MBAPL Q2 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
₹450 Cr
verification pending
Revenue YoY
62%
reported change
EBITDA
₹62 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Madhya Bharat Agro Products delivered a stellar Q2 FY26 with revenue of Rs 450 crore (+62% YoY), EBITDA of Rs 62 crore (+70% YoY), and PAT of Rs 31 crore (+120% YoY). Record fertilizer production of 118,541 MT and highest-ever quarterly sales of 135,187 MT drove outperformance. SSP sales hit 78,355 MT while NPK reached 56,632 MT, with both segments contributing to the robust H1 revenue of Rs 860 crore (+80% YoY). The company highlighted DAP supply shortages nationally due to China's export restrictions and global supply chain disruptions, positioning this as an opportunity for SSP/NPK substitution. Management guided H2 revenue similar to H1 (~Rs 850 crore) at slightly better prices, with FY26 capex of ~Rs 400 crore. The Dahej plant (330,000 MT DAP/NPK, 198,000 MT phosphoric acid, 330,000 MT SSP) remains on track for October 2026 commissioning, while Sagar expansion (90,000 MT DAP/NPK) targets March 2026. Green ammonia sourcing under SECI scheme provides raw material security. Key risk: subsidy policy announcement pending, though management indicated no impact on current rabi season sales as wholesalers continue buying. Capacity expansion may face execution delays given tight project timelines.
Colored figures show movement against the previous available record.
Guidance to track
- Management guided that H2 performance will mirror H1's Rs 860 crore, maintaining similar production capacity utilization levels with slight price improvement due to rising raw material costs.
- Total capital expenditure for FY26 estimated at Rs 400 crore, primarily funding the Dahej (Rs 202 crore sanctioned, Rs 199 crore spent) and Sagar expansion projects.
- Fully integrated DAP/NPK/SSP plant at Dahej, Maharashtra with 330,000 MT DAP/NPK capacity, 198,000 MT phosphoric acid, and 330,000 MT SSP per annum on track for October 2026 commissioning.
- Post Dahej (Oct 2026) and Sagar (Mar 2026) expansions, total fertilizer capacity will reach 1.2 million MT (6.6 lakh MT DAP/NPK + 5.7 lakh MT SSP), more than doubling current capacity.
Risks flagged
- Cabinet decision on rabi season fertilizer subsidy remains pending. Management expects announcement soon with effective date likely October 1, 2025. Any unfavorable revision could impact realizations.
- Sulfur prices increased in the last 6 months, and management noted corresponding MRP increases have been implemented with expected subsidy pass-through. However, any further spike in imported raw material costs (rock phosphate from Jordan/Egypt) could compress margins if not fully offset.
- Dahej plant targeting October 2026 and Sagar expansion by March 2026 leaves limited buffer. Any execution delays in civil work, equipment installation, or regulatory approvals for the Rs 700 crore total project investment could defer revenue ramp-up and increase financing costs.
- Company relies on 10-year rock phosphate supply contracts from Jordan (JPNC) and Egypt, with limited pricing increase (~1-3%) seen recently. Any escalation in Middle East tensions or shipping disruptions could threaten raw material security.
Key quotes
- Favorable monsoon, improving rural economy and our strategic supply management are the key contributors to the healthy performance. The company has introduced various ranges of fortified SSP range including NPK 51510 which is being positioned as a substitute of DAP in the market.
- We are already examining the proposal for merger at our end and we are talking to the various regulators to merge the businesses and as soon as we get that comfort of merging from the regulatory prospects then we can come forward with the plan of mergers.
- The total project investment will be in the range of 700 cr rupees as we have indicated about 200 cr rupees will be spent another 200 cr rupees expected by March and the remaining will be spent in the first half of FY27. So total 700 cr rupees in six we will be spending on these projects.
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