This article first appeared on GuruFocus .
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Total Income:INR8,863 crore for Q3, INR25,759 crore for the nine months ended December, 26% growth for the quarter, 33% growth for the nine-month period.
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EBITDA:INR805 crore for Q3, INR2,738 crore for the nine-month period.
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Net Profit After Tax:INR488 crore for Q3, INR1,784 crore for the nine-month period.
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Fertilizer Production:Highest ever quarterly production of 9.9 lakh tonnes, 18% increase over last year.
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Crop Protection Revenue:INR783 crore for Q3, 24% growth.
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Crop Protection EBIT:INR158 crore for Q3, 74% growth, margin increased from 14% to 30%.
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Retail Growth:20% year-on-year growth, 84 new stores added in Q3, total store count at 1,113.
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Subsidy Collection:INR2,571 crore for Q3, INR7,208 crore for the nine-month period.
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Subsidy Outstanding:INR3,785 crore as of December.
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Interim Dividend:INR9 per equity share.
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Release Date: January 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Coromandel International Ltd ( BOM:506395 ) achieved its highest ever quarterly fertilizer production of 9.9 lakh tonnes, an 18% increase over the previous year.
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The company reported a 26% growth in total income for the quarter, reaching INR8,863 crore, and a 33% growth for the nine-month period.
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Crop Protection business showed strong performance with a 24% revenue growth and a 74% increase in EBIT, resulting in a margin improvement from 14% to 30%.
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The Specialty Nutrient business achieved record Q3 volumes, driven by improved performance in micronutrients and organic categories.
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Coromandel's mining project in Senegal has stabilized operations and is on track to achieve an annual volume of 3.5 lakh tonnes of rock production, enhancing supply security.
Negative Points
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The rupee depreciated by approximately 7% year-to-date, driven by a widening trade deficit and higher capital outflow, impacting margins.
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Extended monsoon rains affected fertilizer consumption, leading to a 7% decrease in overall consumption during the quarter.
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The company's consumption-based market share in Q3 moderated to 14% from 15% last year, due to reduced consumption in Andhra Pradesh and Telangana.
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Higher raw material prices, particularly for sulphur and ammonia, along with currency depreciation, put pressure on fertilizer margins.
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NACL Industries, a subsidiary, faced challenges with lower capacity utilization at its Dahej facility, impacting margins despite improvements in other areas.
Q & A Highlights
Q: Can you provide insights into the volume growth for the Crop Protection business, given the 21% sales increase over the last nine months? A: S. Sankarasubramanian, CEO, explained that export sales grew by 30%, domestic B2B by 36%, and domestic B2C by 5%. The volume growth aligns with the sales increase, driven by higher exports and new product launches in the domestic market.
Q: How will the recent India-EU FTA and the appreciation of the Chinese currency impact your Crop Protection exports to Europe? A: The CEO noted that while current exports to Europe are primarily bioproducts, the FTA could enhance competitiveness by eliminating duties. This opens opportunities for bioproducts due to stringent European regulations, and could also reduce costs for imported raw materials.
Q: With current raw material prices, does the fertilizer industry need price hikes to maintain normalized margins? A: The CEO stated that while quarterly margins may fluctuate due to higher sulfur prices and currency depreciation, the annualized EBITDA target of INR 5,500 per tonne remains achievable through inventory management and product mix adjustments.
Q: What is the expected utilization rate for the new backward integration plant? A: The CEO confirmed that the plant will operate at 100% capacity from day one, consistent with their operational strategy for new projects.
Q: Can you elaborate on the growth and margin outlook for the Crop Protection business, including the impact of the NACL acquisition? A: The CEO mentioned that while Coromandel's Crop Protection business is performing well with contributions around 20%, NACL is improving post-acquisition with increased capacity utilization and cost reductions. The focus is on product mix improvement and new product introductions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
