Chambal Fertilisers reported robust operational performance for Q3 FY’26, driven by stable urea volumes and significant growth in the Crop Protection Chemicals (CPC) and Specialty Nutrients segments. Standalone revenue grew 20% to INR 5,898 crores, with PAT up 12% year-on-year at INR 565 crores. The company also provided updates on its Technical Ammonium Nitrate (TAN) project, which is nearing completion, and strong growth in its Biologicals portfolio.
Financial Highlights for Q3 FY’26 (Standalone)
Chambal Fertilisers reported strong standalone results for the third quarter of Financial Year 2026. Revenue from operations grew by 20% year-on-year, reaching INR 5,898 crores. EBITDA for the quarter stood at INR 821 crores (up 6%), despite an impact of INR 31 crores due to labor codes. Profit After Tax (PAT) increased by 12% year-on-year to INR 565 crores, resulting in PAT margins of 9.57%.
For the nine-month period ended December 31, 2025, standalone revenue increased by 27% to INR 18,009 crores. EBITDA rose 4% to INR 2,424 crores, with margins stabilizing at 13.46%, even after accounting for a INR 30 crores impact from labor codes in Q3.
Operational Performance by Segment
The company’s performance reflects continued progress across core and value-added businesses.
Urea Segment
The urea segment maintained stability. Quarterly revenues were around INR 3,708 crores, with sales volumes largely flat at 9.83 lakh metric tons compared to the previous year. EBIT margins remained stable at approximately 17.28%.
Complex Fertilizers (DAP, NPK, MOP)
This segment showed significant acceleration. Quarterly revenues jumped by 81% to approximately INR 1,850 crores, supported by sales volumes rising to 2.94 lakh metric tons. Year-to-date, complex fertilizer revenues sharply increased by 180% to INR 6,702 crores.
CPC, Specialty Nutrients, and Seed Segment
This value-added segment delivered robust growth. Quarterly revenues increased 33% year-on-year to about INR 340 crores, with healthy EBIT margins around 22.8%. The company introduced five new products across biopesticides, bio-fungicides, and insecticides in the third quarter. The Biologicals portfolio continues to perform strongly, with volumes up 31% and revenues up almost 58% over nine months.
Key Project and Business Updates
Management provided updates on strategic initiatives:
- Technical Ammonium Nitrate (TAN) Project: EPC work reached 92% completion as of Q3. The scheduled completion date remains April 30, 2026, with an incurred expenditure of INR 1,184 crores against a total cost of INR 1,645 crores.
- Strategic Research (TERI): An agreement was signed with TERI for advanced agricultural solutions. Products resulting from this research are expected to launch from FY ’27-28 onwards.
- IMACID Joint Venture: Capacity expansion for P2O5 is underway, aiming to increase production from 5 lakh to 7 lakh metric tons by December 2026.
- Plant Maintenance: A maintenance shutdown for the Gadepan-II plant is scheduled for February 20, 2026, expected to last 30-35 days.
Outlook and Market Dynamics
Mr. Abhay Baijal noted that the Rabi sowing season benefited from favorable rainfall. Regarding policy, the expectation for the upcoming NBS policy is largely a continuation of past frameworks, particularly concerning the controlled DAP segment. Management remains focused on both vertical and horizontal expansion plans, emphasizing that TAN remains a key focus area for future growth.
Source: BSE
