Coromandel International Q2 FY26 Earnings Call Transcript

Coromandel International held its Q2 FY26 earnings conference call on October 31, 2025. Key highlights included discussion of the monsoon’s impact, government policies, and company performance. The company reported strong performance across business segments, with fertilizer plants operating above capacity. Management discussed capacity expansion plans, market strategies, and their outlook for the Rabi season. They also answered questions about market share, pricing, and future investments. Consolidated total income grew by 30% for the quarter.

Business Environment

India experienced above-normal monsoon, impacting standing crops and crop input applications. The Northeast monsoon is expected to be above normal. Reservoir levels are healthy, promising a bountiful Rabi season. The government announced MSP revisions and launched a self-reliance mission for pulses with an outlay of INR 11,000 crores. GST rates were reduced for several agri-input products.

Industry Performance

Raw material prices remained steady except for spikes in Ammonia and Sulfur. The industry ensured DAP availability through imports. Unseasonal rains dampened consumption, but overall it remained healthy at 121 lakh tons for H1. Crop protection sector inventory normalized, with improved volume offtake.

Company Performance Highlights

Coromandel reported resilient performance across all business segments. Fertilizer plants operated above capacity, producing 9.1 lakh tons of NPK, up by 3%. Phosphoric acid facility reported enhanced production, up by 13%. A backward integration project for Sulfuric acid and Phosphoric acid is progressing in Kakinada, with commissioning expected in January. NPK capacity enhancement at Kakinada is underway for a million-ton capacity.

Marketing and Retail

Coromandel became the largest phosphatic fertilizer marketer, with a market share of 19% in H1. NPK unique grade share stood at 36%. SSP volumes remained close to last year, with a focus on value-added products. Nano volume was 1,100 KL during the quarter. The company expanded its retail footprint, opening 170 stores in H1 and is on track to reach 1,200 stores in FY26.

Crop Protection and Bio Business

The crop protection business delivered strong performance with revenue up 10% to INR 829 crores and EBIT up 48% to INR 162 crores. Mancozeb volumes grew well in Latin America. NACL Industries acquisition was completed, with revenue growing by 18% to INR 900 crores in H1.

Financial Performance

Consolidated total income was INR 9,771 crores for the quarter and INR 16,897 crores for H1, up by 30% and 38% respectively. Consolidated EBITDA for the quarter was INR 1,147 crores. Net profit after tax for the quarter was INR 793 crores and subsidy received in Q2 was INR 3,336 crores.

Source: BSE

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