Shree Pushkar Chemicals & Fertilisers Limited

Shree Pushkar Chemicals & Fertilisers reported a strong Q4 FY25 with revenue from operations reaching ₹219.4 crores, a 15% year-on-year increase. EBITDA for the quarter grew 32% to ₹24.70 crores, with margins expanding to 11.3%. Profit after tax increased 27% to ₹16.5 crores. For the full year FY25, the company achieved revenues of ₹806.3 crores, an 11% increase over FY24. EBITDA improved 38% to ₹83.90 crores, and net profit moved up 58% to ₹58.60 crores, reflecting a PAT margin of 7.2%.

In Q4 FY25, the Chemical division registered a 19% revenue growth, while the Fertilizer division advanced by 10.6%. However, Chemical segment volumes declined 11% year-on-year to 10,026 metric tons in Q4, primarily due to an extended acid complex shutdown of 52-53 days. Conversely, the Fertilizer segment recorded a 5% increase in volume to 60,000 metric tons for Q4. For the full year, Fertilizer volumes grew 24% to 2.61 lakh metric tons, while Chemical volumes remained relatively stable at 56,626 metric tons, marginally lower by 1%.

The company completed a cumulative CAPEX of ₹202 crores, entirely funded through internal accruals, focusing on manufacturing capacity expansion and value chain integration. A further planned CAPEX of ₹160 crores is underway, with ₹72 crores already incurred as of March 31, 2025. This includes the commissioning of an additional 3.8 MW DC solar power plant, bringing total solar capacity to 9 MW DC, and initiating work on a 10 MW DC solar plant in Nanded for captive consumption. The new Unit-5 dyes unit is expected to achieve operational efficiency in the last six months of FY26, and Unit-6 NPK complex is targeted for trial production by mid-October/November 2025, with a revenue potential of ₹450 crores annually once operational.

Shree Pushkar maintains a strong balance sheet with a net cash positive position, backed by ₹116.55 crores of non-lien deposits. The equity base increased to ₹538.9 crores, and the company closed the year with ₹109.6 crores in investment and cash balance. Net cash from operations significantly improved to ₹37.5 crores from ₹16.2 crores in FY24, driven by enhanced profitability and efficient capital management. Finance costs for FY25 were minimal at ₹2.3 crores, representing only 0.25% of total revenue, reflecting a low leverage position and no long-term borrowings for new CAPEX.

Management projects total revenue for FY26 to be in the range of ₹950-1,000 crores, indicating at least 20% growth. The PAT margin is expected to improve to 8.25-8.5% for the current financial year. The Fertilizer segment is anticipated to achieve at least 20% volume growth, targeting around 150,000 tons for the current season, driven by DAP shortages and increased SSP subsidies. The effective tax rate for FY26 is expected to remain similar to FY25, around 16-17%.

The phosphatic fertilizer market is experiencing a global shortage, with DAP prices rising significantly, creating a favorable environment for SSP. The company strategically pre-bought rock phosphate in February and March when prices were at a low, leading to inventory buildup but securing raw materials at competitive rates. In the Chemical segment, management notes improving prices and reduced competition from China, especially with the impending BIS regulations, despite deferments for K-acid and Vinyl Sulphone.