Detailed Narrative
Strong FY26 Performance Amidst Headwinds
Shree Pushkar delivered a robust FY26, with revenue from operations growing 21.1% to ₹976.60 crores and PAT increasing 19.6% to ₹70.1 crores, translating to a 7.1% margin. The company also saw improved return ratios, with RoE at 12.2% and RoCE at 15.3%. This performance was driven by higher volumes in chemicals (up 27.9%) and improved realizations in fertilizers (up 16.5%).
Q4 FY26 Impacted by Raw Material Volatility and Supply Chain
The fourth quarter of FY26 saw revenue of ₹218.2 crores, with EBITDA at ₹22.1 crores (10.1% margin) and PAT at ₹12.9 crores (5.8% margin). Performance was affected by ongoing supply chain disruptions and raw material availability. Management deliberately halted sales in the second week of March due to unprecedented🌐 increases in raw material prices, particularly ammonia and sulphur, which have tripled.
Strategic Capex for Expansion and Sustainability
The company has a total planned capex of ₹512 crores, with ₹189 crores already incurred as of March 31, 2026. This includes ₹155 crores for Unit 5 dyes, solar, and Unit 6, funded by a ₹25 crore term loan and ₹130 crore internal accruals. A future capex of ₹350 crores for Madhya Bharat Phosphates is planned, with ₹170 crores secured from bonds and preferential allotment. The company also commissioned a 1.1 MW solar plant in Haryana, bringing total solar capacity to 10.6 MW DC.
New Unit Commissioning Delays and Revised Outlook
The commissioning of Ratnagiri Unit 5 and 6, initially expected by March 2026, has been delayed. While the electricity issue is resolved, the current 'haywire' pricing and sourcing of key raw materials like ammonia and sulphur are preventing the start of trial production. Consequently, management has revised its FY27 revenue guidance downwards to ₹1,250-1,300 crores from an earlier expectation of ₹1,500 crores, acknowledging the loss of the Kharif season for new units.
Resilient Margins and Debt-Free Position
Despite raw material volatility, the company demonstrated pricing power in the chemicals segment, passing on cost increases for products like H Acid (₹525 to ₹750/kg) and Vinyl Sulphone (₹240 to ₹350/kg). Management aims to maintain an EBITDA margin of 8-10% and PAT margin of 8-8.5% going forward⏳. The company maintains a strong, debt-free financial position with a net debt-to-equity ratio of -0.01x and ₹140.68 crores in non-lien deposits, ensuring liquidity for ongoing expansions.
Cautious Approach Amidst Global Uncertainty
Management expressed a cautious stance due to global uncertainties, particularly the impact of the 'war situation' on energy and raw material prices. They emphasized a strategy of 'sitting quietly, calmly, and waiting for the right opportunity' to avoid wrong decisions, even if it means taking 'two steps back' on new unit commissioning. Current plant utilization is around 65-70%.