Chambal Fertilisers: Cultivating Growth Amidst Market Shifts in Q2 FY26

Chambal Fertilisers and Chemicals Limited, a prominent player in India's agricultural input sector, has reported a strong financial performance for the second quarter and first half of the fiscal year 2026. The company's standalone revenues for Q2 FY26 surged by 48% year-on-year to Rs. 6,413 crore. This robust top-line growth translated into a healthy EBITDA of Rs. 882 crore, marking a 6% increase from the previous year. Profit After Tax (PAT) for the quarter saw a significant jump of 20% to Rs. 602 crore, underscoring the company's operational efficiency and strategic initiatives. For the first half of FY26, revenues amounted to Rs. 12,110 crore, with PAT reaching Rs. 1,240 crore, reflecting an 18% growth over H1 FY25.

The company's performance was primarily bolstered by its P&K Fertilisers segment, which demonstrated strong results driven by timely procurement and strategic placement in the market. This was further supported by favorable policies from the Department of Fertilisers. While urea volumes experienced a slight dip due to an unscheduled short stoppage at the Gadepan-III plant, the Crop Protection Chemicals (CPC), Speciality Nutrients (SN), and Seeds businesses exhibited remarkable growth. This segment's revenue grew by 29% in Q2 FY26, with its contribution increasing by an impressive 37% year-on-year. Chambal Fertilisers has been proactive in expanding its product offerings, launching 3 new CPC and 2 new SN products in Q2 FY26, alongside new hybrid seeds, reinforcing its commitment to a diversified agri-input portfolio.

Strategic Initiatives Driving Future Growth

Chambal Fertilisers is actively pursuing several strategic initiatives to sustain its growth trajectory and enhance its market position. A key project is the Technical Ammonium Nitrate (TAN) plant, which is progressing as planned. With all statutory approvals secured, operations are slated to commence in January 2026, and products are expected to be available in the market by mid-February. This project, with a total cost of Rs. 1,645 crore, has already seen an investment of Rs. 1,052 crore by September 2025. The TAN plant is poised to address the domestic supply shortage and is projected to offer healthy margins with a payback period of six to seven years, indicating a disciplined approach to capital allocation.

Furthermore, the company's joint venture, Indo Maroc Phosphore S.A. (IMACID) in Morocco, is also undergoing an expansion. Its phosphoric acid capacity is set to increase from 5 lakh metric tons to 7 lakh metric tons by December 2026. This expansion is anticipated to optimize operations and boost profitability through better realization. The company's focus on new product development is evident across its CPC, SN, and Seeds segments, with a strong emphasis on high-value crops, biologicals, and sustainable agriculture practices. This strategy not only diversifies revenue streams but also aligns with evolving agricultural needs.

Digital Engagement and Market Outreach

Recognizing the importance of direct farmer connect, Chambal Fertilisers launched the 'Chambal Uttam Krishak Mitra App'. This mobile application serves as a comprehensive platform for farmers, offering crop advisory, disease and pest diagnostics, and crucial weather information in five regional languages. The app has quickly gained traction, accumulating between 80,000 to 90,000 followers and subscribers, with an ambitious target of reaching 3 to 5 lakh subscribers by next year. This digital initiative, coupled with the 'Seed to Harvest' program, which involves demonstrations of new molecules and product combinations, significantly enhances farmer awareness and showcases product efficacy, strengthening the 'Uttam' brand's trust among the farming community.

Outlook and Sustainability

Despite minor challenges such as plant stoppages and unseasonal rains, Chambal Fertilisers has demonstrated resilience and strategic agility. The management's proactive approach to procurement, diversified product portfolio, and timely execution of expansion projects position the company for sustained growth. The timely receipt of subsidies further provides financial stability. The company's commitment to innovation, farmer engagement, and environmental sustainability, as highlighted by its various CSR initiatives, underscores a holistic approach to business. Chambal Fertilisers continues to cultivate a strong foundation for future success, aiming to deliver consistent value to its stakeholders through strategic clarity and disciplined execution.