Analyst Concall
Coromandel Intl benefits from favorable monsoon in Jul-Sept
This story was originally published at 19:14 IST on 31 October 2025
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--Coromandel Intl: Response to nano fertilisers very positive
--Coromandel Intl: Exports from crop protection products grew 12% in H1
--Coromandel Intl: Working on creating new molecules for crop protection
--Coromandel Intl: Target INR 50 bln revenue from crop protection ops soon
--Coromandel Intl: Work at new sulfuric acid plant at Kakinada 90% complete
--Coromandel Intl: Total retail outlets as on Sept 30 at 1,200
--Coromandel Intl: Expect sulfur prices to decline going forward
--CONTEXT: Comments by Coromandel Intl mgmt in post-earnings analyst call
--Coromandel Intl: Key south Indian markets saw favourable monsoon
--Coromandel Intl: Above average monsoon in key markets positive for company
By Narayana Krishna and Adhithya Aji
MUMBAI – Coromandel International Ltd. benefited from the above-average monsoon in key markets of the company, the management said in a post-earnings conference call. The above-average monsoon resulted in a 1% rise in kharif crops, with the output of rice, pulses, and coarse cereals rising, but production of cotton and oilseeds fell, the company said.
However, unseasonal rains in August and September have affected the standing crops and also impacted the application of crop inputs as well as speciality products. The company is projecting a positive rabi season, given the adequate water levels across reservoirs. "South India is 1.23% of the long-period average in terms of reservoir level, which is very good in our key advisable markets," the company's management said in a post-earnings call.
The company reported a consolidated net profit of INR 8.05 billion for the September quarter, on a revenue of INR 96.54 billion. The net profit grew 21% on year and net sales grew 30% on year. Sequentially, this means a 59% growth in the bottom line and 37% rise in the top line.
The crop-protection business delivered a robust performance in terms of sales and margins across both domestic and international markets. The company acquired one of the leading crop protection companies, NACL Industries Ltd., which in Jul-Sept posted a revenue growth of 18% to INR 95 million and EBITDA of INR 830 billion, which was up 12%. Overall, the company expects the crop protection business to achieve the critical mark of INR 50 billion, which will make Coromandel International the third or fourth-largest crop protection company in the country, said Sankarasubramanian S., managing director and chief executive officer of the company.
The crop protection business has improved both in terms of volume and profitability. The segment will continue to remain the main focus for two years, the company said. Exports of crop protection products grew 6-7% in the quarter and 12% in the six months ended September, the management said. The company will develop new molecules for product expansion in crop protection.
Of the consolidated total income, INR 2.45 billion pertains to NACL Industries, which became a subsidiary of the company on Aug. 8, 2025. The share of subsidised products in the revenue was 83% for both the quarter and first half of the year. It was broadly line with what the company posted last year.
The consolidated EBITDA for the quarter was INR 11.47 billion against INR 9.75 billion last year, up 18%. With regard to subsidy extended on sales of fertilisers, the company got claims of INR 33.26 billion in the September quarter and INR 46.37 billion in Apr-Sept, according to the management.
Coromandel International's new phosphoric acid plant in Kakinada, Andhra Pradesh, is 90% completed and the mechanical completion will happen in the coming quarter, the management said. The company expects the plant to be commissioned by January.
"...we have become the largest market for Phosphatic fertilisers in the country, our consumption-based market share in H1 (Apr-Sept) stands at 19% versus 17% last year," the company said. The response to nano fertilisers from the farming community has been positive, especially with regard to fruits and vegetables. The company is engaged in educating the famers to shift to nano fertilisers.
Responding to a question on drone maker Daksha Unmanned Systems, in which the company holds majority stake, Coromandel International's management said it will take time for the company to get new orders because the product has to go through detailed evaluation process which is time consuming. End
Edited by Ashish Shirke
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