Coromandel International FY26 Annual Earnings Summary

Sulfur prices have surged to $550/ton from $180-200, impacting input costs. Management expects moderation but uncertainty remains.

Ammonia and sulfur prices surged ~$840/ton and ~$800/ton respectively, while NBS rates increased only 10%. Government may not provide timely additional subsidy, compressing H1 margins.

80%+ of ammonia and sulfur imports transit via the Strait of Hormuz; ongoing crisis threatens Q2 availability and keeps prices elevated.

Spike in ammonia and sulfur during Q2 impacted production; management expects softening but uncertainty remains.

Prototype evaluation by government has taken longer than expected; management acknowledged delay but no clear timeline for first order.

Current NBS rates may not fully compensate for higher raw material costs and rupee depreciation, pressuring fertilizer margins.

NCL's margins remain muted due to lower capacity utilization at hedge facilities; full synergy benefits may take longer.

₹71 crore impairment taken on Daksha investment due to order execution delays; management is personally driving recovery but no near-term revenue visibility.

NACL's lower margin profile (9-11% vs Coromandel's 17-18%) and one-time exceptional items impacted consolidated crop protection margins.

Excess rains in August-September affected crop input application and specialty product sales, though rabi outlook is positive.

Consumption-based market share moderated to 14% in Q3 from 15% last year due to lower offtake in southern states.

Despite 60% volume growth, adoption remains slow without policy intervention; farmers continue to prefer subsidized urea and DAP.