Coromandel International’s Q1 FY27 revenue from operations rose 16 per cent year on year to ₹81.65 billion (~$950 million), but EBITDA fell 3 per cent and PAT declined 24 per cent.
Margins narrowed as depreciation and finance costs increased, signalling weaker earnings conversion despite top-line growth.
Imported NPK+DAP sales fell sharply, while the CPC business delivered strong revenue and PBIT growth.
Fertiliser volumes: Imported NPK+DAP drives overall decline
The nutrient business remained under pressure from lower NPK and DAP volumes. Total primary sales of manufactured and imported NPK+DAP declined 8.6 per cent year on year to 1.01 million MT from 1.10 million MT.
The key weakness came from imported NPK+DAP, where sales fell sharply by 43.7 per cent to 0.12 million MT from 0.21 million MT. In contrast, manufactured NPK+DAP sales were relatively resilient at 0.89 million MT, declining only 0.5 per cent year on year. This indicates that the overall volume decline was primarily concentrated in the imported product segment.
Other fertiliser products delivered mixed results. SSP sales increased 18.6 per cent to 0.22 million MT, while MOP sales rose 9.5 per cent to 0.01 million MT. Urea sales declined 4 per cent to 0.26 million MT. The contrasting performance across product categories points to an uneven fertiliser market environment during the quarter.
Industry volume trends remain uneven
The wider fertiliser market also recorded divergent trends across key products. DAP production declined 5 per cent year on year, while imports fell 27 per cent and sales decreased 2 per cent. NPK production and imports declined more sharply by 28 per cent and 49 per cent, respectively, although sales increased 3 per cent.
Urea presented a different picture, with production increasing 5 per cent and imports surging 199 per cent, while sales declined marginally by 1 per cent. MOP imports increased 130 per cent, whereas sales declined 7 per cent.
These trends highlight significant shifts in fertiliser supply and import flows during Q1 FY27. For Coromandel, the sharp decline in imported NPK+DAP sales was particularly important, while manufactured NPK+DAP volumes remained broadly stable.
CPC segment emerges as the key growth driver
The crop protection chemicals (CPC) business provided a strong counterbalance to weakness in the nutrient segment. Standalone CPC revenue increased 20 per cent year on year to ₹8.70 billion (~$101 million) from ₹7.24 billion (~$84.2 million), while PBIT rose 44 per cent to ₹1.59 billion (~$18.5 million) from ₹1.11 billion (~$12.9 million). PBIT margin consequently improved to 18 per cent from 15 per cent.
The consolidated CPC business reported even stronger growth, with revenue rising 73 per cent to ₹12.51 billion (~$145 million) from ₹7.25 billion (~$84.3 million) and PBIT increasing 53 per cent to ₹1.70 billion (~$19.8 million) from ₹1.11 billion (~$12.9 million). The consolidated performance includes NACL Industries, which became a subsidiary of Coromandel effective August 8, 2025.
The strong CPC performance was therefore a major contributor to the company’s consolidated revenue growth and represents an increasingly important component of Coromandel’s business mix.
Market outlook: Volume recovery and CPC momentum in focus
Coromandel’s Q1 FY27 results point to two contrasting market signals. The fertiliser business faced lower NPK+DAP volumes, with imported products experiencing the sharpest decline. At the same time, the CPC segment recorded strong revenue and PBIT growth, providing support to the company’s overall top line.
For the coming quarters, the recovery of NPK+DAP volumes and the direction of imported fertiliser demand will remain important indicators for the nutrient business. Meanwhile, sustaining CPC growth and profitability will be critical for maintaining momentum in consolidated revenue.
Overall, Coromandel’s Q1 FY27 performance reflects strong top-line expansion but weaker earnings conversion. The 16 per cent growth in revenue was supported by robust CPC performance, while an 8.6 per cent decline in NPK+DAP sales and lower consolidated margins weighed on profitability. The company’s ability to improve nutrient volumes while sustaining CPC momentum will be key to strengthening its earnings profile through FY27.
ALCHEMPro News Desk (VK)
