Shree Pushkar Chemicals & Fertilisers Limited , a leading player in the chemicals and fertilizers sector, has announced a significant expansion plan alongside its robust financial performance for the second quarter of fiscal year 2025-26.

Expansion Plans

The company's board has approved a capital expenditure of Rs 350 crore for expanding its wholly-owned subsidiary, Madhya Bharat Phosphate Private Limited, located in Meghnagar, Jhabua, Madhya Pradesh. This expansion aims to add a capacity of 3,00,000 MTPA for complex fertilizers, with completion expected by March 2028. The move is strategically designed to cater to the growing demand from customers in the fertilizer segment.

Funding the Expansion

To partially fund this expansion, the board has approved the issuance of up to 7,36,196 fully convertible warrants at Rs 407.50 each to promoter Gautam Gopikishan Makharia. This preferential issue is expected to raise approximately Rs 30 crore. The warrants will be convertible into an equivalent number of equity shares within 18 months from the date of allotment.

Q2 Financial Highlights

For the quarter ended September 30, 2025, Shree Pushkar Chemicals reported the following financial results:

The company witnessed substantial growth across key financial metrics, with revenue from operations surging by 45.2% year-over-year. Net profit showed a robust increase of 36.7%, while EBITDA grew by 34.7% compared to the same quarter in the previous fiscal year.

Other Key Developments

• The company declared a dividend of Rs 2.00 per share for the financial year 2024-25.
• A new wholly-owned subsidiary, Dyecol Color Technologies Private Limited, was incorporated on September 3, 2025, in Mumbai.
• The authorized share capital of the company is set to increase from Rs 32.50 crore to Rs 33.50 crore to accommodate the proposed expansion and warrant issue.

Management Commentary

Punit Makharia, Chairman & Managing Director, stated, "Our strong Q2 performance reflects the resilience of our business model and the growing demand for our products. The planned expansion at Madhya Bharat Phosphate Private Limited aligns with our strategy to strengthen our position in the complex fertilizers market. We are confident that this investment will drive long-term growth and create value for our shareholders."

The company's focus on expansion and strong financial performance indicates its commitment to growth and market leadership in the chemicals and fertilizers sector.

Shree Pushkar Chemicals & Fertilisers Limited , a prominent player in the chemicals and fertilisers sector, has reported a significant increase in its financial performance for the second quarter of the fiscal year.

Financial Highlights

The company's consolidated net profit for Q2 rose to 182.00 million rupees, marking a substantial 37% increase from 133.00 million rupees in the same period last year. This growth in profitability underscores the company's robust performance in a competitive market.

Revenue for the quarter also saw a notable uptick, reaching 2.55 billion rupees, up from 1.76 billion rupees year-over-year, representing a 45% increase. This revenue growth indicates strong demand for the company's products and effective market strategies.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed improvement, rising to 262.00 million rupees compared to 191.00 million rupees in the corresponding quarter last year. This 37% increase in EBITDA reflects enhanced operational efficiency and cost management.

However, the EBITDA margin experienced a slight decline, moving to 10.28% from 10.86% in the same quarter of the previous year. This marginal decrease in margin may be attributed to various factors such as input costs or market dynamics.

Expansion Plans

The Board of Directors has approved a major expansion plan for Madhya Bharat Phosphate Private Limited, a wholly-owned subsidiary of Shree Pushkar Chemicals & Fertilisers. The expansion, located at Meghnagar, Jhabua, Madhya Pradesh, involves:

• A capital expenditure of 350.00 crore rupees
• Addition of 3,00,000 MTPA capacity for Complex Fertilisers
• Expected completion by March 2028

This expansion aims to cater to the growing demand from customers in the fertiliser segment, potentially strengthening the company's market position.

Funding the Expansion

To finance this expansion, the company plans to raise funds through a preferential issue of fully convertible warrants to the promoter, Mr. Gautam Gopikishan Makharia. Key details of this issue include:

• Issuance of up to 7,36,196 fully convertible warrants
• Each warrant convertible into one equity share
• Issue price set at 407.50 rupees per warrant
• Total issue size of approximately 29.99 crore rupees

This move is expected to strengthen the company's capital base and support its growth initiatives.

Market Implications

The robust financial performance, coupled with ambitious expansion plans, may position Shree Pushkar Chemicals & Fertilisers favorably in the market. The company's focus on increasing its production capacity in the fertiliser segment aligns with the growing agricultural sector demands.

Investors and market watchers may view these developments positively, considering the company's growth trajectory and strategic initiatives to enhance its market presence.