Shree Pushkar approves Rs 70 crore Ratnagiri chemical plant

Shree Pushkar Chemicals & Fertilisers Limited approved a Rs 70 crore chemical plant at Ratnagiri Unit 5 with 3,000 metric tonnes per annum (MTPA) of annual capacity and a March 2028 commissioning target. The 2 November 2026 announcement also disclosed proposed promoter warrants aggregating up to Rs 45 crore to help fund expansion and strengthen the capital base.

What has Shree Pushkar approved at Ratnagiri?

Shree Pushkar has approved a new chemical plant at Unit 5 in Ratnagiri, Maharashtra, with planned capital expenditure of Rs 70 crore and annual capacity of 3,000 MTPA. Management said the project is intended to cater to growing customer demand and is expected to be commissioned by March 2028.

The new plant is separate from an earlier Unit 5 dyes expansion that commenced commercial production during the quarter ended 30 September 2026. That earlier project had Rs 37 crore of planned and incurred capital expenditure and increased dyes capacity by 6,000 MTPA, while the newly approved investment adds 3,000 MTPA of chemical capacity at the same Ratnagiri unit.

The announcement places the project in Shree Pushkar's chemicals business, which reported Rs 245 crore of consolidated revenue in Q2 FY27, compared with Rs 132 crore in Q2 FY26. Chemical revenue rose 85.6% year on year, even as chemical volume declined 16.8% to 14,368 metric tonnes from 17,266 metric tonnes.

How will Shree Pushkar fund the new chemical plant?

Shree Pushkar said the Rs 70 crore investment will be funded through internal accruals and a preferential issue of fully convertible warrants to the promoter, subject to shareholders' and other applicable approvals. Management described the warrant proposal as support for the expansion and for strengthening the company's capital base.

The board approved the issue of up to 8,54,060 fully convertible warrants to Punit Gopikishan Makharia, chairman and managing director, at Rs 526.90 per warrant. The proposed issue aggregates up to Rs 45 crore, but remains subject to the approvals stated in the announcement.

Shree Pushkar also reported a Rs 142.83 crore non-lien deposit facility in its Q2 FY27 release. The company did not disclose a project-specific allocation between internal accruals, proposed warrant proceeds and that facility, so the release does not establish how much of the Rs 70 crore project cost each funding source would cover.

How does the Ratnagiri project fit Shree Pushkar's capex plan?

Shree Pushkar's strategic-investment summary states total planned capital expenditure of Rs 582 crore, with Rs 248 crore incurred and Rs 334 crore outstanding. The new Rs 70 crore Unit 5 chemical plant is listed with no capital expenditure incurred and Rs 70 crore outstanding.

The largest listed project is a Rs 350 crore fertiliser expansion at Unit 8 in Meghnagar, Madhya Pradesh. Shree Pushkar reported Rs 93 crore incurred and Rs 257 crore outstanding for that project, which is intended to add 3,00,000 MTPA of complex fertiliser capacity by March 2028, the same target date as the new Ratnagiri chemical plant.

Other Ratnagiri projects have nearer target dates. Unit 6 has Rs 85 crore planned for complex fertilisers and Rs 85 crore planned for an acid complex, with Rs 78 crore incurred against each project and December 2026 completion targets. The company lists 4,50,000 MTPA of additional fertiliser capacity and 69,000 MTPA of additional chemical capacity across its investment programme.

The programme also includes solar infrastructure. A Rs 35 crore, 10 megawatt direct-current solar plant at Nanded commenced in August 2026, and Shree Pushkar said its consolidated solar capacity reached 20.6 megawatts direct current during Q2 FY27 after that plant began operations.

What financial performance accompanied the capex announcement?

Shree Pushkar reported consolidated revenue from operations of Rs 403.5 crore in Q2 FY27, up 58.2% from Rs 255.1 crore in Q2 FY26 and up 44.1% from Rs 280.1 crore in Q1 FY27. Chemicals contributed Rs 245 crore of Q2 revenue and fertilisers contributed Rs 158 crore, compared with Rs 132 crore and Rs 124 crore respectively a year earlier.

Consolidated profit after tax (PAT) was Rs 35.7 crore in Q2 FY27, rising 96.1% from Rs 18.2 crore in Q2 FY26. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 87.7% to Rs 49.2 crore, while EBITDA margin increased to 12.2% from 10.3% in the prior-year quarter.

For H1 FY27, revenue from operations reached Rs 683.6 crore, up 34.1% from Rs 509.6 crore in H1 FY26, while PAT increased 49.7% to Rs 58.6 crore. Total consolidated volume for the half year fell 6.43% to 1,69,285 metric tonnes, as chemical volume declined 26.9% to 23,481 metric tonnes and fertiliser volume declined 2.0% to 1,45,804 metric tonnes.

The Q2 segment comparison shows different volume trends. Chemical revenue increased 85.6% despite lower volume, whereas fertiliser revenue rose 27.5% and fertiliser volume increased 9.31% to 79,277 metric tonnes. Shree Pushkar did not provide product-level prices or realisations to explain the different revenue and volume movements.

Conclusion

Shree Pushkar has combined a Rs 70 crore, 3,000-MTPA Ratnagiri chemical capacity approval with a proposed Rs 45 crore promoter warrant issue, while reporting Rs 334 crore of outstanding capital expenditure in its wider programme. The announcement followed Q2 FY27 revenue of Rs 403.5 crore and PAT of Rs 35.7 crore, with chemicals recording faster revenue growth than fertilisers.

The next disclosed operating milestones are the December 2026 targets for Ratnagiri Unit 6 fertiliser and acid-complex projects, followed by March 2028 targets for the new Unit 5 chemical plant and Meghnagar fertiliser expansion. The warrant proposal also requires shareholder and other applicable approvals before the up to 8,54,060 warrants can be issued.