Chambal Fertilizers & Chemicals Limited — Q3 FY26 earnings call

Call held 11 Feb 2026

Management summary

Chambal Fertilisers reported a strong Q3 FY26, with standalone revenue growing 20% YoY to INR 5,898 crores, driven by robust performance in complex fertilizers and value-added segments. The company continued its momentum in crop protection chemicals and biologicals, with significant growth in volumes and revenues. The Technical Ammonium Nitrate (TAN) project is 92% complete and on track for April 2026 commissioning, while the company is also exploring vertical and horizontal expansions.

Highlights

  • Standalone revenue from operations for Q3 FY26 grew 20% YoY to INR 5,898 crores.

  • Standalone revenue for 9M FY26 increased 27% YoY to INR 18,009 crores.

  • Crop protection chemicals & specialty nutrients business, alongside biologicals, showed strong momentum with 9-month contribution growing 30% YoY.

  • Biologicals portfolio volumes increased 31% and revenues grew 58% YoY over the nine-month period.

  • Complex fertilizer segment revenues increased significantly by 81% YoY in Q3 to INR 1,850 crores, with sales volume rising to 2.94 lakh metric tons.

Concerns

  • EBITDA for Q3 FY26 took a hit of INR 31 crores on account of labor codes.

  • Complex fertilizer segment EBIT margins moderated to 4.4% in 9M FY26 from 6.87% last year.

  • A minor unscheduled stoppage due to a stripper leak for three days occurred in Gadepan-I plant during Q3.

Key financials

3 periods

Headline

  • Total Receivables (Dec 31, 2025)
    ₹2,346 Cr
  • Subsidy Receivables (Dec 31, 2025)
    ₹1,979 Cr

Q3

  • Revenue from Operations
    ₹5,898 Cr
    YoY +20%
  • EBITDA
    ₹821 Cr
    YoY +6%
  • EBITDA Margin
    13.9%
  • PAT
    ₹565 Cr
    YoY +12%
  • PAT Margin
    9.6%

9M

  • Revenue from Operations
    ₹18,009 Cr
    YoY +27%
  • EBITDA
    ₹2,424 Cr
    YoY +4%
  • EBITDA Margin
    13.5%
  • PAT
    ₹1,804 Cr
    YoY +16%
  • PAT Margin
    10%

What they filed

Q1 FY27: revenue down 11.8%, net profit down 4.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4,346 4,918 2,449 5,698 6,413 +48%5,898 +20%2,785 +14%5,027 −12%
EBITDA790 778 163 761 842 +7%821 +6%255 +56%826 +9%
Net profit536 534 130 549 649 +21%586 +10%169 +30%524 −5%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹23,906 Cr Total
  • Urea (9M FY26) ₹10,134 Cr 42.4%
  • Complex Fertilizer (9M FY26) ₹6,702 Cr 28.0%
  • Urea (Q3 FY26) ₹3,708 Cr 15.5%
  • Complex Fertilizer (Q3 FY26) ₹1,850 Cr 7.7%
  • CPC, Specialty Nutrients & Seed (9M FY26) ₹1,172 Cr 4.9%
  • CPC, Specialty Nutrients & Seed (Q3 FY26) ₹340 Cr 1.4%

Capital allocation

high confidence
  • Capex ₹1,184 Cr
    • Technical Ammonium Nitrate (TAN) project (total estimated cost) ₹1,645 Cr
    • IMACID P2O5 production capacity increase from 5 lakh metric tons to 7 lakh metric tons
    • Sulfuric acid capacity increase
    As at the end of 3rd Quarter, we have incurred a project expenditure of INR 1,184 crores out of the total estimated cost of INR 1,645 crores.
  • Liquidity Cash ₹800 Cr Net cash and liquid investment as of today (Feb 11, 2026).
    About INR 800 crores. About INR 800 crore as of today.

Guidance & targets

Capacity

  • TAN Plant Commissioning Capacity · FY26 · High confidence April 30, 2026
    The date of completion is scheduled for April 30, 2026.

    — Abhay Baijal

  • IMACID P2O5 Production Capacity Capacity · December 2026 · High confidence 7 lakh metric tons

    Previously 5 lakh metric tons → 7 lakh metric tons

    The increase in P2O5 production capacity from 5 lakh metric tons to 7 lakh metric tons is expected to be implemented by December 2026.

    — Abhay Baijal

  • Sulfuric Acid Capacity Increase Capacity · FY27 · Medium confidence Expected
    Further, the sulfuric acid capacity is also being increased, which is expected to be implemented in a year ahead in Financial Year' 27.

    — Abhay Baijal

Product Launch

  • New CPC products Product Launch · FY27 · High confidence 12
    Looking ahead, our pipeline remains healthy, with 12 new CPC products and one new speciality nutrient product lined up for launch in FY '27, supporting our growth ambitions.

    — Abhay Baijal

  • New Specialty Nutrient Product Product Launch · FY27 · High confidence 1

    — Abhay Baijal

  • TERI Partnership Products Product Launch · FY27-28 · Medium confidence Expected launch
    A dedicated lab is operational now, and the products are expected to launch from FY 27-28 onwards.

    — Abhay Baijal

Shareholder Returns

  • Increased Cash Returns Shareholder Returns · next 1-2 years · High confidence No
    I think if our plans work out, we don't have anything to offer in the next one or two years.

    — Abhay Baijal

What to watch in Q4 FY26

TAN Plant Commercial Operations

April 2026
Current EPC 92% complete, pre-commissioning activities started
Target Commercial operations begin

Why it matters

Successful commissioning of the TAN plant is a major growth driver and will diversify revenue streams.

The date of completion is scheduled for April 30, 2026.

Risks & concerns

  • DAP Margin Pressure

    medium

    High procurement prices for DAP (up to $850) and fixed margin structure (4% of MRP) dragged down overall traded business margins.

    Management acknowledged

  • NPK/DAP Price Dynamics and Substitution Effect

    medium

    Increased input prices for phos acid and sulfuric acid, coupled with steady DAP pricing, could impact NPK off-take if the price gap becomes too wide, leading to a substitution effect.

    Analyst acknowledged

  • G3 Policy Uncertainty

    medium

    Uncertainty regarding the government's approach to G3 policy benefits post-expiry, particularly for the Gadepan-III plant, as the government has not yet started the exercise.

    Analyst not addressed

  • Impact of Labor Codes

    low

    EBITDA for Q3 FY26 was negatively impacted by INR 31 crores due to labor codes.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
TAN Plant Commissioning Timeline Direct
We are just at the cusp. In fact, we had started the steam blowing and other pre-commissioning activities. So, that part is for the WNA plant and for the ANS and Melt, we should be doing that shortly thereafter. ... April.

Clarified the expected timeline for the TAN project's commercial production.

Asked by Prashant Biyani

NBS Policy Outlook Partial
NBS policy, we believe, will be more or less a continuation from the past, wherein I do not expect the government to go opening up the DAP segment, but as you know, the other parts of the NPKs are open in terms of pricings. I would believe that will be more or less the same, what they will continue to go forward.

Provided management's expectation on the continuity of NBS policy and its implications for DAP and NPK pricing.

Asked by Prashant Biyani

G3 Policy Benefits Expiry Evasive
No, as far as we understand, we have raked up this issue with the government. We have met the requisite personnel, but they said that we have to start the exercise. They are busy with other things, on other matters so far. One of them, of course, is the futuristic expansion of capacity in the country, and they are caught up with some other things. So, we have not been able to start on this so far.

Revealed uncertainty and lack of progress on the government's decision regarding G3 policy benefits post-expiry, which could impact the Gadepan-III plant.

Asked by Prashant Biyani

TAN Horizontal/Vertical Expansion Direct
Horizontally means that you produce more of the same stuff, and vertically means that you go forward in the value chain.

Clarified the strategic directions for future growth in the Technical Ammonium Nitrate business.

Asked by Dhruv Muchhal

DAP Minimum Availability for India Direct
So, if you look at the capacities, India produces a minimum of 300,000 tons and a maximum of 360,000 tons in a month. So, that is the range. ... Total amount is about 105-106 lakh metric tons.

Provided insights into India's domestic DAP production capacity and the estimated minimum comfortable inventory levels.

Asked by Prashant Biyani

Net Cash and Liquid Investment Direct
About INR 800 crores. About INR 800 crore as of today.

Quantified the company's current liquidity position.

Asked by Prashant Biyani

Overseas Investment Update Partial
I can only report that we are in active discussions, and we continue to have active discussions. But as I said last time, sometimes you break off and then engage. So, this is a time when I am talking to you, we have had a significant re-engagement, and, where it will lead to, we will have to wait for some time.

Indicated ongoing strategic exploration for overseas investments without concrete details, suggesting potential future M&A or partnerships.

Asked by Prashant Biyani

Pending Subsidy Dues Direct
About INR 1,980 crores, and as Mr. Baijal rightly said that about INR 600 crores is the bill value. Balance is because of some POS clearance or some advantage, disadvantage and freight, etc. And in January and February, till date, we have received about INR 1,000 crores.

Provided a clear update on the status and recovery of significant subsidy receivables, impacting working capital.

Asked by Karan Gupta

3 min read 7 chapters

Detailed narrative

Strong Performance in Value-Added Segments

Chambal Fertilisers demonstrated robust growth in its crop protection chemicals, specialty nutrients, and biologicals segments. The 9-month contribution from these segments grew 30% year-on-year, with the biologicals portfolio alone seeing a 58% revenue increase and 31% volume growth over the same period. The company also introduced five new products in Q3 and has a pipeline of 12 new CPC products and one specialty nutrient product slated for launch in FY27, further strengthening its differentiated portfolio.

TAN Project Nearing Completion and Expansion Plans

The Technical Ammonium Nitrate (TAN) project is progressing well, with EPC work 92% complete as of Q3 FY26. The total estimated cost is INR 1,645 crores, with INR 1,184 crores already incurred, and management expects the project to be completed by April 30, 2026. Chambal views TAN as a critical focus area and is actively exploring both vertical and horizontal expansions, anticipating healthy capacity utilization of 75-80% post-commissioning.

Complex Fertilizer Segment Drives Revenue Growth

The complex fertilizer segment recorded significant revenue growth, increasing 81% year-on-year to INR 1,850 crores in Q3 FY26, with sales volumes rising to 2.94 lakh metric tons from 2.13 lakh metric tons last year. For the nine-month period, revenues surged 180% to INR 6,702 crores, with sales volume reaching 11.7 lakh metric tons. However, EBIT margins for this segment moderated to 4.4% in 9M FY26 from 6.87% last year, primarily due to higher procurement costs for DAP.

Urea Segment Stability and Operational Efficiency

The urea segment maintained stable performance, with revenues of INR 3,708 crores in Q3 and INR 10,134 crores in 9M FY26. Sales volumes were largely flat at 9.83 lakh metric tons in Q3 and 27.3 lakh metric tons in 9M. The company reported improved energy efficiency, with Gadepan-I and G-II plants operating 5-6% lower than norms and Gadepan-III 2-3% lower. A minor 3-day stripper leak in Gadepan-I was the only unscheduled stoppage in Q3, with a 30-35 day maintenance shutdown planned for Gadepan-II in Q4 FY26.

Strategic Partnerships and Digital Outreach

Chambal Fertilisers has partnered with TERI for research in advanced and sustainable agricultural solutions, with products expected from FY27-28 and global commercial rights. The company is also exploring in-licensing opportunities with multinational companies like Nutrien Worldwide, Nichino, Syngenta, and Corteva for new products. Digital engagement efforts are strong, with the Chambal Uttam Krishak Mitra app exceeding 100,000 downloads, reflecting enhanced farmer connect and market reach.

Subsidy and Receivables Management

The company received INR 3,880 crores in subsidy in Q3 and INR 10,228 crores in 9M FY26. Total receivables as of December 31, 2025, stood at INR 2,346 crores, including INR 1,979 crores in subsidy receivables. Management noted that INR 1,000 crores of these dues were received in January and February 2026, indicating ongoing recovery and comfort regarding the subsidy situation, supported by supplementary grants from the government.

Capital Allocation Focus on Growth and Liquidity

The company's capital allocation is primarily directed towards growth projects like the TAN plant and capacity expansions in its IMACID joint venture (P2O5 capacity from 5 lakh MT to 7 lakh MT by Dec 2026, and sulfuric acid capacity in FY27). Management indicated no plans for increased cash returns to shareholders in the next 1-2 years, prioritizing reinvestment for growth. The company maintains a healthy net cash and liquid investment position of INR 800 crores as of the call date.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Chemicals earnings calls