Agri earnings face monsoon and cost pressure
Brokerages expect a weak Q2 FY27 for India’s agrochemical sector as deficient monsoon rainfall and high raw material costs pressure earnings. Estimated EBITDA declines range from 17.4% for Sumitomo Chemical India to 56% for Coromandel International.
after close2 sources ↓machine-written, see hownot a recommendation
- EBITDA to decline
- 56% year on year
India’s listed agrochemical companies are heading into a weak July–September quarter, with deficient monsoon rainfall and elevated raw material costs expected to pressure Q2 FY27 earnings. The update expands on Insecticides India’s earlier lower FY27 growth outlook, which cited weak demand but pointed to premium products and B2B sales as support for profitability in the second half.
Brokerage estimates indicate a broad earnings setback across the crop-protection sector. Nuvama Research expects Coromandel International’s Q2 FY27 EBITDA to decline 56% year on year, while PI Industries is projected to record a 36.7% drop. Rallis India and Sumitomo Chemical India are forecast to see EBITDA declines of 26.5% and 17.4%, respectively. These are estimates, not reported results, and reflect the combined effect of weaker farm demand and input-cost pressure.
Elara Securities expects revenue across its wider agrochemical and fertiliser coverage universe to fall 7% in the quarter, with EBITDA down 13%. The estimates suggest that weaker rainfall is affecting crop economics and agrochemical usage, while persistent raw material inflation is limiting operating leverage. Raw material costs therefore remain a second pressure point even for companies with diversified product portfolios. 🌧️
Key points:
• Coromandel International: estimated Q2 FY27 EBITDA decline of 56% year on year.
• PI Industries: estimated EBITDA decline of 36.7%; Rallis India: 26.5%; Sumitomo Chemical India: 17.4%.
• Elara expects sector-universe revenue to decline 7% and EBITDA to fall 13%.
The sector’s earnings commentary will show whether the impact is concentrated in the monsoon-sensitive domestic business or extends to export and specialty segments. Investors will also watch management comments on rainfall recovery, channel inventory, product mix and the timing of any improvement in farm demand. Insecticides India’s expected Q2 recovery and premium portfolio performance will be relevant alongside the larger companies’ results. 🌾
The estimates point to a weaker near-term earnings environment for agrochemicals and fertilisers, while the eventual monsoon distribution and input-cost trend remain the key operating variables. 📉
Source: news.google.com, 08 Oct 2026; Global Agriculture, 10 Oct 2026.
Not investment advice. For informational purposes only.