Coromandel International Limited (COROMANDEL)

📖 The Story

Coromandel International Limited is navigating a strategic transition marked by robust growth in high-margin non-fertiliser segments and significant capacity expansion, offset by near-term margin pressures from input cost inflation and subsidy delays. The company is actively investing in retail, crop protection, and industrial businesses while advancing brownfield projects to drive long-term structural growth. Despite a 19.95% one-year return decline, its focus on diversification and operational scale-up positions it in a phase of reinvestment-driven growth.

📰 What's Happening

In Q1 FY27, Coromandel reported consolidated revenue of INR8,215 crores, up 15% YoY, driven by 85% growth in retail revenue and 2% volume growth in Nano, though net profit declined to INR382 crores from INR502 crores YoY due to margin pressure from elevated input costs and delayed subsidies. Management highlighted INR1,392 crores subsidy received and INR3,254 crores outstanding as of June 30, 2026. The company also announced a INR300 crores capex target over the next 1-2 years and an EBITDA target of INR6,500 crores for NPK in steady state. Earlier, in Q1 FY27, revenue grew 10% to INR7,792 crores with net profit falling 26% to INR377 crores due to raw material cost pressures from the Middle East crisis, while EBITDA grew 44% in Crop Protection. Progress on a 7.5 lakh ton annual capacity addition from a brownfield project is expected by Q4 FY27, with Sarigam expansion on track for Q2 FY27 commissioning. The board approved unaudited Q1 FY26 results showing standalone revenue of INR7,743.55 crores and consolidated revenue of INR8,164.77 crores, alongside restructuring USD 9.70 million debt and converting Rs 108 crores loan to equity in Coromandel Chemicals.

Source: Stock Announcements