Coromandel Q2FY27: consolidated PAT drops 34% YoY to ₹523 Cr on weak nutrient demand
PAT -34.03% YoY · revenue +6.63% · margins compressing · beat vs street
₹10,294.13 Cr
+6.63% YoY
₹523.37 Cr
-34.03% YoY
5.06%
-3.1pp YoY
₹18.14
Coromandel International's consolidated PAT fell 34% YoY to ₹523 Cr (from ₹793 Cr) even as revenue grew 6.6% YoY to ₹10,294 Cr, pulling net margin down to 5.1% from 8.1% a year ago. Sequentially PAT was up 37% QoQ (from ₹382 Cr) on 26% QoQ revenue growth, but that is the usual H2 seasonal ramp for a fertiliser business and does not offset the YoY softness. Standalone told the same story — PAT ₹548 Cr, down 33% YoY — so there is no standalone/consolidated divergence to flag; consolidated is the primary read.
Q2 FY-2027 vs prior quarters
The pressure sat squarely in the Nutrient and allied segment, which is ~88% of revenue: segment EBIT fell 24% YoY to ₹746 Cr even as segment revenue rose 4.4% YoY to ₹9,042 Cr, implying real margin compression as an erratic, excess-rainfall end to the kharif season curbed offtake. Crop Protection EBIT was roughly flat to down (₹130 Cr vs ₹145 Cr YoY) despite 22% revenue growth to ₹1,308 Cr — that revenue jump is largely inorganic, from NACL Industries' now full-quarter consolidation (a subsidiary only since August 2025), so the segment's underlying profitability actually diluted rather than scaled.
The stock went into the print at ₹1,830.5, up 4.9% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters; PAT has now risen for 2 consecutive quarters; revenue is at a 6-quarter high.
Target EBITDA per ton INR5,000 → INR6,500 via PA-SA plants and backward integration. Capacity visibility 8-9M tons nutrients over 2 years. Crop Protection targeting Latin America expansion; Retail network growing (1,200+ outlets). Subsidy revision awaited for NP/NPK viability; prices already raised 25-30%.
Street positioning matters here: Nuvama's pre-results preview had flagged a steep 56% YoY EBITDA decline for Coromandel on monsoon-hit agri-input demand — one of the sharper cuts among peers it covered (PI Industries -37%, Rallis -27%, Sumitomo Chemical India -17%). Against that bar, a ~34% PAT decline and ~24% nutrient-EBIT decline is a beat on the bearish Street setup, even though it is still a YoY decline in absolute terms. On guidance, management's Q1 call target of lifting nutrient EBITDA/ton toward ₹6,500 isn't independently checkable from the disclosed line items this quarter, but the one guidance point that is directly verifiable — subsidy income booked at existing Kharif NBS rates pending the Rabi 2026-27 notification — remains exactly as flagged, per the company's own Note 5, with any true-up deferred to a later quarter. The quarter also saw the board convert a USD 9.7 million loan into equity in step-down subsidiary Baobab Mining and Chemicals (Senegal) and issue a fresh USD 15.5 million guarantee for a subsidiary, both consistent with management's stated backward-integration push into phosphate rock supply.
W1
Rabi 2026-27 NBS subsidy rate notification from the Department of Fertilizers — pending; will determine any true-up to the subsidy income booked this quarter at Kharif rates
W2
Nutrient segment margin recovery — EBIT margin fell to ~8.2% (₹746 Cr/₹9,042 Cr) this quarter from ~11.4% YoY; watch Q3 (peak Rabi season) for recovery
W3
Crop Protection's organic trend once the NACL year-ago base normalizes — segment EBIT was ₹130 Cr this quarter vs ₹145 Cr YoY despite the consolidation-driven revenue jump
Clean, legible statement; column headers (30 Jun 2026 / 30 Sep 2025) matched DB comparison figures exactly, confirming column lock. No exceptional items in current or year-ago quarter (the ₹70.56 Cr consolidated / ₹125.15 Cr standalone exceptional impairment sits only in the FY26 year-ended column, from Q4FY26 Drones write-down) — raw and adjusted YoY growth are therefore the same. Note 3 flags that Crop Protection YoY isn't fully comparable since NACL Industries became a subsidiary from 8 Aug 2025.