Coromandel International Limited has announced its financial results for the quarter and full year ended March 31, 2026, reporting a 30% increase in consolidated total income to Rs 31,827 crore for FY26. The Board of Directors, which convened on May 7, 2026, approved the audited financial results and declared a final dividend of Rs 2 per equity share. The company's post-results conference call, held on May 8, 2026 and hosted by Elara Securities, highlighted a standout performance from its Nano business — which emerged as a market leader with approximately 50% market share and 60% volume growth — alongside margin pressures attributed to delays in NBS (Nutrient Based Subsidy) adjustments, higher input costs, and reduced government reimbursement rates.

Consolidated Financial Performance

The company delivered robust top-line growth for the full year, driven by strong performance across its Nutrient and Crop Protection businesses. While consolidated Profit After Tax (PAT) declined by 8% to Rs 1,898 crore due to exceptional items, the underlying operational performance remained resilient with EBITDA growing by 23% to Rs 3,232 crore. The subsidy business accounted for approximately 85% of full-year revenue and 66% of full-year EBITDA. The consolidated results, including exceptional items, are presented below:

Management noted that the Q4 PAT of Rs 115 crore was significantly impacted by a variation of approximately Rs 420 crore between exceptional items in the two corresponding periods — last year's Q4 included exceptional income of Rs 347 crore from a land sale, against a loss of Rs 71 crore taken in the current year towards impairment of investments in the drones business.

Standalone Results and Dividend

On a standalone basis, Coromandel International reported a 26% increase in total income to Rs 30,882 crore for FY26, with PAT rising by 3% to Rs 2,009 crore. The standalone PBT before exceptional items grew 15% to Rs 2,868 crore for the full year. The Board approved a final dividend of Rs 2 per share, equivalent to 200% on the face value of Rs 1 per share. Combined with the interim dividend of Rs 9 per share paid in February 2026, the total dividend for FY 2025-26 amounts to Rs 11 per equity share, representing 1100% on the face value.

Nano Business Emerges as Market Leader

A key highlight from the concall was the strong performance of Coromandel International's Nano business, which has established itself as a market leader in the Nano DAP segment. The Nano segment achieved approximately 50% market share, supported by 60% volume growth during the period. The company marketed 45 lakh Nano bottles, underpinned by extensive field trials, scientific studies, and sustained farmer engagement initiatives. The Nano business also expanded its presence in international markets through ongoing trials and registrations.

Crop Protection Business: Revenue Breakdown and Growth

The Crop Protection business recorded 16% revenue growth for the full year, with profitability rising 55%. On a standalone basis, crop protection revenue grew to Rs 3,054 crore, driven by strong performance across formulations, exports, B2B, and bio segments. The concall provided a detailed revenue breakdown for the standalone crop protection business:

On a combined basis, including subsidiary NACL Industries Ltd, the crop protection business reported revenue of Rs 4,000 crore. NACL achieved a successful turnaround, with revenue growing 28% to Rs 1,585 crore and EBITDA of Rs 103 crore against losses in the previous year. Management indicated NACL's EBITDA margin has improved to 6%-7%, with a target of 9%-10% as new products are introduced over time. Coromandel commissioned a technical plant at Dahej during the year and is further expanding technical capacity at Sarigam, with an additional 20,000 tons of Mancozeb capacity underway and expected by mid-year. The Dahej debottlenecking added 10,000 tons of Mancozeb capacity, with a payback period of less than one year.

Margin Pressures: NBS Subsidy Delays and Input Cost Headwinds

Despite strong revenue performance, the company reported margin compression in the fertilizer segment, driven by a combination of structural and policy-related headwinds. Delays in NBS subsidy adjustments created a timing mismatch, while higher input costs weighed on profitability. Key raw material prices rose sharply, with Ammonia trading around $840-$850 per ton and Sulphur around $800 per ton, driven by supply disruptions from the Middle East crisis. The Phosphoric Acid price for the quarter was fixed at USD 1,360, compared to USD 1,290 in the previous period. Fertilizer manufacturing EBITDA per ton was above Rs 5,000 for the full year but compressed to below Rs 3,500 in Q4. For the full year, the company received Rs 10,649 crore in subsidy claims, compared to Rs 8,082 crore in the previous year, with subsidy outstanding at March-end standing at Rs 2,168 crore versus Rs 1,654 crore a year earlier.

Management noted that the government announced NBS rates for Kharif 2026 with a 10% increase in nutrient rates for N, P, and S, but these rates do not fully reflect the sharp increase in raw material prices and rupee depreciation. Industry is actively engaging with the government for additional compensation, and management expressed hope for a positive outcome.

Operational Highlights

During the year, the Nutrient business operated its plants at full capacity, achieving record fertilizer production of 3.5 million tons. Coromandel International successfully commissioned a 2,000 TPD Sulphuric Acid plant and a 650 TPD Phosphoric Acid plant at Kakinada, with an investment of approximately Rs 1,100 crore, strengthening backward integration capabilities. The new Phosphoric Acid plant is capable of producing 200,000 tons of Phosphoric Acid annually. The company's rock phosphate project in Senegal ramped up output to more than 3.5 lakh tons during the year, and Coromandel has enhanced its stake in the Senegalese entity to 71.5%. Output from the Senegal project is planned to increase by 30%-40% in the current year. The fertiliser granulation capacity expansion project at Kakinada is progressing as per plan and is scheduled for completion by Q4 FY26-27.

The company delivered record sales of 4.3 million tons of DAP and NPK, a growth of 7% over last year, achieving a market share of 17.5% in the phosphatic sector. The single superphosphate (SSP) business registered highest-ever sale volume of 8.4 lakh tons, with differentiated grades contributing more than 50% of the volume. The Agri Retail business expanded its network to 1,200 centers, adding over 300 new stores across existing and new geographies, and reported revenue growth of over 30% for FY26. During the year, the domestic phosphatic industry increased production to 16 million tons, with imports of DAP and NPK rising to 10 million tons from 7 million tons in the previous year. Industry players also signed off-take agreements of close to 7 lakh tons of green Ammonia; Coromandel agreed to cover up to 20% of its total Ammonia requirement under this initiative.

Strategic Diversification Beyond Fertilizers

In the concall, management outlined plans to reduce exposure to risks inherent in the fertilizer business, including vulnerability to government policy changes and dependence on weather conditions. Coromandel International indicated its intent to diversify beyond the fertilizer segment to build a more resilient and balanced business portfolio. On the CDMO (Contract Development and Manufacturing Organization) front, management noted that two to three European entities and certain Japanese collaborators have shown interest, with fluorination chemistry being explored as a key area of investment, leveraging NACL's existing capabilities. Management indicated that meaningful CDMO revenues could materialize in the years ahead as proof-of-concept and capacity development progress. The Dhaksha drone subsidiary, in which an impairment was taken during the year, is working towards executing a large pending order, introducing new products, and building strategic collaborations in both the defence and agriculture segments. A larger facility for Dhaksha is expected to be ready by May.

Management Commentary

Commenting on the results, Mr. S. Sankarasubramanian, MD & CEO, Coromandel International, stated: "Coromandel's Nutrient business delivered a steady performance in FY26, navigating a dynamic operating environment marked by supply disruptions, volatile raw material prices and sharp currency movements. During the year, the Company strengthened its position in the phosphatic fertiliser segment, registering 7% growth and achieving sales of 4.3 million tons, supported by strong farmer engagement and entry into new markets. Company's Crop Protection business recorded strong momentum during the year, delivering healthy 16% revenue growth with 55% rise in profitability. Our subsidiary NACL Industries Ltd achieved a successful turnaround during the year through focused operational improvements and reported a 28% increase in revenue and returned to profitability. The Company's Agri Retail business continued to scale up its network to 1200 centers, adding over 300 new stores across existing and new geographies in FY26."

Earnings Conference Call

Coromandel International held its conference call on May 8, 2026, at 02:30 PM IST to discuss the Q4FY26 results. The call was hosted by Elara Securities and featured Managing Director & CEO Mr. S. Sankarasubramanian and Chief Financial Officer Mr. Deepak Natarajan. In compliance with Regulation 46(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audio recording and transcript of the conference call have been uploaded on the company's website at https://www.coromandel.biz/investors/investor-call-transcripts/ . The investor presentation for the conference call is also available on the company's website at https://www.coromandel.biz/investors/corporate-presentation/ .

Coromandel International Ltd. recorded a substantial block trade on the National Stock Exchange (NSE), highlighting significant institutional trading activity in the fertilizer and crop protection company's shares.

Block Trade Details

The transaction involved a considerable volume of shares changing hands through the block trading mechanism on NSE. Block trades are typically executed by institutional investors and represent large-volume transactions that are conducted outside the regular market to minimize price impact.

Market Significance

Block trades often indicate strategic moves by institutional investors, including mutual funds, insurance companies, or foreign institutional investors. Such transactions can represent portfolio rebalancing, stake building, or divestment activities by large investors. The execution through block trading mechanism ensures that large volumes can be traded without causing significant price volatility in the regular market.

The price of Rs. 2057.30 per share at which the transaction was executed provides insight into the valuation at which institutional investors are willing to transact in Coromandel International's shares. This trading activity reflects the ongoing interest in the company's stock among institutional market participants.