the conversion of operating profit into net profit.
Filed 29 Jul 2026, 14:11 IST · Sharda Cropchem Ltd (SHARDACROP)
Key takeaways
- Sharda Cropchem’s consolidated operating margin of 17.32% was 0.42 percentage points below the 17.74% median for 26 reported Commodities peers.
- Other income of Rs 34.53 cr made a material contribution alongside consolidated pre-tax profit of Rs 118.43 cr, making earnings quality an important consideration.
- Depreciation of Rs 100.27 cr was a major deduction from operating profit of Rs 185.98 cr, while interest was limited to Rs 1.81 cr.
Price around the results
Margin sits just below the peer benchmark
Sharda Cropchem reported consolidated operating profit of Rs 185.98 cr on revenue of Rs 1,073.77 cr in Q1FY27, resulting in a 17.32% operating margin. That was 0.42 percentage points below the 17.74% median operating margin of the 26 Commodities peers that had reported. The company ranked 13th from the bottom on this measure.
Depreciation shaped profit conversion
Depreciation of Rs 100.27 cr was the main charge between operating profit and consolidated pre-tax profit, while interest expense was only Rs 1.81 cr. Other income of Rs 34.53 cr was a material contributor to pre-tax profit of Rs 118.43 cr, so reported earnings included a meaningful non-operating component. Net profit was Rs 88.02 cr after tax of Rs 30.41 cr at a 25.68% tax rate.
Presentation flags Q1 capex
Management’s investor presentation includes a capex disclosure for Q1 FY27, linking the quarter’s reported figures with the company’s expansion activity. The disclosure is presented as a Q1 capex line rather than as a quantified operating driver in the reported commentary.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,074 cr |
| Other income | ₹35 cr |
| Expenses | ₹888 cr |
| Operating profit | ₹186 cr |
| Operating margin (%) | 17.32% |
| Interest | ₹2 cr |
| Depreciation | ₹100 cr |
| Profit before tax | ₹118 cr |
| Tax | ₹30 cr |
| Net profit | ₹88 cr |
| EPS (₹) | ₹9.76 |
Operating margin of 17.32% compares with a Commodities sector median of 17.74% across 26 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company reports capex for Q1 FY27.
What to watch
- Whether operating margin moves above or below 17.32% in the next reported quarter.
- Whether other income remains close to the reported Rs 34.53 cr contribution.
- Whether depreciation remains near Rs 100.27 cr as capex disclosures develop.