Shree Pushkar Q1 FY27: Revenue up 10%, PAT up 9%

Key takeaway from the Q1 FY27 call

Shree Pushkar Chemicals & Fertilisers Limited (NSE: SHREEPUSHK) reported a steady start to FY27, with higher revenue and profit despite volatile raw material conditions. Revenue growth was attributed to improved realisations across both fertiliser and chemical businesses. At the same time, sales volumes fell year-on-year in both segments, indicating that pricing and product mix did more of the heavy lifting than volumes. Management also used the call to outline progress on its capacity expansion programme and the timeline sensitivity created by raw material volatility.

What the company reported for Q1 FY27

For Q1 FY27, the company reported revenue from operations of ₹280.10 crore, up 10% year-on-year, with the call commentary also referencing ₹281.1 crore. EBITDA rose 9.7% year-on-year to ₹31.9 crore, and the EBITDA margin improved to 11.4%. Profit after tax (PAT) increased 9.4% year-on-year to ₹22.9 crore, with PAT margin at 8.2%. The company described this performance as being delivered amid continued global supply chain challenges and elevated raw material prices.

Financial snapshot and margins

A key point in the quarter was that profitability improved even though gross margin eased slightly. The company reported gross profit of ₹89.2 crore in Q1 FY27, up 6.3% year-on-year, while gross profit margin softened to 31.9% from 33.0% in the prior year quarter. Management commentary linked the operating environment to raw material tightness and disruptions, which can influence near-term spreads even when realisations rise. The quarter also showed sequential momentum on revenue, with revenue cited as up 28.4% quarter-on-quarter.

Volumes fell in both segments

The company reported a year-on-year decline in sales volumes across both business lines. Fertiliser volumes fell to 66,527 MT from 76,288 MT. Chemical volumes declined to 9,113 MT from 14,837 MT. This volume contraction matters because it suggests that supply constraints, demand conditions, order timing, or production limitations played a role even as revenue and profits increased.

Supply chain disruptions and the Hormuz impact

Shree Pushkar highlighted pressure from global supply chain challenges and elevated raw material prices. Management specifically pointed to the West Asia conflict and the closure of Hormuz, which it said caused acute shortages of key inputs such as ammonia and sulphur. These inputs are critical to the cost structure in fertilisers and related chemicals. The company indicated that such disruptions can impact both production and margins.

Order timing and why price gains did not fully translate

Management acknowledged that orders deliberately held back in Q4 FY26 did not fully carry over to Q1 FY27. That reduced the upside the company had expected from price increases. The comment is important because it indicates a timing mismatch between pricing opportunities and the actual conversion into shipments. In quarters where volatility is high, this can affect volumes and mix, and it can also influence how quickly improved realisations show up in the financials.

Expansion projects: Ratnagiri Units 5 and 6, Megh Nagar

Shree Pushkar said it is progressing on major expansion projects, including Ratnagiri Units 5 and 6 and Megh Nagar. These projects are expected to add 450,000 MTPA of fertiliser capacity and 72,000 MTPA of chemical capacity. Management positioned these investments as strengthening integration and scale. However, the company also said it is taking a measured approach to commissioning new units due to raw material volatility, which can delay the timing of revenue contribution.

Liquidity, capex, and funding comfort

The company stated it has a comfortable liquidity position, including ₹125 crore in non-lean deposits. It also referred to a robust expansion agenda with ₹512 crore in planned capex for new fertiliser, chemical, and solar capacities, funded via internal accruals and preferential issues. Alongside liquidity, Shree Pushkar highlighted a strategic land acquisition of 30,000 sqm at Lote Parshuram to create headroom for future expansion. These points collectively indicate that management is planning capacity growth while keeping financial flexibility in view.

Renewable energy update: Nanded solar project

Shree Pushkar said its renewable energy investments include a 10 MW DC solar project at Nanded, which is nearing completion. The company framed this as supporting sustainability and operational efficiency. While the call did not quantify savings, the project was presented as part of broader capacity and cost initiatives alongside the core fertiliser and chemical expansions.

Management commentary and FY27 expectations

Chairman and Managing Director Puneet Makharia said he has high expectations for FY27 and views it as potentially much better than the last two to three years. He noted that margins had fallen to around 5.5% during COVID but have now crossed 8% in Q1 FY27, referring to PAT margin performance. Management also indicated confidence for FY27, expecting PAT margins to reach around 9% and revenue to potentially hit ₹1,700 crore once new units are operational. The company simultaneously flagged that raw material volatility may influence commissioning decisions and, therefore, the timing of that potential contribution.

Summary table: reported Q1 FY27 metrics

What investors may track next

Based on the call, the key variables to watch are commissioning timelines and the operating environment for raw materials. The company has signalled that ammonia and sulphur availability, along with broader supply chain conditions, can affect both production and margins. Investors may also track whether volumes recover alongside improved realisations, since Q1 showed a divergence between higher revenue and lower tonnage. The next updates are likely to focus on progress at Ratnagiri and Megh Nagar, and on when new capacity begins contributing to revenue and profitability.