Madhya Bharat Agro Products Limited — Q1 FY27 earnings call

Call held 20 Jul 2026

Management summary

Madhya Bharat Agro Products Limited delivered a resilient performance in Q1 FY27 despite a challenging operating environment marked by elevated raw material prices and supply chain disruptions. The company reported strong growth in EBITDA and PAT, driven by disciplined cost management and favorable product mix. Strategic initiatives like capacity expansion at Dhule and a stock split were also highlighted, with management expressing confidence in future performance as raw material issues resolve and new capacities come online.

Highlights

  • Quarterly revenue from operations stood at ₹416 crore, supported by healthy demand and a favorable product mix.

  • Quarterly EBITDA stood at ₹66 crore, growing 16% year-on-year driven by disciplined cost management despite raw material price volatility.

  • Quarterly Profit after Tax stood at ₹33 crore, an increase of 17% year-on-year driven by higher operating profitability and improved margins.

  • Quarterly Earnings per share stood at ₹0.75 compared with ₹0.64 in the corresponding quarter of the previous year, an increase of 17.19%.

  • Successfully completed a 1:5 stock split, reducing the face value of each equity share from ₹10 to ₹2, effective 3 July 2026.

Concerns

  • Challenging operating environment in the fertilizer industry with elevated raw material prices, supply chain disruptions, and delayed onset of Southwest Monsoon.

  • Temporary supply-side constraint due to geopolitical developments in West Asia impacting raw material availability and production schedules.

  • SSP production declined by 7% YoY and NPK production declined by 28% YoY during April and May 2026.

Key financials

  1. Revenue ₹416 Cr
  2. EBITDA ₹66 Cr +16%YoY
  3. PAT ₹33 Cr +17%YoY
  4. EPS ₹0.75 +17.2%YoY

What they filed

Q1 FY27: revenue up 1.5%, net profit up 17.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue278 284 297 410 450 +62%612 +115%395 +33%416 +1%
EBITDA36 39 36 57 62 +72%66 +69%41 +14%66 +16%
Net profit14 18 14 28 30 +114%32 +78%60 +329%33 +18%
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.

Capital allocation

medium confidence
  • Capex Capex disclosed
    • Acquisition of additional land at Dhule complex for future expansion
    • Next phase of Dhule expansion (commissioning by Oct '26) adding 3,30,000 MTPA DAP-NPK Fertilizer capacity and 99,000 MTPA phosphoric acid capacity
    • Final phase of Dhule expansion (commissioning by Oct '27) adding 3,30,000 MTPA DAP-NPK Fertilizer capacity, 66,000 MTPA phosphoric acid capacity, and 3,96,000 MTPA sulfuric acid capacity
    During the quarter, we acquired an additional 52,600 square meters of adjoining land at Dhule complex, increasing our total land bank to approximately 6.38 lakh square meter. This will support future expansion opportunities as we continue to scale our integrated manufacturing facilities. The next phase of the project is progressing as planned and is scheduled for commissioning by October '26, which will add: 3,30,000 MTPA of DAP-NPK Fertilizer capacity, 99,000 MTPA of phosphoric acid capacity. Building on this momentum, the final phase is targeted for commissioning by October 2027, adding: 3,30,000 MTPA of DAP-NPK Fertilizer capacity, 66,000 MTPA of phosphoric acid capacity, 3,96,000 MTPA of sulfuric acid capacity.
  • Debt Debt disclosed
    See, The funding is already tied up with our bankers and internal accruals. So, at present, we are not looking at any equity dilution. However, if, in the interest of the company, its shareholders, and the business, equity dilution becomes appropriate, we may consider it. Any such decision will be taken in compliance with regulatory requirements, and shareholders will be kept informed as and when it is made. (Pankaj Ostwal) ... That plan is still under discussion. Funding could be through pure equity, debt plus equity, or debt along with internal accruals, depending on what is most appropriate. However, the funding structure has not yet been finalized. (Pukhraj Kanther)

Guidance & targets

Capacity Utilization

  • New Dhule NPK/DAP plant capacity utilization Capacity Utilization · going forward (post Oct '26 commissioning) · High confidence 60%
    for the Dhule project, we are targeting around 60% capacity utilization for the new Dhule NPK/DAP plant

    — Pukhraj Kanther

  • Existing facilities capacity utilization Capacity Utilization · going forward · High confidence 90%
    while our existing facilities are expected to operate at around 90% capacity utilization going forward.

    — Pukhraj Kanther

Revenue

  • Turnover increase Revenue · coming months (post Oct '26 commissioning) · Medium confidence more than 50%
    Overall, we expect more than a 50% increase in turnover in the coming months.

    — Pukhraj Kanther

  • Revenue target Revenue · FY28 · High confidence ₹3,500 crore
    Yes, sir. My question is that your three-year targets imply Rs 3,500 crore revenue and Rs 15.6 lakh MT capacity by FY28. So, what's the biggest execution risk? Is it the West Asia challenge or monsoon variability or something else? (Keshav Sharma) ... Therefore, we remain confident that we will be able to achieve, and even outperform, the revenue guidance we have provided. (Pukhraj Kanther)

    — Pukhraj Kanther

Capacity

  • Total capacity Capacity · FY28 · High confidence 15.6 lakh MT
    Yes, sir. My question is that your three-year targets imply Rs 3,500 crore revenue and Rs 15.6 lakh MT capacity by FY28. So, what's the biggest execution risk? Is it the West Asia challenge or monsoon variability or something else? (Keshav Sharma) ... Therefore, we remain confident that we will be able to achieve, and even outperform, the revenue guidance we have provided. (Pukhraj Kanther)

    — Pukhraj Kanther

EBITDA

  • EBITDA performance EBITDA · remaining three quarters of FY27 · Medium confidence maintain
    We expect to maintain our EBITDA performance, and revenue is expected to witness a quantum jump.

    — Pukhraj Kanther

What to watch in Q2 FY27

Capacity utilization improvement

next quarter
Current SSP 45%, NPK/DAP 43% in Q1 FY27
Target Improvement in coming quarters

Why it matters

Indicates recovery from raw material issues and ability to meet demand, impacting revenue and profitability.

The first quarter was definitely impacted due to raw material availability, which affected the entire industry. However, as you are aware, raw materials are now being supplied smoothly across the country to all manufacturing units. We are therefore confident that capacity utilization will improve in the coming quarters.

Risks & concerns

  • Challenging operating environment in fertilizer industry

    medium

    Elevated raw material prices, supply chain disruptions, and delayed onset of Southwest Monsoon created temporary headwinds in Q1 FY27.

    Management acknowledged

  • Geopolitical developments in West Asia

    medium

    Conflict around the Strait of Hormuz created uncertainty across global fertilizer supply chains, leading to higher freight costs and delays.

    Management acknowledged

  • Raw material price volatility

    medium

    Prices of key raw materials like ammonia and sulfur increased significantly, while phosphoric acid and sulfuric acid remained elevated, leading to higher input costs.

    Management acknowledged

  • Delayed monsoon impact on sowing

    low

    Delayed onset of Southwest Monsoon temporarily impacted land preparation and sowing, shifting fertilizer application to a later part of the season.

    Management acknowledged

Q&A highlights

2 direct
Capacity utilization ramp-up for SSP/NPK/DAP Partial
The first quarter was definitely impacted due to raw material availability, which affected the entire industry. However, as you are aware, raw materials are now being supplied smoothly across the country to all manufacturing units. We are therefore confident that capacity utilization will improve in the coming quarters.

Analyst sought specific ramp-up numbers for Q2/Q3, but management provided a directional statement about improvement due to resolved raw material issues.

Asked by Shivam Gupta

Funding for the next phase of expansion (beyond Dhule, Oct '27) Direct
That plan is still under discussion. Funding could be through pure equity, debt plus equity, or debt along with internal accruals, depending on what is most appropriate. However, the funding structure has not yet been finalized.

Analyst inquired about potential equity dilution for future expansion, and management clarified that the funding structure is not yet finalized, keeping options open.

Asked by Shivam Gupta

Guidance for FY27 revenue and EBITDA Partial
We procured raw materials during the last quarter of March, when prices had started rising. As a result, we benefited from lower-cost raw material inventory during the first quarter. That is the primary reason for the stronger EBITDA and PAT performance.

Analyst asked for FY27 guidance, but management explained the Q1 performance drivers (lower-cost inventory) without providing specific full-year numbers.

Asked by Harsh

Specific numbers for FY27 revenue and EBITDA Partial
Overall, we expect more than a 50% increase in turnover in the coming months. But it will not be fair to give you an exact forecast at the moment.

Analyst pressed for specific numerical guidance for FY27, but management provided directional growth expectations and capacity utilization targets rather than a firm forecast.

Asked by Kavya

Maintenance of full-year FY27 revenue growth and margin guidance Partial
Profitability was higher mainly due to the benefit of lower-cost raw material inventory carried over from the previous quarter, which has since been exhausted. Looking ahead, with the positive developments that have taken place, we expect revenue, EBITDA, and overall performance to improve over the remaining three quarters. We expect to maintain our EBITDA performance, and revenue is expected to witness a quantum jump.

Analyst questioned the flat Q1 revenue growth despite strong margins and sought confirmation on FY27 guidance, receiving an explanation for Q1 and directional optimism for future quarters.

Asked by Aman Goyal

Biggest execution risk for FY28 targets (₹3,500 crore revenue, 15.6 lakh MT capacity) Direct
As we have mentioned earlier, the West Asia crisis does not have a significant impact on us, as our rock phosphate is primarily sourced from Egypt and Jordan... Therefore, we remain confident that we will be able to achieve, and even outperform, the revenue guidance we have provided.

Analyst probed potential risks to long-term targets, and management confidently addressed geopolitical and supply chain concerns, reaffirming their ability to meet or exceed targets.

Asked by Keshav Sharma

2 min read 6 chapters

Detailed narrative

Q1 FY27 Performance Overview

Madhya Bharat Agro Products Limited reported a resilient Q1 FY27 despite a challenging operating environment. Revenue from operations stood at ₹416 crore. The company achieved a 16% year-on-year growth in EBITDA, reaching ₹66 crore, and a 17% year-on-year increase in Profit after Tax to ₹33 crore. Earnings per share improved to ₹0.75 from ₹0.64 in the corresponding quarter of the previous year, reflecting strong operational execution.

Industry Environment and Challenges

The fertilizer industry faced headwinds in Q1 FY27 due to elevated raw material prices, supply chain disruptions, and a delayed Southwest Monsoon. Geopolitical developments in West Asia, particularly around the Strait of Hormuz, impacted raw material availability, leading to higher freight and procurement costs. SSP production declined by 7% YoY and NPK production by 28% YoY during April and May 2026, indicating supply-side constraints despite resilient market demand.

Government Support and Outlook

Government policies remained supportive, with higher Minimum Support Prices (MSPs) announced for 14 Kharif crops for FY26-27, expected to boost farm profitability and farmer purchasing power. The approval of enhanced nutrient-based subsidy (NBS) rates for Kharif 2026 provides pricing visibility for the phosphatic fertilizer industry. Management expects improving monsoon conditions and continued policy support to create a favorable backdrop for the remainder of the Kharif season.

Capacity Expansion and Growth Roadmap

The company acquired an additional 52,600 square meters of land at its Dhule complex, expanding its total land bank to 6.38 lakh square meters for future growth. The next phase of the Dhule project, adding 3,30,000 MTPA of DAP-NPK and 99,000 MTPA of phosphoric acid capacity, is scheduled for commissioning by October 2026. A final phase, targeted for October 2027, will further add 3,30,000 MTPA of DAP-NPK, 66,000 MTPA of phosphoric acid, and 3,96,000 MTPA of sulfuric acid capacity, significantly strengthening manufacturing capabilities.

Strategic Developments and Shareholder Value

Madhya Bharat Agro Products Limited successfully completed a 1:5 stock split, reducing the face value of each equity share from ₹10 to ₹2, effective July 3, 2026. This initiative aims to enhance affordability for retail investors and broaden participation. The company also expanded its product portfolio by introducing additional grades of complex fertilizers (15:15:15, 9:24:24, and 16:20:0:13) to meet evolving nutrient requirements and support long-term volume growth.

Financial Outlook and Raw Material Inventory

Management expects capacity utilization to improve in coming quarters as raw material issues are largely resolved. The Q1 profitability was significantly boosted by lower-cost raw material inventory carried over from the previous quarter, which has since been exhausted. Post the Dhule expansion commissioning in October 2026, the company anticipates a significant improvement in performance from Q3 FY27, targeting around 60% utilization for new plants and 90% for existing facilities, with an overall expectation of more than 50% increase in turnover in the coming months.

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