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Earnings Call Transcript

Coromandel International Earnings Call Transcript: Key Takeaways

Revenue grew 15% YoY but margins were squeezed by a spike in global raw material costs and lagged government subsidy revisions despite strong retail performance.

Highlights
Revenue growth15% YoY growth led by higher realizations and non-subsidy business growth.
MarginsEBITDA margins under pressure due to uncompensated raw material cost inflation.
Demand visibilityPositive demand expected as monsoon recovery narrows acreage gaps in Paddy.
Management confidenceBalanced, though cautious regarding Middle East conflict impact on input costs.

Growth

Growth was driven by higher realizations in fertilizers and a strong performance in non-subsidy segments like crop protection.

Outlook

Management targets EBITDA of ₹6,500/MT for NPK fertilizers upon stabilization of new phosphoric acid and sulfuric acid capacities.

Risks

EBITDA fell 3% due to high sulfur and ammonia prices; subsidy delays remain a major cash flow risk.

Last quarter's promises, checked

Delivered

  • Commission Kakinada Phos-Acid/Sulphuric plants in Q4 → Commissioned March 2026 (= BEAT)
  • Expand retail footprint by 300+ stores → Added 300+ stores in AP/TS/KA (= BEAT)
  • Grow Crop Protection revenue 15-20% → Standalone revenue grew 15% (= BEAT)

Partly delivered

  • Commission granulation plant by Dec FY26 → Project gaining momentum, on track (= PARTIAL)
  • NACL margin stabilization at 9-10% → Improved to 6-7% (= PARTIAL)

Missed

  • Maintain fertilizer margins → Q4 manufacturing EBITDA <₹3,500/MT vs ₹5,000+ LY (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: COROMANDEL. Summary written with AI assistance from the document.

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Coromandel International Ltd: key numbers

Share price
₹1,963.90
Market cap
₹57,947 Cr
Revenue (annual)
₹31,480 Cr
Net profit (annual)
₹1,956 Cr
P/E (TTM)
31.6×Sector 12.4×
Promoter holding
56.35%+0.00% QoQ
FII holding
11.50%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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