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Informist, Friday, May 8, 2026

 

--Coromandel Intl: Key raw materials supply hit due to West Asia war

--CONTEXT: Comments by Coromandel Intl mgmt in post-earnings analyst call

--Coromandel Intl: Co scaling up sulfuric acid volumes

--Coromandel Intl: Raw material prices currently abnormal due to W Asia war

--Coromandel Intl: Co's crop protection ops aided by strong domestic demand

--Coromandel Intl: Inventory at slightly elevated levels

--Coromandel Intl: High material prices call for additional subsidy support

--Coromandel Intl: Don't expect West Asia situation to last long

--Coromandel Intl: Focussing on procuring raw material for fertiliser ops

--Coromandel Intl:Material available in plenty but shipping faces disruption

--Coromandel Intl: Difficult to guide on FY27 margins, situation very fluid

 

By Rajesh Gajra and Gunjan Rajput

 

MUMBAI/NEW DELHI – Coromandel International Ltd. is currently focussing largely on securing raw materials for its fertiliser operations to ensure stable production of fertilisers and their availability for the domestic farming community, the management of the company said in a post-earnings conference call with investors and analysts. The company has seen sudden and sharp rise in prices of key raw materials such as ammonia and sulphur due to the supply disruption from West Asia amid the war there, a top official said.

 

With the company's dependence on ammonia and sulphur at more than 80% and most of their shipments crossing the Strait of Hormuz, the shipping disruption in the West Asia region has led to sharp rise in commodity prices, he said.

 

The company is making concerted efforts to maximise supply of these raw materials from the West Asia region as well as alternative markets in the June quarter, he said. However, to address the affordability issue for the Indian farmers, the fertiliser industry is hoping for government support through additional subsidies, the official said. 

 

To a question on whether production of sulphur, a critical raw material for fertilisers production, in the West Asia region is stable or disrupted, a top official of Coromandel International said sulphur "is available in plenty...it is the movement of ships... which is what's making it difficult for us."

 

The fluid situation makes it impossible for the company to provide any guidance on margins for 2026-27 (Apr-Mar) the official said in response to a question. But, according to the official, the company does not expect the war scenario "to remain for a long time." The company is hoping that normalcy gets restored, and expects things to be "back to normal" once the supply side improves.

 

On inventory, the management said it was at slightly elevated level due to jump in raw material prices and incremental inventory that the company has kept for its newly inaugurated phosphoric acid and sulphuric acid plant in Andhra Pradesh. A new factory to produce sulphuric acid that the company commissioned in March was progressing as per schedule, he said. "Currently, this plant is going through trial runs, and sulphuric acid volumes have scaled up," the official said. To a question on its crop protection operations, the official said the segment was seeing stable performance on the back of strong domestic demand.

 

Coromandel International announced its March quarter earnings Thursday. The company's consolidated net profit for the quarter fell nearly 76% to INR 1.40 billion from INR 5.80 billion in the year-ago quarter. The revenue from operations rose over 20% on year to INR 60.04 billion. On Friday, shares of the company closed 1.9% lower at INR 1,927.60.  End

 

Edited by Vandana Hingorani

 

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