Krishana Phoschem's Stellar Q2 & H1 FY26: A Deep Dive into Growth and Strategy

Krishana Phoschem Limited has delivered an exceptional performance in the second quarter and first half of the financial year 2026, marking a significant milestone in its growth trajectory. The company reported its highest-ever quarterly revenue and EBITDA, showcasing robust operational excellence and strong market demand for its products. In H1 FY26, Krishana Phoschem successfully surpassed the ₹1,000 crore revenue milestone, a testament to its strategic vision and effective execution. This impressive financial growth is underpinned by a 73% half-yearly surge in revenue and a remarkable 93% year-on-year jump in PAT to ₹64 crore.

The company's strong market demand and efficient execution propelled it to a new quarterly record, achieving ₹608 crore in revenue and ₹33.2 crore in PAT for Q2 FY26, representing a 102% and 99% increase year-on-year, respectively. This solid performance reflects a robust business model and strategic vision that continues to drive accelerated growth. High-level capacity utilization across its facilities highlights the company's operational prowess and ability to exceed expectations. The company's record-breaking production and sales volumes are a testament to its strategic vision and the enduring strength of its products, trusted by the farming community.

Strategic Initiatives and Market Dynamics

Krishana Phoschem's commitment to sustainable agriculture and innovation is evident in its differentiated product portfolio, which includes Urea SSP and Super 6 fortified SSP (with Zinc, Boron, and Magnesium). These products are actively contributing to nutrient use efficiency and crop nutrition enhancement, bolstering performance in the coming quarters. The company's NPK/DAP and Sulphuric acid capacity expansion project in Meghnagar is on track for its March 2026 commissioning, with civil work proceeding as scheduled. This expansion, costing ₹142 crore, will significantly augment NPK/DAP capacity by 1,65,000 MTPA and Sulphuric Acid capacity by 99,000 MTPA, funded by a ₹75 crore term loan and internal accruals.

In a significant move towards sustainability and raw material security, Krishana Phoschem was selected as the preferred buyer of Green Ammonia under SECI’s SIGHT Scheme in August 2025. NTPC, the winning bidder, will supply 70,000 MTPA of Green Ammonia for 10 years, ensuring a reliable supply of green raw materials, reducing import dependence, and supporting India's Green India and Atmanirbhar Bharat initiatives. This milestone underscores the company's proactive approach to securing its supply chain and contributing to national goals.

India's continued dependence on complex fertilizer imports, exceeding 50%, presents a strategic opportunity for domestic manufacturers like Krishana Phoschem. Potential periodical urea price adjustments recommended by CACP could boost subsidies on phosphorus and potassium fertilizers, further strengthening demand for the core NPK segment. The company's innovation-led R&D efforts remain focused on developing fortified fertilizers to improve nutrient efficiency and address micronutrient deficiencies, further enhancing its market differentiation.

Operational Excellence and Future Outlook

Krishana Phoschem achieved its highest-ever quarterly fertilizer production of 95,783 MT, with Half Yearly fertilizer production reaching 1,90,005 MT. The SSP segment demonstrated remarkable quarterly capacity utilization of 111%, highlighting the company's efficiency. The company also recorded its highest quarterly sales volume of 1,21,491 MT, with Half Yearly sales volume reaching 2,12,441 MT, driven by strong market demand and efficient plant operations. SSP sales reached a quarterly high of 49,389 MT, and NPK sales stood at a healthy 72,102 MT for the quarter.

Management expects to maintain similar performance in the coming six months (H2 FY26) as achieved in H1 FY26. The revenue guidance for FY26 is conservatively set at ₹1,500 crore, with management expecting to exceed this target. The new DAP-NPK capacity is expected to achieve 50-55% utilization in its first year, with potential to increase to 80% or more year-on-year. The company anticipates largely stable prices for NPK (around ₹45,000 per ton) and SSP ( ₹15,000- ₹16,000 per ton) over the next six months. While trading activities, which constituted 20-22% of Q2 revenue, impacted overall margins due to their lower profitability (around 2.5% compared to 11-12% for manufacturing), management believes that expected subsidy revisions will help compensate for this. The company aims to consistently maintain an operating margin of around 13%-14%.

Krishana Phoschem is well-positioned for strong and profitable growth, driven by robust demand, strategic capacity expansion, adherence to sustainability, and a relentless focus on operational excellence. The company's journey is marked by resilience, innovation, and the courage to set new benchmarks for the industry, supporting the Atmanirbhar Bharat mission and ensuring long-term value creation for all stakeholders.