KRISHANA Q3 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹659 Cr
verification pending
Revenue YoY
117%
reported change
EBITDA
₹70 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Krishana Phoschem delivered record-breaking Q3 FY26 with ₹659 crore revenue (up 117% YoY) driven by exceptional fertilizer volume growth and expanded distribution reach. PAT of ₹33 crore (up 62% YoY) and EPS of ₹5.39 marked all-time highs. However, EBITDA margin compressed 392bps to 10.64% due to lower-margin import trading (₹345 crore of revenue) and surging raw material costs—sulfur prices jumped 61% from April to December 2025 (₹28,000 to ₹45,000/ton). Manufacturing segment maintained 14-15% EBITDA margins despite input cost pressures. Capacity utilization exceeded 100% for SSP (107%) and DAP/NPK (98%), underscoring tight supply conditions. The 50% NPK capacity expansion at Madhogarh, targeting commissioning in April 2026 with ₹1,000 crore revenue potential at full utilization, remains on track. Government support through nutrient-based subsidies (₹37,952 crore for Rabi 2025-26) and the Mission for Pulses (₹11,440 crore budget) provides operating visibility. Risk includes margin vulnerability to raw material cost inflation and execution risk on new plant ramp-up.
Colored figures show movement against the previous available record.
Guidance to track
- Management committed to maintaining 14-15% EBITDA on manufactured products, with potential expansion to 16% at times, by managing input costs and operational efficiencies.
- Trial production expected by March 2026 with commercial production commencing April 2026, adding 50% NPK fertilizer capacity at Madhogarh.
- Based on trends and seasonality, management indicated Q4 revenue would be higher than the 9-month average of ₹570 crore, supporting full-year growth trajectory.
- New ₹1,000 crore revenue potential plant expected to operate at 60% capacity in FY27 due to expected teething issues during ramp-up phase.
Risks flagged
- Sulfur prices surged 61% and sulfuric acid 50% in 8 months. Management maintained 14-15% EBITDA guidance by passing through costs, but sustained input inflation could pressure margins if price hikes lag.
- Import revenue of ₹345 crore (52% of total) with significantly lower profitability than manufacturing compressed overall margins to 10.64%. Management acknowledged this as the primary margin compression reason.
- Company remains in MAT bracket (30%+ tax rate) resulting in effective 40% corporate tax. Deferred tax liability creates elevated tax outgo until exiting MAT, impacting EPS. Analyst questioned this; management attributed it to regulatory requirements.
- Madhogarh expansion targeting April 2026 commercial production faces execution risk given management acknowledged 'teething problems' expected in first year, with only 60% utilization targeted for FY27.
Key quotes
- As regards industry trends, the Indian phosphatic fertilizer industry continues to undergo a significant evolution characterized by a notable shift from traditional DAP use towards balanced NPK and SS brands. This dynamics creates a distinct opportunity for agile integrated manufacturers like Krishna to capitalize on evolving farmer preferences.
- What happens is it all depends on the company's policy how you are able to manage your suppliers, how you are able to manage your contractual positions in the industry or your suppliers, the inventory levels in your company. So this is all this may differ from company to company.
- Look we are operating in a competitive environment not withstanding the domestic production being less than the demand. At the same time we are dependent on government subsidy and we have to look for the interest of farmers keeping in view the interest of our stakeholder and our company.
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