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    Shree Pushkar Chemicals & Fertilisers Limited

    SHREEPUSHK
    Chemicals·12 Feb 2026
    Management Summary

    Shree Pushkar Chemicals & Fertilisers Ltd. reported a strong Q3 FY26 with 14.6% YoY revenue growth and 13.5% YoY PAT growth, primarily driven by its chemical segment. However, gross margins were impacted by rising sulphur prices, and the fertilizer segment saw a decline in revenue and volumes. The company is progressing with its capacity expansion plans, including Unit 8 and solar power, but faces delays in Unit 5/6 commissioning due to electricity issues. A new subsidiary in Bangladesh has been formed for international expansion.

    Highlights

    6

    • Revenue from operations grew 14.6% YoY to ₹249 crores in Q3 FY26.

    • PAT increased 13.5% YoY to ₹18 crores in Q3 FY26, with a margin of 7.3%.

    • Chemical segment revenue grew 38.1% YoY to ₹156 crores, with volumes up 75.6% YoY.

    • Land acquisition completed and civil work commenced for Meghnagar Unit 8 project, with 25% of preferential issue proceeds directed.

    • Solar plant capacity expanding from 9.8 MW DC to 20.6 MW DC for energy self-reliance.

    • Incorporated Dyecol Bangladesh Limited as a subsidiary for marketing and business activities in Bangladesh.

    Concerns

    4

    • Gross margin declined to 31.9% in Q3 FY26 from 35.7% a year ago, primarily due to increased sulphur prices.

    • Fertilizer segment revenue declined 10.6% YoY and 25% QoQ to ₹93 crores, with volumes down 23.7% YoY and 26.3% QoQ.

    • Commissioning of Ratnagiri Unit 5 and 6 is delayed, awaiting electricity connection from MSEDCL.

    • Political instability in Bangladesh has led to reduced volumes from the region, though considered temporary.

    What Changed1

    vs Q4 FY26

    Guidance items4 → 10 (+6)
    Key financials

    Metrics

    10

    Periods

    2

    Q3 FY26

    7
    • Revenue from Operations
      ₹249 Cr
      YoY+14.6%
    • EBITDA
      ₹22 Cr
      YoY-1.7%
    • EBITDA Margin
      8.9%
    • PAT
      ₹18 Cr
      YoY+13.5%
    • PAT Margin
      7.3%

    9M FY26

    3
    • Revenue from Operations
      ₹759 Cr
      YoY+29.2%
    • EBITDA
      ₹77 Cr
      YoY+13.8%
    • PAT
      ₹57 Cr
      YoY+36%

    Segment breakdown

    • Chemical segment₹156 Cr62.7%
    • Fertilizer segment₹93 Cr37.3%
    Donut· Share of Revenue (Q3 FY26)

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Internal accruals and preferential allotment

    Debt

    Debt disclosed

    M&A

    Dyecol Bangladesh Limited

    acquisition · announced

    Liquidity

    Cash ₹176.75 crores

    Non-lien deposits as of December 31, 2025, providing ample liquidity to fund ongoing and upcoming expansion plans without relying on external borrowings.

    Guidance & targets

    10
    CategoryTargetPriority
    Revenue
    FY26 Revenue
    ₹1,000 crores
    		Medium
    Revenue
    FY27 Revenue
    ₹1,500 crores
    		Medium
    Revenue
    Long-term Revenue
    ₹2,500 crores
    		Medium
    Revenue
    Long-term Revenue
    ₹3,000 crores
    		Medium
    Profitability
    FY26 PAT Margin
    8%
    		Medium
    Profitability
    Long-term PAT Margin
    10-11%
    		Low
    Profitability
    Long-term PAT Margin
    9-10%
    		Medium
    Capacity
    Unit 5 and 6 Commissioning
    Start trials by March 2026
    		Medium
    Capacity
    Unit 8 Completion
    2 years or so
    		Medium
    Capacity
    New Units Utilization Levels
    60-65%
    		Medium

    What to watch in Q4 FY26

    5

    Unit 5/6 Commissioning Status

    March 2026
    CurrentAwaiting MSEDCL electricity connection
    TargetCommercial operations / trial runs commenced

    Why it matters

    Timely commissioning of these units is crucial for new capacity addition and revenue growth.

    We are expected to start the trials somewhere by the March if we get electricity connection by February.

    Risks & concerns

    5
    RiskSeverity

    Raw material price volatility (Sulphur)

    Significant increase in sulphur prices led to gross margin compression in Q3 FY26 and impacted fertilizer segment profitability. — Management acknowledged

    high

    Fertilizer segment demand and pricing pressure

    Inability to pass on increased raw material costs and seasonal moderation in demand led to revenue and volume decline in Q3 FY26. — Management acknowledged

    medium

    Delay in electricity connection for new units

    Commissioning of Ratnagiri Unit 5 and 6 is delayed due to awaiting MSEDCL electricity connection, impacting new capacity timelines. — Management acknowledged

    medium

    Political instability in Bangladesh

    Reduced volumes from Bangladesh due to textile industry struggles and political instability, though management views it as temporary. — Analyst acknowledged

    medium

    Impact of new labour code

    Potential impact on costs from new labour code to be identified and fully reflected in Q4 FY26. — Analyst acknowledged

    low

    Q&A highlights

    7

    “Look sir at this moment what I am understanding based upon your question and the data you provided, is that this margin dip that is visible, this is mainly due to the increase into the raw material prices. That too also specifically due to the sulphur. Sulphur is a very important ingredient in our whole chain of the raw materials.”

    Identifies the primary reason for gross margin compression, linking it directly to raw material price volatility (sulphur).

    asked by Prit Nagersheth

    2 min read5 chapters

    Detailed Narrative

    01

    Q3 FY26 Performance Overview

    Shree Pushkar Chemicals & Fertilisers Ltd. delivered a strong Q3 FY26, with revenue from operations reaching ₹249 crores, marking a 14.6% year-on-year growth. Profit after tax (PAT) also saw a significant increase of 13.5% year-on-year, totaling ₹18 crores, with a PAT margin of 7.3%. For the nine months of FY26, revenue stood at ₹759 crores (up 29.2% YoY), EBITDA at ₹77 crores (up 13.8% YoY), and PAT at ₹57 crores (up 36% YoY).

    02

    Segmental Performance & Margin Pressures

    The chemical segment was the primary growth driver, with revenue surging 38.1% year-on-year to ₹156 crores, supported by a 75.6% year-on-year increase in sales volume to 26,595 metric tons. Conversely, the fertilizer segment experienced a decline, with revenue falling 10.6% year-on-year to ₹93 crores and volumes decreasing 23.7% year-on-year to 53,444 metric tons. This decline was attributed to the inability to pass on increased raw material costs (sulphur) and seasonal moderation in demand. Overall gross margin compressed to 31.9% in Q3 FY26 from 35.7% in the prior year, mainly due to the sharp rise in sulphur prices.

    03

    Capacity Expansion & Project Updates

    The company is actively pursuing capacity expansions, including Ratnagiri Unit 5 and 6, and Meghnagar Unit 8. Land acquisition and civil work for Meghnagar Unit 8 have been completed, with 25% of the preferential issue proceeds directed towards this project. The total additional expansion for Unit 5, 6, and solar is estimated at ₹155 crores, with a third expansion for Meghnagar Unit 8 projected at ₹347 crores. However, commissioning of Unit 5 and 6 is awaiting an electricity connection from MSEDCL, with trials now expected by March 2026 if the connection is secured by February.

    04

    Sustainability Initiatives & International Expansion

    Shree Pushkar is committed to sustainable growth, operating a 9.8 megawatt DC solar plant, which is being expanded to 20.6 megawatt DC. This initiative aims to enhance energy self-reliance and reduce carbon emissions. Internationally, the company incorporated Dyecol Bangladesh Limited as a subsidiary to serve as a representative and marketing office, though its operationalization is pending stability in the region. The company's annual business from Bangladesh is approximately ₹50-70 crores, representing 7-8% of total revenue.

    05

    Financial Position & Future Outlook

    The company maintains a strong financial position, being debt-free and supported by non-lien deposits of ₹176.75 crores as of December 31, 2025, providing ample liquidity for expansions without external borrowings. Management provided an updated FY26 revenue guidance of 'around ₹1,000 crores' with a PAT margin of 'around 8%'. For FY27, a revenue target of '₹1,500 crores' is maintained, with long-term aspirations for PAT margins of 10-11% and revenue reaching '₹3,000 crores' before 2030.

    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.