Chambal Fert. Q1 FY27 Results (NSE: CHAMBLFERT)
Signal: Revenue declined
The read
Q1FY27 saw a sharp revenue decline (-11.8% YoY) driven by Complex Fertilisers, but operating EBIT rose 7.6% YoY as Own Manufactured and Crop Protection held up, and costs were well controlled. The consolidated profit fell 4.6% YoY entirely due to the JV IMACID swinging to a loss and a surge in finance costs; standalone PAT grew 10.3% YoY, highlighting that the group's core fertiliser and crop protection operations are resilient. The margin arc shows a sixth consecutive quarter of EBITDA margin expansion (calc 17.1% vs 14.0% Q1FY26) driven by cost discipline and better product mix.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,027.02 Cr | -11.8% | +80.5% |
| EBIT | ₹771.82 Cr | +7.6% | |
| Net profit | ₹523.6 Cr | -4.6% | |
| EPS | ₹13.07 | -4.6% | |
| EBIT margin | 15.5% |
P&L walk
Revenue declined 11.8% YoY to ₹5,027 Cr, driven by a sharp fall in Complex Fertilisers segment revenue (₹1,736.66 Cr, -18.5% YoY) partially offset by sequential recovery from Q4’s ₹2,785 Cr. Operating EBIT (before finance cost, JV share) rose 7.6% YoY to ₹771.82 Cr, as Own Manufactured Fertilisers segment held steady (₹431.77 Cr, -6.4% YoY) and Crop Protection grew 12.7% YoY to ₹108.35 Cr. However, the JV IMACID swung from a profit of ₹36.12 Cr to a loss of ₹25.10 Cr, and unallocable other income net of expenditure dropped sharply (₹-9.71 Cr vs ₹-19.73 Cr YoY), while finance costs surged to ₹16.77 Cr (vs ₹2.43 Cr YoY) due to higher borrowings. Consequently, consolidated PAT fell 4.6% YoY to ₹523.60 Cr. Employee costs as a % of revenue rose 10bps YoY to 1.4%, but raw material costs as % of revenue improved 30bps YoY to 29.5%. Depreciation stayed flat YoY at ₹89.06 Cr.
Segments
Own Manufactured Fertilisers remained the anchor (segment profit ₹431.77 Cr, 55.5% of total segment profit), but Complex Fertilisers segment profit jumped from a loss of ₹11.51 Cr in Q4 to a profit of ₹238.71 Cr (up 67% YoY) due to seasonal rebound; Crop Protection segment profit grew 12.7% YoY to ₹108.35 Cr. The key drag was the joint venture IMACID (share of loss ₹25.10 Cr vs profit ₹36.12 Cr YoY), which reversed a multi-quarter profit stream.
Key positives
- Operating EBITDA (EBIT + depreciation) grew 7.4% YoY to ₹860.88 Cr despite an 11.8% revenue fall, driven by cost controls and a favourable product mix shift towards Own Manufactured Fertilisers.
- Complex Fertilisers segment rebounded from a loss in Q4FY26 to a profit of ₹238.71 Cr (up 67% YoY), aided by seasonal volume pickup.
- Crop Protection Chemicals segment profit grew 12.7% YoY to ₹108.35 Cr, indicating sustained demand in that high-margin line.
Key concerns
- Consolidated PAT fell 4.6% YoY as the JV IMACID contributed a loss of ₹25.10 Cr vs a profit of ₹36.12 Cr YoY – a ₹61.22 Cr swing.
- Finance costs surged to ₹16.77 Cr (up 593% YoY) as segment liabilities rose by ~₹1,583 Cr from Q4FY26, reflecting higher working capital borrowing.
- Other income dropped 37.8% YoY to ₹26.94 Cr, reducing cushion for profit.
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