Coromandel International Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Coromandel International Ltd filed with BSE on 31 Jul 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
Coromandel reported consolidated total income of Rs 8,215 crores for Q1 FY27, up 15% year-on-year, while EBITDA declined 3% to Rs 761 crores due to higher input costs from the West Asia crisis. Management described fertilizer production being deliberately moderated amid elevated sulphur and phosphoric acid prices, while the crop protection, specialty nutrients, and retail businesses posted strong growth. The company also discussed government policy developments including a national urea investment policy and a pilot QR-code based fertilizer traceability framework.
Numbers mentioned
Consolidated total income: INR8,215 crores (Q1 FY27)
p. 8
“During the quarter, company recorded a consolidated total income of INR8,215 crores as against INR7,126 crores in Q1 of last year, registering a growth of 15%.”
Deepak Natarajan, page 8 of the filed PDF · View the filing
Consolidated EBITDA: INR761 crores (Q1 FY27)
p. 8
“As far as profitability is concerned, consolidated EBITDA for the quarter was INR761 crores against INR782 crores last year, registering a degrowth of 3%.”
Deepak Natarajan, page 8 of the filed PDF · View the filing
Net profit: INR382 crores (Q1 FY27)
p. 8
“Net profit for the quarter was INR382 crores in comparison to INR502 crores last year.”
Deepak Natarajan, page 8 of the filed PDF · View the filing
Subsidy claims received: INR1,392 crores (Q1 FY27)
p. 8
“With regard to subsidy, during the quarter, the company received INR1,392 crores towards the subsidy claims compared to INR1,300 crores last year in Q1.”
Deepak Natarajan, page 8 of the filed PDF · View the filing
Subsidy outstanding: INR3,254 crores (as on 30th June)
p. 8
“Subsidy outstanding as on 30th June was about INR3,254 crores.”
Deepak Natarajan, page 8 of the filed PDF · View the filing
Additional subsidy received in July: INR568 crores (July 2026)
p. 8
“We have received additional subsidy of INR568 crores in the month of July.”
Deepak Natarajan, page 8 of the filed PDF · View the filing
Crop Protection revenue: INR870 crores (Q1 FY27)
p. 6
“Revenue grew by 20% year-on-year to INR870 crores, while EBIT increased 44% to INR159 crores, reflecting improved product mix, traction for its key molecules and the ability to pass on higher raw material costs in the export market.”
S. Sankarasubramanian, page 6 of the filed PDF · View the filing
NACL EBITDA: INR41 crores (Q1 FY27)
p. 6
“Our subsidiary, NACL Industries improved its performance and EBITDA has moved up by 9% to INR41 crores with margin improving to 11% from 8%.”
S. Sankarasubramanian, page 6 of the filed PDF · View the filing
NACL revenue: INR383 crores (Q1 FY27)
p. 6
“Lower export volumes and price pressure impacted export revenues and overall revenues were moderate at INR 383 crores.”
S. Sankarasubramanian, page 6 of the filed PDF · View the filing
Retail business revenue growth: 85% year-on-year (Q1 FY27)
p. 7
“Revenue of retail business increased by 85% year-on-year, reflecting improved scale, operating leverage and profitability across the network.”
S. Sankarasubramanian, page 7 of the filed PDF · View the filing
Fertilizer production: 6.9 lakh tons (Q1 FY27)
p. 5
“We have taken a conscious call to moderate production to 6.9 lakh tons compared to 8.4 lakh tons, roughly representing 72% of capacity utilization as the business prioritized inventory optimization amid volatile raw material markets.”
S. Sankarasubramanian, page 5 of the filed PDF · View the filing
Primary market share: 22% (Q1 FY27)
p. 5
“Despite this, the company has strengthened its market position, increasing the primary market share to 22% compared to 18% in the last year.”
S. Sankarasubramanian, page 5 of the filed PDF · View the filing
Point of sales volume growth: 13% to 7.9 lakh tons (Q1 FY27)
p. 5
“The point of sales increased by 13% to 7.9 lakh tons, resulting in market share improving to 16%.”
S. Sankarasubramanian, page 5 of the filed PDF · View the filing
Phosphoric acid price for Q2: $1,700 (Q2 FY27)
p. 5
“As you are aware, phosphoric acid prices for Q2 has been settled at $1,700 as compared to $1,360 prevailed in Q1, reflecting a sharp increase in line with the increase in international price of DAP and other raw material inputs.”
S. Sankarasubramanian, page 5 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.
Granulation project commissioning — Q4 of this year
stated firmly by S. Sankarasubramanian
p. 5
“Happy to note that granulation project is progressing well - as planned, we are on track for commissioning this in Q4 of this year.”
S. Sankarasubramanian, page 5 of the filed PDF · View the filing
Crop Protection capacity expansion of key molecules — September
stated firmly by S. Sankarasubramanian
p. 6
“Capacity expansion of key molecules is on track and is expected to be commissioned by September, strengthening our ability to support future growth.”
S. Sankarasubramanian, page 6 of the filed PDF · View the filing
Sustainable capex — INR300 crores
stated as an aspiration by S. Sankarasubramanian
p. 13
“So I would put a normal sustainable capex of INR300 crores would be the number we'll look at.”
S. Sankarasubramanian, page 13 of the filed PDF · View the filing
NPK EBITDA per metric ton — INR6,500 per metric ton · next 2, 3 years
stated conditionally by S. Sankarasubramanian
p. 19
“Yes, I did talk about this some time back. Our average EBITDA, which used to be INR5,000 need to go up to INR6,500 per metric ton.”
S. Sankarasubramanian, page 19 of the filed PDF · View the filing
NACL EBITDA margin — 10%-11% · 2-3 years
stated conditionally by S. Sankarasubramanian
p. 11
“if you remember in the time of acquisition also, we talked about EBITDA, which has fallen to 3% - 4% in first stage will move to 7%- 8%, and then we'll move it to 10%-11%.”
S. Sankarasubramanian, page 11 of the filed PDF · View the filing
Nutrient volume visibility — 8 million to 9 million tons · next 2 years
stated firmly by S. Sankarasubramanian
p. 11
“We have high visibility of 8 million to 9 million tons of nutrients.”
S. Sankarasubramanian, page 11 of the filed PDF · View the filing
Fertilizer capacity — 4 million tons of fertilizers and 1 million tons of trading
stated firmly by S. Sankarasubramanian
p. 11
“Our game plan as of now, post commissioning of this new plant, will be going up to 4 million tons of fertilizers and 1 million tons of trading, predominantly DAP.”
S. Sankarasubramanian, page 11 of the filed PDF · View the filing
Specialty Nutrient business top line growth — 25%-30%
stated as an aspiration by S. Sankarasubramanian
p. 20
“all we can say is we have been continuously growing the top line of Specialty Nutrient business by 25%-30% with EBITDA margin of 20% .”
S. Sankarasubramanian, page 20 of the filed PDF · View the filing
Agri-drone fleet expansion — 500 drones · during the year
stated firmly by S. Sankarasubramanian
p. 20
“In fact, Coromandel itself has purchased close to 100 - 150 drones this quarter, and we are trying to expand the fleet to 500 drones during the year.”
S. Sankarasubramanian, page 20 of the filed PDF · View the filing
New capacity investment in fertilizer — next 2 years
stated firmly by S. Sankarasubramanian
p. 11
“So we may not add any capacity immediately in fertilizer.”
S. Sankarasubramanian, 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 there is no shortage, and the slowdown in purchases relates more to monsoon delays than availability.
Answered by S. Sankarasubramanian
Asked by Ankur Periwal: Whether there is a structural shift toward higher NPK demand or a shortage of fertilizers on the ground.
p. 9
“Ankur, there is no shortage per se. Sufficient stock of Urea and DAP is available in the market.”
S. Sankarasubramanian, page 9 of the filed PDF · View the filing
Management said price increases have reached their maximum without subsidy correction, and they are hopeful of government support.
Answered by S. Sankarasubramanian
Asked by Ankur Periwal: Whether the Kharif demand-supply situation is comfortable given no further subsidy revision.
p. 9
“The industry has taken some price change. At this point of time, this is the maximum the industry can do. Beyond this, this has to come through subsidy.”
S. Sankarasubramanian, page 9 of the filed PDF · View the filing
Management said the current level is close to the best achievable without new products, though efficiency gains of 1-2% more margin are possible.
Answered by S. Sankarasubramanian
Asked by Somaiah: Whether NACL margin improvement is sustainable or has further scope to improve.
p. 11
“Unless we introduce new products, which again will take 2-3 years time, sustaining this margin at this level is the best we can do for NACL.”
S. Sankarasubramanian, page 11 of the filed PDF · View the filing
Management said sulphur prices are holding higher than expected due to structural demand shifts but believes the levels are not sustainable long-term.
Answered by S. Sankarasubramanian
Asked by Somaiah: Outlook on sulphur prices given expectations they would soften.
p. 12
“Sulphur is actually against our initial expectation - sulphur is holding high. I think sulphur is likely to remain high for some time, but it's not sustainable.”
S. Sankarasubramanian, page 12 of the filed PDF · View the filing
Management indicated a normal sustainable capex level while leaving room for opportunistic investment.
Answered by S. Sankarasubramanian
Asked by Vivek: Whether the company has a capex target for the next 1-2 years.
p. 13
“So I would put a normal sustainable capex of INR300 crores would be the number we'll look at.”
S. Sankarasubramanian, page 13 of the filed PDF · View the filing
Management attributed most of the increase to mining amortization and intangible amortization from the NACL merger, not new capex.
Answered by S. Sankarasubramanian
Asked by Riju: Reason for the sharp rise in depreciation this quarter.
p. 13
“Only on account of additional capex, the increase is around INR16 crores to INR18 crores, not more than that. The rest of them is only amortization expenses in mining operations.”
S. Sankarasubramanian, page 13 of the filed PDF · View the filing
Management stated the industry has raised prices by 25-30% across grades.
Answered by S. Sankarasubramanian
Asked by Tarang: How much price increase has the fertilizer industry taken this quarter.
p. 16
“25% - 30%, across grades.”
S. Sankarasubramanian, page 16 of the filed PDF · View the filing
Management agreed subsidy correction is critical for production economics and warned of continued impact into Q2 without it.
Answered by S. Sankarasubramanian
Asked by Dhruv: Whether subsidy policy revision is key to reviving NPK production.
p. 17
“100%. Otherwise, it doesn't make economic sense for the people to produce. Domestic capacities cannot afford to produce at the high input prices of sulphur and ammonia.”
S. Sankarasubramanian, page 17 of the filed PDF · View the filing
Management indicated a target sulphur price relative to current phosphoric acid pricing.
Answered by S. Sankarasubramanian
Asked by Sandeep Mukherjee: At what sulphur price level does backward integration become optimal.
p. 21
“Given the Phosphoric Acid price of $1,700, at least we want $800 of sulphur.”
S. Sankarasubramanian, page 21 of the filed PDF · View the filing
Risks flagged
Elevated global raw material prices for phosphoric acid, ammonia and sulphur driven by geopolitical uncertainty and supply disruptions
p. 4
“Global prices of key raw materials, including phosphoric acid, ammonia and sulphur remained elevated, driven by continued geopolitical uncertainties and supply disruptions.”
S. Sankarasubramanian, page 4 of the filed PDF · View the filing
Subsidy rates not fully compensating for increased raw material costs following the Middle East crisis
p. 4
“These rates do not fully compensate for the increase in global raw material costs, which happened subsequent to Middle East crisis.”
S. Sankarasubramanian, page 4 of the filed PDF · View the filing
Deficit rainfall and low reservoir levels affecting fertilizer offtake
p. 3
“India witnessed 23% of deficit rainfall on the long period average with most of the regions reporting lower rainfall. It has moderated fertilizer offtake as well in the current month.”
S. Sankarasubramanian, page 3 of the filed PDF · View the filing
State-level bans on Nano fertilizer products moderating growth
p. 7
“There has been a ban on some of these products from fertilizer companies in the state of UP and Maharashtra, which moderated the growth.”
S. Sankarasubramanian, page 7 of the filed PDF · View the filing
Farmer affordability declining as global agri commodity prices soften, pressuring crop protection demand for specialties
p. 16
“Global agri commodity prices are softening. It has not gone up. The farmers affordability has come down.”
S. Sankarasubramanian, page 16 of the filed PDF · View the filing
Fertilizer business margin pressure from input cost inflation not matched by subsidy revisions
p. 5
“Fertilizer business margins were under pressure due to sudden spurt in key input raw materials like ammonia and sulphur.”
S. Sankarasubramanian, page 5 of the filed PDF · View the filing
Risk of demand destruction from artificially high DAP pricing relative to NPK
p. 13
“I don't think the shift from NPK to DAP will happen, but higher price can lead to demand destruction.”
S. Sankarasubramanian, page 13 of the filed PDF · View the filing
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