Shree Pushkar Chemicals & Fertilisers Limited — Q3 FY26 earnings call

Call held 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

  • 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

  • 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.

Key financials

2 periods

Q3 FY26

  • 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%
  • Gross Profit
    ₹79 Cr
    YoY +2.4%
  • Gross Margin
    31.9%

9M FY26

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

What they filed

Q1 FY27: revenue up 9.8%, net profit up 9.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue176 217 219 255 255 +45%249 +15%218 −0%280 +10%
EBITDA19 22 25 29 26 +37%22 +0%22 −12%32 +10%
Net profit13 16 17 21 18 +38%18 +13%13 −24%23 +10%
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.

Segment breakdown

Share of Revenue (Q3 FY26)
₹249 Cr Total
  • Chemical segment ₹156 Cr 62.7%
  • Fertilizer segment ₹93 Cr 37.3%

Capital allocation

high confidence
  • Capex Capex disclosed Internal accruals and preferential allotment
    • Capacity expansion at Ratnagiri Unit 5 and Unit 6
    • Capacity expansion at Meghnagar Unit 8
    • Solar plant expansion to 20.6 MW DC
    • Additional expansion (Unit 5, 6, solar) ₹155 Cr
    • Third expansion (Meghnagar Unit 8) ₹347 Cr
    • Meghnagar Unit 8 project (from preferential issue proceeds)
    In continuation of the growth momentum witnessed in the previous quarter, I am pleased to share that Shree Pushkar Chemicals has delivered a strong performance during Q3 FY26. Revenue from operations was at Rs. 249 crores, reflecting a growth of 14.6% on year-on-year basis, driven by an increase in volume sold and sales in the chemical business. On the operational front, in addition to the ongoing capacity expansions plant at Ratnagiri Unit 5 and Unit 6 and at Meghnagar Unit 8, the company has completed the land acquisition, commenced civil work and is in the process of placement of the orders for the critical plant and machinery. In line with the progress, 25% of the proceeds from the preferential issue has been directed towards the Meghnagar Unit 8 project. Shree Pushkar is also committed to driving sustainable growth alongside its expansion plans. In line with its commitment, the company currently operates 9.8 megawatt DC solar plant with the capacity being expanded through two additional installations. Upon completion, the total solar will reach to 20.6 megawatt DC under open access scheme. These initiatives is a part of the key strategy to enhance energy self-reliance, reduce carbon emission and ensure long-term sustainability. The company has also incorporated a subsidiary in Bangladesh, that is Dyecol Bangladesh Limited. This subsidiary will serve as a representative and marketing office for the company and will carry out related business activities in Bangladesh. During this quarter, company carried out a preferential allotment to the promoter for Rs. 30 crores. This makes a third preferential allotment by the company, underscoring the promoter continuation confidence in Shree Pushkar's future prospect and its ongoing strategic growth plans.
  • Debt Debt disclosed
    The company continued to maintain a strong financial position supported by the strong internal accruals and preferential allotment. As of 31st December 2025, non-lien deposits of amount Rs. 176.75 crores providing ample liquidity to fund ongoing and upcoming expansion plans without relying on the external borrowings.
  • M&A Dyecol Bangladesh Limited Acquisition · Announced

    Serve as a representative and marketing office for the company and carry out related business activities in Bangladesh.

    The company has also incorporated a subsidiary in Bangladesh, that is Dyecol Bangladesh Limited. This subsidiary will serve as a representative and marketing office for the company and will carry out related business activities in Bangladesh.
  • Liquidity Cash ₹176.75 Cr Non-lien deposits as of December 31, 2025, providing ample liquidity to fund ongoing and upcoming expansion plans without relying on external borrowings.
    As of 31st December 2025, non-lien deposits of amount Rs. 176.75 crores providing ample liquidity to fund ongoing and upcoming expansion plans without relying on the external borrowings.

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · Medium confidence ₹1,000 crores

    Previously ₹950 crores → ₹1,000 crores

    Sir I think as far as this year is concerned we have been always maintaining that we should be around Rs. 950 crores or so. In my opinion we should be close to 4 digits sir. ... Sir if I talk to you about this year, what my opinion is, my thinking is that somewhere around Rs. 1,000 crores topline revenue should come.

    — Punit Makharia, Chairman and Managing Director

  • FY27 Revenue Revenue · FY27 · Medium confidence ₹1,500 crores
    Now next year sir I still maintain my earlier statement of Rs. 1,500 crores. Which I believe should not be any problem.

    — Punit Makharia, Chairman and Managing Director

  • Long-term Revenue Revenue · by 2029 · Medium confidence ₹2,500 crores
    Sir look, if you want a very straight answer to this question from me then somewhere in 2029 there should be minimum Rs. 2500 thousand revenue.

    — Punit Makharia, Chairman and Managing Director

  • Long-term Revenue Revenue · before 2030 · Medium confidence ₹3,000 crores
    Somewhere Praveen ji Rs. 2500 to Rs. 3000. ... Okay. So we can think that before 2030, we can become a company of Rs. 3000 crores sales?

    — Punit Makharia, Chairman and Managing Director

Profitability

  • FY26 PAT Margin Profitability · FY26 · Medium confidence 8%
    And we should be at a PAT margin of around 8% or so approximately. I am talking about PAT margin of around 8% for this financial year.

    — Punit Makharia, Chairman and Managing Director

  • Long-term PAT Margin Profitability · in times to come · Low confidence 10-11%
    In my opinion we still have a capacity and capability of going to around 10% to 11% in times to come.

    — Punit Makharia, Chairman and Managing Director

  • Long-term PAT Margin Profitability · by 2029 · Medium confidence 9-10%
    And you know if these things running at the level they are running continue at this level also, and there is no expectation of any very big improvement also then sir somewhere 9% to 10% PAT lines we should get.

    — Punit Makharia, Chairman and Managing Director

Capacity

  • Unit 5 and 6 Commissioning Capacity · March 2026 · Medium confidence Start trials by March 2026

    Previously Feb 2026 → Start trials by March 2026

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

    — Punit Makharia, Chairman and Managing Director

  • Unit 8 Completion Capacity · by Feb 2028 · Medium confidence 2 years or so
    Sir it is a practical estimate because you know there are three plants in Unit 8 also. It is not only one plant. These are three plants. And the capacity is also quite decent capacity is almost the double the capacity of our existing unit 6. So we believe this is at least going to take 2 years or so.

    — Punit Makharia, Chairman and Managing Director

  • New Units Utilization Levels Capacity · initial phase · Medium confidence 60-65%
    I am assuming utilization somewhere around 60-65% in this. Because honestly speaking because I am a bit conservative and a bit practical person.

    — Punit Makharia, Chairman and Managing Director

What to watch in Q4 FY26

Unit 5/6 Commissioning Status

March 2026
Current Awaiting MSEDCL electricity connection
Target Commercial 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

  • Raw material price volatility (Sulphur)

    high

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

    Management acknowledged

  • Fertilizer segment demand and pricing pressure

    medium

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

    Management acknowledged

  • Delay in electricity connection for new units

    medium

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

    Management acknowledged

  • Political instability in Bangladesh

    medium

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

    Analyst acknowledged

  • Impact of new labour code

    low

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

    Analyst acknowledged

Q&A highlights

6 direct
Gross margin decline in Q3 FY26 Direct
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

Fertilizer segment volume decrease Direct
Sir mainly it is that, how much will we sell at a loss sir? Sell less and earn a little less but we cannot make a loss sir. Same story of sulphuric acid and sulphur. Sir it's like to produce 1 ton of SSP you require 0.35 times of sulphuric acid. And you can imagine when the sulphur price goes almost double, what kind of impact it would have on the SSP.

Explains the strategic decision to reduce fertilizer volumes to avoid selling at a loss due to high raw material costs, impacting segment performance.

Asked by Prit Nagersheth

Delay in Unit 5 and 6 commissioning Partial
Still we are awaiting the same sir. Till now, as I mentioned last time that MSEDCL has promised us that by the month of the February they would install an additional, this transformer. Now this is a beginning of the February. We hope that if this happens in February then we should be able to proceed further.

Highlights ongoing delays in new capacity commercialization due to external factors (electricity connection), pushing back revenue contribution from these units.

Asked by Prit Nagersheth

Impact of China cancelling VAT refund on exports Direct
They are not putting duty, the VAT refund they used to give, they are cancelling that VAT refund. ... Sir it is going to be net net positive because since the China is reducing its exposure in the international market for the dyes intermediates as well as the dyestuffs. So leaving apart China there is only one country left which is India.

Indicates a potential positive structural shift for Indian chemical manufacturers, as China's reduced competitiveness could open up export opportunities.

Asked by Prit Nagersheth

Impact of Bangladesh textile industry issues on business Direct
Yes, volumes have reduced. But we also believe strongly and the kind of inputs we get from our customers there, that this is a very temporary phenomenon which will subsidize post elections. ... Secondly, as far as Shree Pushkar is concerned, we have around Rs. 50 crores of business or maybe Rs. 60- Rs. 70 crores of business annually with Dhaka. Which is around you can say 7% or 8% of the total revenue of the company.

Addresses a geopolitical risk, quantifying the exposure to Bangladesh and providing management's view on its temporary nature, while also mentioning diversification efforts.

Asked by Harshil Solanki

Why expand when current capacity is not fully utilized? Direct
Sir it's like the expansion we are doing though the segment would be the similar or the same, but the products are different. Number one thing. ... And whatever the expansion we are doing and which is under process is not of same products. It's of a different product but with a similar segment.

Clarifies the strategic rationale behind expansions, emphasizing product diversification within similar segments to enhance scalability and market penetration, rather than simply adding more of the same capacity.

Asked by Yash Jhunjhunwala

Fertilizer volume decline in Q3 FY26 Direct
Sir look there are two reasons for that one is increase in the raw material input cost whereas we have not been able to pass on the entire cost of the increase raw material to our customers. Therefore we preferred to sell less. ... Secondly this third quarter is generally you know there are many pockets in fertilizer, wherein this season does not remain at that time, because being it's a winter season going on, so generally at that time fertilizer business volumes remain a little slow.

Provides a dual explanation for the fertilizer volume decline: inability to pass on raw material costs and seasonal demand moderation during winter.

Asked by Yash Jhunjhunwala

2 min read 5 chapters

Detailed narrative

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).

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.

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.

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.

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.

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