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Sustained high sulfur prices
View Risks →Coromandel International Limited — Q3 FY26
Coromandel International reported a challenging Q3 FY26 with consolidated revenue of ₹8,863 crore (+26% YoY) and PAT of ₹488 crore (-4% YoY).
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Coromandel International reported a challenging Q3 FY26 with consolidated revenue of ₹8,863 crore (+26% YoY) and PAT of ₹488 crore (-4% YoY). The fertilizer business faced headwinds from higher raw material prices (sulfur up to $550/ton), rupee depreciation, and delayed monsoon impacting consumption. However, the crop protection segment delivered a strong performance with revenue of ₹1,078 crore (+24% YoY) and EBIT margin expanding to 20% (+600bps YoY), driven by export demand for Mancozeb and new product launches. The company maintained its annualized EBITDA margin target of ₹5,000-5,500/ton for fertilizers, supported by price corrections and backward integration projects at Kakinada (commissioning this quarter). The nano DAP business grew 68% YoY, and retail added 84 new stores. Risks include sustained high sulfur prices and potential margin compression if subsidy rates do not adjust.
कोरोमंडल इंटरनेशनल ने तीसरी तिमाही में कुल कमाई ₹8,863 करोड़ रही, जो पिछले साल से 26% ज्यादा है। लेकिन मुनाफा ₹488 करोड़ रहा, जो 4% कम है। खाद व्यवसाय पर कच्चे माल की बढ़ती कीमतों (सल्फर $550/टन), रुपये की गिरावट और देर से आए मानसून का असर पड़ा। वहीं, फसल सुरक्षा खंड ने शानदार प्रदर्शन किया - कमाई ₹1,078 करोड़ (+24%) और मुनाफा मार्जिन 20% (+6%) रहा, जिसकी वजह मैन्कोज़ेब का निर्यात और नए उत्पाद हैं। कंपनी ने खाद पर सालाना मुनाफा मार्जिन ₹5,000-5,500/टन बनाए रखने का लक्ष्य रखा है। नैनो डीएपी बिक्री 68% बढ़ी और 84 नए रिटेल स्टोर खुले। जोखिम: सल्फर की ऊंची कीमतें और सब्सिडी न बढ़ने पर मार्जिन कम हो सकता है।
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Read Transcript →Quarter Snapshot
Crop Protection EBIT Margin
20%
+600bps YoY
EBIT margin improved from 14% to 20% in Q3, driven by export growth and product mix.
Fertilizer Sales Volume (Q3)
11.2 lakh tons
flat YoY
Primary sales moderated to align with consumption, especially in Andhra and Telangana.
Nano Product Sales (9M FY26)
4,000 kL
+68% YoY
Nano DAP market leader; evaluating global export opportunities.
Retail Store Count
2,113
+84 stores in Q3
Retail business grew 20% YoY; focus on e-commerce and drone spraying.
What Changed vs Last Quarter
NEW
Fertilizer EBITDA margin target of ₹5,000-5,500/ton annualized
Management reiterated the annualized EBITDA margin target of ₹5,000-5,500 per ton for the fertilizer business, despite near-term pressure from higher sulfur prices and currency depreciation.
NEW
Backward integration projects at Kakinada to commission this quarter
The sulfuric acid and phosphoric acid plants at Kakinada are progressing as per timelines and will be commissioned during Q4 FY26.
NEW
Granulation train expansion to commission in Q3 FY27
The granulation train expansion is on track and will be commissioned in the third quarter of FY27.
NEW
Crop protection domestic B2C growth target of 20-25% annually
Management aims to grow the domestic branded formulation business by 20-25% year-on-year, supported by new product launches and market expansion.
DROPPED
Kakinada phosphoric/sulfuric acid plant commissioning in January 2026
Mechanical completion expected in December 2025, trial runs in January, commercial production by mid-January. Plant will generate power for entire complex and reduce cost profile.
DROPPED
NPK capacity expansion to 1 million tons at Kakinada by Q3 FY27
Project progressing well; will support volume growth in northern and central India.
DROPPED
Domestic formulation business to grow 25% in FY26
Driven by new product launches, territory expansion, and co-marketing agreements. Targeting ₹1,000 crore revenue for formulation business.
DROPPED
Minimum EBITDA of ₹5,500/ton for fertilizers in H2
Management confident of sustaining this level despite raw material volatility.
NEW RISK
Sustained high sulfur prices
Sulfur prices have surged to $550/ton from $180-200, impacting input costs. Management expects moderation but uncertainty remains.
NEW RISK
Subsidy rate inadequacy
Current NBS rates may not fully compensate for higher raw material costs and rupee depreciation, pressuring fertilizer margins.
NEW RISK
NCL integration and margin recovery
NCL's margins remain muted due to lower capacity utilization at hedge facilities; full synergy benefits may take longer.
NEW RISK
Market share decline in fertilizers
Consumption-based market share moderated to 14% in Q3 from 15% last year due to lower offtake in southern states.
RISK GONE
Volatility in ammonia and sulfur prices
Spike in ammonia and sulfur during Q2 impacted production; management expects softening but uncertainty remains.
RISK GONE
Delayed defense drone order execution at DUXA
Prototype evaluation by government has taken longer than expected; management acknowledged delay but no clear timeline for first order.
RISK GONE
NACL integration and margin dilution
NACL's lower margin profile (9-11% vs Coromandel's 17-18%) and one-time exceptional items impacted consolidated crop protection margins.
RISK GONE
Unseasonal rains impacting kharif offtake
Excess rains in August-September affected crop input application and specialty product sales, though rabi outlook is positive.
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Management reiterated the annualized EBITDA margin target of ₹5,000-5,500 per ton for the fertilizer business, despite near-term pressure from high...
Sulfur prices have surged to $550/ton from $180-200, impacting input costs.
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