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Unseasonal rains impacting Rabi demand
View Risks →Coromandel International Limited — Q2 FY26
Coromandel delivered a strong Q2 FY26 with consolidated revenue of INR 9,771 crore (+30% YoY) and PAT of INR 793 crore (+20% YoY), driven by robust phosphatic fertilizer volumes (up 7% to 1.4M tons) and a 48% EBIT surge in crop protection.
bullish
high
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Coromandel delivered a strong Q2 FY26 with consolidated revenue of INR 9,771 crore (+30% YoY) and PAT of INR 793 crore (+20% YoY), driven by robust phosphatic fertilizer volumes (up 7% to 1.4M tons) and a 48% EBIT surge in crop protection. The company gained market share in phosphatics to 19% (vs 17% last year) and achieved record phosphoric acid production through debottlenecking. Backward integration projects (sulfuric/phosphoric acid at Kakinada) are on track for commissioning by January, expected to improve cost structure significantly. Management guided for sustained EBITDA/ton of INR 5,500+ in H2 and targets INR 5,000 crore revenue for the combined crop protection business (including NACL). Key risk: unseasonal rains could dampen Rabi season demand.
कोरोमंडल ने दूसरी तिमाही में शानदार प्रदर्शन किया। कंपनी की कुल कमाई 9,771 करोड़ रुपये रही, जो पिछले साल से 30% ज्यादा है। मुनाफा 793 करोड़ रुपये रहा, जो 20% बढ़ा। इसकी वजह फॉस्फेटिक खाद की बिक्री में 7% बढ़ोतरी (14 लाख टन) और फसल सुरक्षा कारोबार में 48% ज्यादा मुनाफा है। कंपनी ने फॉस्फेटिक खाद बाजार में अपनी हिस्सेदारी 17% से बढ़ाकर 19% कर ली। नए कारखानों से लागत कम होने की उम्मीद है। कंपनी को इस साल की दूसरी छमाही में हर टन खाद पर 5,500 रुपये से ज्यादा कमाई का भरोसा है। फसल सुरक्षा कारोबार से 5,000 करोड़ रुपये कमाई का लक्ष्य है। मौसम खराब रहा तो रबी फसल की मांग घट सकती है।
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Read Transcript →Quarter Snapshot
Phosphatic Fertilizer Market Share
19%
+2pp YoY
Coromandel became the largest phosphatic fertilizer player in India, up from 17% last year.
NPK Production Volume
9.1 lakh tons
+3% YoY
Phosphoric acid plants operated above capacity; production could have been higher but for ammonia outage.
Crop Protection EBIT
INR 162 crore
+48% YoY
Strong performance driven by Mancozeb exports and domestic B2C growth.
Retail Stores Opened in H1
170 stores
+100 stores in Q2
Expanding footprint at a rate of one store per day; on track to reach 1,200 stores by year-end.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
NEW
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.
DROPPED
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.
DROPPED
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).
DROPPED
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.
DROPPED
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.
NEW RISK
Unseasonal rains impacting Rabi demand
Excess rains in August-September affected Kharif crop input application; if similar weather persists in Rabi, fertilizer and crop protection offtake could be dampened.
NEW RISK
Raw material price volatility
Spike in ammonia and sulfur prices during the quarter, though management expects softening. Sustained high prices could pressure margins despite NBS subsidy revision.
NEW RISK
Dhaksha drone order execution delays
Government evaluation of drone prototypes has taken longer than expected, delaying order execution. Future orders depend on successful evaluation, creating uncertainty.
NEW RISK
NACL margin recovery slower than expected
NACL'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.
RISK GONE
Volatility in sulphur and phosphoric acid prices
Sulphur 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.
RISK GONE
DAP supply tightness and price risk
China's DAP exports have dried up, tightening global supply. While management expects softening post-Rabi, any supply disruption could impact costs and availability.
RISK GONE
NACL acquisition integration delays
SEBI clearance for NACL open offer is pending; management declined to comment on profitability timeline, indicating uncertainty.
RISK GONE
Subsidy outstanding risk
Subsidy outstanding stood at ₹2,911 crore as of June 30, higher as a percentage of revenue (41% vs historical 35%), though management attributed it to seasonal channel inventory.
🤫 Topics management stopped discussing
Mentioned in Q1 FY26, Q4 FY25
The phosphoric acid and sulphuric acid backward integration project is 70% complete and likely to be commissioned in Q4 of current financial year.
Mentioned in Q2 FY25, Q3 FY25
New granulation plant to be commissioned in 24 months, targeting commercial production from Q4 FY27.
Fast read
Guidance and risk preview
Management reiterated confidence in maintaining at least INR 5,500 EBITDA per metric ton in the second half, supported by operational efficiencies...
Excess rains in August-September affected Kharif crop input application; if similar weather persists in Rabi, fertilizer and crop protection offtak...
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