# 1. Financial Performance ## A. Key Figures * **Total Income:** **₹8,863 Cr** (Q4) (+26%) · **₹25,759 Cr** (9M) (+33%) * **Subsidy Collections:** **₹2,571 Cr** (Q4) · **₹7,208 Cr** (9M) * **Consolidated EBITDA:** **₹805 Cr** (Q4) (+11.5%) · **₹2,738 Cr** (9M) (+24.3%) * **PAT:** **₹488 Cr** (Q4) (-4%) · **₹1,784 Cr** (9M) (+20.8%) ## B. Revenue Growth * **Broad-Based Strength:** Robust top-line expansion across all segments, supported by strong subsidy inflows with **₹1,300 Cr collected in January** alone. * **Subsidy Momentum:** Timely government disbursements improved cash flow visibility, covering sales through end-December. ## C. Profit Margins * **Margin Resilience Amid Headwinds:** EBITDA growth sustained despite **higher sulphur costs, currency depreciation, and lagging subsidy adjustments**. * **Fertilizer EBITDA Target:** Management reaffirmed **annualized EBITDA target of ₹5,500/ton**, signaling pricing power and cost control. * **Crop Protection Strength:** Standalone agrochemical business delivered **20% quarterly margin**, reflecting premiumization and operational efficiency. * **NACL Turnaround Progress:** Post-acquisition integration driving margin expansion to **9%–10%** on cost optimization and higher plant utilization. ## D. Balance Sheet * **Improved Financial Health:** NACL’s liquidity stabilized via rights issue, leading to **lower interest burden and stronger working capital management**. --- # 2. Product & Segment Performance ## A. Key Figures * Fertilizer Sales: 11.2 LMT Q3 primary sales (flat YoY) · 36.3 LMT YTD phosphatic sales (+10%) * **Crop Protection Revenue & Profit:** ₹785 Cr standalone Q3 revenue (+24%) · ₹158 Cr EBIT (+74%, margin expansion to 20%) * **Specialty Nutrients:** 68% YoY growth in **4,000 KL** Nano product sales YTD · **25%** of total sales from new products YTD * Subsidy & Budget: ₹18,000 Cr supplementary grant released · ₹1.17 lakh Cr urea + ₹54,000 Cr phosphatic allocation in 2026–27 budget ## B. Fertilizer Business * **Resilient Performance Amid Headwinds:** Delivered stable volumes despite cost pressures from raw materials and currency, supported by operational efficiency and full capacity utilization. * **Market Share & Consumption Trends:** Consumption-based market share declined to 14% due to lower demand in Andhra Pradesh and Telangana, driven by reduced crop acreage, particularly in chillies. * **Positive Shift in Nutrient Mix:** NPK consumption share improved to 60% YTD, reflecting growing adoption of balanced fertilization practices. * **Digital & Policy Tailwinds:** New paperless subsidy claim system and sustained government support via PM-KISAN, crop insurance, and AI-enabled Agri-Stack platform to boost long-term demand. ## C. Crop Protection * **Strong Export-Led Growth & Margin Expansion:** Standalone EBIT surged 74% with margins up 600 bps, driven by higher Mancozeb exports, favorable currency, and new product launches. * **Mancozeb as Core Export Engine:** Export performance heavily reliant on Mancozeb, with rising demand in Brazil (soybean, corn) fueling volume growth—no significant restocking impact observed. * **Domestic Challenges Offset by B2B Strength:** Weakness in chilli and grape acreage dampened domestic B2C, but institutional B2B segment grew 36% and exports rose 32% YTD. * **Synergy Development with NACL:** Collaboration underway in R&D, manufacturing, and marketing to improve NACL’s performance amid adverse B2C market conditions. ## D. Specialty Nutrients & New Products * **Record Volumes & Leadership in Nano Segment:** Specialty business achieved record Q3 performance, led by strong double-digit growth in micronutrients and organics; market leader in Nano DAP. * **Portfolio Diversification Accelerating:** New products contributed **25%** of YTD sales, with four new launches and 30 new territories added to drive future growth. * **Strategic Expansion into Adjacent Agri-Tech:** Drone spraying covered **2 lakh acres** YTD via Gromor Drive; Dhaksha (drone subsidiary) pursuing technical partnerships to scale in defense and agriculture. * **Emerging CDMO Opportunity:** Acquisition of NACL has attracted global interest in outsourcing, particularly in fluorination chemistry, with CDMO pipeline in early but promising stages. --- # 3. Capacity & Production ## A. Key Figures * Fertilizer Production: 9.9 lakh tons (quarterly, +18% YoY) * Rock Phosphate Production: 3.5 lakh tons (annual, on track) * **Mancozeb Capacity Increase:** **+20%** (completed) with **+30%** expansion planned * **Backward Integration Investment:** **INR 1,200 Cr** with **INR 400 Cr annual EBITDA benefit** expected ## B. Plant Utilization * **Record Production Output:** Fertilizer and phosphoric acid production reached new highs, supported by strong operational execution and expanded capacity. * **Strategic Mining Scale-Up:** Senegal mine now the largest rock phosphate export source from the country, enhancing supply control and cost stability. * **Capacity Expansion Momentum:** Added 1,000 dealers and expanded Mancozeb and Sarigam capacities, with backward integration plant set for immediate 100% utilization. * **Dahej Turnaround Underway:** NACL’s Dahej facility is refocusing on new product development and utilization improvement, targeting synergies with Coromandel’s pipeline. ## C. Backward Integration * **Kakinada Projects On Track:** Sulfuric and phosphoric acid integration facilities scheduled for commissioning this quarter, key to cost resilience. * **High-Value Integration Gains:** Senegal mine now fulfills 20–25% of rock phosphate needs, significantly reducing external dependency and input cost volatility. * **CDMO & Purified Acid Progress:** Industrial chemicals pipeline advancing, with CDMO partnerships maturing after two years of development. * **NACL Profitability Achieved:** Transition from losses to profits driven by improved management, utilization, and integration with Coromandel. ## D. Expansion Projects * **Granulation Train Expansion:** Scheduled for commissioning in Q3 FY26-27, supporting future volume growth. * **Capex Discipline Maintained:** New plant economics exclude gypsum revenue, reflecting conservative planning and focus on core process efficiency. --- # 4. Export & Geography Mix ## A. Key Figures * **Exports to Europe (Crop Protection):** **₹1,000 Cr** (~15–20% of total agrochemical exports) * **Sales Mix (Crop Protection):** **25% B2B**, **30% B2C**, **45% exports** * **Regional Sales Growth:** **30% YoY** in new markets (North), reaching **4 lakh tons** * **DAP Consumption:** **+13% in Q3** (26 → 30 lakh tons) * **NPK Consumption:** **–2% in Q3** (52 → 50 lakh tons) * 9M Fertilizer Consumption (DAP + NPK): 208 lakh tons (flat YoY) ## B. International Sales * **FTA Tailwinds:** India-EU FTA and **recent 9% CNY appreciation** expected to boost export competitiveness in Europe, particularly for agrochemicals, specialty fertilizers, and CDMO services. * **Export Growth Drivers:** Strong momentum driven by **higher volumes, improved NRV of key technicals**, and **new customer acquisition**, with Mancozeb in high global demand amid normalized channel inventories. * **Pipeline Expansion:** **Nano DAP** showing positive results in global trials; international registration underway to unlock new export markets. * **Market Diversification:** Despite **9% global agrochemical export share**, removal of **up to 12% duties** could enhance reach in Latin America and non-EU regions. ## C. Regional Demand * **North Market Strength:** Robust **30% YoY sales growth** in northern regions driven by effective seed marketing, supporting expansion plans with upcoming plant commissioning. * **Mixed Consumption Trends:** **DAP demand surged** in Q3 while **NPK volumes declined**, resulting in flat overall fertilizer consumption for the first nine months. --- # 5. Input Cost & Weather Risks ## A. Key Figures * **Phos Acid Price:** **$1,290/ton** (vs. $1,050/ton YoY) (+23%) · **$1,250 to $1,290** during quarter * **Sulphur Price:** **$550/ton** (up from $180–$200/ton) (+~175%) * **Rupee Depreciation:** **7% YTD** (trading range: ₹83–₹91/USD) * **Subsidy Outstanding:** **₹3,785 Cr** (Dec) vs. ₹2,095 Cr YoY (+81%) * **Fertilizer Consumption:** **7% lower** despite 15% higher production and 36% higher imports ## B. Raw Material Prices * **Sustained Cost Pressure:** Key input costs surged due to global supply disruptions and strong demand from LFP batteries and nickel refining, with phos acid and sulphur prices at multi-year highs. * **Stabilization Signals:** Phos acid pricing has stabilized at current levels, with industry focus shifting to **cost reduction initiatives** amid no appetite for further increases. * **Partial Offset:** Softening rock prices have helped **cushion the impact** on unit economics despite sharply higher sulphur costs. ## C. Currency Impact * **Macro Deterioration:** Rupee depreciation and rising subsidy receivables reflect broader macro stresses, including trade deficit widening and **FPI outflows**, pressuring near-term cash flow. * **Prudent Hedging:** Company maintaining conservative forex risk management amid expectations of continued volatility in Q3. ## D. Monsoon Disruptions * **Demand Suppression:** Late monsoon withdrawal and unseasonal rains disrupted crop cycles in key regions, leading to **7% lower fertilizer consumption** despite robust supply availability. * **Reservoir Recovery:** Northeast monsoon delivered above-average rainfall (102% of LPA), boosting reservoir storage to **107% of prior year** and **125% of long-term average**, supporting Rabi sowing prospects. * **Crop-Specific Impact:** Chilli and grape segments saw reduced agri-input uptake, affecting CPC spray and nutrient demand in affected geographies. --- # 6. Guidance & Outlook ## A. Key Figures * **EBITDA Target:** **₹5,000–5,500/ton** (driven by Q4 price corrections, mix, inventory) * GDP Growth Estimate: 7.4% for India, as per first advance estimate * **Domestic B2C Growth Outlook:** **20–25%** (Mancozeb exports, portfolio expansion) ## B. EBITDA Targets * **Path to Margin Target:** Full-year EBITDA/ton target remains on track, supported by **Q4 price corrections on key grades** and improved inventory and product mix dynamics. * **NACL Margin Levers:** Margin recovery driven by **B2C formulation mix shift**, offsetting current drag from Dahej operations; broader value creation beyond Dahej integration. ## C. Growth Projections * **Robust B2C Momentum:** Domestic B2C segment poised for **strong double-digit growth**, underpinned by export strength in Mancozeb and technical product innovation. * **Pipeline Expansion:** Growth supported by **Malathion capacity ramp-up** and development of **new Strobilurin chemistries**, with capex priorities reassessed post-NACL acquisition. ## D. Capex Plans * **Funding & Credit Upgrade:** NACL’s rights issue successfully de-levered high-cost debt and funded strategic capex, contributing to a **CRISIL AA (stable)** rating upgrade. * **Integration Timeline:** Tangible synergies from NACL integration expected to materialize from **Q1 FY '27** onward.