3 Stocks That Raised Their EBITDA Margin Guidance to Up to 28% After Q3 Results

Synopsis: Three companies including Sharda Cropchem Ltd, Acutaas Chemicals Ltd, and Lupin Ltd posted strong Q3 growth and raised full-year margin guidance, signaling improved profitability and robust operational performance.

During the Q3 earnings season, several companies across sectors such as agrochemicals, specialty chemicals, and pharmaceuticals delivered strong performance and raised their margin guidance for the full year, signaling improved operational efficiency and stronger profitability expectations. Increasing margin guidance often reflects better cost management, pricing power, or favorable demand conditions.

Sharda Cropchem Ltd 

Sharda Cropchem is an India-based agrochemical company that develops, markets, and distributes crop protection products like herbicides, fungicides, and insecticides. It operates globally across Europe, the Americas, and Asia, using an asset-light model to provide formulations and active ingredients, along with some industrial chemicals and dyes.

With a market capitalisation of Rs. 9,421 cr, the shares of Sharda Cropchem Ltd closed at Rs. 1,044.25 per share, decreasing from its previous close of Rs. 1,068.75 per share.

The company has reported strong year-on-year growth in Q3FY26. Its sales rose 39% to Rs. 1,289 crore from Rs. 929 crore in Q3FY25. Its EBITDA more than doubled, up 110% to Rs. 241 crore compared to Rs. 115 crore a year ago. Net profit surged 365% to Rs. 145 crore from Rs. 31.2 crore in Q3FY25, with EPS rising similarly by 366% to Rs. 16.09 from Rs. 3.45.

The margin guidance has been raised to 18–20% for FY26 from the earlier 15–18%, signaling that management anticipates stronger operating profitability. 

The company has indicated that its capex guidance is expected to be in the range of Rs. 450 crore to Rs. 500 crore, although the final amount remains uncertain due to factors such as registration processes and other related approvals, which could potentially push the investment higher.

Acutaas Chemicals Ltd

Acutaas Chemicals, based in Gujarat, India, is a specialty chemicals manufacturer focusing on pharmaceutical intermediates and advanced chemical products. Serving pharma, agro, cosmetics, and other industries, it provides custom synthesis, contract development, and exports to multiple countries through its GMP-compliant facilities.

With a market capitalisation of Rs. 18,353 cr, the shares of Acutaas Chemicals Ltd closed at Rs. 2,241.75 per share, increasing from its previous close of Rs. 2,234.50 per share.

The company posted strong year-on-year growth in Q3FY26. Sales rose 43% to Rs. 393 crore from Rs. 275 crore in Q3FY25. EBITDA surged 120% to Rs. 151 crore compared to Rs. 68.7 crore a year ago. Net profit increased 133% to Rs. 106 crore from Rs. 45.4 crore, while EPS similarly grew 140% to Rs. 13.19 from Rs. 5.49. 

The EBITDA margin guidance for the full year has been revised upward from 28%–30% to a range of 32%–35%. Management has also updated the revenue growth forecast, raising it from 25% to around 30%. 

Lupin Ltd 

Lupin Ltd is a major Indian multinational pharmaceutical company producing generic and branded drugs, active pharmaceutical ingredients (APIs), and specialty formulations. It has a strong presence in cardiovascular, diabetology, respiratory, anti-infectives, and anti-TB segments, with products sold across dozens of countries.

With a market capitalisation of Rs. 1,06,744 cr, the shares of Lupin Ltd closed at Rs. 2,335.55per share, increasing from its previous close of Rs. 2,332.40 per share.

Sales of the company increased 24% to Rs. 7,168 crore in Q3FY26 from Rs. 5,768 crore in Q3FY25. EBITDA rose 67% to Rs. 2,262 crore versus Rs. 1,356 crore a year ago. Net profit grew 37% to Rs. 1,181 crore from Rs. 859 crore, while EPS increased 37% to Rs. 25.73 from Rs. 18.74. 

The company anticipates full-year EBITDA margins of 27%–28%, up from its previous guidance of 25%–26%. The company expects business performance to remain strong, but overall margins in Q4 may be slightly impacted due to higher R&D spending and lower income from the PLI scheme.

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