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

Executive summary

• Q1 FY27 saw challenging conditions from geopolitical disruptions, elevated raw material prices, delayed monsoon, and planned plant shutdowns, impacting fertilizer demand and supply chains.

• Despite these headwinds, improved profitability was achieved through prudent procurement, product launches, and a diversified portfolio, with margin gains across CPC, SN, and biologicals.

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

• Government engagement ensured gas availability, timely subsidy disbursements, and uninterrupted operations.

• Preparatory activities for a potential fourth urea plant are underway, pending board approval.

Financial highlights

• Standalone revenue from operations was INR 5,027.02 crore, down 12% year-over-year, with consolidated revenue at INR 5,027.02 crore.

• EBITDA rose 12% to INR 851 crore, with margins expanding to 17% from 13% (up 350 bps).

• Standalone net profit was INR 703.49 crore, up from the previous quarter but down from INR 758.68 crore YoY; consolidated net profit was INR 523.61 crore.

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

• Net borrowing stood at INR 200 crore as of June 30, with net debt to equity at 0.01.

Outlook and guidance

• Improved monsoon and sowing activity are expected to drive stronger demand in Q2 and the remainder of the year.

• Long-term outlook remains constructive, with the National Investment Policy for Urea 2026 supporting future capacity expansion.

• Management expects continued growth in value-added businesses and successful ramp-up of the TAN project.

• Financial statements are based on current government policies and notified concession rates for fertiliser subsidies.