Coromandel International sees 26% drop in net profit in Q1 at Rs 377 crore

CHENNAI: Coromandel International, a Murugappa group company, reported a net profit to Rs 377 crore in June quarter, a 26 per cent drop compared to Rs 508 crore posted in Q1 of FY25. Revenue for Q1 of FY26 saw a 10 per cent jump at Rs 7,792 crore (Rs 7,083 crore).

During the quarter, the company stabilised operations of its newly-commissioned phosphoric acid and sulphuric acid plants at Kakinada, strengthening its backward integration and supply security. The brownfield fertiliser granulation project, which will add 7.5 lakh tons of annual capacity, is progressing as planned and is expected to be completed in Q4 FY27. In crop protection, the capacity expansion for its key molecule at Sarigam remains on track for commissioning during Q2 FY27, as per a release.

S Sankarasubramanian, managing director-CEO, Coromandel International, said: “During the quarter, the Middle East conflict resulted in a sharp escalation in raw material prices, while subsidy rates remained inadequate to fully offset the increased input costs. Despite this challenging environment, Coromandel strengthened its leadership position in the phosphatic fertilisers segment by improving market share and adopting a disciplined approach to production, procurement and inventory management, ensuring uninterrupted fertiliser supplies to the farming community."

Company leveraged the strength of its diversified business portfolio and strong execution capabilities to deliver robust growth across its non-subsidy businesses, which helped in partially offsetting headwinds in the fertiliser segment, he said.

The crop protection business recorded a strong performance, driven by growth in exports and B2B sales. "Segment revenue grew by 20 per cent year-on-year to Rs 870 crore, while EBITDA increased 44 per cent to Rs 159 crore, supported by an improved product mix and healthy traction for our key technical products," Sankarasubramanian said.

Noting that the retail business continued its growth trajectory, he said it was aided by network expansion, deeper farmer engagement and strong growth across fertilisers, speciality nutrients and organic products.