Coromandel Inter

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.

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.

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.

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.

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.

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.