Coromandel International FY26 Annual Earnings Summary
4 quarters covered · ₹57,587 Cr revenue · ₹3,179 Cr PAT · 7.7% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Promise tracking available after 2+ quarters of coverage.
Risks flagged during the year
Sulfur prices surged from ~$200 to $550/ton, compressing fertilizer margins. Management expects a correction but uncertainty remains.
Q4 FY26 · highAmmonia and sulfur prices surged to $840-850/ton and ~$800/ton respectively due to Middle East supply disruption; visibility only up to June, Q2 remains uncertain.
Q4 FY26 · highCurrent NBS rates do not cover sharp raw material cost increases; if additional subsidy is not provided, fertilizer margins will be severely compressed.
Q1 FY26 · mediumSulphur prices peaked at $300+ and have softened to $225, but further volatility could impact margins. Management noted marginal reduction in value addition due to higher sulphuric acid costs.
Q1 FY26 · mediumChina's DAP exports have dried up, tightening global supply. While management expects softening post-Rabi, any supply disruption could impact costs and availability.
Q1 FY26 · mediumSEBI clearance for NACL open offer is pending; management declined to comment on profitability timeline, indicating uncertainty.
Q2 FY26 · mediumExcess rains in August-September affected Kharif crop input application; if similar weather persists in Rabi, fertilizer and crop protection offtake could be dampened.
Q2 FY26 · mediumSpike in ammonia and sulfur prices during the quarter, though management expects softening. Sustained high prices could pressure margins despite NBS subsidy revision.
Q2 FY26 · mediumGovernment evaluation of drone prototypes has taken longer than expected, delaying order execution. Future orders depend on successful evaluation, creating uncertainty.
Q2 FY26 · mediumNACL's EBITDA margin fell to ~4% in H1, well below the 9-11% target. Management expects gradual improvement, but integration risks and one-time costs may delay margin normalization.
Q3 FY26 · mediumNBS rates have not fully compensated for raw material inflation and INR depreciation, pressuring margins. Government supplementary grants may be needed.
Q3 FY26 · mediumNACL's hedge facility has low utilization, dragging margins. Management acknowledged the issue but provided no timeline for resolution.
What changed through the year
Q1 FY26 · Manufacturing EBITDA of ₹5,000 per tonne to sustain
Management expects normative EBITDA of ₹5,000 per metric ton to sustain during FY26, despite input cost volatility.
Q1 FY26 · Granulation plant commissioning in Q4 FY27
The 7.5 lakh tonne granulation project is on track and expected to be commissioned in Q4 of FY27 (Jan-Mar 2027).
Q1 FY26 · Backward integration plant commissioning in Q4 FY26
The phosphoric acid and sulphuric acid backward integration project is 70% complete and likely to be commissioned in Q4 of current financial year.
Q1 FY26 · Target 5,00,000 acres drone spraying in FY26
Company plans to double drone fleet and cover 5,00,000 acres of drone spraying in the current year.
Q2 FY26 · EBITDA per ton target of INR 5,500+ in H2
Management reiterated confidence in maintaining at least INR 5,500 EBITDA per metric ton in the second half, supported by operational efficiencies and backward integration benefits.
Q2 FY26 · Crop protection revenue target of INR 5,000 crore annualized
Combined Coromandel and NACL crop protection business expected to reach INR 5,000 crore revenue on an annualized basis, positioning among top 3-4 players in India.
Q2 FY26 · Kakinada acid plant commissioning in January
Mechanical completion expected in December, trial runs in January, and commercial production by second/third week of January. Plant will improve cost profile significantly.
Q2 FY26 · Senegal rock volume scale-up to 500,000 tons next year
Current year target of 300,000 tons from Senegal mine; next year aim to scale to 500,000 tons with additional investments.
Q3 FY26 · Annualized EBITDA per ton target of INR 5,000-5,500 maintained
Despite raw material headwinds, management expects to sustain annualized EBITDA of INR 5,000-5,500 per ton for FY26, supported by inventory management and price hikes.
Q3 FY26 · Backward integration plant commissioning in Q4 FY26
The sulfuric acid and phosphoric acid plant at Kakinada will be commissioned in Q4 FY26, expected to lift annualized EBITDA to INR 6,500 per ton.
Q3 FY26 · Domestic B2C crop protection growth target of 20-25% YoY
Management targets 20-25% annual growth in domestic branded formulation business, driven by new product launches and market expansion.
Q3 FY26 · Mancozeb capacity expansion of 30%
After a 20% debottlenecking, the company plans a further 30% capacity expansion at Sarigam to meet rising global demand.
Q4 FY26 · Crop protection revenue growth of 20-25% in FY27
Driven by new product launches (6 new products), capacity expansion at Dahej and Sarigam, and aggressive domestic formulation growth.
Q4 FY26 · Senegal rock phosphate output to increase 30-40% in FY27
Planned volume increase from 3.5 lakh tons to ~4.5-4.9 lakh tons, supported by stabilized operations.
Q4 FY26 · Granulation capacity expansion commissioning by December 2026
Project to expand granulation capacity is on track for commissioning by December of this financial year.
Q4 FY26 · Crop protection EBITDA margin to sustain ~19%
Management expects standalone crop protection EBITDA margin to remain at current levels, supported by currency depreciation and pass-through of input costs.