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    Shree Pushkar Chemicals & Fertilisers Limited

    SHREEPUSHK
    Chemicals·13 Aug 2025
    Management Summary

    Shree Pushkar Chemicals & Fertilisers reported a strong Q1 FY26 with revenue growing 31.1% YoY to ₹254.5 crores, primarily driven by robust performance in the fertilizer segment. Profitability also saw significant improvement, with PAT increasing 63.2% YoY to ₹21 crores. The company is actively expanding capacity in both chemical and fertilizer divisions, with Unit-5 nearing commercial production and Unit-6 trials planned for December 2025, while maintaining a net cash positive position.

    Highlights

    5
    • Revenue from operations at ₹254.5 crores, up 31.1% YoY and 16% QoQ.

    • Fertilizer segment revenue grew 33.4% YoY and 46.8% QoQ, driven by strong demand in the agriculture sector.

    • EBITDA increased 64% YoY and 17.9% QoQ to ₹29.1 crores, with margin expanding to 11.4% from 9.1% in Q1 FY25.

    • PAT grew 63.2% YoY and 26.7% QoQ to ₹21 crores, with PAT margin at 8.2% (up from 7.5% in Q1 FY25).

    • Total sales volume increased 6.4% YoY and 30.1% QoQ to 91,125 metric tons.

    Concerns

    2
    • Chemical segment sales volume declined 6.9% YoY, though it saw a 48% sequential recovery.

    • Gross profit margin declined to 33.0% in Q1 FY26 from 34.4% in Q1 FY25 and 38.8% in Q4 FY25.

    What Changed2

    vs Q2 FY26

    Guidance items11 → 7 (-4)Risks discussed4 → 3 (-1)

    Key financials

    Single quarter

    08 metrics
    1. 01Revenue₹254.5 Cr+31.1%YoY
    2. 02Gross Profit₹83.9 Cr+25.7%YoY
    3. 03Gross Profit Margin33%
    4. 04EBITDA₹29.1 Cr+64%YoY
    5. 05EBITDA Margin11.4%

    Segment breakdown

    Fertilizer Segment
    9.4% Volume Growth27.1% Volume Growth33.4% Revenue Growth46.8% Revenue Growth
    Chemical Segment
    -6.9% Sales Volume Decline48% Sales Volume Recovery28.4% Revenue Growth-6.8% Revenue Decline
    List

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    ₹13 crores this quarter · ₹202 crores (FY26) planned

    fully funded through internal accruals

    Debt

    Debt disclosed

    M&A

    Dyecol Color Technologies Pvt. Ltd.

    acquisition · Other

    Liquidity

    Liquidity disclosed

    Strong liquidity position with Rs. 112 crores in non-lean deposits, providing financial flexibility to fund growth initiatives without external debt.

    Guidance & targets

    7
    CategoryTargetPriority
    Revenue
    FY26 Revenue
    ₹950-1,000 crores
    Medium
    Revenue
    Revenue Increment from Unit-5 & Unit-6
    ₹600-700 crores
    Medium
    Profitability
    FY26 PAT Margin
    8.5%-9%
    Medium
    Capacity
    Unit-5 Commercial Production
    Commercial production
    High
    Capacity
    Unit-6 Trials Commencement
    Start trials
    High
    Capacity
    Unit-6 Full Operation
    Fully operational
    Medium
    Capex
    Future Capex
    ₹60 crores
    Medium

    Unit-5 Commercial Production

    Next quarter (within 1-2 months from Aug 13, 2025)
    CurrentTrial runs started, waiting for electricity connection.
    TargetCommercial production announced.

    Why it matters

    Key capacity expansion for future revenue growth.

    we have already started the trial runs for Unit-5 and hopefully💬 we will be announcing the commercial production of Unit-5 in 1 or 2 months or so. We are only waiting for our electricity, this connection load enhancement, which we are expected to get somewhere by the end of August or maybe latest by September.

    How to verify

    guidance_and_targets[category='Capacity'][metric='Unit-5 Commercial Production']

    Risks & concerns

    3
    RiskSeverity

    Volatility in chemical market and fluctuating raw material prices.

    Despite some volatility in the chemical market, our continued focus on cost optimization and improved realization has helped to mitigate challenges and maintain strong financial results.Management acknowledged

    medium

    Geopolitical situation impacting global markets and buying patterns.

    Buying pattern of the people have bit changed, have bit delayed because of the geopolitical situation... This is only a matter of time.Management acknowledged

    medium

    Competition from other fertilizer players increasing capacity.

    Fertilizer is such a segment that the location has a big impact in every pocket... there is a huge space for all the players in the market. Still, there is a big gap in the demand and supply.Analyst downplayed

    low

    Q&A highlights

    8

    “This is mainly because the volumes have dipped but the value has gone up... Now, recently after even this America tariff also, we see that our overseas market will generate a better business than before. So, in my opinion, in future the chemical business is going to get more better results and operational efficiencies.”

    Clarifies the dynamics of the chemical segment, indicating better realizations despite volume dip and positive outlook due to overseas market recovery.

    asked by Aditya Sen

    2 min read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.