Chambal Fertilisers & Chemicals Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Chambal Fertilisers & Chemicals Ltd filed with BSE on 06 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Chambal Fertilisers reported standalone revenue of INR 5,000 crore for Q1 FY27, down about 12% year-on-year, while EBITDA rose 12% to INR 851 crore and PAT grew 10% to INR 703 crore. Management attributed the revenue decline to a delayed monsoon, subdued Kharif sowing, and a bunched shutdown at Gadepan-1 and Gadepan-2, while margin improvement was linked to Gadepan-3 production, currency movements, and ammonia sales. The company also discussed progress on its Technical Ammonium Nitrate project, the IMACID joint venture's temporary shutdown due to Sulphur shortages, and preparatory work for a potential fourth urea plant under the National Investment Policy for Urea 2026.
Numbers mentioned
Revenue from operations: INR 5,000 crores (Q1 FY27)
p. 5
“revenue from operations stood at INR 5,000 crores as compared to INR 5,700 crores, lower by about 12%”
Abhay Baijal, page 5 of the filed PDF · View the filing
EBITDA: INR 851 crores (Q1 FY27)
p. 5
“EBITDA, however, rose 12% to INR 851 crores, with margins expanding to 17%, roughly from 13%, an improvement of about 350 basis points”
Abhay Baijal, page 5 of the filed PDF · View the filing
Profit after tax: INR 703 crores (Q1 FY27)
p. 5
“Profit after tax grew 10% to INR 703 crores, with PAT margins at around 14%, as compared to 11% last quarter”
Abhay Baijal, page 5 of the filed PDF · View the filing
Subsidy received: INR 2,480 crores (Q1 FY27)
p. 5
“we received a subsidy of around INR 2,480 crores during the quarter, as against INR 2,512 crores last year”
Abhay Baijal, page 5 of the filed PDF · View the filing
Total receivables: INR 3,300 crores (As of 30th June 2026)
p. 5
“As of 30th June, total receivables stood at INR 3,300 crores, comprising of market debtors of INR 841 crores and subsidy receivables of INR 2,460 crores”
Abhay Baijal, page 5 of the filed PDF · View the filing
Urea segment revenue: INR 2,860 crores (Q1 FY27)
p. 5
“we did deliver INR 2,860 crores, against INR 3,109 crores, lower by 8% due to lower production and sales”
Abhay Baijal, page 5 of the filed PDF · View the filing
Complex fertilizer segment revenue: INR 1,737 crores (Q1 FY27)
p. 5
“revenues stood at INR 1,737 crores, against INR 2,131 crores, lower by 18%, reflecting a measured approach to placement in a season where sowing was delayed”
Abhay Baijal, page 5 of the filed PDF · View the filing
Complex fertilizer segment EBIT: INR 239 crores (Q1 FY27)
p. 5
“Segment EBIT rose 67% to around INR 239 crores”
Abhay Baijal, page 5 of the filed PDF · View the filing
Crop protection, speciality nutrients and seed segment revenue: INR 430 crores (Q1 FY27)
p. 5
“recorded revenues of about INR 430 crores, as against INR 458 crores, lower by 6%, reflecting deferred farmer purchases”
Abhay Baijal, page 5 of the filed PDF · View the filing
Crop protection, speciality nutrients and seed segment EBIT: INR 108 crores (Q1 FY27)
p. 5
“Segment EBIT, however, grew 13% to INR 108 crores, with margins improving to about 25%”
Abhay Baijal, page 5 of the filed PDF · View the filing
Summer crop sowing: 183 lakh hectares (As of end of June 2026)
p. 3
“As of the end of June, summer crop sowing stood at around 183 lakh hectares, approximately 23% lower year-on-year”
Abhay Baijal, page 3 of the filed PDF · View the filing
Net borrowing: INR 200 crores (Q1 FY27)
p. 10
“We had net borrowing of about INR 200 crores.”
Anuj Jain, page 10 of the filed PDF · View the filing
Gas price: USD 17.25 (Q1 FY27)
p. 10
“it is on NCV basis, it is USD 17.25 for the quarter”
Anuj Jain, page 10 of the filed PDF · View the filing
G1 sales volume: 96,000 tons (Q1 FY27)
p. 7
“G1 is about 96,000 tons. G2 is 1.85 lakh tons. And G3 is 3.29 lakh tons.”
Anuj Jain, page 7 of the filed PDF · View the filing
NPK volumes tied up with vendors: 8.5 lakh tons (FY27)
p. 7
“8.5 lakh tons is already tied up.”
Abhay Baijal, page 7 of the filed PDF · View the filing
July urea farmer sales: 3,80,000 tons (July 2026)
p. 11
“This month itself, we have had almost 3,80,000 tons of farmer sales of urea and almost 92,000-93,000 tons of NPK sales in this month alone”
Abhay Baijal, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Fourth urea plant investment decision
stated conditionally by Abhay Baijal
p. 4
“any investment decision, however, will remain subject to the approval by our Board”
Abhay Baijal, page 4 of the filed PDF · View the filing
Financial bids for new urea plant — middle October
stated conditionally by Abhay Baijal
p. 6
“The financial bids after equalization of the technical requirements should be available to us by may be middle October or so”
Abhay Baijal, page 6 of the filed PDF · View the filing
New urea plant commissioning — within 2030
stated conditionally by Abhay Baijal
p. 9
“we should be able to deliver it within 2030”
Abhay Baijal, page 9 of the filed PDF · View the filing
Complex fertilizer margins
stated firmly by Abhay Baijal
p. 7
“It will decline because as the averaging of the prices happen, as we can continue to do that, we will do that. But we will still maintain a certain number.”
Abhay Baijal, page 7 of the filed PDF · View the filing
IMACID performance
stated conditionally by Abhay Baijal
p. 5
“we expect performance to improve hereafter as market conditions continue to normalize”
Abhay Baijal, page 5 of the filed PDF · View the filing
TAN/HDAN marketing mix completion — end of December
stated firmly by Abhay Baijal
p. 18
“all the marketing mix elements as well as product elements. So that gives me the confidence that we would be able to generate the necessary numbers and the volumes.”
Abhay Baijal, page 18 of the filed PDF · View the filing
IMACID Phos acid capacity expansion — 700,000 tons · April to June 27
stated firmly by Abhay Baijal
p. 17
“They are already expanding their Phos acid capacity from 500,000 tons to 700,000 tons, which will be operational I think by the middle of next year, April to June 27 or so”
Abhay Baijal, page 17 of the filed PDF · View the filing
Dividend policy — 25%
stated firmly by Abhay Baijal
p. 18
“We have declared that there will be a 25% or so that we will pay for that.”
Abhay Baijal, page 18 of the filed PDF · View the filing
Q2 fertilizer demand — Q2 FY27
stated as an aspiration by Abhay Baijal
p. 11
“we feel that Q2 will also progress well and the liquidation from the channel is also happening, which will create the second round of demand”
Abhay Baijal, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it is a mixture of both formal processes and Board approval requirements.
Answered by Abhay Baijal
Asked by Prashant: Do you need to seek fresh approval for the new urea plant or is the earlier application still valid?
p. 6
“I think it is a slight mixture of both. We will have to formally approach, as you know, that there is a process of getting bank guarantees and so on.”
Abhay Baijal, page 6 of the filed PDF · View the filing
Management explained the sales are not yet booked in the P&L as the project has not been formally commissioned.
Answered by Abhay Baijal
Asked by Prashant: How much WNA and ANS revenue and volume has been booked in Q1?
p. 6
“whatever sales we have made are not a part of the profit and loss account. Rather, it goes towards adjustment or decapitalization in this case”
Abhay Baijal, page 6 of the filed PDF · View the filing
Management confirmed advance purchases of NPK fertilizers helped create revenues and margins this quarter.
Answered by Abhay Baijal
Asked by Shivam Gupta: Were the better complex fertilizer margins due to earlier inventory purchases?
p. 7
“we did have an advance purchase. This was revealed in the last call, previous quarter, and that helped us to place, create the revenues necessary and also the margins.”
Abhay Baijal, page 7 of the filed PDF · View the filing
Management acknowledged the new policy is dilutive but cited scale benefits of having four plants at one site.
Answered by Abhay Baijal
Asked by Viraj Kacharia: Is the ROE profile of the new NUP-2026 policy dilutive compared to NUP-2012?
p. 8
“Yes, I think you have made a very pertinent point that it is, yes, it is dilutive from the last policy. Definitely it is.”
Abhay Baijal, page 8 of the filed PDF · View the filing
Management estimated around INR 12,000 per ton based on current dollar conversion assumptions.
Answered by Abhay Baijal
Asked by Viraj Kacharia: What EBITDA per ton spread is expected for the new plant?
p. 9
“I would say we will be still around INR 12,000 a ton.”
Abhay Baijal, page 9 of the filed PDF · View the filing
Management cited Gadepan-3's dominance, currency uptick, and ammonia sales as the three contributing factors.
Answered by Abhay Baijal
Asked by Dhruv Muchhal: What drove the improvement in urea profitability despite lower volumes?
p. 11
“So, these three factors have contributed to better margins.”
Abhay Baijal, page 11 of the filed PDF · View the filing
Management pointed to low Sulphur availability, lower phosphatic production, and logistical disruptions from Saudi Arabia.
Answered by Abhay Baijal
Asked by Dhruv Muchhal: What is causing the delay in NPK subsidy revision?
p. 12
“there has been a low ebb in production, because especially in Sulphur, availability has been an issue for most of the phosphoric acid manufacturing.”
Abhay Baijal, page 12 of the filed PDF · View the filing
Management said the market may be briefly long but expects it to remain short of demand going forward, and called Reliance's entry speculative for now.
Answered by Abhay Baijal
Asked by Mayuresh: Is there a risk of oversupply in the TAN market given upcoming domestic capacities and potential Reliance entry?
p. 14
“my own assessment is that we will be short or slightly long in the market, maybe for not more than a year or so, and which we will have to manage in the situation.”
Abhay Baijal, page 14 of the filed PDF · View the filing
Management said dividend levels will be maintained and a buyback is not currently on the horizon.
Answered by Abhay Baijal
Asked by Karan Gupta: What is the capital allocation approach regarding dividends and buybacks given the upcoming capex?
p. 18
“I don't think a buyback is on the horizon.”
Abhay Baijal, page 18 of the filed PDF · View the filing
Management explained that outside-battery-limit costs like storage and infrastructure make Indian projects costlier than an overseas JV.
Answered by Abhay Baijal
Asked by Darshita: Why is setting up a granulation plant in India costlier than abroad?
p. 19
“it was coming out to be more costly doing that than a JV outside.”
Abhay Baijal, page 19 of the filed PDF · View the filing
Management noted the government suspended the e-token system after an agitation in Madhya Pradesh.
Answered by Abhay Baijal
Asked by Darshita: What is the status of the e-token system restricting urea and DAP purchases?
p. 19
“there was an agitation 2-3 days back in Madhya Pradesh and the Government has suspended the e-token system.”
Abhay Baijal, page 19 of the filed PDF · View the filing
Risks flagged
Geopolitical disruption in West Asia raising raw material and freight costs
p. 3
“The geopolitical developments in West Asia continued to disrupt global fertilizer and energy supply chains during the early part of the quarter, resulting in sharp increases in the prices of key raw materials such as ammonia, Sulphur, and phosphatic intermediates, along with higher freight costs and procurement challenges.”
Abhay Baijal, page 3 of the filed PDF · View the filing
Delayed and uneven monsoon affecting sowing and fertilizer offtake
p. 3
“The Indian agricultural season began on a relatively subdued note, with emerging El Nino conditions contributing to an uneven onset of the southwest monsoon and below-normal rainfall across several regions during June.”
Abhay Baijal, page 3 of the filed PDF · View the filing
Nutrient-based subsidy rates not reflecting global price escalation
p. 3
“While the nutrient-based subsidy rates for Kharif were revised upwards by around 10%, these were announced prior to the sharp increase in global prices following the geopolitical developments in West Asia and therefore do not fully reflect the subsequent cost escalations.”
Abhay Baijal, page 3 of the filed PDF · View the filing
IMACID production shutdown due to Sulphur shortages and elevated prices
p. 5
“Our joint venture, IMACID, was impacted during the quarter due to Sulphur shortages and elevated Sulphur prices, which resulted in temporary production shutdown to avoid operating at negative margins.”
Abhay Baijal, page 5 of the filed PDF · View the filing
Delay in NPK subsidy risking demand destruction
p. 12
“Otherwise, there will be demand destruction via much higher prices with the farmers.”
Abhay Baijal, page 12 of the filed PDF · View the filing
Low phosphatic fertilizer production due to Sulphur availability issues
p. 12
“there has been a low ebb in production, because especially in Sulphur, availability has been an issue for most of the phosphoric acid manufacturing.”
Abhay Baijal, page 12 of the filed PDF · View the filing
Logistical disruption from Saudi Arabia affecting fertilizer imports
p. 12
“Thirdly has been the logistical disruption from Saudi Arabia and so on, in terms of the import of materials, especially finished fertilizers like DAP and so on.”
Abhay Baijal, page 12 of the filed PDF · View the filing
Potential large-scale entry of Reliance Industries into TAN business
p. 14
“you rightly mentioned that Reliance is coming in, which means that they are going to bring a very large capacity, should they plan to enter.”
Abhay Baijal, page 14 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.