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Elevated gas prices impacting working capital
View Risks →Chambal Fertilisers and Chemicals Ltd — Q4 FY26
Chambal Fertilisers reported a strong Q4 FY26 with standalone revenue from operations growing 14% YoY to ₹2,785 crore, EBITDA surging 56% YoY to ₹155 crore (margin 9.16%), and PAT up 46% YoY to ₹45 crore.
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Chambal Fertilisers reported a strong Q4 FY26 with standalone revenue from operations growing 14% YoY to ₹2,785 crore, EBITDA surging 56% YoY to ₹155 crore (margin 9.16%), and PAT up 46% YoY to ₹45 crore. The complex fertilizer segment drove growth with revenues up 94% YoY, while the crop protection and specialty nutrients business grew 30% for the full year. The technical ammonium nitrate (TAN) project has entered commissioning, with management targeting 75-80% capacity utilization in the first year. Strategic raw material purchases have secured coverage for July-August. Risks include elevated gas prices pressuring working capital and potential supply chain disruptions from geopolitical tensions in West Asia.
चंबल फर्टिलाइजर्स ने वित्त वर्ष 2025-26 की चौथी तिमाही में अच्छा प्रदर्शन किया। कंपनी की कमाई पिछले साल की तुलना में 14% बढ़कर 2,785 करोड़ रुपये हो गई। कमाई पर मुनाफा (EBITDA) 56% बढ़कर 155 करोड़ रुपये रहा, जो कमाई का 9.16% है। शुद्ध मुनाफा (PAT) 46% बढ़कर 45 करोड़ रुपये हो गया। मुख्य वृद्धि जटिल उर्वरकों से हुई, जिसकी कमाई 94% बढ़ी। फसल सुरक्षा और विशेष पोषक तत्वों का कारोबार पूरे साल 30% बढ़ा। तकनीकी अमोनियम नाइट्रेट (TAN) प्रोजेक्ट शुरू हो गया है, पहले साल 75-80% क्षमता उपयोग का लक्ष्य है। कच्चे माल की खरीद जुलाई-अगस्त के लिए सुरक्षित है। जोखिमों में ऊंची गैस कीमतें और पश्चिम एशिया में तनाव से आपूर्ति में रुकावट शामिल है।
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Read Transcript →Quarter Snapshot
Complex fertilizer sales volume (Q4)
0.65 lakh MT
+117% YoY
Sales volume rose from 0.3 lakh MT in Q4 FY25, driven by strong demand for DAP, TSP, and NPK.
Crop protection & specialty nutrients revenue (FY26)
₹1,203 crore
+30% YoY
Full-year revenue grew from ₹926 crore in FY25, with EBITDA margins healthy at 23.5%.
Biologicals revenue growth (FY26)
57%
+57% YoY
Biologicals business saw 57% revenue growth and 30% volume growth, driven by farmer adoption.
TAN project capacity
240,000 MT per annum
New
Technical ammonium nitrate project with 240 KTPA capacity entering commissioning phase.
What Changed vs Last Quarter
NEW
TAN plant to achieve 75-80% capacity utilization in first year
Management expects to reach 75-80% utilization in the first year of operations, with production of ~170,000 tons over 9 months.
NEW
New urea plant capex of ₹9,500-10,000 crore for 1.3 MTPA brownfield project
Management is ready to invest ₹9,500-10,000 crore in a new urea plant, pending government policy. Land, water, and environmental clearances are in place.
NEW
FY27 capex of ~₹500 crore including TAN balance and routine spends
Total capex for FY27 estimated at ~₹500 crore, comprising ₹170-180 crore routine capex and balance for TAN project completion.
NEW
Complex fertilizer raw material coverage secured through July-August
Strategic purchases made early in the year ensure raw material availability for complex fertilizers through July-August 2026.
DROPPED
TAN plant commissioning by April 30, 2026
The TAN project is 92% complete and on track for completion by April 30, 2026, with management expecting 75-80%+ utilization in FY27.
DROPPED
12 new CPC products and 1 specialty nutrient in FY27
Management guided for 12 new crop protection chemicals products and one specialty nutrient product to be launched in FY27.
DROPPED
Morocco JV P2O5 capacity expansion to 7 lakh MT by Dec 2026
The joint venture in Morocco is increasing P2O5 production capacity from 5 lakh MT to 7 lakh MT, expected by December 2026.
DROPPED
Sulfuric acid capacity expansion in Morocco by FY27
Sulfuric acid capacity in the Morocco JV is being increased, expected to be implemented a year ahead, in FY27.
NEW RISK
Elevated gas prices impacting working capital
Higher gas costs increase working capital requirements; management is seeking interim relief from the government but no assurance given.
NEW RISK
Geopolitical tensions disrupting raw material supply
West Asia tensions have caused volatility in ammonia and sulfur prices, and logistics constraints (e.g., ships stuck in Hormuz) could impact production.
NEW RISK
Subsidy receivable buildup if gas prices remain elevated
If gas prices stay high, subsidy receivables may increase, straining cash flows despite government support assurances.
NEW RISK
DAP pricing and GST issues hinder phosphatic expansion
Management cited controlled pricing and GST complexities as barriers to domestic phosphatic capacity expansion, limiting growth in that segment.
RISK GONE
G3 policy benefit expiry uncertainty
The policy benefits for the G3 urea plant expire at the end of FY26, and the government has not yet started the exercise to determine new parameters, creating uncertainty on profitability.
RISK GONE
Rising input costs pressuring DAP margins
High sulfur and phosphoric acid prices are squeezing DAP margins, as the government's fixed subsidy does not fully compensate for cost increases.
RISK GONE
NPK pricing tipping point may reduce farmer uptake
If NPK prices rise too much relative to DAP, farmers may switch, potentially impacting NPK volumes and margins.
RISK GONE
Potential oversupply in TAN market
New capacities from competitors (e.g., Gopalur, Deepak, CIL) could lead to oversupply, though management expects demand growth to absorb it.
Fast read
Guidance and risk preview
Management expects to reach 75-80% utilization in the first year of operations, with production of ~170,000 tons over 9 months.
Higher gas costs increase working capital requirements; management is seeking interim relief from the government but no assurance given.
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