Chambal Fert.

Chambal Fertilisers and Chemicals Limited reported a strong financial performance for FY26, with standalone revenue operations growing 25% YoY to ₹20,794 crores and Profit After Tax increasing 18% YoY to ₹1,950 crores. The EBITDA margin for FY26 stood at 12.88%. For Q4 FY26, revenue from operations grew 14% YoY to ₹2,785 crores, and EBITDA saw a significant 56% YoY increase to ₹255 crores, with an EBITDA margin of 9.16%. The company's net cash position was almost balanced at year-end, despite a temporary increase in short-term borrowing due to cash flow mismatches.

The Complex Fertilizer segment was a key growth driver, with revenues surging 175% YoY to ₹7,025 crores in FY26 and sales volumes increasing 118.26% to 12.31 lakh metric tons. The Urea segment, however, saw a 5% YoY decline in revenue to ₹12,566 crores in FY26, with sales volumes slightly down by 1.84% to 34.06 lakh metric tons, partly due to an unscheduled shutdown in Q1. The CPC Speciality Nutrients and Seed segment demonstrated robust growth in FY26, with revenues up 30% YoY to ₹1,203 crores and healthy EBIT margins of 23.5%.

The Technical Ammonium Nitrate (TAN) project, with a capacity of 240,000 metric tons per annum, has entered its commissioning phase, with dry runs for the nitric acid plant already commenced. Management expects 75-80% capacity utilization within a year, projecting 1,60,000-1,70,000 tons of production and revenue of ₹37,000-₹38,000 per ton. The IMACID JV is also expanding its P2O5 production capacity from 5 lakh to 7 lakh metric tons by December 2026, and Sulphuric acid capacity is expected to increase a year ahead in FY27. The company also launched 17 new products in FY26 and plans 14 new crop protection and one specialty nutrient product for FY27.

The company faced challenges from geopolitical tensions in West Asia, leading to significant volatility in global fertilizer and energy markets. Ammonia prices increased to $850-$900 per ton and Sulphur prices to $900-$950 per ton in Q4 FY26. While the government raised NBS subsidy rates by 10%, industry margins remained under pressure due to high raw material costs and rupee depreciation. Receivables increased to ₹2,075 crores due to the government's provisional pricing mechanism for gas, which management is addressing for interim relief.

Chambal is actively pursuing new growth avenues, including a potential new Urea plant with an estimated cost of ₹9,500-₹10,000 crores for 1.3-1.4 million tons capacity, for which land and environmental clearances are secured. The company is also exploring expansion in the phosphatic fertilizer business, potentially through a JV outside India, while addressing domestic challenges like GST and controlled pricing. A partnership with Nutrien is in place to introduce specialized nutrient use efficiency products, targeting a $1 billion market in India over the next five years. The Board recommended a final dividend of ₹6 per share, bringing the total FY26 dividend to ₹11 per share.