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Informist, Wednesday, Jan. 28, 2026

By Adhithya Aji

MUMBAI – Coromandel International Ltd. is expected to post a low single digit year-on-year growth in its consolidated bottom line for the December quarter, despite a healthy double-digit growth in its top line. This is likely because the subsidy the company receives in its core segment nutrient and other allied business did not increase in proportion to the rise in raw material costs, brokerages said.

The organic fertiliser manufacturer is estimated to report a consolidated net profit in the range of INR 4.86 billion to INR 5.30 billion, according to estimates from three brokerages. The highest bottom line estimate is from Motilal Oswal Financial Services Ltd. and the lowest is from Elara Securities Pvt. Ltd.

The revenue of the company is seen in a range of INR 76.97 billion to INR 82.13 billion. The highest top line estimate is from Motilal Oswal and the lowest is from Nuvama Wealth Management Ltd.

Coromandel International is expected to see a low single-digit growth in its bottom line as the nutrient-based subsidy from the government did not increase in proportion with the raw material prices, according to Nuvama. This likely increased the input costs of the company in the December quarter. The largest segment of the company, nutrient and other allied business, avails government subsidy on its phosphatic and potassic fertilisers.

Under the nutrient-based subsidy scheme, a fixed amount of subsidy, decided on an annual or bi-annual basis, is provided to fertiliser producers on phosphatic and potassic fertilisers depending on their nutrient content. The fertiliser companies are allowed to fix maximum retail price at reasonable levels which is monitored by the government.

The company's earnings before interest, tax, depreciation, and amortisation per tonne for the December quarter is expected to be slightly lower at INR 4,700, according to Nuvama. Motilal Oswal has pegged the EBITDA per tonne at INR 5,764.

The company is expected to report subdued earnings for the reporting quarter also due to lower volumes of phosphatic fertilisers, according to Nuvama. This impact continued from the poor agriculture conditions in the September quarter due to excess rains, the brokerage said. "Slower off-take of NPK (Nitrogen, Phosphate, and Potassium) fertilisers in the trade channel along with residual impact of high channel inventory seems to be impacting volumes," Nuvama said. On the other hand, Motilal Oswal expects the trading volumes to rise 9% on year and the manufacturing volumes to rise 1% on year.

Coromandel International has two business segments--nutrient and other allied business and crop protection. In the September quarter, nutrient and other allied business reported a consolidated sales of INR 86.61 billion, which is nearly 90% of the total revenue. The sales from crop protection were at INR 10.69 billion, accounting for nearly 11% of the top line.

The crop protection segment is expected to post a strong export and domestic performance led by the sales of Mancozeb, Nuvama said. Mancozeb is an ingredient widely seen in agricultural fungicides against fungal diseases in crops. The margin in this segment is likely to report a solid improvement due to favorable prices, the brokerage added. Motilal Oswal projects a low single digit growth for the segment.

NACL Industries Ltd., the subsidiary Coromandel incorporated in August 2025, is expected to deliver a steady low single-digit revenue growth, according to Nuvama. The company manufactures crop protection products such as insecticides, fungicides, and herbicides.

Coromandel International's EBITDA for the December quarter is seen in the range of INR 7.31 billion to INR 8.40 billion. The highest estimate for the EBITDA is from Motilal Oswal and the lowest is from Elara Securities.

The company will detail its Oct-Dec results Thursday. Raw material and product prices are the key variables to watch out for, according to Motilal Oswal.

Wednesday, shares of the company ended flat at INR 2,256.70 on the National Stock Exchange. The stock has risen nearly 4% since the announcement of the company's September quarter results.

All four brokerage reports on the company available with Informist have a 'buy' call on the stock with an average target price of INR 2,787, which is over 23% higher than the current market price.

Following are the Oct-Dec earnings estimates for Coromandel International Ltd. from three brokerages in descending order by the estimate of net profit in INR billion:

End

Edited by Ashish Shirke

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