Coromandel International Limited — Q4 FY26 earnings call

Call held 8 May 2026

Management summary

Coromandel International Limited reported strong financial performance for Q4 and full year FY26, with record revenues and significant EBITDA growth driven by robust performance in its Crop Protection and other business segments. The company successfully commissioned new backward integration capacities and saw its acquired entity, NACL, turn profitable. However, the quarter's net profit was impacted by an exceptional impairment charge related to its drone business, and the company faces challenges from elevated raw material prices and potential delays in government subsidy adjustments, particularly concerning the Middle East crisis.

Highlights

  • Record full year FY26 revenue of INR 31,827 crores, marking a 30% YoY growth.

  • Strong full year FY26 EBITDA of INR 3,232 crores, an increase from INR 2,628 crores in the previous year.

  • Q4 FY26 revenue increased by 19% to INR 6,068 crores, and EBITDA grew 16% to INR 494 crores.

  • Standalone Crop Protection business achieved healthy growth, with revenue up 15% to INR 3,054 crores and profitability up 55% to INR 569 crores.

  • Successful commissioning of 2,000 tons per day Sulphuric acid plant and 650 tons per day Phosphoric acid plant at Kakinada, strengthening backward integration.

  • NACL turned profitable, registering INR 1,585 crores in revenue and INR 103 crores in EBITDA for the full year.

Concerns

  • Q4 FY26 net profit after tax was INR 115 crores, significantly lower than INR 578 crores in the previous year, primarily due to an exceptional loss of INR 71 crores from impairment of investments.

  • NBS rates for Kharif 2026 did not reflect the sharp increase in raw material prices and rupee depreciation post Middle East crisis, leading to affordability issues for farmers.

  • Supply disruptions from the Middle East resulted in elevated prices for key raw materials like Ammonia and Sulphur, posing challenges for finished fertilizer availability.

  • Impairment taken on investments and goodwill in the Dhaksha (drone) business due to long lead time in execution of certain orders.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹6,068 Cr
    YoY +19%
  • EBITDA
    ₹494 Cr
    YoY +16%
  • PAT
    ₹115 Cr

FY26

  • Revenue
    ₹31,827 Cr
    YoY +30%
  • EBITDA
    ₹3,232 Cr
  • PAT
    ₹1,898 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 (Standalone)
    ₹3,054 Cr Revenue (FY26)₹569 Cr EBITDA (FY26)55% EBITDA Growth (FY26)19% EBITDA Margin (FY26)
  • NACL
    ₹1,585 Cr Revenue (FY26)₹103 Cr EBITDA (FY26)28% Revenue Growth (FY26)
  • Combined Crop Protection (Coromandel + NACL)
    ₹4,000 Cr Revenue (FY26)
  • Subsidy Business
    75% Share of Revenue (Q4 FY26)85% Share of Revenue (FY26)57% Share of EBITDA (Q4 FY26)66% Share of EBITDA (FY26)

Capital allocation

high confidence
  • Capex Capex disclosed
    • Commissioning of 2,000 tons per day Sulphuric acid plant and 650 tons per day Phosphoric acid plant at Kakinada
    • Expansion of granulation capacity
    • Technical MAP plant and seaweed granulation capacity
    • Commissioning of technical plant at Dahej and expanding technical capacity at Sarigam
    In March month, company successfully commissioned the 2,000 tons per day Sulphuric acid plant and 650 tons per day Phosphoric acid plant at Kakinada, strengthening its backward integration capabilities. This plant is capable of producing annually 200,000 tons of phosphoric acid, and we have also synchronized the receipt of rock from Senegal, which will be used in this new plant. Currently, this plant is going through trial runs. Our project to expand our granulation capacity is gaining momentum. We are on our way to commission this plant by December of this financial year. Business is strengthening its manufacturing capability and is setting up a Technical MAP plant and also seaweed granulation capacity. These investments will generate revenue in the coming years. During this year, the Coromandel commissioned a technical plant at Dahej and is further expanding technical capacity at Sarigam.
  • Debt Debt disclosed
    • Repayment Rights issue of INR 250 crores to reduce high-cost debt at NACL ₹250 Cr
    We have completed the acquisition of 53% stake in NACL and also followed on with the rights issue of INR 250 crores to reduce the high-cost debt. So, the borrowing cost has come down significantly from NACL and we have brought in the best practice of Coromandel.
  • M&A NACL Acquisition · Closed

    Strengthening crop protection business, leveraging synergies

    NACL turned profitable with INR 103 crores EBITDA for FY26; borrowing cost reduced significantly.

    We have completed the acquisition of 53% stake in NACL and also followed on with the rights issue of INR 250 crores to reduce the high-cost debt. So, the borrowing cost has come down significantly from NACL and we have brought in the best practice of Coromandel. We are now exploring the synergy opportunities between the two companies. NACL has made significant progress with revenue moving up by 28% to register INR 1,585 crores of top line and EBITDA of INR 103 crores against last year's losses.
  • M&A Senegalese entity (mining company) Acquisition · Integrated

    Enhanced backward integration and raw material security

    Company now holds 71.5% stake; rock phosphate output reached over 3.5 lakh tons last year.

    Our rock phosphate project at Senegal has stabilized very well and we have reached the output of more than 3.5 lakh tons last year, and we are planning to increase the volume further by 30%-40% in the current year. The company also has enhanced its stake in Senegalese entity and currently holding 71.5% in the mining company.

Guidance & targets

Volume

  • Rock Phosphate Volume Increase Volume · current year · High confidence 30%-40%
    Our rock phosphate project at Senegal has stabilized very well and we have reached the output of more than 3.5 lakh tons last year, and we are planning to increase the volume further by 30%-40% in the current year.

    — S. Sankarasubramanian

Capacity Utilization

  • Sulphuric/Phosphoric Acid Plant Operation Capacity Utilization · from April, May onwards · High confidence desired capacity
    Operations are getting stabilized and we expect to operate at a desired capacity from April, May onwards.

    — S. Sankarasubramanian

Capex

  • Granulation Capacity Expansion Commissioning Capex · by December of this financial year · High confidence commissioned
    Our project to expand our granulation capacity is gaining momentum. We are on our way to commission this plant by December of this financial year.

    — S. Sankarasubramanian

Crop Protection

  • Crop Protection Domestic Formulation Growth Crop Protection · High confidence 20%-25%
    On the domestic formulation business, we are planning to grow aggressively by another 20%-25% because of the new registrations and will be launching six new products.

    — S. Sankarasubramanian

Margin

  • NACL Margin Stabilization Margin · next year · Medium confidence 9% to 10%
    Margin of NACL has improved to 6% to 7%, and that is what we indicated in the beginning, and going forward next year with the change in product portfolio, that should stabilize around 9% to 10%.

    — S. Sankarasubramanian

Trading Margin

  • Average Trading Margin Trading Margin · Medium confidence 4% to 5%
    You can take roughly 4% to 5% sort of a number.

    — S. Sankarasubramanian

What to watch in Q1 FY27

Government subsidy adjustment for fertilizers

next quarter
Current Under discussion, NBS rates not reflecting RM price increases
Target Additional subsidy announced or price corrections implemented

Why it matters

Crucial for mitigating margin pressure from high raw material costs and ensuring affordability for farmers.

Industry expects further support to address the affordability issue for the farming community. Industry has been constantly engaging with the government to address these issues, and we are hopeful of a positive outcome.

Risks & concerns

  • NBS rates not reflecting sharp increase in raw material prices and rupee depreciation

    high

    Government's NBS rates for Kharif 2026 do not cover the significant rise in raw material costs (Ammonia, Sulphur) and rupee depreciation, leading to affordability issues and margin pressure.

    Management acknowledged

  • Supply disruption and elevated prices of raw materials due to Middle East crisis

    high

    Disruption in the Middle East, particularly the Strait of Hormuz, has led to sharp increases in commodity prices and challenges in securing finished fertilizers and raw materials like Ammonia and Sulphur.

    Management acknowledged

  • Impact of uneven climatic conditions and softening Agri-commodity prices

    medium

    Agri-GDP expanded by only 2.4% due to erratic monsoon distribution and delayed withdrawal, affecting crop cycles and rural consumption.

    Management acknowledged

  • Below-normal monsoon forecast for upcoming kharif season

    medium

    Weather agencies estimated a below-normal monsoon, which could impact agricultural output and demand.

    Management acknowledged

  • Impairment of investments and goodwill in Dhaksha (drone business)

    medium

    Exceptional loss of INR 71 crores due to impairment, primarily attributed to long lead time in execution of orders for the drone business.

    Management acknowledged

  • Elevated inventory levels due to raw material prices and strategic stocking

    low

    Inventory remained slightly elevated due to higher raw material prices and strategic stocking for new plants and ongoing West Asia crisis.

    Management acknowledged

Q&A highlights

5 direct
Fertilizer business margins, raw material costs, and government subsidy response Partial
It is under discussion stage and they have positively looked at it and hopefully we should get the pass-through on these costs. Basic objective is to see that how best we can secure first and produce finished fertilizers and then try and see how we can maintain the price to the farmers at more or less same level. After additional subsidy if any gap still remains, we may have to correct the prices.

Highlights the critical uncertainty around government subsidy adjustments in response to sharply rising raw material prices, directly impacting future profitability and pricing strategy.

Asked by Ahmed Madha

Crop protection business growth, NACL integration, and export opportunities Direct
On a standalone basis, crop protection business has reached the record turnover and record profitability. As you can see, it is close to 19% EBITDA margin and a revenue of INR 3,000 crores. This includes bio business as well, where the neem based bio products have recorded good export volume.

Provides detailed insight into the strong performance and strategic direction of the core crop protection segment, including the positive impact of NACL integration and export focus.

Asked by Ahmed Madha

Raw material sourcing for Sulphur amidst Middle East crisis Direct
We used to source predominantly from Middle East. Now we have diversified our sources, wherever Sulphur is available we are buying, and we have been getting some shipments from Canada as well. We are trying some domestic sources also. So, we are getting something from South Asian countries, Japan.

Addresses a critical supply chain risk due to geopolitical events, demonstrating the company's proactive diversification strategy for key raw materials.

Asked by Akash Mehta

Mechanism and timing of potential additional government subsidy for fertilizers Partial
What we are talking about is the intervening period of June to September where the raw material prices have gone up very sharply. So, it may be a cost-to-cost reimbursement so that we can cushion the sudden spurt in prices to a great extent while we arrive at the final price to the farmer. Very difficult to predict how much they will do.

Crucial for understanding how the company expects to manage the gap between rising raw material costs and fixed NBS rates, directly impacting short-term profitability and pricing power.

Asked by Akash Mehta

Manufacturing EBITDA per ton for the fertilizer business Direct
Last year, it was around INR 5,000 plus that we have mentioned and fourth quarter was compressed; it was less than INR 3,500 for fourth quarter.

Provides a key profitability metric for the core fertilizer business, highlighting the impact of market conditions on per-unit margins in the most recent quarter.

Asked by Sheel Kumar Shah

Outlook on trading volumes for FY27 given current challenges Direct
We have a challenge in availability, especially on DAP. So, we need to see how things improve. We doubt doing the same volume. And there can be a potential reduction in the first quarter because of non-availability, especially major imports coming through from Saudi may not happen.

Reveals potential headwinds for trading volumes due to raw material availability issues, indicating a cautious outlook for this segment.

Asked by Sheel Kumar Shah

Progress and timelines for CDMO business expansion Partial
CDMO takes long time, two, three years. And MNCs have responded favorably. They looked at the facility. They moved to the next stage. They take quite a long time. Two, three European entities have shown interest. And with the combined strength of Nagarjuna, we are able to fast track some of the intermediate manufacturing.

Offers an update on a strategic growth area, indicating long development cycles but positive initial engagement with potential clients and leveraging recent acquisitions.

Asked by Bharat Sheth

Update on Dhaksha (drone business) performance and path to profitability Direct
As you know, we have got a large order which is pending for execution and we have fixed all the technical-related gaps and we are awaiting for the execution of orders. We have made significant progress on introducing new products, a lot of projects have been identified, a lot of partnerships have been identified, and we are seeing good traction coming from the defence segment after the usage of drones in various warfare.

Addresses concerns following an impairment charge, providing details on pending orders, technical improvements, and traction in both agricultural and defense segments for the nascent drone business.

Asked by Bharat Sheth

3 min read 6 chapters

Detailed narrative

Business Environment and Monsoon Outlook

The Indian agriculture sector experienced moderate growth in the last year, with Agri-GDP expanding by 2.4% due to uneven climatic conditions and softening commodity prices. While the southwest monsoon was above normal at 108% of the long period average, its erratic distribution affected crop cycles. Encouragingly, reservoir levels were strong, supporting increased kharif acreage to 112 million hectares and rabi sowing to 68 million hectares, leading to a record foodgrain production of 348 million tons. However, weather agencies have estimated a below-normal monsoon for the upcoming kharif season, with an updated forecast expected in late May.

Fertilizer Operations and Raw Material Challenges

The company's manufacturing plants achieved a record fertilizer production of 3.5 million tons. Phos-acid production increased by 3% to 4.5 lakh tons for the year. The government's NBS rates for Kharif 2026, increasing nutrient rates by 10% for N, P, and S, do not fully reflect the sharp increase in raw material prices and rupee depreciation, especially post the Middle East crisis. Supply disruptions from the Middle East have led to elevated prices for Ammonia and Sulphur, which are critical raw materials, with India's dependence on these being over 80%. The industry is actively engaging with the government for additional support to address affordability and ensure supply.

Crop Protection Business Performance and Growth

The standalone crop protection business achieved healthy growth, with revenue increasing by 15% to INR 3,054 crores and profitability growing by 55% to INR 569 crores, resulting in an EBITDA margin of approximately 19%. This growth was driven by strong domestic demand, recovery in export volumes, and new product introductions. The company plans to grow its domestic formulation business aggressively by another 20%-25% through new registrations and six new product launches. The combined crop protection business (Coromandel and NACL) reported a revenue of INR 4,000 crores for the year.

Backward Integration and Capacity Expansion

Coromandel successfully commissioned a 2,000 tons per day Sulphuric acid plant and a 650 tons per day Phosphoric acid plant at Kakinada in March, enhancing its backward integration capabilities. This new plant can produce 200,000 tons of phosphoric acid annually. The company's rock phosphate project in Senegal has stabilized, reaching an output of over 3.5 lakh tons last year, with plans to increase volume by 30%-40% in the current year. A project to expand granulation capacity is underway and expected to be commissioned by December of the current financial year.

Subsidiary Performance (NACL and Dhaksha)

The acquisition of a 53% stake in NACL was completed, followed by a rights issue of INR 250 crores to reduce high-cost debt, significantly lowering borrowing costs. NACL turned profitable, registering INR 1,585 crores in revenue and INR 103 crores in EBITDA for the full year, with margins expected to stabilize around 9%-10% next year. Dhaksha, the drone company, saw an impairment on investments due to long lead times. However, it has a large order pending, has fixed technical gaps, and is seeing traction from both agricultural and defense segments, with new products in the pipeline.

Financial Performance Overview (Q4 & FY26)

For Q4 FY26, Coromandel reported a consolidated total income of INR 6,068 crores, a 19% increase YoY, with EBITDA growing 16% to INR 494 crores. The net profit after tax for the quarter was INR 115 crores, significantly impacted by an exceptional loss of INR 71 crores from impairment of investments, compared to an exceptional income of INR 347 crores in the prior year. For the full year FY26, the company achieved a record revenue of INR 31,827 crores, up 30% YoY, and an EBITDA of INR 3,232 crores, up from INR 2,628 crores last year. The full year PAT was INR 1,898 crores.

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