Coromandel International Limited: A Strong Harvest in Q2 and H1 FY26

Coromandel International Limited, a prominent player in the agri-solutions sector, has delivered a robust performance in the second quarter and first half of the financial year 2025-26. The company reported a consolidated total income of INR 9,771 crore for Q2 FY26, marking a significant 30% growth year-on-year. For the first half, the total income reached INR 16,897 crore, growing by an impressive 38%. This strong financial showing was underpinned by healthy growth in EBITDA and PAT, reflecting effective operational strategies and market penetration.

EBITDA for Q2 FY26 stood at INR 1,147 crore, an 18% increase from the previous year, while H1 FY26 EBITDA was INR 1,929 crore, up 30%. Net Profit After Tax (PAT) also saw substantial growth, with INR 793 crore in Q2 (up 20%) and INR 1,295 crore in H1 (up 34%). These figures highlight Coromandel's ability to maintain profitability and scale operations amidst evolving market dynamics. The company's consolidated financials include contributions from NACL Industries, which became a subsidiary effective August 8, 2025.

Segmental Performance: Driving Growth

The Nutrients segment continues to be the primary revenue driver for Coromandel. In Q2 FY26, this segment generated sales of INR 8,661 crore, accounting for approximately 89.71% of the total consolidated revenue. The company's fertilizer plants demonstrated exceptional operational efficiency, running above 100% capacity and producing 9.1 lakh tons of NPK, a 3% increase over the previous year. The Phosphoric acid facility also saw a 13% boost in production, reflecting successful de-bottlenecking efforts. Coromandel has solidified its position as the largest marketer of phosphatic fertilizers in the country, with its consumption-based market share in H1 rising to 19% from 17% last year. This growth is largely attributed to the increasing adoption of NPK products for balanced nutrition, a trend the company is actively promoting.

The Crop Protection (CPC) segment, including the recently acquired NACL Industries, contributed INR 1,069 crore to the consolidated revenue in Q2 FY26. While standalone CPC margins were robust at 20%, the consolidated figures were influenced by one-off exceptional items and expenses related to NACL's integration, as well as proportionate consolidation for only 50 days of the quarter. Despite this, management is highly optimistic about the synergy benefits from NACL, projecting the combined crop protection segment to achieve INR 5,000 crore in annual revenue. The company is also witnessing strong traction in export markets, particularly for Mancozeb volumes, which grew 6-7% in H1, and aims for a 25% growth in its domestic formulation business this year.

Strategic Initiatives and Future Outlook

Coromandel is strategically investing in several key initiatives to sustain its growth trajectory and enhance operational efficiencies. A significant focus is on backward integration, with the Sulfuric and Phosphoric acid project in Kakinada nearing completion. This project, 90% achieved, is slated for mechanical completion in the coming quarter and commissioning in January 2026. This move is expected to transform Coromandel from an acid importer to an integrated player, significantly improving its cost structure and ensuring supply security. The investment is projected to yield a payback within 2 to 2.5 years.

Another major initiative is the enhancement of NPK capacity at Kakinada to a million tons, expected to be completed by Q3 FY27. This expansion aims to meet the growing demand for balanced nutrition NPK products and strengthen the company's market presence, especially in Northern and Central India. Furthermore, Coromandel has announced an investment in a MAP (Monoammonium Phosphate) plant at Vizag, which will reduce its dependence on imported raw materials for specialty nutrients.

The company's retail business is also undergoing aggressive expansion, with 170 new stores opened in H1 FY26, bringing the total to 1,200 stores by the end of FY26, with an ultimate target of 2,000. This expansion, coupled with the adoption of drone spraying services and e-commerce, aims to increase market reach and improve customer engagement. The management has provided a positive outlook for the upcoming Rabi season, anticipating a bountiful harvest due to above-normal monsoon forecasts and healthy reservoir levels. The company targets a minimum EBITDA of INR 5,500 per metric ton in the second half of the year and plans to achieve 100% capacity utilization for its Phosphoric and Sulfuric acid plants next year.

Sustained Growth and Disciplined Execution

Coromandel International Limited's Q2 and H1 FY26 performance reflects a period of sustained growth driven by strategic investments, operational excellence, and market expansion. The company's focus on backward integration, capacity enhancement, and retail footprint expansion positions it well for future growth. Despite challenges like unseasonal rains and initial integration costs for NACL, Coromandel's disciplined execution and proactive approach to market trends underscore its commitment to long-term value creation for its stakeholders. The company is not just growing, but growing strategically, laying a strong foundation for continued success in the agri-solutions landscape.