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Raw material price spike and availability crisis
View Risks →Coromandel International Limited — Q4 FY26
Coromandel reported record full-year revenue of INR 31,827 crore (+30% YoY) and EBITDA of INR 3,232 crore (+23% YoY), driven by strong performance in crop protection (standalone revenue +16% to INR 3,054 crore, EBITDA +53% to INR 516 crore) and record ferti...
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Coromandel reported record full-year revenue of INR 31,827 crore (+30% YoY) and EBITDA of INR 3,232 crore (+23% YoY), driven by strong performance in crop protection (standalone revenue +16% to INR 3,054 crore, EBITDA +53% to INR 516 crore) and record fertilizer sales of 4.3 million tons (+7% YoY). However, Q4 PAT fell to INR 115 crore (vs INR 578 crore last year) due to exceptional items (land sale gain last year vs impairment this year). The fertilizer margin compressed as raw material prices surged post Middle East crisis, with subsidy share in EBITDA dropping to 57% in Q4. Management flagged acute raw material availability and pricing challenges for Q2, but expects government support via additional subsidy. The newly commissioned phosphoric acid plant and Senegal mine expansion provide structural cost advantages. Risk: if government does not provide timely subsidy relief, fertilizer margins could remain under severe pressure in H1 FY27.
कोरोमंडल ने पूरे साल की 31,827 करोड़ रुपये की रिकॉर्ड कमाई की (+30% पिछले साल से ज्यादा) और 3,232 करोड़ रुपये का मुनाफा (EBITDA) कमाया (+23% पिछले साल से ज्यादा)। यह फसल सुरक्षा (कीटनाशक) कारोबार में मजबूत प्रदर्शन (अकेला कारोबार +16% से 3,054 करोड़ रुपये, मुनाफा +53% से 516 करोड़ रुपये) और 4.3 मिलियन टन रिकॉर्ड खाद बिक्री (+7%) की वजह से हुआ। लेकिन, चौथी तिमाही में शुद्ध मुनाफा (PAT) गिरकर 115 करोड़ रुपये रह गया (पिछले साल 578 करोड़ रुपये था), क्योंकि पिछले साल जमीन बेचने का फायदा हुआ था, जबकि इस साल कुछ नुकसान हुआ। मिडिल ईस्ट संकट के बाद कच्चे माल के दाम बढ़ने से खाद पर मुनाफा कम हुआ। कंपनी ने कहा कि अगली तिमाही में कच्चे माल की कमी और ऊंची कीमतें चुनौती होंगी, लेकिन सरकार से अतिरिक्त सब्सिडी की उम्मीद है। नए फॉस्फोरिक एसिड प्लांट और सेनेगल खदान से लागत कम होगी। खतरा: अगर सरकार ने समय पर सब्सिडी नहीं दी, तो खाद पर मुनाफा अगले साल की प
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Read Transcript →Quarter Snapshot
Fertilizer sales volume
4.3M tons
+7% YoY
Record sales of DAP and NPK, with market share of 17.5% in phosphatic sector.
Crop protection EBITDA
INR 516 crore
+53% YoY
Standalone crop protection business achieved record profitability with ~19% EBITDA margin.
Nano DAP bottles sold
42 lakh bottles
+60% YoY
Coromandel emerged as leader in Nano DAP segment with ~50% market share.
Phosphoric acid price (Q1 FY27)
INR 1,360/ton
+5.4% QoQ
Price fixed for Q1 FY27, reflecting higher input costs; previous quarter was INR 1,290.
What Changed vs Last Quarter
NEW
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.
NEW
Granulation capacity expansion commissioning by December 2026
Project to expand granulation capacity is on track for commissioning by December of this financial year.
NEW
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.
UPDATED
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.
DROPPED
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.
DROPPED
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.
DROPPED
Mancozeb capacity expansion of 30%
After a 20% debottlenecking, the company plans a further 30% capacity expansion at Sarigam to meet rising global demand.
NEW RISK
Raw material price spike and availability crisis
Ammonia 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.
NEW RISK
Inadequate government subsidy support
Current NBS rates do not cover sharp raw material cost increases; if additional subsidy is not provided, fertilizer margins will be severely compressed.
NEW RISK
Drones business impairment and execution risk
Impairment of INR 71 crore taken on Dhaksha investment due to long lead times in order execution; recovery depends on timely execution of pending orders.
NEW RISK
Q4 crop protection revenue growth muted at 2%
Standalone crop protection revenue grew only 2% in Q4 due to off-season and deliberate moderation of exports; management expects recovery in Q1.
RISK GONE
Sustained high sulfur prices
Sulfur prices surged from ~$200 to $550/ton, compressing fertilizer margins. Management expects a correction but uncertainty remains.
RISK GONE
Subsidy compensation lag
NBS rates have not fully compensated for raw material inflation and INR depreciation, pressuring margins. Government supplementary grants may be needed.
RISK GONE
NACL integration and hedge facility underperformance
NACL's hedge facility has low utilization, dragging margins. Management acknowledged the issue but provided no timeline for resolution.
RISK GONE
Market share decline in phosphatic fertilizers
Consumption-based market share fell from 15% to 14% in Q3 due to lower offtake in Andhra Pradesh and Telangana from crop damage.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q2 FY26, Q3 FY26, Q4 FY25
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.
Mentioned in Q1 FY26, Q3 FY26, Q4 FY25
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.
Mentioned in Q2 FY26, Q3 FY25, Q4 FY25
Spike in ammonia and sulfur prices during the quarter, though management expects softening. Sustained high prices could pressure margins despite NBS subsidy revision.
Mentioned in Q1 FY25, Q3 FY26
After a 20% debottlenecking, the company plans a further 30% capacity expansion at Sarigam to meet rising global demand.
Mentioned in Q3 FY26, Q4 FY25
NACL's hedge facility has low utilization, dragging margins. Management acknowledged the issue but provided no timeline for resolution.
Fast read
Guidance and risk preview
Driven by new product launches (6 new products), capacity expansion at Dahej and Sarigam, and aggressive domestic formulation growth.
Ammonia and sulfur prices surged to $840-850/ton and ~$800/ton respectively due to Middle East supply disruption; visibility only up to June, Q2 re...
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