Coromandel International Limited — Q2 FY26 earnings call

Call held 31 Oct 2025

Management summary

Coromandel International reported strong Q2 and H1 FY26 results, driven by robust income and EBITDA growth across its segments. The company saw significant operational improvements in its fertilizer and crop protection businesses, including enhanced phosphoric acid production and successful integration of NACL Industries. Despite challenges from unseasonal rains and raw material price volatility, strategic capacity expansions and retail footprint growth position the company for continued positive momentum.

Highlights

  • Total income for Q2 FY26 was ₹9,771 crores, marking a 30% YoY growth, and H1 FY26 total income was ₹16,897 crores, up 38% YoY.

  • Consolidated EBITDA for Q2 FY26 stood at ₹1,147 crores, an increase from ₹975 crores in the previous year, with H1 EBITDA at ₹1,929 crores, up from ₹1,481 crores YoY.

  • PAT for Q2 FY26 was ₹793 crores (up from ₹659 crores YoY) and for H1 FY26 was ₹1,295 crores (up from ₹968 crores YoY).

  • Fertilizer plants operated above capacity, producing 9.1 lakh tons of NPK in Q2 (up 3% YoY) and 17.5 lakh tons in H1 (up 5% YoY), with phosphoric acid production up 13% in Q2 and 17% in H1.

  • The Specialty Nutrient business registered a 20% growth in revenue, and the Crop Protection segment saw H1 revenue grow 10% to ₹829 crores with EBIT up 48% to ₹162 crores.

Concerns

  • Excess, unseasonal rains in August and September affected standing crops and the application of crop inputs, dampening consumption for the industry.

  • Ammonia and Sulfuric acid prices spiked in the middle of Q2, though management expects raw material prices to soften.

  • The acquisition of NACL Industries led to one-off exceptional items and expenses, resulting in lower consolidated CPC margins compared to standalone.

  • Subsidy outstanding as of September 30, 2025, was higher at ₹3,199 crores compared to ₹1,714 crores last year, although ₹1,000 crores was received in October.

Key financials

3 periods

Headline

  • Subsidy Outstanding (Sep 30)
    ₹3,199 Cr

Q2

  • Total Income
    ₹9,771 Cr
    YoY +30%
  • Consolidated EBITDA
    ₹1,147 Cr
  • PAT
    ₹793 Cr
  • NACL Contribution to Total Income
    ₹245 Cr
  • Subsidy Claims Received
    ₹3,336 Cr

H1

  • Total Income
    ₹16,897 Cr
    YoY +38%
  • Consolidated EBITDA
    ₹1,929 Cr
  • PAT
    ₹1,295 Cr
  • Subsidy Claims Received
    ₹4,637 Cr

What they filed

Q1 FY27: revenue up 10.6%, net profit down 25.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue7,432 6,926 4,993 7,001 9,411 +27%8,457 +22%5,661 +13%7,744 +11%
EBITDA983 727 438 738 1,147 +17%758 +4%459 +5%621 −16%
Net profit696 525 389 508 816 +17%530 +1%154 −60%377 −26%
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

  • Crop Protection Segment
    ₹829 Cr Revenue (H1)10% Revenue Growth (H1)₹162 Cr EBIT (H1)48% EBIT Growth (H1)
  • NACL Industries
    ₹900 Cr Revenue (H1)18% Revenue Growth (H1)₹83 Cr EBITDA (H1)12% EBITDA Growth (H1)
  • Specialty Nutrient Business
    20% Revenue Growth
  • Fertilizer Plants NPK Production
    9.1 lakh tons Volume (Q2)3% Volume Growth (Q2)17.5 lakh tons Volume (H1)5% Volume Growth (H1)
  • Phosphoric Acid Production
    13% Growth (Q2)17% Growth (H1)
  • SSP Volumes
    6% Growth (H1)

Capital allocation

high confidence
  • Capex Capex disclosed
    • Backward integration for Sulfuric acid and Phosphoric acid in Kakinada
    • NPK capacity enhancement at Kakinada (1 million ton capacity)
    • MAP project in Vizag
    • Joint venture in gypsum project for Plaster of Paris
    • Additional capacity creation at Senegal mining operations
    • TMAP capacity (first phase) ₹150 Cr
    Backward integration project for Sulfuric acid and Phosphoric acid is coming up in Kakinada. It is progressing well. 90% of the project targets have been achieved. And I am sure mechanical completion will happen in the coming quarter, and the commissioning of plants should happen in January. This is going to be the state of the plant with the new technology. It is also helping generating power, which can meet the entire power requirement of Kakinada. It is completely going to change the cost profile of the Kakinada operations from being an importer of acid to integrated play. ... We have initiated activities on NPK capacity enhancement at Kakinada for a million ton capacity. It is likely to be completed by third quarter of next year. ... the company has announced investment in MAP, which is a critical raw material required for manufacturing specialty nutrients. ... Also we have announced quite a few CAPEX in the last few quarters: MAP project at Vizag and the joint venture in gypsum project to manufacture Plaster of Paris. Also, we will work on additional capacity creation at Senegal mining operations. ... At this point of time, the first phase will be 25,000 tons, which involves capital outlay of INR 150 to 170 crores.
  • M&A NACL Industries Acquisition · Closed

    Emerging as one of the leading crop protection players in the country, with synergy areas by aligning policies, R&D, product development, manufacturing infrastructure, and market access.

    Contributed ₹245 crores to total income in Q2; H1 revenue grew 18% to ₹900 crores and EBITDA by 12% to ₹83 crores. One-off exceptional items and expenses impacted consolidated CPC margins in Q2.

    During the quarter, the company successfully completed the acquisition of NACL Industries, followed by the mandatory open offer. Emerging as one of the leading crop protection players in the country, NACL has done well in H1 with revenue growing by 18% to INR 900 crores and EBITDA by 12% to INR 83 crores. ... The consolidated total income also includes INR 245 crores pertaining to NACL, which became a subsidiary of Coromandel w.e.f. August 8, 2025. ... on NACL, there is one-off exceptional items and expenses. Also, we didn't consolidate full quarter performance into the numbers. We took proportionate numbers from the time it has become a subsidiary.
  • Liquidity Liquidity disclosed Subsidy outstanding as on 30th September stands at INR 3,199 crores versus INR 1,714 crores in the previous year. While the closing number looks higher, it would be pertinent to note that almost INR 1,000 crores of the subsidy has been received in the month of October.
    The subsidy outstanding as on 30th September stands at INR 3,199 crores versus INR 1,714 crores in the previous year. While the closing number looks higher, it would be pertinent to note that almost INR 1,000 crores of the subsidy has been received in the month of October.

Guidance & targets

Season Outlook

  • Rabi Season Season Outlook · Rabi season · High confidence very bountiful
    Overall, we are looking for a very bountiful Rabi season.

    — Sankarasubramanian S

NBS Rate

  • P (Phosphorus) NBS Rate · Rabi season · High confidence 10% increase
    NBS rates, which gets announced once in 6 months, have been announced for this Rabi season, with a 10% increase for P and status quo maintained for N and Κ.

    — Sankarasubramanian S

  • N (Nitrogen) and K (Potassium) NBS Rate · Rabi season · High confidence status quo maintained

    — Sankarasubramanian S

EBITDA

  • EBITDA per metric ton EBITDA · H2 · High confidence minimum ₹5,500
    as a company, we target minimum INR 5,500 EBITDA per metric ton, which we are confident of doing it in the second half as well.

    — Sankarasubramanian S

Phos Acid Plant

  • Mechanical Completion Phos Acid Plant · Q3 FY26 · High confidence coming quarter
    mechanical completion will happen in the coming quarter, and the commissioning of plants should happen in January.

    — Sankarasubramanian S

  • Commissioning Phos Acid Plant · January 2026 · High confidence January

    — Sankarasubramanian S

NPK Capacity Enhancement

  • Completion NPK Capacity Enhancement · Q3 FY27 · High confidence Q3 next year
    NPK capacity enhancement at Kakinada for a million ton capacity. It is likely to be completed by third quarter of next year.

    — Sankarasubramanian S

Retail Business

  • Number of Stores Retail Business · FY26 · High confidence 1,200 stores
    We have entered into new states like Maharashtra, Tamil Nadu, and are on track to reach the store size of 1,200 stores in FY26.

    — Sankarasubramanian S

Crop Protection Segment

  • Revenue Crop Protection Segment · annualized · High confidence ₹5,000 crores
    crop protection segment, including NACL, should reach the critical mark of INR 5,000 crores of revenue, which is significant and pushes Coromandel in the pecking order to third or fourth largest crop protection company in the country.

    — Sankarasubramanian S

Topline Growth

  • Overall Topline Growth Topline Growth · High confidence 20% to 25%
    We plan to grow topline at 20% to 25% topline, across segments and across both the companies.

    — Sankarasubramanian S

Phos Acid & Sulfuric Acid Expansion

  • Payback Period Phos Acid & Sulfuric Acid Expansion · High confidence 2-2.5 years
    At sustained levels, I think 2, 2.5 years' payback should be possible.

    — Sankarasubramanian S

Senegal Rock

  • Volume Senegal Rock · this year · High confidence 300,000 tons
    at least we should expect 300,000 tons of rock coming in this year.

    — Sankarasubramanian S

  • Volume Senegal Rock · next year · High confidence 500,000 tons
    Our plans are to see how do we scale up the volume to 500,000 next year. Hopefully, we should try and do it.

    — Sankarasubramanian S

Fertilizer Sales (Northern/Central India)

  • Volume Fertilizer Sales (Northern/Central India) · Medium confidence 1 million tons
    We will try and see how to take at least a million ton to the markets so that when the new capacity comes in, we will be able to fulfill the demand.

    — Sankarasubramanian S

Coromandel Formulation Business

  • Critical Size Coromandel Formulation Business · High confidence ₹1,000 crores
    Coromandel's formulation business, including what we sell through retail, should reach the critical size of INR 1,000 crores, which is very significant.

    — Sankarasubramanian S

  • Growth Coromandel Formulation Business · for the year · High confidence 25%
    And overall for the year, we expect 25% growth in formulation business over the last year.

    — Sankarasubramanian S

What to watch in Q3 FY26

Phos Acid Plant Commissioning

Q3 FY26
Current Mechanical completion in December 2025
Target Trial run in January 2026, production by second or third week

Why it matters

Successful commissioning of this backward integration project is crucial for improving cost profile and ensuring raw material security.

We are looking at mechanical completion in December. January will be trial run, and production should start by second or third week.

Risks & concerns

  • Unseasonal Rains Impact on Crop Input Application

    medium

    Excess, unseasonal rains in August and September affected standing crops and the application of crop inputs as well as specialty products.

    Management acknowledged

  • Raw Material Price Volatility (Ammonia and Sulfur)

    medium

    Ammonia and Sulfur prices spiked in the middle of Q2 due to unplanned shutdown in the Middle East, though management expects softening over time.

    Management acknowledged

  • Delays in Dhaksha Defense Order Execution

    medium

    Execution of defense orders by Dhaksha is taking longer than expected due to detailed evaluation processes, impacting immediate revenue contribution.

    Management acknowledged

  • Inverted Duty Structure and Credit Accumulation

    low

    The inverted duty structure where output is 5% and input ranges 5-18% continues to cause credit accumulation, though recent GST rate reduction helps.

    Management acknowledged

Q&A highlights

7 direct
EBITDA per ton in Fertilizer Segment and H2 Outlook Direct
I have always been mentioning, as a company, we target minimum INR 5,500 EBITDA per metric ton, which we are confident of doing it in the second half as well.

Analyst sought clarity on the drivers of robust Q2 performance and management provided a specific EBITDA per ton target for H2, indicating confidence in sustained profitability.

Asked by Somaiah V

Stickiness of NPK Market Share Gains vs DAP Direct
I don't think any major shift back to DAP will happen. As a country, we should move towards balanced nutrition with more extension activities and companies like Coromandel will be persisting on this. I see this shift is for good.

Analyst questioned if NPK market share gains would reverse with improved DAP availability, and management asserted the shift towards balanced nutrition is structural and sticky.

Asked by Somaiah V

Developments and Revenue from Dhaksha Partial
The execution of defense orders depends on evaluation of the current prototype what we have made. These defense orders take a long time as they go through a detailed evaluation process. We are pursuing with the government.

Analyst inquired about the progress and financial contribution of Dhaksha, and management explained the long evaluation cycles for defense orders and ongoing work on Agri drones, indicating slower-than-expected monetization.

Asked by Prashant Biyani

Growth in 'Other Expenses' Direct
There are some one-off expenses in terms of various consultancies and engagements which will include NACL as well. Also, NACL transaction had one-time consultancy charges in terms of open offer, legal charges.

Analyst noted a significant increase in 'other expenses', and management attributed it to a shift in CSR recognition and one-off costs related to the NACL acquisition, providing transparency on cost drivers.

Asked by Prashant Biyani

Impact of NACL on Consolidated CPC Margins Direct
on NACL, there is one-off exceptional items and expenses. Also, we didn't consolidate full quarter performance into the numbers. We took proportionate numbers from the time it has become a subsidiary.

Analyst observed lower consolidated CPC margins post-NACL acquisition, and management clarified that one-off expenses and partial-period consolidation were the reasons, not underlying operational issues.

Asked by Ankur Periwal

NACL Portfolio Strategy and Consolidated CPC Margins Outlook Direct
NACL margin profile is in the range of 9% to 11%. It's fallen off to 4%. Currently the team is trying to get to 9% to 11%. And slowly, we need to get pipeline products, innovative molecules, contract manufacturing to bring the margin of NACL on par with Coromandel.

Analyst probed on NACL's portfolio and future margin trajectory, and management detailed plans to improve NACL's margins to 9-11% through new products and contract manufacturing, acknowledging the current margin gap with Coromandel.

Asked by Ankur Periwal

Impact of Raw Material Price Normalization on EBITDA Direct
The sulfuric acid plant, what we have invested in Vizag, has almost paid off 60% to 70%. Balance will get paid off during this year. ... I think value addition is likely to be better in the coming period than what we are witnessing at this point of time.

Analyst asked about the impact of normalizing raw material prices on EBITDA, and management highlighted the positive contribution from backward integration (sulfuric acid plant) and value addition, suggesting improved profitability regardless of price movements.

Asked by Naushad Chaudhary

Current Prices of Phos Acid and Ammonia Direct
Current Phos Acid is $1,290. Ammonia is in the range of $400 to $450.

Analyst sought current raw material prices, and management provided specific figures for Phos Acid and Ammonia, which are key inputs for the company.

Asked by Riju

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Detailed narrative

Robust Financial Performance in Q2 and H1 FY26

Coromandel International delivered strong financial results, with total income growing 30% YoY to ₹9,771 crores in Q2 FY26 and 38% YoY to ₹16,897 crores in H1 FY26. Consolidated EBITDA for Q2 stood at ₹1,147 crores, up from ₹975 crores YoY, and for H1 reached ₹1,929 crores, an increase from ₹1,481 crores YoY. Net profit after tax for Q2 was ₹793 crores, up from ₹659 crores YoY, and for H1 was ₹1,295 crores, up from ₹968 crores YoY.

Operational Excellence and Capacity Enhancements in Fertilizers

The company's fertilizer plants operated above capacity, producing 9.1 lakh tons of NPK in Q2, a 3% YoY increase, and 17.5 lakh tons in H1, up 5% YoY. Phosphoric acid production saw significant enhancement, increasing by 13% in Q2 and 17% in H1 due to de-bottlenecking efforts. The backward integration project for Sulfuric acid and Phosphoric acid in Kakinada is 90% complete, with commissioning targeted for January, aiming to improve the cost profile.

Strategic Growth in Crop Protection and NACL Integration

The crop protection segment demonstrated strong growth, with H1 revenue increasing 10% to ₹829 crores and EBIT rising 48% to ₹162 crores. The acquisition of NACL Industries was successfully completed, contributing ₹245 crores to total income in Q2. NACL's H1 revenue grew 18% to ₹900 crores with EBITDA up 12% to ₹83 crores, and management aims for the combined crop protection segment to reach an annualized revenue of ₹5,000 crores.

Expanding Retail Footprint and Nano Product Adoption

Coromandel continued to expand its retail presence, opening 100 new stores in Q2 and 170 in H1, with a target of 1,200 stores by FY26. The Nano DAP product has seen positive farmer response, with volumes almost doubling in H1. The company is actively educating farmers on the benefits of Nano products as an alternative to imported DAP, contributing to resource-efficient solutions.

Raw Material and Subsidy Landscape

While raw material prices were generally steady, Ammonia and Sulfur prices experienced a spike in Q2. International DAP prices have begun softening, which is expected to benefit the sector. The NBS rates for the Rabi season were announced with a 10% increase for Phosphorus, while Nitrogen and Potassium rates remained unchanged. Subsidy outstanding as of September 30, 2025, was ₹3,199 crores, though ₹1,000 crores was received in October.

Outlook and Future Investments

Management anticipates a very bountiful Rabi season and targets a 20-25% topline growth across all segments. Key investments include an NPK capacity enhancement at Kakinada (1 million ton capacity) to be completed by Q3 next year, a MAP project in Vizag, and additional capacity creation at Senegal mining operations. The payback period for Phos Acid and Sulfuric Acid expansion is estimated at 2-2.5 years.

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