Sumitomo Chemical’s Q1 Momentum Fails To Impress Market; SEBI RA Spots Breakout Zone Near ₹665

Shares of Sumitomo Chemical India (SCIL) fell 3.6% Wednesday despite posting robust first quarter (Q1 )results, with revenue and profits registering double-digit growth. 

SEBI-registered analyst Mayank Singh Chandel flagged a rounding bottom breakout on the chart and shared entry levels for both conservative and aggressive traders.

Q1 Earnings Review

Sumitomo Chemical India delivered a strong first quarter, with revenue rising 26% year-on-year to ₹1,057 crore and net profit growing 41% to ₹178.3 crore.

Domestic business led the charge with 30% growth, while exports rose 7%. EBITDA also saw a healthy 36% increase.

According to SEBI-registered research analyst Mayank Singh Chandel, the company’s performance was supported by solid momentum across its three key segments: crop protection, specialty chemicals, and polymer products. 

Despite volatility in raw material prices, cost control remained effective. SCIL also continued to expand its product offerings, gain market share, and invest in digital tools to improve operational efficiency.

Chemical Sector: Q1 Analysis 

Chandel added that the chemical industry in India is rebounding after a slow FY24. Specialty chemicals, in particular, are seeing rising demand. 

He pointed to projections that the sector could reach $300 billion by 2030 and potentially $1 trillion by 2040, with around ₹8 lakh crore in investment expected by 2025. While global demand and pricing remain under pressure, government support and local consumption are helping drive the sector’s recovery.

Among peers, UPL reported 2% revenue growth and narrowed its loss to ₹176 crore, while Dhanuka Agritech posted 7% higher revenue and a 13.5% rise in profit. 

However, Chandel noted that despite a strong Q1, some peers saw muted stock reactions, such as Dhanuka’s post-results decline.

Technical Breakdown

On the charts, Chandel observed that Sumitomo Chemical has formed a rounding bottom pattern and has recently broken out from it. 

While the stock has not yet shown strong follow-through momentum, it is trading close to the breakout zone.

He advised that aggressive traders could consider entering at the current price, while conservative traders may wait for a close above ₹665 to confirm the breakout. The chart structure remains constructive, with bullish potential if the breakout sustains.

On Stocktwits, retail sentiment for Sumitomo Chemical India was ‘neutral’ amid ‘normal’ message volume.

The stock has risen 15.1% so far in 2025.

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