Chemical stock in focus after reporting 116% YoY increase in Q3 sales; Announced ₹450 Cr capex

Synopsis: Shares of Madhya Bharat Agro Products are in focus after reporting a massive 116% and 77% jump in Q3 sales and net profit, respectively, YoY. Additionally, the company is investing Rs 450 crore to expand its Banda and Dhule plants. 

The shares of this company, engaged in the business of manufacturing fertiliser and chemical products, are in focus after the company reported a robust financial performance for the latest quarter (Q3) of this financial year. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 3,726 crore, the shares of Madhya Bharat Agro Products Ltd are currently trading at Rs 420.10 per share, down 6 percent from its previous day closing of Rs 446.70 per share. Over the past five years, the stock has delivered a multibagger return of 2,253 percent, outperforming NIFTY 50’s return of 81 percent.

Q3 Highlights

The revenue from operations for Madhya Bharat Agro Products stands at Rs 612.39 crores in Q3 FY26 compared to Q3 FY25 revenue of Rs 283.72 crores, up by a staggering 116 per cent YoY. Additionally, on a QoQ basis, it reported a growth of 36 percent from Rs 450.19 crore. 

Coming down to its profitability, the company’s net profit stood at Rs 31.76 crore in Q3 FY26, up from Rs 17.90 crore in Q3 FY25, which is a robust growth of 77 percent YoY. Additionally, on a QoQ basis, it reported a net profit of Rs 30.46 crore, which is a growth of 4 percent.

Coming down to its expenses, the company’s total expenses stood at Rs 564.59 crore in Q3 FY26, up from Rs 258.34 crore in Q3 FY25, which is a growth of 119 percent YoY. Additionally, on a QoQ basis, it reported an expense of Rs 403.40 crore, which is a growth of 40 percent.

Capacity Expansion

In Banda, Madhya Pradesh, they are increasing DAP/NPK output by 90,000 MTPA through debottlenecking (identifying and removing constraints from production) and brownfield expansion. Also, in Dhule, Maharashtra, the company is constructing a new integrated fertiliser complex with an annual capacity of 3.3 lakh MTPA for DAP/NPK, along with new phosphoric and sulphuric acid units. The company will be investing Rs 450 crore for implementing this capacity expansion, which would be mainly financed through equity, debt, internal accruals, or a combination of these financing means.

DAP and NPK fertilisers are very important in modern farming. They provide crops with nutrients that ordinary soil alone cannot supply. This helps farmers produce more and better crops.

The reason for this significant expansion is the rising demand for fertilisers in India. With government support for fertilisers and an increase in in-house production of raw materials, the company believes this expansion will support long-term growth and help it gain a larger share of the market.

Madhya Bharat Agro Products Limited, or MBAPL, is an Indian fertiliser company that has been operating since 1997. It is part of the Ostwal Group. In its early years, MBAPL faced difficulties and operated at a loss, but after a takeover in 2004, the company turned things around and began making a profit.

Today, MBAPL manufactures a wide range of fertilisers, SSP, DAP, NPK, and more. They also produce key raw materials like sulphuric acid and phosphoric acid, which allows them greater control over costs and quality. MBAPL is listed on the NSE, and the company places strong emphasis on quality, efficiency, and supporting Indian farmers.

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