Chambal Fert.

Chambal is aggressively scaling its Crop Protection Chemicals (CPC) and Specialty Nutrients (SN) business, which saw a 26% YoY revenue increase to ₹255 crores this quarter. The company has set a target of ₹1,750 crores in gross revenue for this segment by FY27. Management is also entering the seeds market, with plans to market hybrid wheat, mustard, and millet starting in Kharif '25, aiming to complete their agro-inputs profile.

The Technical Ammonium Nitrate (TAN) project has undergone a configuration change to include Low Density Ammonium Nitrate (LDAN) capabilities. While this required re-engineering and equipment re-orientation, management believes it prevents a future 4-10 month shutdown for upgrades. The plant is now scheduled for commercial production in January 2026, with cumulative expenditure reaching ₹541 crores as of January 2025.

The IMACID joint venture has approved a $173 million expansion to increase Phosphoric Acid capacity from 5 lakh to 7 lakh metric tons by FY28. Crucially, Chambal does not need to invest fresh capital as the JV has sufficient internal cash. This expansion is part of a broader strategy to secure the phosphate supply chain and transition Chambal into a global phosphate player.

Urea units operated at optimal capacity with production at 9.18 lakh metric tons. However, Q4 FY25 will see a volume reduction of 1 to 1.5 lakh tons due to a planned 30-day turnaround at the Gadepan-III unit. Energy efficiency improved by 3%, which management estimates translates to a saving of roughly ₹5,000 per Gcal, though some gains are shared with the government under the subsidy formula.

The company maintains a very healthy balance sheet with approximately ₹3,000 crores in cash and no net debt. Subsidy receipts of ₹3,350 crores in Q3 have supported this liquidity. Management indicated that future capital allocation will focus on securing global phosphate supply chains and expanding the biologicals pipeline, where they have a ₹300-400 crore sales ambition by FY29.