KRISHANA Q1 FY27 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹532 Cr
verification pending
Revenue YoY
35%
reported change
EBITDA
₹89 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Krishna Phoschem delivered 35% YoY revenue growth to Rs 532cr and 54% PAT growth to Rs 47cr in a challenging Q1 FY27, driven by new NPK product launches and disciplined cost management. The company faced raw material supply disruptions and cost inflation from West Asia geopolitical tensions, which constrained capacity utilization (NPK/DAP at 43%, SSP at 121%). However, EBITDA margins expanded significantly to 16.7% from historical 8-9% levels, attributed to higher-margin NPK variants and backward integration into sulfuric/phosphoric acid. Management confirmed raw material issues have now resolved and Q2 utilization will improve. Full-year revenue guidance of 30-35% growth remains intact, with peak capacity (4.95 lakh MT) capable of generating Rs 3,000cr+ at 100% utilization. Key risks include monsoon variability (kharif sowing down 22.7% YoY in June), sulfur price volatility (doubled to Rs 1 lakh/tonne), and the company's elevated 33% trading revenue mix diluting margins vs. pure manufacturing peers.
Colored figures show movement against the previous available record.
Guidance to track
- Management confirmed confidence in achieving 30-35% additional revenue over FY26 base driven by new NPK/DAP capacity ramp-up and improved raw material availability from Q2 onwards.
- At current capacity of 4.95 lakh MT combined NPK/DAP and 1.2 lakh MT SSP, management expects to exceed Rs 500cr revenue per quarter for remaining three quarters of FY27.
- New NPK grades with higher margins, combined with backward integration into sulfuric and phosphoric acid, provide cost cushion above competitors to sustain elevated margin profile.
- 10-year, 70,000 MTPA green ammonia off-take agreement with SECA will start in FY29, providing lowest-cost raw material procurement with price collar mechanism against gray ammonia.
Risks flagged
- Sulfur prices doubled from Rs 65-70k/tonne in April to Rs 1 lakh/tonne in June-July due to Red Sea shipping disruptions, with Hormuz Strait tensions creating ongoing uncertainty. Company's own sulfuric acid plant provides partial hedge.
- Cumulative rainfall was 40% below normal as of June end, causing national kharif sowing to decline 22.7% YoY to 182.7 lakh hectares. While July monsoon recovery is underway, uneven spatial and temporal distribution poses risk to fertilizer offtake.
- 33% trading revenue at 7-8% EBITDA margins dilutes overall margin profile compared to pure manufacturers like Gujarat State Fertilisers (8-9% margins). Analyst raised concern about margin sustainability if trading ratio increases.
- Analyst asked about Rs 700cr receivables collection promised for Q1; management confirmed collection was 'more than 700' but specific write-offs or aging analysis was not provided, suggesting potential working capital stress from subsidy delays.
Key quotes
- Our old facility is 3 lakh 30,000 tons and our new expanded facility is 1 lakh 65,000 tons. Total is 4 lakh 95,000 facilities and the turnover which you are expecting for 500 crores for 4 lakh 95,000 tons of NPK plus SSP is definitely achievable.
- The reason for the AITA margin increase is that we have manufactured different NPK grades and we are now able to achieve better AITA margins than expected and we are confident that we will be able to keep track of the AITA margins which we have already achieved in the first quarter.
- PT margin declined from 11% to 8.9% on quarter-on-quarter basis largely due to sharp rise in finance cost and depreciation as the new capacities have come online. Finance cost increased from Rs 13 crores to Rs 20 crores and depreciation from Rs 8.7 crores to Rs 13 crores due to new commissioned plants.
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