Q3 2026 Coromandel International Ltd Earnings Call Transcript
Key Points
- Coromandel International Ltd (BOM:506395) achieved its highest ever quarterly fertilizer production of 9.9 lakh tonnes, an 18% increase over the previous year.
- The company reported a strong performance in its Crop Protection business, with a 24% revenue growth and a 74% increase in EBIT, resulting in a margin improvement from 14% to 30%.
- The Specialty Nutrient business achieved record Q3 volumes, driven by improved performance in micronutrients and organic categories.
- Coromandel's backward integration projects for sulfuric acid and phosphoric acid are progressing well and are expected to be commissioned soon, which will enhance operational efficiencies.
- The company has become a market leader in Nano DAP, with a 68% growth over the last year, and is exploring global markets for this product.
- The rupee depreciation and higher raw material prices, such as sulfur and ammonia, have put pressure on margins for fertilizers.
- The late withdrawal of Southwest monsoons led to crop damage in certain regions, impacting agri input consumption and affecting the company's sales in those areas.
- The company's consumption-based market share in Q3 moderated to 14% from 15% last year, due to a slowdown in consumption in key states like Andhra Pradesh and Telangana.
- Despite a strong performance in the Crop Protection segment, the domestic industry faced challenges due to lower acreage of key crops and reduced pest infestation.
- NACL Industries, a subsidiary, had a tough quarter with lower margins due to adverse market conditions, although improvements are underway.
Ladies and gentlemen, good day, and welcome to Coromandel International Limited Q3 FY26 earnings conference call hosted by IIFL Capital Services Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand over the conference to Mr. Ranjit from IIFL Capital. Thank you, and over to you, sir.
Thank you, [Pari]. Good afternoon, everyone, and thank you for joining us on the Coromandel International Limited Q3 FY26 earnings conference call. From the company, we have with us Mr. Sankarasubramanian, Managing Director and Chief Executive Officer; and Mr. Deepak Natarajan, CFO.
We'd like to begin the call with a brief opening remark from the management, following which we will have the forum open for interactive Q&A session. I would now like to invite Mr. Sankarasubramanian to make the initial remarks.
Thank you, and over to you, sir.
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