Are Sumitomo Chemi. latest results good or bad?

The latest financial results for Sumitomo Chemical India for the quarter ended September 2025 reveal a challenging operational environment. The company reported net sales of ₹929.82 crores, which reflects a year-on-year decline of 5.92% and a significant quarter-on-quarter decrease of 12.01% from the previous quarter's revenue of ₹1,056.78 crores. This decline raises concerns about demand conditions and market share dynamics within the agrochemical sector.
Net profit for the same quarter stood at ₹177.77 crores, which is down 7.55% compared to the same quarter last year and shows a slight sequential decrease of 0.32%. The operating margin was reported at 23.45%, indicating a year-on-year contraction of 137 basis points, although it improved sequentially by 271 basis points from the prior quarter. This suggests that while there was some recovery in margins on a sequential basis, the overall trend remains under pressure due to pricing challenges and unfavorable cost dynamics.

The company's return on equity remains respectable at 19.61%, reflecting its ability to generate reasonable returns on shareholder capital. However, the recent performance indicates a moderating trend in profitability metrics, which may affect investor sentiment.

In light of these results, the company saw an adjustment in its evaluation, reflecting the disconnect between its operational performance and the premium valuation multiples it commands. Overall, Sumitomo Chemical India is navigating through a period of revenue decline and margin compression, which could pose challenges for its near-term growth trajectory.