Coromandel Inter

Coromandel International reported a robust Q1 FY26, with consolidated total income growing 49% year-on-year to INR7,126 crores, up from INR4,783 crores in Q1 last year. This growth was primarily driven by higher subsidy rates and strong volume growth across all business segments. Consolidated EBITDA saw an even stronger increase of 55% year-on-year, reaching INR782 crores compared to INR506 crores in the previous year's Q1. The company received INR1,300 crores in subsidy claims during the quarter, though INR2,911 crores remained outstanding as of June 30, 2025.

The company's plants operated at a full capacity of 8.4 lakh tons in Q1, achieving a 6% volume growth. Phosphoric acid volumes increased by 23%, and production of NPK and DAP moved up 6% from 7.88 to 8.37 lakh tons. The backward integration project for phos acid and sulfuric acid at Kakinada is progressing well, with 70% of the project milestone completed, and is expected to be commissioned in Q4 of the current financial year. Additionally, a new granulation project, set to add 7.5 lakh tons of additional capacity, is on track for commissioning by the end of FY26-27.

Coromandel achieved a record 11 lakh tons in primary sales volume, marking a 31% growth and securing a close to 18% market share in the NPK segment. POS consumption also saw significant growth, up 46% to 7 lakh tons, with the company's market share on a consumption basis improving to 16% from 12% last year. The focus on unique grades, which differentiate the company, increased their share to 34% of sales, up from 31% last year. Despite firm raw material prices for DAP, Phos Acid, and sulfur, management aims to sustain a normative EBITDA of INR5,000 per metric ton for the year.

The Board approved increasing the stake in Baobab Mining and Chemicals Corporation (BMCC) by an additional 17.7%, bringing the total ownership to 71.5%, which is crucial for captive rock sourcing. The acquisition of NACL has received Competition Commission approval and is awaiting SEBI clearance, with management targeting completion in Q2 FY26. Furthermore, Coromandel signed a definitive agreement to form a joint venture with Sakarni Plaster to manufacture green building materials, leveraging industrial byproduct gypsum into value-added construction material.

The Crop Protection and Bio segments delivered a robust performance in Q1, with revenue growing 31% to Rs 725 crores and EBIT increasing 77% to Rs 111 crores. The Bio business experienced significant growth, nearly doubling in both volume and value. The company launched 10 new products during the quarter, including one in-licensing product (Nitenpyram), and is intensifying its focus on domestic formulation segments and expanding its geographical presence, with exports contributing 40% to Crop Protection revenue.

Coromandel is actively promoting agri-tech solutions, with its Gromor Drive drone spraying service covering 25,000 acres in Q1 and targeting at least 0.5 million acres for the current year, emphasizing water conservation. The retail business also performed strongly, opening 73 new stores during the quarter and aiming to add 400 stores this year. The company is enhancing customer outreach through e-commerce platforms, enabling door delivery of agri inputs and providing comprehensive farming solutions.