Q1 2027 Shree Pushkar Chemicals & Fertilisers Ltd Earnings Call Transcript
Key Points
- Revenue from operations grew 10% year-on-year to INR280.10 crores in Q1 FY27, driven by improved realizations across both businesses.
- EBITDA increased 9.7% year-on-year to INR31.9 crores, with margin improving to 11.4%.
- Profit after tax rose 9.4% year-on-year to INR22.9 crores, with PAT margin expanding to 8.2%.
- The company is progressing on major expansion projects (Ratnagiri Units 5 and 6, Megh Nagar) expected to add 450,000 MTPA fertilizer and 72,000 MTPA chemical capacity, strengthening integration and scale.
- Management expressed strong confidence in FY27, expecting PAT margins to reach around 9% and revenue to potentially hit INR1,700 crores once new units are operational.
- The company maintains a comfortable liquidity position with INR125 crores in non-lean deposits, supporting ongoing capex and financial flexibility.
- Strategic land acquisition of 30,000 sqm at Lote Parshuram provides headroom for future expansion.
- Renewable energy investments (10 MW DC solar project at Nanded) are nearing completion, enhancing sustainability and operational efficiency.
- Sales volumes declined in both segments: fertilizer volumes fell to 66,527 MT (from 76,288 MT) and chemical volumes dropped to 9,113 MT (from 14,837 MT) year-on-year.
- Global supply chain challenges and elevated raw material prices continue to pressure operations.
- The company is taking a measured approach to commissioning new units due to raw material volatility, delaying potential revenue contribution.
- Management acknowledged that orders deliberately held back in Q4 FY26 did not fully carry over to Q1 FY27, limiting the expected upside from price increases.
- The West Asia conflict and closure of Hormuz have caused acute shortages of key raw materials like ammonia and sulphur, impacting production and margins.
- Despite improved realizations, the company's gross profit margin contracted slightly to 31.9% from 33.0% in the prior year quarter.
- The company has not yet entered high-growth areas like battery-grade phosphoric acid, focusing instead on stabilizing current expansions, which may limit future diversification.
Ladies and gentlemen, good day and welcome to Shree Pushkar Chemicals and Fertilizers Limited Q1 FY27 Earnings Conference Call hosted by Churchgate Partners.
(Operator Instructions)
I now hand the conference over to Mr. Pankaj Manjani from Company Secretary and Compliance Officer.
Thank you and over to you sir.
Good afternoon everyone. And we welcome all the participants to Sri Pushkar Chemicals and Fertilizers Limited Q1 FY27 earnings call. Joining us today from the management side we have Mr. Puneet Makharia, Chairman and Managing Director, Mr. Deepak Veriwaga, Chief Financial Officer. Now I'll hand over the call to Mr. Puneet Makharia for his opening remarks. Over to you, sir.
Thank you, Pankaj.
Very good afternoon to everyone and thank you for joining us on Shiri
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