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    Coromandel International Limited

    COROMANDEL
    Chemicals·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

    5

    • 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

    4

    • 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.

    What Changed2

    vs Q3 FY26

    Guidance items8 → 16 (+8)Risks discussed5 → 4 (-1)
    Key financials

    Metrics

    10

    Periods

    3

    Headline

    1
    • Subsidy Outstanding (Sep 30)
      ₹3,199 Cr

    Q2

    5
    • 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

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

    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)
    List

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    M&A

    NACL Industries

    acquisition · closed

    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.

    Guidance & targets

    16
    CategoryTargetPriority
    Season Outlook
    Rabi Season
    very bountiful
    		High
    NBS Rate
    P (Phosphorus)
    10% increase
    		High
    NBS Rate
    N (Nitrogen) and K (Potassium)
    status quo maintained
    		High
    EBITDA
    EBITDA per metric ton
    minimum ₹5,500
    		High
    Phos Acid Plant
    Mechanical Completion
    coming quarter
    		High
    Phos Acid Plant
    Commissioning
    January
    		High
    NPK Capacity Enhancement
    Completion
    Q3 next year
    		High
    Retail Business
    Number of Stores
    1,200 stores
    		High
    Crop Protection Segment
    Revenue
    ₹5,000 crores
    		High
    Topline Growth
    Overall Topline Growth
    20% to 25%
    		High
    Phos Acid & Sulfuric Acid Expansion
    Payback Period
    2-2.5 years
    		High
    Senegal Rock
    Volume
    300,000 tons
    		High
    Senegal Rock
    Volume
    500,000 tons
    		High
    Fertilizer Sales (Northern/Central India)
    Volume
    1 million tons
    		Medium
    Coromandel Formulation Business
    Critical Size
    ₹1,000 crores
    		High
    Coromandel Formulation Business
    Growth
    25%
    		High

    What to watch in Q3 FY26

    5

    Phos Acid Plant Commissioning

    Q3 FY26
    CurrentMechanical completion in December 2025
    TargetTrial 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

    4
    RiskSeverity

    Unseasonal Rains Impact on Crop Input Application

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

    medium

    Raw Material Price Volatility (Ammonia and Sulfur)

    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

    medium

    Inverted Duty Structure and Credit Accumulation

    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

    low

    Delays in Dhaksha Defense Order Execution

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

    medium

    Q&A highlights

    8

    “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

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    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.