Khaitan Chemicals Reports 34% Revenue Surge in Q2 FY26, Driven by Strong SSP Demand

Khaitan Chemicals & Fertilizers Limited (KCFL), one of India's leading Single Super Phosphate (SSP) manufacturers, has reported a robust financial performance for the second quarter of fiscal year 2026, with revenue soaring 34% year-on-year to INR 3,086.00 million.

Financial Highlights

The company's Q2 FY26 results showcase significant improvements across key financial metrics:

Metric	Q2 FY26	Y-o-Y Change
Operational Revenue	INR 3,086.00 million	+34%
EBITDA	INR 310.00 million	Significant increase
EBITDA Margin	10.05%	+632 bps
Net Profit	INR 215.00 million	Turned profitable
PAT Margin	6.97%	+831 bps

For the first half of FY26, KCFL's revenue reached INR 5,429.00 million, marking a 51% increase compared to the same period last year.

Segment Performance

The fertilizer segment continued to be the primary revenue driver, contributing 84% to the total revenue, while the chemicals segment accounted for 16%. This diversified portfolio has supported overall margin improvement.

Volume Growth

KCFL reported strong volume growth in its core segments:

Fertilizer volume for H1 FY26 stood at 2.58 lakh MT, up 11% year-on-year
Chemical volume reached 0.69 lakh MT, an 18% increase

Market Drivers

The company's growth was primarily driven by strong demand for Single Super Phosphate (SSP), improved realizations, and higher sales volumes. The favorable monsoon outlook and the trend of SSP substituting DAP (due to shortages) are expected to sustain demand for KCFL's products.

Government Support

The recent approval of INR 37,952.00 crore under the Nutrient-Based Subsidy (NBS) scheme for P&K fertilizers for the Rabi 2025-26 season is anticipated to support fertilizer affordability and sustain demand. This move aligns with the government's efforts to promote balanced fertilizer use and reduce dependency on imports.

Strategic Positioning

Khaitan Chemicals & Fertilizers, with its six manufacturing units across multiple states and approximately 10% market share in India's SSP market, is well-positioned to capitalize on the growing demand for cost-effective and balanced fertilizers. The company's trusted brands, 'Khaitan' and 'Utsav', continue to enjoy high recall among farmers.

Outlook

With a strong distribution network of over 3,000 dealers and 30,000 retailers across 19 states, KCFL is poised for continued growth. The company's focus on SSP, which addresses soil nutrient deficiencies and offers a cost-effective alternative to DAP, aligns well with the government's push for balanced fertilizer use and self-reliance in the sector.

As India's fertilizer industry continues to evolve, with projections to reach USD 16.60 billion by 2032, Khaitan Chemicals & Fertilizers' strategic positioning and robust financial performance indicate a positive outlook for the company in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.81%	-6.23%	-29.95%	+23.23%	+26.38%	+361.14%

Khaitan Chemicals & Fertilizers Limited (KCFL) has reported a significant turnaround in its financial performance for the second quarter of the fiscal year 2025-26. The company's Q2 results showcase a remarkable improvement across key financial metrics, indicating a robust recovery in its operations.

Financial Highlights

Particulars (in Crore)	Q2 FY2025-26	Q2 FY2024-25	YoY Change
Revenue	310.86	230.65	+34.78%
EBITDA	31.10	8.60	+261.63%
EBITDA Margin	10.08%	3.73%	+635 bps
Net Profit	21.50	(3.10)	N/A

KCFL has demonstrated a strong financial performance in Q2 FY2025-26:

Revenue Growth: The company's revenue surged to 310.86 crore, marking a substantial increase of 34.78% compared to 230.65 crore in the same quarter of the previous year.
Profitability Boost: KCFL reported a net profit of 21.50 crore, a significant turnaround from a loss of 3.10 crore in Q2 FY2024-25.
EBITDA Improvement: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed remarkable growth, rising to 31.10 crore from 8.60 crore in the corresponding quarter last year.
Margin Expansion: EBITDA margin expanded significantly to 10.08% from 3.73%, indicating improved operational efficiency and cost management.

Segment Performance

KCFL operates in two primary segments:

Fertilizers: This segment continues to be the major revenue driver for the company.
Chemicals & Specialty Chemicals: This segment has shown promising growth, contributing to the overall performance improvement.

Balance Sheet Position

As of September 30, 2025, KCFL reported:

Total assets of 7,001.32 crore
Total equity of 2,656.99 crore

This indicates a strong balance sheet position, providing a solid foundation for future growth and expansion plans.

Outlook

The company's impressive turnaround in Q2 FY2025-26 positions it well for sustained growth in the coming quarters. However, investors should keep an eye on factors such as raw material costs, regulatory changes in the fertilizer industry, and overall economic conditions that may impact KCFL's performance.

As Khaitan Chemicals & Fertilizers continues to strengthen its market position in both the fertilizer and chemical segments, it will be crucial to monitor how the company leverages this momentum for long-term value creation for its shareholders.

Note: All financial figures are in Indian Rupees (INR).