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Raw material price volatility
View Risks →Coromandel International Limited — Q4 FY25
Coromandel reported a strong Q4 FY25 with consolidated revenue of INR 5,114 crore, up 28% YoY, driven by record phosphatic fertilizer volumes and a 13% volume growth.
bullish
high
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Coromandel reported a strong Q4 FY25 with consolidated revenue of INR 5,114 crore, up 28% YoY, driven by record phosphatic fertilizer volumes and a 13% volume growth. The crop protection business grew 7% to INR 2,637 crore, with EBIT up 25% to INR 363 crore, aided by new product launches and export demand. Management guided for high double-digit revenue growth in crop protection and sustained fertilizer EBITDA per ton of INR 5,000. Key growth drivers include backward integration projects (PA/SA plants on track for Q4 FY26 commissioning), the NACL acquisition (expected to close by Q2 FY26), and Nano DAP scaling (2.6 million bottles sold). Risks include volatile raw material prices (sulfur up $120/ton) and execution challenges in integrating NACL.
कोरोमंडल ने वित्त वर्ष 2025 की चौथी तिमाही में शानदार प्रदर्शन किया। कंपनी की कुल आय 5,114 करोड़ रुपये रही, जो पिछले साल की तुलना में 28% अधिक है। यह वृद्धि फॉस्फेटिक उर्वरकों की बिक्री और 13% अधिक मात्रा बेचने से हुई। फसल सुरक्षा कारोबार में 7% बढ़ोतरी हुई और इसका मुनाफा 25% बढ़कर 363 करोड़ रुपये हो गया। कंपनी का कहना है कि फसल सुरक्षा कारोबार में आय दो अंकों की दर से बढ़ेगी और उर्वरकों पर प्रति टन 5,000 रुपये का मुनाफा बना रहेगा। आगे बढ़ने के लिए कंपनी नए कारखाने लगा रही है और नैनो डीएपी की बिक्री बढ़ा रही है। हालांकि, कच्चे माल की कीमतों में उतार-चढ़ाव और नई कंपनी के विलय में चुनौतियां हो सकती हैं।
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Read Transcript →Quarter Snapshot
Phosphatic fertilizer volume growth
13%
+13% YoY
Record sales of phosphatic fertilizers drove overall volume growth for FY25.
Crop protection EBIT
INR 363 crore
+25% YoY
Improved demand for key molecules and new products boosted profitability.
Nano DAP bottles sold
2.6 million
+0% YoY (first full year)
Achieved 80-90% liquidation; management sees potential to replace 2M tons of DAP in 2-3 years.
Market share in phosphatic fertilizers
18%
+3pp YoY
Improved from 15% last year, driven by expansion into north and central markets.
What Changed vs Last Quarter
NEW
Fertilizer EBITDA per ton of INR 5,000 sustainable
Management confirmed the target of INR 5,000 per ton EBITDA for the fertilizer business remains intact for FY26.
NEW
PA/SA plants commissioning in Q4 FY26
The phosphoric acid and sulfuric acid plants at Kakinada are 45% complete and on track for commissioning in the last quarter of FY26.
NEW
Crop protection revenue growth in high double digits
Management expects high double-digit revenue growth in crop protection for FY26, supported by new products and export demand.
NEW
NACL acquisition to close by Q2 FY26
Regulatory approvals for the NACL acquisition are expected by Q2 of the current financial year.
DROPPED
NPK capacity expansion to 7.5 lakh tons at Kakinada by Q4 FY27
New granulation plant to be commissioned in 24 months, targeting commercial production from Q4 FY27.
DROPPED
Phosphoric acid plant (2 lakh tons) at Kakinada by Q4 FY26
Ongoing project expected to be commissioned by Q4 of next fiscal year (FY26).
DROPPED
SSP volume target of 1 million tons in two years
Aiming to reach 800,000 tons next year and 1 million tons thereafter, with 60% from value-added products.
DROPPED
Retail store count to double to ~1,600 by FY27
Currently at 810 stores; plan to add significantly in Q4 and next year to reach 1,500+ by FY27.
NEW RISK
NACL integration and debt burden
NACL carries high debt and interest costs; management was vague on timeline for debt reduction, raising execution risk.
NEW RISK
Capacity constraints before new plants
Until the Kakinada granulation plant comes online in FY27, volume growth may be limited by existing capacity, increasing reliance on trading.
RISK GONE
Subsidy under-recovery in Q4
Management noted that DAP margins are not adequate due to raw material cost increases; representation to government ongoing, but correction may not happen before April.
RISK GONE
Delays in securing export orders for bioproducts
Export volumes in bioproducts were impacted due to delays in order finalization, though expected to recover in Q4.
RISK GONE
Competition and pricing pressure in crop protection exports
Analyst raised concern about pricing-led competition in export markets; management acknowledged but highlighted diversification and formulation foray as mitigants.
🤫 Topics management stopped discussing
Mentioned in Q3 FY25, Q4 FY24
Analyst raised concern about pricing-led competition in export markets; management acknowledged but highlighted diversification and formulation foray as mitigants.
Mentioned in Q2 FY24, Q3 FY24
Board approved setting up a sulfuric acid plant at Karnataka fertilizer unit and a 200,000-ton phosphoric acid plant at Kakinada, with total capex of ~₹2,000 crore.
Mentioned in Q1 FY24, Q3 FY24
Elevated inventory, demand slowdown, and declining commodity prices globally continue to pressure the crop protection business, despite volume growth.
Mentioned in Q3 FY24, Q4 FY24
Plans to debottleneck granulated capacity at Kakinada and Vizag, adding 3.5 lakh tons.
Mentioned in Q1 FY24, Q3 FY24
Company's patented Nano DAP has received encouraging market response; Kakinada nano plant to be ramped up.
Fast read
Guidance and risk preview
Management confirmed the target of INR 5,000 per ton EBITDA for the fertilizer business remains intact for FY26.
Sulfur prices surged by $120/ton and phosphoric acid by $98/ton in Q4, which could compress margins if not passed through.
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