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...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
67%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Drivers of higher manufactured EBITDA per ton in fertilizer segment and outlook.
Asked by Somaiah V, Avendus Spark
Management explained drivers and reiterated EBITDA/ton target.
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Question
Sir, my first question is on the manufactured EBITDA per ton in the fertilizer segment. Quite a robust current quarter. If you could just help us in terms of what are the key drivers in the current quarter which helps us to be much better on comparable, let's say, Q1 or previous year quarter. Also, how do we see things based on current subsidy rates and also the raw material price movements for the second half?
Sankarasubramanian S, Managing Director and CEO
We should track the EBITDA margin on a quarterly basis. As you rightly said, Q2 is a peak quarter for us... Phosphatic fertilizer production has been very good, and we are able to moderate the rock price increase. Efficiencies have been extremely good on all the plants... As I've always been mentioning, as a company, we target the minimum INR 5,500 of EBITDA per metric ton, which we are confident of doing in the second half as well.
Answered
High priority
Stickiness of NPK market share gain vs DAP if DAP availability improves.
Asked by Somaiah V, Avendus Spark
Management gave a clear view that shift is structural and sticky.
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Question
My question was on NPK's gaining market share vs DAP. NPK has taken a bit of market share from DAP. In case DAP availability improves, let's say 6 months out or 12 months out, how much of this is sticky? How much of this could reverse?
Sankarasubramanian S, Managing Director and CEO
I think more and more farmers are seeing the benefit of balanced nutrition NPK... If at all the availability improves, at some stage, DAP pricing gets aligned with the market. I don't think any major shift back to DAP will happen. As a country, we should move towards balanced nutrition... I see this shift is for good.
Answered
High priority
Utilization of new phosphoric/sulfuric acid plants and BMCC volumes in FY27.
Asked by Somaiah V, Avendus Spark
Management gave specific utilization and volume targets.
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Question
What is the level of utilization we can expect in FY 2027? Also, from BMCC, what are the current volumes and what can we expect in FY 2027?
Sankarasubramanian S, Managing Director and CEO
We will never be commissioned the plant. As you know, we commission as we commit and then achieve 100% in the first month. Hopefully, I should repeat this TAP record and we're paying for 100% capacity utilization next year for both Phosphoric acid and Sulfuric acid. As far as Senegal rock is concerned, at least we should expect 300,000 tons of rock coming in this year. Our plans are to see how do we scale up the volume to 500,000 next year.
Evasive
High priority
Price hike plans for NPK under NBS policy and profitability defense.
Asked by Prashant Biyani, Elara Capital
Management did not commit to any price hike or quantify impact.
no specific number givenvague on timing
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Question
Sir, post this NBS policy, do we plan to take any price hike in NPK as an industry? Or how do we plan to defend our profitability?
Sankarasubramanian S, Managing Director and CEO
Whatever it is required to be taken to, keeping in mind the needs of the farming community and ensuring availability of fertilizers and Input cost sector, we'll take appropriate cost. I'll be able to put the number whether it be done at the industry level or a company-specific level. Finally, the industry has been very risky in terms of price corrections, and that will be followed through.
Evasive
Medium priority
Developments at Dhaksha, order execution timeline, and H1 revenue.
Asked by Prashant Biyani, Elara Capital
Management did not provide order execution timeline or H1 revenue.
no timeline givenno revenue number shared
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Question
Incrementally, sir, what are the developments in Dhaksha and by when should we see order execution and fresh orders? How much was the revenue from Dhaksha in H1?
Sankarasubramanian S, Managing Director and CEO
Dhaksha is focusing on new product development and executing different orders. The execution of different orders depends on evaluation of the current prototype we have made. These different orders take a long time, and they go through a detailed evaluation process. In this case, it has taken much longer time... It is a starting table. Once the order comes through, the future orders should not be a problem.
Partial answer
Medium priority
Reason for significant growth in other expenses over last three quarters.
Asked by Prashant Biyani, Elara Capital
Management gave generic reasons but no quantification or detailed explanation.
no specific breakdown givendeferred to later
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Question
Other expenses in the last three quarters have grown significantly between 30%-50% every quarter on a YoY basis. What would be the reason for it?
Sankarasubramanian S, Managing Director and CEO
It must be the normal course of business. I need to come back to you on whatever, but there was nothing abnormal in this. Sometimes we do have government certifications. Okay. Also, we have a shift in our approach in terms of recognizing the CSR expenditures... Also, one of the expenses in terms of various consultancies and engagements, that is also forming part of it.
Answered
High priority
Reason for lower consolidated CPC margin vs standalone, and NACL one-time expense quantum.
Asked by Ankur Periwal, Axis Capital
Management explained the reasons for margin difference and consolidation impact.
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Question
If I look at the margins, which is on your slide number 12, the standalone CPC margin vs the consoled CPC margin, is there a loss that NACL had made in this quarter because your standalone consoled EBIT is lower than the standalone EBIT?
Sankarasubramanian S, Managing Director and CEO
Your observation is right. Standalone, the EBIT is quite healthy... Including NACL, it is almost flattish. The reason being, on NACL, there is one of exceptional items and expenses were there. Also, we don't consolidate full quarter performance into the numbers. We take proportionate from the time it has become a subsidiary. It takes, say, 40 days in a 90-day quarter.
Partial answer
High priority
Growth outlook for NACL portfolio and consolidated CPC margins.
Asked by Ankur Periwal, Axis Capital
Management discussed strategy but did not provide a consolidated margin target.
no specific margin guidance given
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Question
Any thoughts on how are we looking at NACL's existing portfolio? Is there a need to maybe cut off some of the lower margin product, or how do you plan the growth expansion there? And commensurate to that, how should one look at the consolidated margins on the crop protection side on an annual basis going ahead?
Sankarasubramanian S, Managing Director and CEO
It's a good question. It needs some time in terms of how do we realize the synergy benefits of both the companies... I would say that 1+1 should become three. It will not come down. It won't be a rationalization; it will be a growth opportunity for both the companies... Slowly, we need to get the pipeline products, innovative molecules, contract manufacturing to bring the margin of NACL on par with Coromandel.
Answered
High priority
Impact of sulfur and phosphoric acid price normalization on EBITDA.
Asked by Naushad Chaudhary, Aditya Birla AMC
Management gave a clear positive outlook on EBITDA impact.
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Question
Assuming next year Sulfur and Sulfuric acid prices correct or normalize, and same we experience in Phosphoric acid, how would that change in terms of your EBITDA expectation from the company?
Sankarasubramanian S, Managing Director and CEO
See, it is a function of multiple things, right? Where Phosphoric acid is there, where DAP price is there, how Sulfur behaves. Always, manufacturing of Sulfuric acid using Sulfur burner and generating power is the most economic thing to do... The value addition is likely to be better only in the coming period than what we are witnessing at this point of time. That can only positively impact EBITDA much better than what we have at this point of time.
Declined
Medium priority
Non-subsidy EBITDA share in this quarter.
Asked by Naushad Chaudhary, Aditya Birla AMC
Management explicitly declined to provide the number.
refused to share
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Question
What was the non-subsidy EBITDA share in this quarter?
Sankarasubramanian S, Managing Director and CEO
I'm not sure what number has been read. There's no specific data point which we'll not be able to share.
Answered
Medium priority
Disparity between phosphoric acid inflation and stable rock prices.
Asked by Ranjit Cirumalla, IIFL Capital
Management explained the supply dynamics clearly.
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Question
While we have been seeing a consistent inflation in the Phosphoric acid, we haven't seen any commensurate inflation in the rock. What is leading to this disparity?
Sankarasubramanian S, Managing Director and CEO
Good question. If it changed, it's good for us. I thought we should appreciate it. I think new opportunities are also coming up on rock. A lot of sources are opening up, and Egypt is increasing the output. Jordan output is increasing. Multiple sources, and we have also expanded our mining operations. Additional resources are helping to keep the price normalized.
Answered
High priority
Current phosphoric acid capacity and new plant capacity.
Asked by Riju Dalui, Antique Stock Broking
Management provided specific capacity numbers.
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Question
Phosphoric acid capacity currently, if you could share the number?
Sankarasubramanian S, Managing Director and CEO
2 lakh tons. The current capacity of what we have at Bhagod is 4.5, and 0.6 at Sarigam, totaling to 5.1. The new one which is coming up in Kakinada would be another 200,000. We'll have 7 lakh tons of Phosphoric acid.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Export business grew 6-7% in Q2, 12% annual | 6% | 30% | Understated vs filing |
| Domestic formulation business expected 25% growth this year | 25% | 30% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.