Khaitan Chemicals & Fertilizers Ltd (KHAICHEM)

Chemicals · Fertilizers · NSE · Updated 30 September 2026

By StockFin Research TeamAI-Assisted AnalysisSource: BSE/NSE Filings

₹49.26↓ 60.13% (1Y)

🎯 Key Takeaways

Khaitan Chemicals & Fertilizers Ltd is in a stabilization phase following a period of financial distress, transitioning from volatile performance to modest recovery. The company has restored profitability and governance stability, with improved margins and credit ratings, though growth remains limited and leverage remains elevated.
Revenue grew 14.5% QoQ to ₹221 in Q1FY27.
⚠️ Vulnerability to sulphur price volatility, which directly impacts SSP margins despite improved profitability from spent sulphuric acid sales.

Market Cap: ₹478
P/E Ratio: 8.8
P/B Ratio: 1.64
ROE: 18.6%
ROCE: 16.3%
Debt/Equity: 1.04
Div Yield: 0.10%
Promoter: 72.7%

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📖 The Story

Khaitan Chemicals & Fertilizers Ltd is in a stabilization phase following a period of financial distress, transitioning from volatile performance to modest recovery. The company has restored profitability and governance stability, with improved margins and credit ratings, though growth remains limited and leverage remains elevated. Management is focused on operational consolidation and capital structure management rather than aggressive expansion.

📰 What's Happening

Recent developments center on governance and capital structure: the 44th AGM on July 21, 2026 approved FY25-26 audited financials, declared a Re. 0.05 per share dividend, and increased the borrowing limit to ₹800 crores. Utsav Khaitan was reappointed as Joint Managing Director for three years effective May 1, 2026 to April 30, 2029, ensuring leadership continuity. Shareholders also ratified cost auditor remuneration and charges on assets to secure borrowings. Earlier, on August 19, 2026, India Ratings affirmed the company's IND BBB- rating with a Stable outlook, citing improved profitability from spent sulphuric acid sales and liquidity from an INR400.7 million ECLGS 5.0 sanction. The rating upgrade followed a dramatic improvement in interest coverage from 0.77x to 3.44x and net leverage reduction from 15.8x to 3.3x.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	309	266	193	221
Operating Profit	29	29	15	21
OPM %	9.4%	11.1%	7.9%	9.4%
Net Profit	21	20	1	11
EPS	₹2.21	₹2.11	₹0.13	₹1.13

The company's financial trajectory shows a sharp recovery in profitability and margins. Operating performance peaked in December 2025 with revenue of ₹266 crores, OPM of 11.1%, and net profit of ₹20 crores, but moderated slightly in subsequent quarters to ₹221 crores revenue and ₹11 crores net profit in June 2026, with OPM at 9.4%. This reflects a normalization after a high base in Q3 and Q4 2025. The sequential improvement in operating performance from ₹15 crores operating profit in March 2026 to ₹21 crores in June 2026 indicates stabilization in core operations. However, net profit declined significantly from ₹20 crores in December 2025 to ₹11 crores in June 2026, suggesting margin pressure or higher input costs despite revenue recovery.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on revenue or margins in the filings reviewed. However, the credit rating announcement on August 19, 2026, references an INR400.7 million sanction under ECLGS 5.0 scheme expected in FY27, indicating anticipated liquidity support. The reappointment of Utsav Khaitan and approval of increased borrowing limits suggest confidence in operational sustainability, but no strategic expansion plans or growth targets were disclosed. The focus remains on maintaining financial stability and capital flexibility rather than aggressive investment or market expansion.

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

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	10	10	10	10
Reserves	213	191	281	256
Borrowings	318	292	301	284
Total Liabilities	620	616	682	700
Fixed Assets	127	128	118	116
Investments	5	4	7	5
Total Assets	620	616	682	700

The balance sheet shows a stable but leveraged capital structure. Total assets grew from ₹620 crores in March 2025 to ₹700 crores in March 2026, driven by asset accumulation despite flat equity. Equity remains minimal at ₹10 crores, with reserves increasing from ₹213 crores to ₹256 crores and ₹281 crores in the latest period, indicating retained earnings contribution. Borrowings decreased slightly from ₹318 crores to ₹301 crores in the latest quarter, but the approved ₹800 crore borrowing limit provides headroom for future funding. The modest net cash flow from financing activities (₹-40 crores) suggests ongoing debt servicing or strategic deleveraging, though the company remains reliant on external financing.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2026
Operating	+44
Investing	-4
Financing	-40
Net Cash Flow	-0

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	72.6%	72.7%	72.7%	72.7%
FII	0.8%	0.3%	0.3%	0.1%
DII	0.0%	0.0%	0.0%	0.0%
Public	18.4%	18.5%	19.1%	19.7%
# Shareholders	53,882	53,123	53,076	53,311

Promoter holding remains stable at 72.65% across all recent quarters, indicating strong controlling interest. FII allocation is negligible, hovering around 0.11% to 0.79%, while DII holds zero stake. Public shareholding has gradually increased from 18.41% to 19.72% over the quarters, suggesting modest retail interest. The growing number of shareholders (53,311 in Q1FY27 from 53,882 in Q2FY26) reflects expanding retail participation, but institutional interest remains minimal. No signs of significant exit or accumulation by foreign investors.

⚖️ Peer Comparison — Fertilizers

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
COROMANDEL	52,811	28.8	21.0%	—	0.07
FACT	49,511	1779.4	9.2%	—	1.29
CHAMBLFERT	16,575	8.6	22.6%	—	0.10
PARADEEP	15,998	14.9	14.5%	—	1.01
GSFC	6,043	8.7	7.4%	—	0.00
RCF	5,978	13.4	10.2%	—	0.80
NFL	3,184	8.7	15.8%	—	0.73
SPIC	1,296	6.3	14.9%	—	0.51
MADRASFERT	943	13.3	9.5%	—	-49.36
ZUARI	933	1.0	50.7%	—	0.34

🔗 Peer Stock Analyses

COROMANDEL FACT CHAMBLFERT PARADEEP GSFC

⚠️ Risk Factors

1. Vulnerability to sulphur price volatility, which directly impacts SSP margins despite improved profitability from spent sulphuric acid sales. 2. High leverage remains a concern, with net leverage at 3.3x and reliance on ECLGS 5.0 funding for liquidity, which is not guaranteed beyond FY27. 3. Limited institutional investor interest and low trading liquidity could amplify price volatility. 4. Commodity-driven margins in fertilizers and chemicals make earnings susceptible to input cost swings and global price fluctuations, with no hedging or diversification disclosed.

📋 Recent Filings

🧠 Analyst's Read

Khaitan Chemicals & Fertilizers is transitioning from distress to stability, supported by improved credit metrics and governance, but remains exposed to commodity cycles and modest growth. Investors should monitor sulphur price trends, the utilization of the enhanced borrowing limit, and any future guidance on margin sustainability or capital allocation strategy.

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 2026-09-30.

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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