Shree Pushkar Chemicals & Fertilisers: Sustained Growth and Strategic Expansion in Q2 & H1 FY26

Shree Pushkar Chemicals & Fertilisers Ltd. has delivered a robust performance in the second quarter and first half of Fiscal Year 2026, showcasing significant growth across its core segments. The company reported a consolidated revenue from operations of Rs. 255.1 crores for Q2 FY26, marking an impressive 45.2% year-on-year growth. For the first half of FY26, revenue stood at Rs. 509.6 crores, a substantial 37.8% increase over H1 FY25. This strong financial showing was underpinned by higher realization and consistent demand in both the fertiliser and chemical divisions. Profitability also saw a healthy uptick, with Q2 FY26 EBITDA reaching Rs. 26.2 crores (up 37.5% YoY) and Profit After Tax (PAT) at Rs. 18.2 crores (up 36.7% YoY), reflecting enhanced operational efficiency and a favorable product mix.

The company's strategic focus on an integrated, zero-waste manufacturing model continues to be a key differentiator. This approach, coupled with a strong emphasis on sustainable growth and renewable energy adoption, positions Shree Pushkar favorably in a dynamic market. The management highlighted that despite some seasonal moderation in the fertiliser segment, overall demand remained steady, contributing significantly to the top-line expansion. The chemical segment also demonstrated strong recovery, driven by improved realizations and end-use demand.

Strategic Growth Initiatives and Capacity Expansion

Shree Pushkar is actively pursuing a multi-pronged growth strategy centered on significant capacity expansions and backward integration. The Board of Directors has approved a new expansion plan at Meghnagar Unit 8, which will add 3,00,000 MTPA capacity for complex fertilisers. This project, with an investment outlay of Rs. 350 crores, is targeted for commissioning by FY28 and is envisioned as a completely integrated Greenfield facility with raw material backward integration. This strategic move is expected to be a major revenue driver, conservatively projected to generate Rs. 1,200 crores from this facility alone upon achieving full capacity.

In parallel, the company is progressing with ongoing capacity expansion plans at Ratnagiri Units 5 and 6. Unit 6 is set to add 1,50,000 MTPA for complex fertilisers and 66,000 MTPA for acid complex, while Unit 5 will expand chemical capacity by 6,000 MTPA. These projects, however, have experienced some delays due to external factors such as the monsoon and challenges in securing additional electricity load, with commissioning now anticipated by February 2026 for Unit 6 and December 2025 for Unit 5. Despite these minor setbacks, the management remains confident that these expansions, combined with Unit 8, will propel the company's turnover to Rs. 2,500-3,000 crores by FY29.

Sustainability and Financial Prudence

A cornerstone of Shree Pushkar's strategy is its unwavering commitment to sustainability and financial prudence. The company's 'zero-waste' philosophy is deeply embedded in its circular manufacturing processes. A significant aspect of this is the expansion of its renewable energy footprint. The company currently operates a 9.5 MWDC solar plant and is in the process of installing two additional solar units (10 MW DC in Nanded and 1.1 MW DC in Hisar), which will boost its total solar capacity to 20.6 MWDC. This initiative is expected to enhance energy self-reliance, significantly lower carbon emissions, and improve profitability by reducing reliance on grid electricity. Management highlighted that the additional 11.10 MWDC solar capacity alone is projected to provide 1.4 crore units per year, translating into substantial cost savings.

Financially, Shree Pushkar demonstrates disciplined capital allocation. The ongoing and upcoming expansion projects are primarily funded through internal accruals and preferential allotments to promoters, minimizing reliance on external borrowings. As of September 30, 2025, the company held Rs. 162 crores in non-lien deposits, providing ample liquidity. This conservative approach, coupled with positive interest income, underscores the company's strong balance sheet and ability to self-fund its growth ambitions. Furthermore, the incorporation of Dyecol Color Technologies Private Limited as a wholly-owned subsidiary on September 3, 2025, is a strategic move to enhance market reach and operational efficiency for its Dyes and Dye Intermediates business, providing a distinct brand identity for international customers.

Outlook and Management Confidence

Management expressed confidence in sustaining the growth momentum, projecting a top line of around Rs. 1,000 crores for FY26 with an approximate PAT margin of 8%. They anticipate an EBITDA margin of 11-12% for new projects, reflecting continued operational efficiency. While acknowledging external challenges like geopolitical situations and US tariffs impacting export markets, management emphasized their capability to mitigate risks and adapt to market realities. The company's long-term vision, backed by strategic investments, a strong balance sheet, and a commitment to sustainability, positions it for continued value creation for its stakeholders. The focus on integrated operations, renewable energy, and market expansion demonstrates a forward-looking approach, aiming to capitalize on improving industry conditions and demand.