Coromandel International Limited has released the transcript of its Q1 FY27 earnings conference call, held on July 24, 2026. The discussion covered the company’s performance amidst a challenging business environment, including monsoon impact, raw material price volatility, and government policies. Management provided insights into the fertilizer, specialty nutrients, and crop protection businesses, as well as strategic initiatives and future outlook.
Coromandel International: Q1 FY27 Earnings Conference Call Transcript
Coromandel International Limited has made available the transcript from its Q1 FY27 Earnings Conference Call, which took place on July 24, 2026. The call provided a comprehensive overview of the company’s operational and financial performance during the quarter, alongside discussions on the prevailing industry dynamics and strategic priorities.
Key Business Environment Insights
Mr. S. Sankarasubramanian, Managing Director and CEO, highlighted the challenging operating environment during the quarter. India experienced a 23% deficit in rainfall, which moderated fertilizer offtake. While June was dry, a recovery was observed in July, reducing the deficit to 17%. Reservoir levels were significantly lower compared to the previous year, impacting farmer sentiment. However, crop acreages for paddy showed recovery, and sowing momentum picked up. The government’s active policy announcements, including the national investment policy for urea and the coal and lignite gasification scheme, were noted as positive developments.
Financial Performance Overview
Mr. Deepak Natarajan, CFO, reported a consolidated total income of INR8,215 crores for Q1 FY27, a 15% increase year-on-year, driven by higher fertilizer realization and growth in non-subsidy businesses. Consolidated EBITDA stood at INR761 crores, a 3% decrease, attributed to higher input costs. Net profit was INR382 crores compared to INR502 crores in the previous year. The company received INR1,392 crores in subsidy claims during the quarter, with outstanding subsidy claims of INR3,254 crores as of June 30, 2026.
Segmental Performance and Strategic Initiatives
The fertilizer business saw moderated production to optimize inventory amid volatile raw material markets. Despite pressures from elevated input costs like ammonia and sulphur, the company commissioned its sulphuric acid and phos acid plants. Sales volumes moderated by 9% to 10 lakh tons, but the primary market share increased to 22%. The Specialty Nutrients and Organic business delivered strong performance, with a focus on soil health and stress resistance products. The Crop Protection business recorded a record performance, with revenue growing by 20% to INR870 crores and EBIT increasing by 44% to INR159 crores, driven by export and B2B sales.
Future Outlook and Capex
Coromandel is focused on generating cash from recent investments and is prioritizing efficiency. The company is exploring opportunities for future growth, including potential expansion in fertilizer capacity, specialty nutrients, and the MAP plant. Investment in Crop Protection will focus on marketing and brand building rather than asset creation. The company is also expanding its retail network. Normal sustainable capex is estimated at INR300 crores annually, with flexibility for attractive return projects.
Other Key Highlights
- The bioproducts business delivered steady performance, with new product development in biostimulants and microbial categories.
- The retail business showed outstanding growth, with revenue increasing by 85% year-on-year, expanding its store network to over 1,200 outlets.
- The Nano business experienced stable performance with sales volume growth of 2% year-on-year.
- Coromandel is enhancing its presence in Latin American markets and is focused on strengthening its product portfolio and launching new products.
- The company has achieved a sustainability milestone with the receipt of Responsible Care Certification.
Source: BSE
