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Informist, Monday, Feb. 2, 2026

By Adhithya Aji and Sunil Raghu

MUMBAI – Coromandel International Ltd.'s December quarter earnings were impacted by a sharp rise in raw material costs, inadequate nutrient-based subsidy from the government and late monsoon withdrawal which impacted the crop output during Oct-Nov, the company's management said in a post earnings analysts call Monday. The company witnessed a sharp rise in the prices of Sulphur, triggered by demand in the manufacturing sector in China and supply disruption from Russia. However, the management expects the hike in Sulphur prices not sustainable and likely to retrace. 

"Overall consumption during the quarter came down by seven percent. However, thanks to intervention from the government, the supplies remained robust. And the production has also been good," the company management said.

Despite the challenging environment, the fertilisers segment businesses delivered a resilient performance supported by very competitive sourcing of key raw material, operational efficiencies, and 100% capacity utilisation of plants, the management said. The company management said that they continue to receive government subsidy on a timely basis. For the December quarter, the company collected subsidy of INR 25.71 billion compared with INR 20.36 billion in the year-ago quarter. 

The organic fertiliser manufacturer reported a consolidated net profit of INR 5.06 billion, down over 1% from INR 5.12 billion reported in the year-ago quarter. The company's revenue rose nearly 27% on year to INR 87.79 billion in the December quarter.

For the December quarter, the company collected a subsidy of INR 25.71 billion, compared with INR 20.36 billion in the year-ago quarter. The share of subsidised fertilisers business for the quarter stands at 82% of the total revenue. The subsidy business share in the earnings before interest, tax, depreciation, and amortisation for the quarter was at 62%. During the quarter, the company added 84 new stores, taking the total store count to 1,113.

The company also saw a rise in demand for agricultural fungicide--Mancozeb--in the American markets. It is used as an additional spray in crops like soyabean and corn. Coromandel International is trying to enter into long-term arrangements and secure volumes on a long-term basis.   

Coromandel, which acquired NACL Industries Ltd. in August, expects to begin getting the benefit from its purchase from the first quarter of 2026-27 (Apr-Mar). The subsidiary manufactures crop protection products such as insecticides, fungicides, and herbicides, and Coromandel has already begun seeing higher demand from global players post NACL's acquisition.

The formulation business in the crop protection segment is expected to increase domestic market share by at least 20-25%, the management said. Monday, shares of the company ended marginally lower at INR 2,215.60 on the National Stock Exchange.   End

Edited by Akul Nishant Akhoury

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