Skip to content

    Chambal Fert.

    CHAMBLFERTGood
    Chemicals·9 May 2025
    Management Summary

    Chambal Fertilisers delivered a robust FY25 performance characterized by strong profit growth and a significant scale-up in its high-margin Crop Protection (CPC-SN) segment. Despite temporary plant shutdowns in Q4, urea volumes remained resilient. Management is pivotally focused on diversifying revenue through the upcoming TAN project and expanding its P&K trading portfolio, supported by a healthy subsidy collection environment.

    Highlights

    7

    • Full-year FY25 PAT grew 24% YoY to ₹1,657 crore, while EBITDA rose 17% to ₹2,838 crore.

    • Q4 standalone revenue stood at ₹2,449 crore with a PAT of ₹100 crore, representing 16% growth.

    • CPC-SN business achieved a 25% CAGR, with FY25 revenue reaching ₹926 crore and contribution of ₹247 crore.

    • Urea production remained strong at 34.61 lakh metric tons for FY25 despite plant shutdowns at Gadepan-I and III.

    • Technical Ammonium Nitrate (TAN) project is on track for January 2026 commissioning with ₹650 crore spent to date.

    • Subsidy outstanding significantly reduced to ₹265 crore as of March 31, 2025.

    • Company maintains a strong balance sheet with negative net debt as of fiscal year-end.

    Key financials

    Metrics

    4

    Periods

    2

    Headline

    3
    • EBITDA (Full Year)
      ₹2,838 Cr
      YoY+17%
    • PAT (Full Year)
      ₹1,657 Cr
      YoY+24%
    • Urea Sales Volume (Full Year)
      34.71 lakh MT
      YoY+6.6%

    Standalone Q4

    1
    • Revenue
      ₹2,449 Cr

    Segment breakdown

    RevenueProfit
    CPC-SN (Crop Protection & Specialty Nutrients)——
    Manufactured Fertilisers (Q4)₹2,243 Cr₹79 Cr
    Complex Fertiliser Trading (Q4)₹166 Cr₹9 Cr
    Heatmap· 2 shared metrics

    Guidance & targets

    4
    CategoryTargetPriority
    Capacity
    TAN Project Commissioning
    January 2026
    		High
    Capacity
    IMACID Phosphoric Acid Capacity
    7 lakh metric tons
    		High
    Capex
    Total Capex FY26
    ₹1,200 crore
    		High
    Volume
    NPK Trading Portfolio Growth
    250%
    		Medium

    Risks & concerns

    5
    RiskSeverity

    China Supply Volatility

    China is diverting phosphoric acid to EV batteries, making them an unreliable supplier for P&K fertilisers. — Management acknowledged

    medium

    Plant Operational Risks

    Q4 saw a 36-day shutdown at Gadepan-III and a 14-day boiler issue at Gadepan-I, impacting production volumes. — Both acknowledged

    medium

    Geopolitical Uncertainties

    Global supply dynamics for P&K fertilisers remain uncertain due to geopolitical tensions and regional monopolies. — Management acknowledged

    medium

    Areas of Evasion(2)

    • Specific operating margin numbers for the upcoming TAN project.
    • Details on 'other options' for future projects currently under evaluation.

    Q&A highlights

    3

    “The Government has made suitable adjustments and have gone to a kind of cost plus model... Almost 1,30,000 tons has been contracted till date.”

    Confirms that the trading business is back to being viable under the new subsidy regime, allowing for volume growth.

    asked by Jignesh Kamani

    2 min read5 chapters

    Detailed Narrative

    01

    CPC-SN Segment Emerges as Growth Engine

    The Crop Protection Chemicals and Specialty Nutrients (CPC-SN) business continues its strong trajectory, achieving a 25% CAGR. In FY25, revenue reached ₹926 crore compared to ₹760 crore in the previous year, with contribution increasing to ₹247 crore. Management introduced 12 new products during the year and plans to launch 18 more in the upcoming Kharif and Rabi seasons, focusing on weedicides and biologicals.

    02

    TAN Project Progress and Financial Outlay

    The Technical Ammonium Nitrate (TAN) project is progressing according to schedule, with commercial operations expected to commence in January 2026. The company has already spent ₹650 crore of the estimated ₹900 crore project cost. For FY26, the total capex is projected at ₹1,200 crore, which includes the remaining TAN spend and routine maintenance, all to be funded through internal accruals.

    03

    Strategic Shift in Fertiliser Trading

    Management is aggressively expanding its P&K trading portfolio following favorable government policy adjustments to a cost-plus model. The company expects to double or even grow its NPK trading volumes by 250% in the coming year. Despite a tactical buildup of inventory in Q4 (segment assets rising to ₹1,601 crore), management is confident this will translate into higher sales and margins during the Kharif season.

    04

    Operational Resilience Amidst Shutdowns

    Despite significant shutdowns at Gadepan-III (36 days) and Gadepan-I (14 days), urea production for FY25 reached 34.61 lakh metric tons, surpassing the previous year's 33.83 lakh metric tons. Q4 production numbers were specifically cited as 2.4 lakh tonnes for Gadepan-I, 2.57 lakh tonnes for Gadepan-II, and 2.11 lakh tonnes for Gadepan-III, showing efficient recovery post-maintenance.

    05

    JV Performance and Capacity Expansion

    The IMACID joint venture showed improved performance with production rising to 5.25 lakh tons from 4.35 lakh tons in the previous year. Sales also increased to 4.35 lakh tons. A significant capacity expansion is underway at IMACID to increase phosphoric acid capacity to 7 lakh metric tons by 2027, which will further secure raw material supply for Chambal's complex fertiliser business.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.