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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Subsidy Business Share in EBITDA:62% for Q3, 67% for the nine-month period.
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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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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 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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Interim Dividend:INR9 per equity share.
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Release Date: February 02, 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 strong performance in its Crop Protection business, 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 backward integration projects for sulfuric acid and phosphoric acid are progressing well and are expected to be commissioned soon, which will enhance operational efficiencies.
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The company has become a market leader in Nano DAP, with a 68% growth over the last year, and is exploring global markets for this product.
Negative Points
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The rupee depreciation and higher raw material prices, such as sulfur and ammonia, have put pressure on margins for fertilizers.
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The late withdrawal of Southwest monsoons led to crop damage in certain regions, impacting agri input consumption and affecting the company's sales in those areas.
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The company's consumption-based market share in Q3 moderated to 14% from 15% last year, due to a slowdown in consumption in key states like Andhra Pradesh and Telangana.
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Despite a strong performance in the Crop Protection segment, the domestic industry faced challenges due to lower acreage of key crops and reduced pest infestation.
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NACL Industries, a subsidiary, had a tough quarter with lower margins due to adverse market conditions, although improvements are underway.
Q & A Highlights
Q: Can you provide details on the volume growth in the Crop Protection business, given the 21% sales increase over the last nine months? A: 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, although domestic growth was impacted by unseasonal rains. - S. Sankarasubramanian, CEO
Q: How will the India-EU FTA and the appreciation of the Chinese currency impact your Crop Protection exports to Europe? A: Currently, we export mainly bioproducts to Europe. The FTA could improve competitiveness by eliminating duties, benefiting our Bio segment. We also expect cost benefits from importing intermediates from Europe. - S. Sankarasubramanian, CEO
Q: With current raw material prices, does the fertilizer industry need price hikes to maintain margins? A: On an annualized basis, we aim to maintain an EBITDA of INR 5,500 per tonne. While quarterly margins may dip due to higher sulfur prices and currency depreciation, annual targets remain achievable through inventory management and product mix adjustments. - S. Sankarasubramanian, CEO
Q: What is the expected utilization for the new backward integration plant? A: We plan to operate the plant at 100% capacity from day one, ensuring full utilization to maximize efficiency and output. - S. Sankarasubramanian, CEO
Q: How do you view the growth and margin outlook for the Crop Protection business, including NACL? A: Coromandel's Crop Protection business is performing well with contributions around 20%. NACL is improving, with EBITDA moving to 9-10%. We expect further growth through product mix improvements and capacity utilization. - S. Sankarasubramanian, CEO
Q: What are the current dynamics and unit economics of the backward integration project considering sulfur price increases? A: The value addition has reduced due to sulfur price hikes, but stable rock prices and rising phosphoric acid prices help cushion the impact. We expect sulfur prices to moderate, improving economics. - S. Sankarasubramanian, CEO
Q: Can you explain the rationale behind expanding Mancozeb capacity further? A: Increased demand in Latin America and the molecule's wide-spectrum efficacy drive our expansion. We aim to secure long-term volumes and explore B2C opportunities in Latin America. - S. Sankarasubramanian, CEO
Q: How does the Senegal mining project contribute to Coromandel's operations? A: The project ensures raw material availability, enhances negotiation power, and is value accretive. We plan to increase production to 500,000 tonnes, supporting our Kakinada capacity. - S. Sankarasubramanian, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
