Shree Pushkar Q4 FY26: Steady Full-Year Growth, But Expansion Timing Turns Cautious

Shree Pushkar Chemicals & Fertilisers Limited closed FY26 with strong year-on-year growth, led by higher volumes in the chemical segment and improved fertiliser realizations. Consolidated revenue from operations rose to Rs 976.6 crore, up 21.1 percent versus FY25. EBITDA increased to Rs 99.5 crore, up 18.7 percent, with margins largely stable at 10.2 percent. PAT grew 19.6 percent to Rs 70.1 crore, translating into a 7.1 percent margin.

The fourth quarter, however, told a more mixed story. Q4 FY26 revenue was Rs 218.2 crore, broadly flat year-on-year, but profitability softened. PAT fell to Rs 12.9 crore and PAT margin dropped to 5.8 percent. Management attributed the quarter’s performance to global supply chain disruptions and raw material availability, a theme that dominated the concall and influenced near-term decisions on new capacity commissioning.

FY26 performance: Chemicals leads, fertilisers remain a stable base

Shree Pushkar operates an integrated model spanning fertilisers, dye intermediates, dyestuff, animal health and nutrition, and an acid complex that supports both fertiliser and chemical value chains. In FY26, chemicals contributed Rs 531.8 crore of revenue, while fertilisers contributed Rs 444.8 crore. The presentation also shows the revenue mix at 54 percent chemicals and 46 percent fertilisers.

Operationally, volume momentum was stronger in chemicals. FY26 chemical volumes rose to 72,423 MT from 56,626 MT in FY25, while fertiliser volumes were 2,52,777 MT versus 2,60,690 MT. Despite slightly lower fertiliser volumes, fertiliser revenue grew, reflecting improved realizations.

Financial snapshot

Q4 FY26: Revenue steady, margins under pressure

Q4 FY26 revenue from operations was Rs 218.2 crore compared to Rs 219.4 crore in Q4 FY25. EBITDA was Rs 22.1 crore versus Rs 24.7 crore last year, and PAT declined to Rs 12.9 crore from Rs 16.5 crore.

Segmentally, fertiliser volumes in the quarter fell to 50,514 MT from 60,026 MT, while chemical volumes rose to 13,725 MT from 10,026 MT. Despite the strong chemical volume growth, chemical revenues were largely flat year-on-year in Q4, a point raised by participants on the concall.

Management consistently pointed to external supply chain disruptions as a key drag on the quarter. Beyond the quarter, the bigger strategic question became how to time expansion ramp-ups when key raw materials were volatile.

Capex pipeline: Big capacity additions, but near-term ramp-up is cautious

The company is in the middle of a large capex cycle. Total capex planned is Rs 512 crore, with Rs 189 crore already incurred and Rs 323 crore outstanding as of March 31, 2026.

The key projects disclosed in the presentation include:

1. Unit 8, Meghnagar (Madhya Pradesh): Rs 350 crore planned capex for complex fertilisers, with 3,00,000 MTPA upcoming capacity and a target completion date of March 2028.
2. Unit 6, Ratnagiri (Maharashtra): Rs 85 crore planned capex, 1,50,000 MTPA upcoming capacity, target completion June 2026.
3. Unit 5, Ratnagiri (Maharashtra): Rs 37 crore capex planned and fully incurred, with 66,000 MTPA upcoming capacity and target completion April 2026.
4. Solar expansion: additional 10 MWDC planned, taking total solar capacity from 10.6 MWDC to 20.6 MWDC post expansion.

While the presentation lists near-term completion dates for Unit 5 and Unit 6, management clarified on the concall that commissioning has been delayed or intentionally held back. The key reason was raw material pricing and availability.

Management described ammonia and sulphur as critical inputs whose prices had risen sharply. They cited ammonia moving from around Rs 40 to Rs 42 per kg to over Rs 100 per kg, and sulphur from around Rs 30 per kg to around Rs 100 per kg. In this environment, management indicated it was evaluating the right time to start trial production, despite stating that both Unit 5 and Unit 6 were close to readiness.

From an investor perspective, this decision is a trade-off. The company avoids ramping working capital and locking into adverse input economics, but it also delays incremental volumes that could have lifted the top line.

Funding strategy and balance sheet posture

The company continues to run a conservative balance sheet. The presentation shows net debt remaining negative, with net debt to equity improving to minus 0.01x in FY26. Investments increased to Rs 131.1 crore in current investments at March 2026, and management highlighted non-lien deposits of Rs 140.68 crore.

On the concall, management explained that long-term borrowings of about Rs 23 crore relate to a solar term loan of about Rs 25 crore. Beyond this, management reiterated that much of the capex is planned to be funded through internal accruals and preferential allotment, and if additional borrowing is used for the large Meghnagar project, it would likely be limited.

Cash flow from operations strengthened in FY26, with net operating cash flow of Rs 101.8 crore versus Rs 37.5 crore in FY25. Investing cash flows were negative at Rs 128.4 crore, reflecting capex outlays.

What management said about FY27 direction

Management did not provide formal guidance in the presentation, but on the concall it offered an indicative view of the FY27 revenue trajectory. The earlier expectation of about Rs 1,500 crore was revised down to about Rs 1,250 to Rs 1,300 crore, primarily because management does not expect revenues from Unit 6 and the Unit 5 expansion during the Kharif season.

This is a notable disclosure because it frames FY27 as a transition year in which capacity is technically close to readiness but commercial ramp-up depends on external input conditions. Management also stated it aims to maintain utilisation in the range of 65 percent to 70 percent, similar to recent levels.

On margins, management repeatedly noted uncertainty, but indicated that achieving 8 percent to 10 percent PAT margin is not expected to be difficult in normal conditions. It also discussed instances of higher chemical realizations, such as H Acid moving from around Rs 525 to Rs 530 per kg to around Rs 750 per kg, and Vinyl Sulphone from around Rs 240 per kg to around Rs 350 per kg.

Takeaways for investors

Shree Pushkar delivered a strong FY26 with over 20 percent revenue growth and stable EBITDA margins, supported by a diversified mix across chemicals and fertilisers. The company also maintained a conservative leverage profile and built liquidity buffers while investing in expansion.

The key variable is timing. Unit 5 and Unit 6 are near readiness, but management is deliberately cautious due to raw material volatility, especially in ammonia and sulphur. Investors should track commissioning progress, working capital behaviour during the next cycle, and how pricing acceptance in fertilisers evolves under changing subsidy dynamics.

In the medium term, the capex pipeline remains meaningful, especially the Meghnagar complex fertiliser project targeted for March 2028. If executed on schedule and ramped prudently, the company’s integrated model and multi-segment presence could support the next leg of growth once input markets stabilise.