Detailed Narrative
Robust Q2 FY26 Performance Across Segments
Shree Pushkar Chemicals & Fertilisers delivered a strong Q2 FY26, with revenue from operations growing 45.2% year-on-year to ₹255 crores. This growth was fueled by higher realizations and consistent demand in both the fertilizer and chemical divisions. The company's profitability also saw significant improvement, with EBITDA increasing 37.5% year-on-year to ₹26.2 crores, achieving a margin of 10.3%, and PAT rising 36.7% year-on-year to ₹18.2 crores, with a margin of 7.1%.
Major Fertilizer Expansion and Long-Term Growth Vision
The Board approved a substantial new expansion project at Meghnagar (Unit 8) for the fertilizer division, involving an investment of ₹350 crores to add 3 lakh metric tons per annum capacity, slated for commissioning by FY28. This facility is conservatively projected to generate ₹1,200 crores in revenue with an 11-12% EBITDA margin. Combined with Unit 5 and 6, management envisions a total turnover of ₹2,500 crores by FY29, signaling ambitious long-term growth.
Delays in Unit 5 & 6 Commissioning Due to External Factors
The commissioning of the ongoing capacity expansion projects at Ratnagiri (Unit 5 and Unit 6) has been pushed back. Management attributed these delays to the monsoon and, critically, to the unavailability of additional electricity supply. A new transformer is expected to be installed by February 2026, with trials and commercial operations anticipated 1-1.5 months thereafter, impacting the near-term capacity additions.
Commitment to Sustainability and Energy Self-Reliance
Shree Pushkar continues to prioritize sustainable growth through circular manufacturing and renewable energy. The company currently operates 9.0 MW DC of solar capacity and is expanding to 20.6 MW DC with two additional installations. An additional 11.10 MW DC solar capacity is expected to commence operations by January/December, reinforcing the company's commitment to energy self-reliance and reduced carbon emissions.
Strategic Move with New Dyes Marketing Subsidiary
To bolster its Dyes and Dye Intermediates business, Shree Pushkar incorporated Dyecol Color Technologies Private Limited as a wholly-owned subsidiary on September 3, 2025. This new entity will act as a dedicated marketing arm, aiming to enhance market reach and operational efficiency within this segment. This strategic move is expected to improve branding and visibility, particularly for international customers.
FY26 Outlook and Segment Performance
For FY26, the company maintains its guidance of ₹1,000 crores in revenue and an 8% PAT margin, citing clear visibility from its H1 performance. The fertilizer segment saw revenue grow 50.6% YoY to ₹124 crores, while the chemical segment's revenue increased 40% YoY to ₹132 crores, demonstrating recovery and stability. Current capacity utilization stands at 70% for fertilizers and 65% for chemicals, with a target to achieve 75% overall.