Shree Pushkar Q1 FY27: Growth on Realisations, While Capacity Build-Out Continues

Shree Pushkar Chemicals and Fertilisers started FY27 with a quarter that was defined by a familiar theme in cyclical commodity-linked businesses: volumes softened, but realisations improved.

In Q1 FY27, the company reported revenue from operations of Rs 280.1 crore, up 10.0% year on year. EBITDA rose 9.7% to Rs 31.9 crore, and PAT increased 9.4% to Rs 22.9 crore. Margins remained steady, with EBITDA margin at 11.4% and PAT margin at 8.2%.

Management acknowledged that operating conditions remained challenging, pointing to global supply chain issues and elevated raw material prices. Even so, the company’s integrated model and pricing discipline helped offset the impact of lower tonnage in both core segments.

Segment mix: Fertilisers steady, chemicals supported by better value

The quarter saw a sharp divergence between volumes and sales value.

Fertiliser sales volume declined to 66,527 MT from 76,288 MT in Q1 FY26. Despite this, fertiliser sales value increased to Rs 142 crore from Rs 137 crore, translating into around 4% year on year growth.

Chemicals volume fell more meaningfully, to 9,113 MT from 14,837 MT. Yet chemical sales value increased to Rs 138 crore from Rs 118 crore, a 17.1% year on year rise.

The resulting sales value mix was nearly balanced for the quarter: 51% fertilisers and 49% chemicals. This is notable because, at the full-year level, FY26 revenue mix was presented as 46% fertilisers and 54% chemicals.

Management’s explanation was direct. Customers paused buying when prices spiked at the onset of geopolitical disruptions, but gradually began absorbing higher prices. The company, meanwhile, prioritised value and margin over pushing volumes at unfavourable spreads.

The integration advantage and the raw material reality

Shree Pushkar positions itself as a zero-waste, integrated manufacturer anchored by its acid complex. The presentation highlights an interlinked manufacturing setup where the acid complex supports both fertiliser and chemicals operations, with by-product utilisation, waste heat recovery power, and a zero-effluent discharge approach.

In Q1, that integration mattered because the industry faced a raw material shock. Management highlighted sulphur prices rising sharply, stating sulphur that used to be in the USD 250 to 300 range was now around USD 1,100, and that a return to older levels is not expected.

This environment influenced operating decisions. Management said the company kept acid plants on low load, contributing to lower chemical volumes. The stated reasons included working capital stress from buying sulphur and ammonia, alongside the volatility in availability and pricing.

Even with these constraints, the quarter’s financials indicate that pricing actions and operating discipline helped preserve margins. Gross profit for Q1 FY27 was Rs 89.2 crore, up 6.3% year on year, though gross margin moderated to 31.9% compared to 38.4% in Q4 FY26.

Capex and expansion: Rs 512 crore plan with near-term commissioning focus

A central part of the investment narrative is expansion, largely targeted at complex fertilisers and incremental chemical capacity, alongside renewable power.

The company disclosed a capex program of Rs 512 crore planned, with Rs 209 crore incurred and Rs 303 crore outstanding as of 30 June 2026. During Q1 FY27, it incurred around Rs 20 crore of capex across ongoing initiatives.

Key projects highlighted include:

1. Meghnagar Unit 8 (Fertilisers): Planned capex Rs 350 crore; capex incurred Rs 60 crore; capacity addition 300,000 MTPA; target completion March 2028.

2. Ratnagiri Unit 6 (Fertilisers): Planned capex Rs 85 crore; capex incurred Rs 72 crore; capacity addition 150,000 MTPA; target completion September 2026.

3. Ratnagiri Unit 5 (Chemicals): Planned capex Rs 37 crore; capex incurred Rs 37 crore; capacity addition 66,000 MTPA; target completion August 2026.

4. Solar Power Plant 2 at Nanded: Planned capex Rs 35 crore; capex incurred Rs 35 crore; 10 MW DC; target completion August 2026.

Management said Ratnagiri Unit 5 and Unit 6 are near completion, but also stated it is evaluating the timing of commencement given raw material volatility, focusing on stable operations and profitability. In the concall, management added that trials for Unit 6 are expected by end-August or September 2026, and suggested FY27 could see about 4 to 5 months of operations from Unit 6.

Alongside project capex, the company acquired around 30,000 square metres of land at Lote Parshuram for Rs 9.33 crore, adjacent to Unit 1. Management described the purchase as opportunistic, noting land scarcity and future expansion optionality.

Balance sheet posture and management commentary on FY27

The investor deck highlights a low-leverage position, reporting FY26 net debt to equity at minus 0.01x. Liquidity comfort was also emphasised, with the company stating non-lien deposits of about Rs 124.91 crore as of 30 June 2026.

On outlook, management’s tone was optimistic. The CMD stated he expects FY27 to be better than the last few years, with margins gradually recovering. He referenced prior periods where PAT margins were higher and said the company has now crossed 8% PAT margin in Q1.

On revenue visibility, management reiterated an expectation of about Rs 1,250 crore turnover in FY27 with PAT margin around 8.5% to 9%. He also suggested that improved realisations could lift revenue potential to Rs 1,350 to 1,400 crore.

These statements were framed as management belief based on market intelligence and recent operating data, not as a formal quantified guidance framework.

Takeaways

Q1 FY27 reinforced Shree Pushkar’s positioning as a company trying to win on integration and realisations rather than chasing volume at any cost. The quarter delivered double-digit growth in revenue and earnings despite lower tonnage, but also highlighted how sensitive operations remain to raw material prices and availability.

The near-term execution track will be watched closely: commissioning and stabilising Unit 6, capitalisation of completed assets such as Unit 5 and the 10 MW solar project, and disciplined capex deployment toward the longer-dated Meghnagar complex fertiliser project. If the company can translate expanded capacities into stable spreads, FY27 could become an inflection year in the margin recovery narrative.