Chambal Fertilisers and Chemicals (CHAMBLFERT) Q3 25/26 earnings summary

Executive summary

• India's largest private sector urea producer, contributing 10% of domestic supply, with significant shares in crop protection chemicals, specialty nutrients, and complex fertilizers.

• Q3 FY26 operational income rose 20% year-on-year to INR 5,898 crore, with net profit up 12% to INR 565 crore and EPS up 10% to INR 14.64; strong performance in crop protection, specialty nutrients, and biologicals.

• Urea volumes were lower due to an unscheduled plant stoppage, but P&K fertilizers and new product launches supported results.

• Strategic partnerships and R&D initiatives, including collaboration with TERI for sustainable agri-solutions and a dedicated lab for new product development.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, with limited review by auditors and no material misstatements identified.

Financial highlights

• Q3 FY26 standalone revenue from operations grew 20% year-on-year to INR 5,898 crore; consolidated net profit at INR 586 crore.

• Q3 EBITDA rose 6% to INR 821 crore, with EBITDA margin at 13.92%; PAT increased 12% to INR 565 crore, PAT margin at 9.57%.

• Nine-month revenue up 27% year-on-year to INR 18,009 crore; EBITDA up 4% to INR 2,424 crore; PAT up 16% to INR 1,804 crore.

• Finance costs dropped sharply to INR 42 million for 9M FY26 from INR 484 million YoY; net debt to equity remains nil as of FY25.

• Received subsidy of INR 3,880 crore in Q3 and INR 10,228 crore for nine months; receivables at INR 2,346 crore as of Dec 31, 2025.

Outlook and guidance

• Healthy product pipeline with 12 new CPC and one specialty nutrient product planned for FY2027; new biological products, especially fungicides and nematicides, are planned for the next financial year.

• TAN project 92% complete, with trial runs expected in April 2026 and full ramp-up targeted for FY2027 at 75-80%+ utilization; INR 11,836 million spent till Q3 FY26.

• Ongoing evaluation of capacity expansion in P&K fertilizers and active overseas investment discussions.

• Incremental obligations due to new labour codes have been estimated and recognized, with ongoing monitoring for further regulatory impacts.