Chambal Fertilisers & Chemicals Ltd (CHAMBLFERT)

Chemicals · Fertilizers · NSE · Updated 2 September 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹412.15 ↓ 26.22% (1Y)

🎯 Key Takeaways

  • Chambal Fertilizers is in a strategic transition phase, balancing near-term revenue pressure from subsidy delays and monsoon volatility with long-term growth ambitions anchored in capacity expansion and diversification into biologicals. The company maintains strong profitability metrics and low leverage, but its financial trajectory is being shaped by external policy and climate risks rather than organic demand growth.
  • Revenue grew 80.5% QoQ to ₹5,027 in Q1FY27.
  • ⚠️ Subsidy delays and monsoon variability pose recurring revenue headwinds, as explicitly cited in management commentary, with no immediate policy relief
Market Cap
₹16,513
P/E Ratio
8.6
P/B Ratio
1.59
ROE
18.5%
ROCE
22.6%
Debt/Equity
0.10
Div Yield
1.46%
Promoter
61.3%

📖 The Story

Chambal Fertilizers is in a strategic transition phase, balancing near-term revenue pressure from subsidy delays and monsoon volatility with long-term growth ambitions anchored in capacity expansion and diversification into biologicals. The company maintains strong profitability metrics and low leverage, but its financial trajectory is being shaped by external policy and climate risks rather than organic demand growth.

📰 What's Happening

In Q1 FY27, revenue declined 12% YoY to ₹5,000 crores due to subsidy delays and monsoon impacts, yet EBITDA rose 12% YoY to ₹851 crores, reflecting improved operational efficiency and a 16.93% operating EBITDA margin. Management highlighted robust urea sales of 380,000 tons in July and progress on a new 12,000-ton urea plant under NIP-2012 policy, with commissioning expected by 2030. Additionally, the company announced plans to launch five new biologicals products between FY28 and FY31, signaling a strategic shift beyond traditional fertilizers. The Board approved unaudited Q1 FY27 results showing consolidated revenue of ₹5,053.96 crores and profit of ₹523.60 crores, with no material misstatements identified. A minor compliance lapse involving a one-day delay in shareholding pattern filing was resolved via NSE-approved waiver, avoiding trading restrictions.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricSep 2025Dec 2025Mar 2026Jun 2026
Revenue6,4135,8982,7855,027
Operating Profit755733165762
OPM %11.8%12.4%5.9%15.2%
Net Profit649586169524
EPS₹16.19₹14.64₹4.23₹13.07

The financial trajectory shows a clear divergence between revenue pressure and margin resilience: while revenue has declined sequentially from ₹6,413 crores (Sep 2025) to ₹5,027 crores (Jun 2026), operating profit and margins have held firm, with OPM stabilizing around 15% and EBITDA margin expanding to 16.93% in Q1 FY27. Net profit remains relatively stable at ₹524 crores in Q1 FY27, down slightly from ₹586 crores in Dec 2025, indicating effective cost management despite volume headwinds. The sharp rise in EPS from ₹4.23 (Mar 2026) to ₹13.07 (Jun 2026) reflects base effect and improved capital efficiency, but the underlying trend points to operational discipline offsetting macro-driven demand softness.

🔮 Management Outlook & What's Next

Management expects near-term revenue pressure to persist due to subsidy delays and climate-related sowing disruptions, but maintains confidence in long-term growth through the commissioning of a new 12,000-ton urea plant by 2030 and expansion into biologicals with five new products planned for FY28–FY31. In the investor call, management noted that gas prices at USD 17.25/NCV constrain ROE potential, with upside limited to 12–16% if prices fall below USD 14, underscoring input cost sensitivity. Despite short-term headwinds, the strategic focus on capacity augmentation and product diversification signals a deliberate shift toward higher-margin, sustainable growth.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2025Mar 2025Mar 2026Mar 2026
Equity Capital401401401401
Reserves7,8038,3279,43810,007
Borrowings99991001,054
Total Liabilities12,49811,40713,85314,402
Fixed Assets6,3046,2186,0846,110
Investments3,2341,3729521,081
Total Assets12,49811,40713,85314,402

The balance sheet reflects a conservative and stable capital structure, with equity remaining flat at ₹401 crores and reserves growing from ₹8,327 crores (Mar 2025) to ₹10,007 crores (Mar 2026), indicating strong retained earnings. Borrowings are tightly controlled, declining slightly to ₹1,054 crores from ₹1,000 crores in the prior period, while total assets have risen steadily to ₹14,402 crores, driven by operational expansion. This suggests management is funding growth internally and through modest debt, with no aggressive capitalization or financial engineering, supporting long-term resilience.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2026
Operating+138
Investing-482
Financing+543
Net Cash Flow+199

👥 Shareholding Pattern

CategoryQ2FY26Q3FY26Q4FY26Q1FY27
Promoters60.6%60.9%61.3%61.3%
FII18.3%15.7%15.1%14.9%
DII4.0%4.7%5.4%5.3%
Public12.9%14.1%13.7%13.8%
# Shareholders2,52,4662,60,7222,57,5332,64,797

Institutional interest is rising, with FII holding increasing from 15.11% (Q4FY26) to 14.92% (Q1FY27) despite a slight dip in absolute terms, while DII holdings have stabilized around 5%. Promoter holding remains steady near 61%, showing no signs of dilution or sell-down. The growing number of shareholders — from 2,52,466 (Q2FY26) to 2,64,797 (Q1FY27) — reflects expanding retail participation. There are no indications of promoter pledging or significant institutional exit, suggesting confidence in the company’s stability and governance.

⚖️ Peer Comparison — Fertilizers

Company MCap (₹ Cr) P/E ROCE ROE D/E
COROMANDEL 56,782 30.9 21.0% 14.2% 0.07
FACT 52,685 1893.5 9.2% 2.0% 1.29
CHAMBLFERT 16,513 8.6 22.6% 18.5% 0.10
PARADEEP 16,356 15.3 14.5% 15.8% 1.01
GSFC 6,326 9.1 7.4% 5.7% 0.00
RCF 6,320 14.2 12.6% 9.4% 0.58
NFL 3,459 9.5 15.8% 13.4% 0.73
SPIC 1,403 6.8 16.0% 17.1% 0.60
MADRASFERT 1,046 14.7 9.5% -219.7% -49.36
ZUARI 971 1.0 50.7% 52.5% 0.34

🔗 Peer Stock Analyses

⚠️ Risk Factors

1. Subsidy delays and monsoon variability pose recurring revenue headwinds, as explicitly cited in management commentary, with no immediate policy relief in sight. 2. Gas price volatility directly impacts input costs and ROE potential, with management highlighting a critical threshold below USD 14/NCV to achieve targeted returns. 3. The shift into biologicals, while strategic, introduces execution and market adoption risks in a nascent segment with uncertain demand and regulatory pathways. 4. Despite margin resilience, the company faces pressure to maintain profitability amid declining volumes and increasing input sensitivity, particularly if subsidy support remains inconsistent.

📋 Recent Filings

🧠 Analyst's Read

Chambal Fertilizers is navigating a complex macro-environment where operational efficiency is offsetting external shocks, but long-term growth hinges on policy support and successful execution of its diversification strategy. Investors should monitor subsidy timelines, gas price trends, and progress on the new urea plant as key catalysts, while remaining cautious of revenue volatility in the near term.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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