Detailed Narrative
Strong Q1 FY26 Performance Driven by Fertilizers
Shree Pushkar Chemicals & Fertilisers reported a robust start to FY26, with revenues from operations reaching ₹254.5 crores, marking a significant 31.1% year-on-year and 16% quarter-on-quarter growth. This performance was primarily propelled by the fertilizer segment, which saw its revenue increase by 33.4% YoY and 46.8% QoQ, benefiting from strong agricultural demand. Total sales volume also rose by 6.4% YoY and 30.1% QoQ to 91,125 metric tons.
Profitability Expansion Despite Chemical Segment Volatility
The company demonstrated strong profitability, with EBITDA growing 64% YoY and 17.9% QoQ to ₹29.1 crores, expanding the EBITDA margin to 11.4% from 9.1% in Q1 FY25. Net profit after tax (PAT) increased 63.2% YoY and 26.7% QoQ to ₹21 crores, resulting in a PAT margin of 8.2% (up from 7.5% in Q1 FY25). While the chemical segment experienced a 6.9% YoY volume decline due to market volatility🌐, it showed a 48% sequential recovery and a 28.4% YoY revenue increase driven by better realizations.
Strategic Capacity Expansion and Subsidiary Formation
Shree Pushkar is actively pursuing capacity expansion, having invested ₹13 crores in Q1 FY26 as part of a larger ₹202 crore FY26 CAPEX plan, fully funded by internal accruals. Unit-5 is nearing commercial production within 1-2 months, pending electricity connection, and trials for Unit-6 are slated for December 2025, with full operation expected by FY27. Additionally, the company incorporated Dyecol Color Technologies Pvt. Ltd. as a wholly-owned subsidiary to serve as a dedicated marketing arm for its Dyes and Dyes Intermediates business, aiming to enhance market reach and operational synergies.
Focus on Sustainability and Energy Self-Reliance
The company is committed to sustainability and energy independence, scaling up its solar capacity with a planned 10 MW DC project in Nanded, complementing the existing 9.52 MW DC plant at Ratnagiri. An additional 1.1 MW DC solar plant is also being set up at the Kisan Phosphates Pvt. Ltd. facility in Haryana for captive consumption, reinforcing its long-term environmental and cost-efficiency goals.
Positive Outlook for Fertilizer Business Amidst Global Shortages
Management expressed confidence in the sustained positive demand for fertilizers, citing a global shortage in the phosphatic fertilizer sector and the Indian government's focus on the 'Aatmanirbhar' (self-reliant) initiative. Despite competitive capacity additions, the localized nature of demand and the existing demand-supply gap ensure ample market opportunity. The company expects FY26 revenue to be around ₹950-1,000 crores with PAT levels of 8.5%-9%, and anticipates an additional ₹600-700 crores in revenue from Unit-5 and Unit-6 in FY27.
Investor Relations and Transparency
Acknowledging analyst concerns regarding institutional investor participation, management confirmed active discussions with their Investor Relations team to improve visibility and attract larger investors. They also clarified that due to the integrated nature of their business, providing separate profitability figures for chemical and fertilizer segments is challenging and could be misleading, prioritizing overall business stability and sustainability.