Coromandel International Limited reported a consolidated net profit of ₹381.56 crore for the quarter ended June 30, 2026 (Q1FY27), a 24% decline from ₹501.59 crore in the same period last year. Standalone net profit fell more sharply by 26% to ₹377 crore, down from ₹508 crore in Q1FY26. Despite the profit contraction, revenue from operations grew by 15% to ₹8,164.77 crore on a consolidated basis and 10% to ₹7,792 crore standalone, reflecting volume growth that was offset by rising input costs.

The profitability pressure stemmed primarily from elevated raw material costs triggered by the ongoing Middle East crisis, which weighed heavily on the Fertiliser business. Subsidy rates remained inadequate to fully offset these increased input costs. Consequently, consolidated EBITDA declined 3% to ₹761 crore from ₹782 crore, while standalone EBITDA dropped 15% to ₹626 crore from ₹738 crore. The Board of Directors approved the unaudited financial results at its meeting held on July 23, 2026.

Segment Performance and Operational Updates

While the subsidy-dependent fertiliser segment faced headwinds, non-subsidy businesses delivered robust growth. The Crop Protection segment recorded a strong performance, with segment revenue growing 20% year-on-year to ₹870 crore. This growth was driven by exports and B2B sales, supported by an improved product mix. EBITDA for this segment increased 44% to ₹159 crore. The Retail Business also continued its growth trajectory, aided by network expansion and deeper farmer engagement across fertilisers, specialty nutrients, and organic products.

Operationally, the company stabilised its newly commissioned Phosphoric Acid and Sulphuric Acid plants at Kakinada, strengthening backward integration. The brownfield fertiliser granulation project, adding 7.5 lakh tons of annual capacity, is progressing as planned for completion in Q4 FY27. Additionally, the capacity expansion for a key molecule at Sarigam is on track for commissioning in Q2 FY27.

Strategic Disclosures and Board Approvals

Alongside the results, the Board approved the conversion of a loan amounting to approximately ₹108 crore into equity shares of Coromandel Chemicals Limited, a wholly owned subsidiary, at an issue price of ₹39.95 per share. The Board also approved restructuring loans worth USD 9.70 Million given to Baobab Mining and Chemicals Corporation S A (BMCC), a step-down subsidiary, into equity or preference shares. These disclosures were made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

What the Numbers Show

The divergence between revenue growth and profit decline highlights the sensitivity of Coromandel’s core fertiliser business to global geopolitical shocks. While the 15% consolidated revenue increase demonstrates strong market demand and share retention, the 24% drop in PAT indicates that margin compression in the high-volume fertiliser segment currently outweighs the operational leverage gained from high-growth, higher-margin segments like Crop Protection. The stabilisation of new acid plants suggests future cost mitigation strategies are in place, but near-term earnings remain vulnerable to raw material volatility.

Coromandel International has been awarded the Responsible Care Certification by the Indian Chemical Council (ICC) for all 18 manufacturing facilities across its Nutrients, Crop Protection Chemicals, Specialty Nutrients, and Bio businesses. Valid from April 2026 to March 2029, the certification recognizes the company's adherence to the global chemical industry's most rigorous standards of safety, health, and environmental stewardship. This achievement places Coromandel among a select group of companies globally to meet these standards, reinforcing its commitment to responsible manufacturing practices.

The certification follows a comprehensive assessment and verification process led by the ICC. Coromandel undertook a structured improvement programme spanning manufacturing operations, business functions, and the supplier ecosystem. The company implemented focused interventions in areas such as process safety, employee wellbeing, environmental performance, product responsibility, distribution safety, and community engagement to meet the requirements of the globally recognized initiative.

Responsible Care is an initiative of the chemical industry administered globally by the International Council of Chemical Associations (ICCA) and implemented in over 70 countries. The framework is designed to help companies strengthen responsible manufacturing practices and meet evolving stakeholder expectations across the value chain.

"This certification is a testament to Coromandel's consistent focus on responsible manufacturing and high safety standards. We are making significant investments to strengthen our safety systems and environmental practices and remain committed to upholding the highest standards across all our operations," said Mr. S. Sankarasubramanian, Managing Director & CEO, Coromandel International Limited.

Coromandel International Limited reported a turnover of ₹31,827 Crores during FY 25-26. The company operates 21 manufacturing facilities across India and is part of the Murugappa Group, which recorded a turnover of INR 90,178 crore in FY 24-25.