Leading agrochemical company Sumitomo Chemical India Ltd on Monday reported a 12.4% year-on-year decline in net profit to ₹156 crore for the second quarter, compared with ₹178 crore in the corresponding period last year. Revenue declined 2.5% YoY to ₹891 crore from ₹914 crore in the year-ago quarter.
Earnings before interest, taxes, depreciation and amortisation fell 15.7% to ₹183 crore from ₹217 crore. The EBITDA margin contracted to 20.56% in the September quarter from 24% in the corresponding quarter last year. Japan's Sumitomo Chemical said its wholly owned South Korean subsidiary, Dongwoo Fine-Chem, has signed an agreement with Samsung Electro-Mechanics to establish a joint venture to manufacture glass-core substrates for advanced semiconductor packages.
The new company is expected to be incorporated in 2026, subject to regulatory approvals. Glass core substrates are emerging as a key technology for advanced semiconductor packaging. They offer superior rigidity, dimensional stability, lower thermal expansion and reduced warpage, making them well-suited for increasingly powerful AI chips, high-performance computing and data centre applications.
The partners aim to establish a commercial supply system by the second half of fiscal 2027, after which the venture plans to gradually expand manufacturing capacity for glass core substrates. The announcement aligns with Sumitomo Chemical's strategy to expand its semiconductor materials business, with ICT-related businesses identified as a key long-term growth driver, according to a press release.
The group has been strengthening both its front-end semiconductor materials portfolio, including photoresists and specialty chemicals, and its back-end business through investments in advanced package materials, substrate materials and next-generation process technologies.