Coromandel International Shares Decline 2% as Higher Costs Offset Strong FY26 Revenue Growth

Synopsis:-Reporting consolidated results for Q4 and full-year FY26, Coromandel International posted revenue of Rs.31,827 crore (up 30 percent YoY) and EBITDA of Rs.3,232 crore (up 23 percent YoY); headline consolidated PAT declined 8 percent to Rs.1,898 crore largely due to a base-year exceptional gain of Rs.347 crore reversing into a Rs.71 crore charge, while pre-exceptional PBT grew 13 percent with crop protection delivering 16 percent revenue growth and 55 percent profit growth, and the Rs. 1,100 crore Kakinada backward integration project commissioned during the quarter.

With a market capitalisation of Rs. 57,035 crore, the shares of Coromandel International Limited were last recorded at Rs. 1,933.3 per share, down 1.59 percent from its previous close of Rs.1,964.5. The stock trades at a P/E of 23.89 

The consolidated scorecard for FY26 requires context before the numbers speak clearly. Total income rose 30 percent to Rs. 31,827 crore from Rs. 24,444 crore in FY25, driven by volume growth in phosphatic fertilisers and strong crop protection momentum. EBITDA grew 23 percent to Rs. 3,232 crore. PBT came in at Rs. 2,688 crore, up 13 percent year-on-year, the number that best represents the underlying business.

The headline consolidated PAT of Rs. 1,898 crore, down 8 percent from Rs. 2,055 crore in FY25, is misleading in isolation. FY25 benefited from a Rs. 347 crore exceptional income likely a stake divestment or asset-related gain  that inflated PAT. FY26 recorded a Rs. 71 crore exceptional charge, creating a net swing of Rs. 418 crore that entirely explains the PAT decline.

Strip out the exceptional items, and the business delivered growing profits on a 30 percent revenue base expansion. Standalone PAT, which captures a cleaner picture of the core entity, grew 3 percent year-on-year to Rs. 2,009 crore on a 26 percent revenue increase to Rs. 30,882 crore.

The board declared a final dividend of Rs. 2 per equity share of face value Rs. 1, bringing total FY26 dividends to Rs. 11 per share  including the Rs. 9 interim paid in February 2026. The quarter’s numbers carry a similar distortion at the PAT level, amplified further. Q4 FY26 consolidated total income was Rs. 6,068 crore, up 19 percent over Q4 FY25’s Rs. 5,114 crore. 

EBITDA grew 16 percent to Rs. 494 crore.  PBT, however, declined 22 percent to Rs. 298 crore from Rs. 384 crore, a fall explained by the depreciation and interest costs from the newly commissioned Kakinada plants, which added material fixed charges to the income statement from late Q4 onwards. PAT after the Rs. 71 crore exceptional charge came in at Rs. 115 crore, against Q4 FY25’s Rs. 578 crore, a comparison rendered almost meaningless by the prior year’s Rs. 347 crore exceptional gain embedded in that base.

The commissioning of a 2,000 tonne-per-day Sulphuric Acid plant and a 650 TPD Phosphoric Acid plant at Kakinada during Q4 FY26 is the strategic centrepiece of the year. At a combined outlay of approximately Rs. 1,100 crore, these plants reduce Coromandel’s dependence on imported raw materials for its phosphatic fertiliser business, the largest single input cost driver. Sulphuric acid is a key input in the manufacture of phosphoric acid, which is in turn a core raw material for DAP and complex fertilisers. The Senegal rock phosphate project, operated by the company, also ramped up output during the year to feed the new phosphoric acid capacity.

The near-term earnings consequence is higher depreciation and interest, which is already visible in Q4 and will persist through FY27. The medium-term benefit (improved margin protection against import price volatility and supply disruptions) is the investment thesis. A granulation capacity expansion at Kakinada is the next phase, scheduled for completion in Q4 FY27.

Nutrient Business and Retail Scale-Up

The nutrient business operated at full plant capacity through FY26, registering 7 percent volume growth and selling 4.3 million tons of phosphatic fertilisers. The company entered new markets during the year and maintained strong farmer engagement through its distribution network. The agri-retail network crossed 1,200 outlets: an addition of over 300 stores during FY26 now present across Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, and Maharashtra, with services covering around 3 million farmers.

Subsidiary NACL Industries completed a turnaround in FY26, with 28 percent revenue growth and a return to profitability, a meaningful improvement after a period of operational underperformance.

Business Overview

Coromandel International Limited is a Murugappa Group company and one of India’s largest agri-solutions providers, incorporated in 1964 and listed on BSE (506395) and NSE (COROMANDEL). The company is India’s second-largest phosphatic fertiliser manufacturer and operates across fertilisers, crop protection, specialty nutrients, bio-products, organic fertilisers, and agri-retail. In FY26, consolidated total income was Rs. 31,827 crore (up 30 percent YoY) and standalone PAT was Rs. 2,009 crore.

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