Coromandel International , a leading fertilizer and agri-solutions provider, recently reported facing challenges due to rising costs for key inputs, particularly sulfur and sulfuric acid. Despite these headwinds, the company has managed to maintain a positive outlook on its financial performance.

Input Cost Pressures and Mitigation Strategies

The company acknowledged that increasing prices of essential raw materials have put pressure on its margins. However, Coromandel International has been proactive in addressing these challenges:

1. Procurement Efficiencies: The company has implemented strategies to offset some of the impacts of rising input costs through improved procurement efficiencies.

2. Stable EBITDA Outlook: Despite the cost pressures, Coromandel International expects to maintain a stable EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of ₹5,000 per metric ton for manufactured products.

BMCC's Production Plans

In a related development, BMCC (Baobab Mining and Chemicals Corporation), a subsidiary of Coromandel International, has announced ambitious production targets:

• FY26 Output Goal: BMCC aims to achieve rock phosphate output of 300,000-400,000 tons for the fiscal year 2026.
• Production Expansion: The company plans to double its production within two years, signaling a strong commitment to growth and increased capacity.

Financial Performance

An analysis of Coromandel International's recent financial data reveals:

The company has shown significant year-over-year growth across key financial metrics, despite the challenges in the input cost environment:

• Revenue Growth: The company's revenue increased by 48.99% compared to the same quarter last year, reaching ₹7,126.00 crore.
• EBITDA Improvement: EBITDA saw a substantial increase of 59.04%, aligning with the company's goal of maintaining stable EBITDA for manufactured products.
• Profitability: Net profit grew by 62.23%, demonstrating the company's ability to manage costs effectively and maintain profitability.
• Margin Expansion: The operating profit margin improved to 11.11%, a 7.14% increase year-over-year, indicating enhanced operational efficiency.

These financial results suggest that Coromandel International's strategies to mitigate input cost pressures are yielding positive outcomes. The company's focus on procurement efficiencies and maintaining stable EBITDA appears to be effective in navigating the challenging cost environment.

As Coromandel International continues to address input cost pressures and expand its production capabilities through BMCC, the company seems well-positioned to maintain its growth trajectory and operational efficiency in the coming quarters.

Coromandel International Limited , a leading Indian fertilizer and crop protection company, has reported robust financial results for the first quarter of the fiscal year, along with strategic expansion moves in its mining operations.

Strong Financial Performance

The company delivered a stellar quarterly performance with consolidated net profit surging to ₹505.01 crore, marking a significant 62.4% increase from ₹310.97 crore in the same period last year. This impressive growth was backed by a substantial rise in revenue, which climbed to ₹7,042.30 crore, up 48.9% from ₹4,728.83 crore year-over-year.

Coromandel's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a notable improvement, reaching ₹780 crore compared to ₹510 crore in the previous year, representing a 52.9% increase. The EBITDA margin expanded to 11.11% from 10.7%, indicating enhanced operational efficiency.

Segment Performance

The company's financial results revealed strong performances across its two main business segments:

Both segments contributed significantly to the overall growth, with the Nutrient and Other Allied Business segment showing particularly strong results.

Strategic Expansion Moves

Increased Stake in Senegal Mining Subsidiary

Coromandel International announced plans to acquire an additional 17.69% stake in Baobab Mining and Chemicals Corporation (BMCC), Senegal, through its wholly-owned subsidiary Coromandel Chemicals Limited (CCL). This acquisition, valued at USD 7.70 million, will increase CCL's ownership in BMCC from 53.82% to 71.51%.

BMCC, incorporated in 2011, is engaged in the mining and production of Rock Phosphate, a crucial raw material for manufacturing phosphoric acid and complex fertilizers. This move aligns with Coromandel's strategy to secure long-term, sustainable supply of raw materials for its core business.

New Bagging Plant at Kakinada

The company also approved capital expenditure plans for setting up a new bagging plant at Kakinada as part of its granulation capacity expansion. The facility will have a capacity of 3,888 MTPD with 6 bagging machines, to be installed at 90% efficiency on design capacity. The project, estimated to cost ₹137 crore, is expected to be completed within 18 months.

This in-house bagging plant is anticipated to reduce operational costs, improve operational efficiency, and provide better control over end-to-end operations compared to the previous third-party bagging arrangement.

Management Changes

In other corporate developments, Coromandel International noted the resignation of Mr. Arulraj K, Senior Associate Vice President – Head Legal, effective July 28, 2025.

Conclusion

Coromandel International's strong Q1 performance, coupled with its strategic moves in raw material sourcing and operational expansion, positions the company for continued growth in the fertilizer and crop protection sectors. The increased stake in BMCC and the new bagging plant investment demonstrate the company's commitment to strengthening its supply chain and enhancing operational capabilities.

As Coromandel International continues to build on its robust financial performance and strategic initiatives, it remains well-positioned to capitalize on opportunities in the agricultural inputs market.