Chambal Fertilisers and Chemicals (CHAMBLFERT) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 was marked by challenging conditions from geopolitical disruptions, elevated raw material prices, and delayed monsoon, impacting fertilizer demand and supply chains.

• Operating income for Q1 FY27 was INR 5,027.02 crore, down 12% year-over-year, while operating EBITDA rose 12% to INR 8,509 Mn and net profit increased 10% to INR 7,035 Mn on a standalone basis.

• Profitability improved due to better product mix, operational efficiency, and timely procurement, with margin gains across CPC, SN, and biologicals.

• The company advanced its TAN project, expanded its crop protection and specialty product portfolio, and continued preparatory activities for a potential fourth urea plant.

• Maintains a strong pan-India presence with a 10% urea market share and robust distribution.

Financial highlights

• Standalone revenue from operations was INR 5,027.02 crore, down 12% year-over-year; EBITDA rose 12% to INR 851 crore, with margins expanding to 17% from 13% last year.

• Profit after tax increased 10% to INR 703 crore; PAT margin improved to 13.99% from 11.20%.

• Standalone EPS for Q1 FY27 was INR 17.56; consolidated EPS was INR 13.07.

• Net borrowing stood at INR 200 crore as of June 30; net debt to equity remains low at 0.01.

• Subsidy received was INR 2,480 crore, nearly flat year-over-year.

Outlook and guidance

• Improved monsoon and sowing activity expected to drive stronger demand in Q2.

• Long-term outlook constructive, supported by National Investment Policy for Urea 2026 and ongoing capacity expansion.

• Margins in complex fertilizers expected to decline as inventory costs average up, but will remain healthy.

• TAN business expected to ramp up utilization and maintain better-than-budgeted margins.

• Focus on launching new products in CPC, SN, seeds, and biologicals to drive future growth.