Madhya Bharat Agro Products Limited — Q4 FY26 earnings call

Call held 20 Apr 2026

Management summary

Madhya Bharat Agro Products Limited delivered a strong Q4 and record-high full-year performance in FY26, driven by robust volume growth and strategic capacity expansions at Dhule and Sagar. The company successfully navigated input cost volatility with policy support and MRP adjustments, while securing a long-term green ammonia supply and achieving a credit rating upgrade. Management provided optimistic guidance for FY27 and FY28, projecting significant revenue and capacity growth.

Highlights

  • Full Year FY26 saw record high performance across all key metrics, with Revenue from Operations at ₹1867 crore (up 76% YoY), EBITDA at ₹227 crore (up 55% YoY), and PAT at ₹150 crore (up 161% YoY).

  • Strategic capacity expansions at Dhule and Sagar were successfully commissioned, adding 3,30,000 MTPA SSP, 1,98,000 MTPA sulfuric acid, 90,000 MTPA DAP/NPK, and 1,65,000 MTPA sulfuric acid capacity.

  • The company secured a long-term green ammonia procurement agreement for 1,30,000 metric tons per annum, providing 10-year price visibility and aligning with sustainability goals.

  • Credit ratings were upgraded to A+ (Stable) by CRISIL & ICRA, reflecting improved financial strength and disciplined balance sheet management.

  • High capacity utilization was maintained, with SSP at 99% (Q4 FY26) and NPK-DAP at 95% (Q4 FY26), demonstrating strong operational discipline.

Concerns

  • Input costs intensified in the latter half of Q4 FY26, leading to some pressure on EBITDA margins, despite disciplined cost management.

  • Sulphur prices saw a sharp increase during FY26, moving from $100 MT in FY24 to almost $700 MT, posing a cost pressure for phosphoric fertilizer manufacturers.

  • Geopolitical disturbances in West Asia contributed to unstable supply chains and escalation of raw material input costs, including natural gas and ammonia.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹394.7 Cr
    YoY +33%
  • EBITDA
    ₹41.2 Cr
    YoY +14%
  • PAT
    ₹59.8 Cr
    YoY +318.2%
  • EPS
    ₹6.82

FY26

  • Revenue
    ₹1,867 Cr
    YoY +76%
  • EBITDA
    ₹227 Cr
    YoY +55%
  • PAT
    ₹150 Cr
    YoY +161%
  • EPS
    ₹17.14

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

high confidence
  • Capex ₹675 Cr fully funded through internal accruals and term loan disbursements
    • Dhule Integrated Manufacturing Platform (SSP, Sulfuric Acid, DAP/NPK, Phosphoric Acid)
    • Sagar facility (DAP/NPK, Sulfuric Acid)
    The Dhule project is fully funded, with financial closure achieved and term loan disbursements underway. The project will be funded through internal accruals, including accruals over the next six months.
  • Debt Debt disclosed
    A stronger rating translates into better financing terms for our program and reaffirms the confidence of our vendors, customers, and partners in MBAPL's trajectory.
  • Liquidity Liquidity disclosed Project funding secured through internal accruals and term loans.
    The Dhule project is fully funded, with financial closure achieved and term loan disbursements underway. The project will be funded through internal accruals, including accruals over the next six months.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence 50-60%
    for the current year, we expect growth of around 50-60%.

    — Pukhraj Kanther

  • Revenue Growth Revenue · FY28 · High confidence >200%
    With full benefits of expansion in FY28, growth over the FY26 base could exceed 200%.

    — Pukhraj Kanther

  • Total Revenue Revenue · FY28 · High confidence ₹4,000 crores
    we can expect revenues of almost 4,000 crores by FY28. Is that right? Absolutely correct. Yes.

    — Pankaj Ostwal

Capacity Utilization

  • Added Capacity Utilization Capacity Utilization · FY27 · High confidence 50-60%
    For the current year, we expect utilization of around 50-60% of the added capacity, which can increase to ~75-80% in the following year.

    — Pankaj Ostwal

Capacity

  • Total Fertiliser Capacity Capacity · FY28 · High confidence ~1.56 million MTPA
    With ongoing expansions, we are targeting to scale our total fertiliser capacity to ~1.56 million MTPA by FY28, significantly enhancing our growth visibility.

    — Management

Profitability

  • EBITDA per ton (NPK) Profitability · FY27 · High confidence ₹6,000
    It will be in the range of 6,000 for NPK.

    — Pankaj Ostwal

  • EBITDA per ton (SSP) Profitability · FY27 · High confidence ₹1,800
    SSP will be in the range of 1,800.

    — Pankaj Ostwal

Project Commissioning

  • Dhule DAP/NPK Facility Commissioning Project Commissioning · October 2026 · High confidence before October 2026
    Our fully integrated DAP/NPK facility at Dhule... is progressing as planned, with commissioning targeted before October 2026.

    — Pankaj Ostwal

  • Dhule Phase-II Expansion Commissioning Project Commissioning · October 2027 · High confidence by October 2027
    Next Phase, which will scale up to an additional 3,30,000 MTPA of DAP/NPK... is targeted for commissioning by October 2027.

    — Management

Green Ammonia

  • Green Ammonia Supply Start Green Ammonia · April 2029 · High confidence April 2029
    We expect supplies to begin from April 2029.

    — Pukhraj Kanther

  • Green Ammonia Upper Price Green Ammonia · 10 years · High confidence ₹53,000 per metric ton
    An upper price of ₹53,000 per metric ton has been fixed, delivered at our plant.

    — Pukhraj Kanther

What to watch in Q1 FY27

Dhule DAP/NPK Facility Commissioning

before October 2026
Current Progressing as planned, targeted before October 2026
Target Commercial operations commenced

Why it matters

Successful commissioning of this key facility is crucial for the company's capacity expansion and future revenue growth.

Our fully integrated DAP/NPK facility at Dhule... is progressing as planned, with commissioning targeted before October 2026.

Risks & concerns

  • Input Cost Volatility due to Geopolitical Disturbances

    medium

    Geopolitical disturbances in West Asia led to unstable supply chains and escalation of raw material input costs (natural gas, ammonia, sulphur).

    Management acknowledged

  • Sharp Increase in Sulphur Prices

    medium

    Sulphur prices increased from $100 MT in FY24 to almost $700 MT in FY26, impacting phosphoric fertilizer manufacturers.

    Management acknowledged

  • Margin Pressure from Input Cost Intensification

    medium

    Input costs intensified in the latter half of Q4 FY26, leading to some pressure on EBITDA margins.

    Management acknowledged

Q&A highlights

6 direct
Revenue Growth and Capacity Utilization for New Projects Direct
For the current year, we expect utilization of around 50-60% of the added capacity, which can increase to ~75-80% in the following year. With full benefits of expansion in FY28, growth over the FY26 base could exceed 200%.

Clarifies the phased ramp-up of new capacities and provides specific revenue growth targets for FY27 and FY28, crucial for future earnings projections.

Asked by Nishita from Crown Capital

Total CAPEX for Dhule Plant and Funding Direct
The Dhule project is fully funded, with financial closure achieved and term loan disbursements underway. The project will be funded through internal accruals, including accruals over the next six months. The total project cost is 675 crores, which includes our Sagar projects. And the present expenditure has been made to the tune of 460 crores. The balance cost will be incurred in another 3-4 months.

Provides clarity on the total investment for the major expansion projects and confirms secure funding, reducing investor concerns about capital availability.

Asked by Nishita from Crown Capital

EBITDA Margins and Seasonality Partial
The recent decline in margins was primarily due to higher input costs, leading to some pressure in the last quarter. Seasonality in the fertilizer industry continues as usual; there is no change on that front. We expect to maintain margins. Any adverse impact from input costs can be addressed through MRP adjustments.

Explains the reasons for recent margin pressure (input costs) and management's strategy to mitigate it, while confirming that the underlying seasonality pattern remains unchanged.

Asked by Nishita from Crown Capital

Sustainable EBITDA per Ton Targets Direct
It will be in the range of 6,000 for NPK. SSP will be in the range of 1,800.

Provides specific per-ton profitability targets for the company's key products, offering a clear metric for evaluating operational efficiency in FY27.

Asked by Jainam Gilani from Swan Investments

Impact of Geopolitical Shocks on Raw Material Costs and Pricing Direct
ammonia prices have increased due to higher natural gas prices... impact of higher input costs- including ammonia, sulphuric acid, and sulphur has largely been addressed. As a result, there has been no material impact on EBITDA or overall profitability. And we have increased our MRP by 50%. Subsidy component has also been increased by government.

Details how the company and government are managing the impact of rising raw material costs due to global events, reassuring investors about margin protection and supply stability.

Asked by Avnish Tiwari from Vaikarya Change LLP

Green Ammonia Project Structure and Pricing Direct
We have entered into an offtake agreement with a government agency, SECI. We are not setting up the Green Ammonia project ourselves... Under the agreement, we will receive approximately 130,000 tons of Green Ammonia across our plants at a fixed price for a period of 10 years... An upper price of ₹53,000 per metric ton has been fixed, delivered at our plant. If grey ammonia produced from natural gas is available at a lower price than 53,000 per metric ton, we will procure at that lower price.

Clarifies the company's involvement in the green ammonia project, its financial structure (no CAPEX from MBAPL), and the favorable pricing mechanism that caps upside risk while allowing for downside benefit.

Asked by Anupam Agarwal from Lucky Investments

Risks to Dhule DAP/NPK Commissioning Timeline Direct
At present, we do not see any major risks. In fact, based on the current progress, we expect commissioning ahead of schedule. For reference, the SSP plant was also earlier targeted for October but was commissioned in April. Similarly, while NPK is targeted for October, we are aiming to start before that timeline.

Provides confidence regarding the timely, and potentially early, commissioning of the critical Dhule DAP/NPK facility, which is a major growth driver.

Asked by Rushi Mehta

2 min read 5 chapters

Detailed narrative

Record Financial Performance in FY26 Driven by Volume Growth

Madhya Bharat Agro Products Limited achieved record-high financial performance in FY26, with Revenue from Operations reaching ₹1867 crore, marking a significant 76% YoY increase. This growth was supported by healthy volumes and stable product realization. EBITDA for the full year stood at ₹227 crore, up 55% YoY, reflecting operational efficiency and backward integration advantages, while Profit after Tax surged by 161% to ₹150 crore.

Strategic Capacity Expansion and Backward Integration

The company made substantial progress in its strategic expansion, commissioning 3,30,000 MTPA of SSP fertilizer and 1,98,000 MTPA of sulfuric acid capacity at Dhule ahead of schedule. Additionally, the Sagar facility's 90,000 MTPA DAP/NPK and 1,65,000 MTPA sulfuric acid capacities were successfully commissioned in March 2026. These expansions, part of a total project cost of ₹675 crores, are set to increase total fertilizer capacity to ~1.56 million MTPA by FY28, positioning MBAPL as a leading phosphatic fertilizer producer.

Green Ammonia Initiative for Sustainable Input Sourcing

MBAPL has entered into a long-term agreement under the National Green Hydrogen Mission to procure 1,30,000 metric tons of green ammonia per annum, with supplies expected to begin from April 2029. This strategic move provides 10-year price visibility with an upper cap of ₹53,000 per metric ton, while allowing for lower prices if grey ammonia rates fall. This initiative reduces dependence on imported grey ammonia and positions MBAPL as an early mover in India's agricultural decarbonization journey.

Navigating Input Cost Volatility with Policy Support

The fertilizer sector faced challenges from geopolitical disturbances in West Asia, leading to increased raw material costs, particularly for sulphur (from $100 MT in FY24 to almost $700 MT in FY26) and ammonia. However, MBAPL managed these pressures through policy support, including an increased NBS subsidy and a 50% increase in MRP. The company's captive sulfuric acid capacity also helped mitigate the impact of rising sulphur prices, ensuring no material impact on overall profitability.

Positive Outlook and Leadership Ambition

Management projects robust growth for FY27 and FY28, with revenue expected to grow 50-60% in FY27 and over 200% by FY28, targeting ₹4,000 crores in total revenue. Capacity utilization for new additions is anticipated to be 50-60% in FY27, rising to 75-80% subsequently. The company aims to become India's third-largest private-sector phosphatic fertilizer company by FY28, leveraging its expanded capacities and integrated strategies.

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