Chambal Fertilizers & Chemicals Limited (NSE: CHAMBLFERT) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Parvagi Jain
Abhay Baijal — Managing Director
Analysts:
Prashant Biani — Analyst
Viraj Kacharya — Analyst
Sandeep Mukherjee — Analyst
Dhruv Muchal — Analyst
Presentation:
operator
Foreign. Ladies and gentlemen, good day and welcome to the Q3 and 9M FY26 earnings conference call of Chumbal Fertilizers and Chemicals Limited. As a reminder, all participant lines will remain in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Ms. Parvagi Jain from Ballorum Advisors for opening remarks. Thank you. And over to you.
Parvagi Jain
Thank you. Good afternoon everyone and a warm welcome to you all. My name is Purvangi Jain from Ballaram Advisors. We represent the investor relations of Chumbal Fertilisers and Chemicals limited. On behalf of the company, I would like to thank you all for participating in the company’s earnings call for the third quarter and nine months ended of the financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward looking in nature. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated.
Such statements are based on management’s belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decisions. The purpose of today’s earnings call is purely to apprise about the company’s fundamental business and financial quarter under review. Let me now introduce you to the management of Chumbal Fertilizer participating with us in today’s earnings call and hand it over to them for their opening remarks. We have with us Mr. Abhay Berger, Managing Director, Mr. Narendra Goyal, Business Head, Manufacturing Operations.
Mr. Anuj Jain, Chief Financial Officer Mr. Ashish Srivasafa, Vice President, Sales and Marketing and Mr. Pradeep Bharat, Vice President, Legal and Company Secretary. Without any delay, I request Mr. Abhaybechal to start with his opening remarks. Thank you. And over to you sir.
Abhay Baijal — Managing Director
Thank you, Purvangi. Good afternoon everyone and thank you for joining us in this conference call to discuss our financial performance during the third quarter and nine months ended fiscal 2026. Chamber Fertilizer continue to play a critical role in supporting India’s agricultural ecosystem. As India’s largest private sector urea producer. Contributing close to 10% of domestic supply. But not only that, we are almost 3% of the crop protection, chemicals and specialty nutrients business in the country. In NPK’s our share is almost 5% DAPs almost also 5% MOP is about 6%. Therefore we are an important contributor to countries agricultural outputs.
The Union budget has allocated about 1.71 lakh crores to the Department of Fertilizer this year providing long term visibility and stability to the sector. From an agronomic standpoint, conditions during the last quarter of the Ravi season were broadly favorable. India received 11% higher than normal rainfall during October to December 2025 with strong October rains offsetting deficits later in the season. Key northern states such as Rajasthan, Uttar Pradesh, Haryana, Punjab witnessed favorable conditions supporting early sowing. As a result, Rabi sowing increased by 2.8% year on year to 652.3 lakh hectares as of January 26. Wheat acreage reached an accord level alongside healthy growth in pulses and oilseeds.
Northern states such as Rajasthan, Uttar Pradesh, Haryana and Punjab saw higher sowing of wheat and mustard supported by favorable rainfall conditions during October. For chumbal this translated into a stable outlook with urea continuing to anchor volumes and cash flows and DAP and NPK providing diversification and growth, positioning us well to benefit from both steady base demand and gradual shift towards balanced fertilization. With this backdrop, let me now move to our operational performance for the quarter under review. During the quarter and nine months period, our crop protection, chemicals and specialty nutrients business alongside biologicals continued to demonstrate strong momentum with sustained growth in both revenue and margins.
On a nine month basis, the contribution from the segment grew by 30% year on year reflecting improving scale, product mix and execution. In the third quarter we introduced five new products across biopesticides, bio fungicides and insecticides, further strengthening our differentiated portfolio. Looking ahead, our pipeline remains healthy with 12 new CPC products and one new specialty nutrient product lined up for launch in FY27 supporting our growth ambitions. On biological’s portfolio, I am happy to report that we continue to perform strongly with volumes increasing by 31% and revenues growing by almost 58% year on year over the nine month period.
Encouragingly, Uttam Pranam, our Bio nanophosphorus product launched last year is witnessing strong market acceptance and better product outcomes with volumes and revenue up almost 250% year on year. We are doing well in this area and actively working on expanding our biological offerings, particularly in the fungicides and nematicides which are planned for launch over the course of the next financial year. I am also happy to report that in terms of biologicals we are almost 6% of the market as of today. Chamber Fertilizers and Terry the Energy and Resources Institute entered into an agreement for research for advanced and sustainable agricultural solutions.
This is significant in the backdrop of food security challenges due to an increasing population. Terry, as you may know, is a pioneer institution in the area and will be doing research under the center of Excellence to develop products where IP rights are jointly owned by CFCL and Terry and Chumbal will have exclusive commercial rights globally on the product. A dedicated lab is operational now and the products are expected to launch from FY2728 onwards based on product efficacy. We will also explore the export market for these products. In the seed segment, we have launched a variety of seed weeds and early results have been encouraging giving us confidence as we continue to build capabilities in this segment.
In the bulk fertilizers category, PNK fertilizers delivered good performance supported by timely and prudent procurement strategy and effective placement during the season. Further, we have sourced adequate volumes of PNK fertilizer ensuring preparedness for the KARIV season. The demand for phosphatic fertilizers continues to grow and we continue exploring and evaluating capacity in India or abroad. On the marketing and farmer engagement front, we continue to strengthen our digital outreach. Our Chambal Uttam Krishak Mitra app crossed about 100,000 downloads and we have launched a quarterly digital marketing newsletter. Our social media campaigns around National Farmer Day and World Soil Day further enhanced Farmer connect and our YouTube channel received YouTube Creator Award and the Silver Play button reflecting growing engagement.
Lastly, with respect to our technical ammonium nitrate project, the progress is ongoing with EPC work largely completed at 92% as of third quarter and construction activities are in full swing. The date of completion is scheduled for 4-30-26 as at the end of third quarter we have incurred a project expenditure of INR 1184 crores out of the total estimated cost of INR 1645 crores. Tan is a very important focus area for CFCL and vertical and horizontal expansions are being actively explored. Our joint venture in Amasset is performing well. The increase in P205 production capacity from 5 lakh metric ton to 7 lakh metric tonight is expected to be implemented by December 2026.
Further, the sulfuric acid capacity is also being increased which is expected to be implemented a year ahead of in a year ahead in financial year 27. This will optimize its operations and increase the profitability. Further. Overall our operational performance during the quarter reflects steady progress across core and value added segments, continued portfolio expansion and disciplined execution, positioning us well for the coming periods. Finally, let me walk you through some of the detailed financial performance for the period on the review on standalone basis. For the third quarter of financial year 26, revenue from operations grew 20% to touch 5,898 crores.
EBITDA for the quarter came at 821 crores up 6% despite taking a hit of 31 crores on account of labor code with EBITDA margins at 13.92%. Profit after tax was INR five hundred and sixty five crores up 12% year on year with PAT margins of 9.57%. For the nine months ended financial year 2026, standalone revenue from operations increased 27% year on year to 18,009 crores. EBITDA rose 4% year on year to 2,424 crores with EBITDA margins at13.46%. Profit after tax for the period grew 16% year on year to INR 1804 crores with PAT margins and 10.02%.
I will again remind you that this is after taking a hit on labor codes of the extent of 30 crores this quarter on receivables and subsidy flows during the quarter we received subsidy of 5,000 3,880 crores compared to 3,349 crores in the corresponding quarter last year. For the nine month period, subsidy received stood at approximately 10,228 crores, broadly in line with 10,353 crores received in the same period last year. As of 31st December 25th, total receivables stood at around 2,346 crores compared to comprising market debtors of INR 367 crores and subsidy receivables of INR 1979 crores.
In terms of segmental performance for the quarter, our urea segment delivered stable performance. UREA revenues in the quarter stood at INR 3708 crores which remained broadly stable year on year. EBIT margins remained broadly stable at around 17.28%. Urea sales volumes were largely flat at 9.83 lakh metric ton in the quarter compared to 9.88 lakh metric ton in the same quarter last year. In the complex fertilizer segment, revenues increased significantly to approximately 1,850 crores in the quarter reflecting year on year increase of 81%. Sales volume also rose to 2.94 lakh metric tonnes compared to 2.13 lakh metric tons last year reflecting strong seasonal demand and EBIT margins improved modestly to around 1.4% supported by better operating leverage.
The CPC Special Nutrients and Seeds segment continued to deliver robust year on year growth. Revenues increased 33% year on year to about 340 crores in the quarter representing strong growth driven by portfolio expansion and improved penetration. EBIT margins remained healthy at around 22.8% on a year to date basis. The urea segment delivered stable performance with revenues around 10,134 crores on nine months for FY26 whilst EBIT margins remained steady at around 16.3%. Urea sales volumes were largely flat at 27.3 lakh metric tonnes respectively. The complex fertilizer segment recorded strong growth with revenues increasing sharply to export approximately 6,702 crores in nine months.
FY26 a year on year increase of 180%. Sales volume increased to 11.7 lakh metric tons led by strong growth in DAP, TSP and NPK. Avid margins moderated to around 4.4% from 6.87%. The CPC Specialty Nutrients and Seeds segment continued its healthy momentum with revenues growing to about 4,1172 crores from INR 887 crores and EBIT margins improved slightly to 23.69% overall. The year to year performance reflects stable execution in urea, strong growth in complex fertilizers and continued momentum and value added businesses, reinforcing the strength and diversification of our operating portfolio. With this I would like to hand it back to the moderator and open for question and answer session.
Thank you.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, a reminder. If you wish to ask a question, please press star and 1. We take the first question from the line of Prashant Biani from LRA Securities.
Please go ahead.
Prashant Biani
Yeah, thank you for the opportunity. Sir, when are we going to start the trial run for the Tan plant?
Abhay Baijal
We are just at the cusp. In fact we had started the steam blowing and other pre commissioning activities. So that part is for the WNF plant and for the ANS and melt we should be doing that shortly or thereafter.
Prashant Biani
But the end product should be out by say.
Abhay Baijal
March. April. April. April.
Prashant Biani
Okay. And sir, what would be your expectation from the upcoming NBS policy?
Abhay Baijal
NBS policy we believe will be more or less a continuation from the past wherein I do not expect the government to go opening up the DAP segment. But as you know, the other parts of the NPK’s are open in terms of pricing. I would believe that that will be more or less what they will continue to go forward. Already have a mechanism and that mechanism DAP has worked so far although there are now increasing difficulties in terms of working capital management. We’re going to call blockage of GST and all that. But I think the government is seized of the problem and they’ll come with a resolution that more or less a continuation.
operator
Right.
Prashant Biani
So for a urea plant there was some unscheduled stoppage in Q2 as well. If I’m. If I recollect it.
Abhay Baijal
Yes. Q3 we had a minor stripper leak for three days. That’s all but in gut upon one plant. But otherwise has been steady quarter in terms of production.
Prashant Biani
And there will be further maintenance shutdown in 4th year.
Abhay Baijal
Yes, there will be a maintenance shutdown for Gaddapan 2 plants effective 20th February which will take about 30 days, 35 days.
Prashant Biani
Okay. Traded business EBITDA per ton was around 9,900 rupees I believe this time while you know it has improved year on year but on an absolute basis it seems to be low. Is it that on per bag basis it is higher and the overhead cost has taken it down to 900 or it is at that level only on a per bag basis as well.
operator
Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the management. Thank you.
Abhay Baijal
Sam.
Prashant Biani
It.
operator
Ladies and gentlemen, we have the management line reconnected. Prashant, if you could please repeat your question for the management. Thank you.
Prashant Biani
Yeah, sure. Traded business EBITDA per ton seems to be at around 900 rupees per ton which is higher on year on year but on absolute basis it seems to be lower. So my question was on a per bag basis it is higher and the overhead cost is dragging it down. Or it is at 900 rupees on a per bag basis as well.
Abhay Baijal
I don’t see the way it is to be seen is that we had significantly higher capacity of sale of dap. DAP, you know, is a fixed margin business. Despite the higher cost that we see. Procurement was done at much Higher prices in this quarter. Although the government gives you a fixed percentage or fixed number, 10, 26 or some such number because it’s 4% of the MRP. So that drags the margin down.
Prashant Biani
But we had decent mix of NPK and MOP as well.
Abhay Baijal
That’s okay. That’s okay. But the very large quantity or large price increase in DAP it went as high as $850 or something like that. So if you do the math, thousand rupees on something like 60,000 rupees is a very small amount.
operator
Sure.
Prashant Biani
And any communication from the management regarding profit calculation or cost calculation for G3 post expiry of benefits?
Abhay Baijal
No. As far as we understand, we have raked up this issue with the government. We have met the requisite personnel. But they said that we have to start the exercise. They are busy with other things on other matters so far. One of them of course is the futuristic expansion of capacity in the country. And they are caught up with some other things. So they have not been able to start on this so far. We have touched base with them at least twice in the last quarter.
Prashant Biani
Okay. And lastly, sir, any update on investment plans after 10 you have briefly touched upon.
Abhay Baijal
But I said that tan remains a focus area for CFCL and vertical and horizontal expansion are being actively pursued. I think that’s a very sufficient indication of what we want to.
Viraj Kacharya
Okay, sir.
Prashant Biani
Thank you. That’s it.
Viraj Kacharya
From my side.
Abhay Baijal
Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question, please press star and 1. We take the next question from the line of Viraj Kacharya from simpl. Please go ahead.
Viraj Kacharya
Yeah, hi. Thanks for the opportunity. A couple of questions. First, any update you can give for G3. I think it kind of. The policy benefits expire by the end of this year.
Abhay Baijal
So I think I’ve just explained that we do not really have a handle on this. Although there are precedents. But we do not know what the government is actually going to do or what thought process they are going to follow. I have touched base generally with the people who matter in this. And they have said that they have not yet started the exercise. Once we have a start on the exercise, maybe I can give you some explanation.
Viraj Kacharya
But in terms of precedence, can you give some perspective?
Prashant Biani
What are those?
Viraj Kacharya
And you know, how does it positively or negatively affect us?
Abhay Baijal
Precedence is what they have been doing for the past. For other in the past. What have they done for our other plants? So briefly it is considers the net fixed assets and then the return on net worth and so on, so forth. So it’s a calculation based on that. Given that Chambal 3, that is Kadipan 3 has finished its tenor, in what way they will treat these numbers is something open to question. We are not hazarding a guess as to what they will do. The numbers could vary from our estimate both positively and negatively. So we have to see because normally they take a 15 year span for depreciation and so on, so forth.
But currently this plant is only eight years into its life. So what exactly will be the parameters they will choose for NIP 2012 units going forward? Because this will be a template not only for us but for all other plants that will follow through. That is Matic is there, Hurl three plants are there and so on. So it will be have to be very well thought out because what they will do with us will go forth for others also.
Viraj Kacharya
And so in terms of DAM project, you know, any perspective, if you see how should we see the scale up happening in FY27, should we see a 70, 80% or even a higher kind of a utilization?
Abhay Baijal
We do hope that we have the capacity in terms of running the plant. We have trained up our people. I don’t think production is going to be an issue. We have to see how well the market absorbs the product. It’s something in the future. And that is the key because at the end point we have to see and we are fairly confident we have our people in place, marketing team in place. And I think we have, I think today the most modern technology available for this kind of product. So at the moment I don’t see any showstoppers as far as reaching a very healthy capacity utilization 75, 80% plus.
I don’t see any problem.
Viraj Kacharya
Okay, sir, I think last just two questions. First, in the opening remarks you talked about us, you know, signing in MOU or a licensing deal with the mnc. Can you just explain what does it pertain to in the sense is it purely for domestic market or it’s more an opportunity. And you know, how can this.
Abhay Baijal
I. I think you are talking about. We were talking about Terry. Terry is, you know, a very well known institute in terms of sustainable agricultural solutions in biologicals. We had as you know entered into an understanding for them to do research on specified product lines and with specific personality traits or whatever of the products. Now we have also commissioned a laboratory to do the specific job there. That is one. Secondly, as we as a indicated, there is a pipeline of products which are going to come from now up to 2028. They are in fact If I’m not wrong and Ashish will correct me there, there are about eight or nine products in various varieties which are including bio nematocytes and fungicides and so on which we have complete IP control and as they form and we feel confident we can go, I mean beyond our borders to sell that kind of thing.
And we are having interesting inquiries from some one or two companies who are looking at our performance of our product and they might, you know, after their set of field trials or getting convinced on the product capability could take it abroad as well.
Viraj Kacharya
Okay, but any other tie up. So I think we were exploring, you know, in licensing opportunities with other MNCs for the CPP portfolio and same for manufacturing.
Abhay Baijal
We were evaluating that is continuing. We are introducing products that we said are new products are coming from those so called formal and informal arrangements with the multinationals that we are talking to. And we have progressed some way. First of all we have a company called Nutrien Worldwide which is going to give us some carbon related products which will come in next year. And then there are products coming from Nichino which we already have. We are also talking to Syngenta, Cortiva, all those people. So as they get confident about our reach capability to market the gen X or 1.5X products, definitely get into that.
And there are both arrangements in terms of the volumes of sales that we have to achieve, the geography in which we have to do that, et cetera, et cetera. So those are arrangements that we have with many of our corresponding companies who are now taking the company seriously in terms of reach, in terms of our marketing capability, in terms of the trust we enjoy with our brands.
Viraj Kacharya
Okay, last question.
operator
Any I would request you to please join back the queue for follow up questions. Thank you. Ladies and gentlemen, if you wish to ask a question please press star. And one, we take the next question from the line of Sandeep Mukherjee from SKP securities limited Please go ahead sir.
Prashant Biani
Thanks for taking my question. I have certain bookkeeping questions like what was the gas cost for the quarter.
Abhay Baijal
I last Mr. Anuj to give the answer to that.
Prashant Biani
Yes, thanks.
Sandeep Mukherjee
Water was 14.$6 on NCV basis per MMBTU.
Prashant Biani
Okay sir. And sir, if you can please give up give the plant wise production volume for G1, G2, G3.
Sandeep Mukherjee
Okay, so Garapan 1 for the quarter we had about 2.84 lakh ton produced. Garapan 2 it was 2.69 lakh ton and Garapan 3 it was 3.51 lakh ton. So total 9.04 lakh ton.
Prashant Biani
Okay. Okay sir. And sir, actual gcal for G1, G2 for Q3 and 9 month. What would be the numbers?
Sandeep Mukherjee
Mr. Bal.
Abhay Baijal
Yeah, I couldn’t get your question. Could you repeat please sir, the actual.
Prashant Biani
GCAL energy efficiency for. For G1 and G2 for Q3 and 9 month. What would be the numbers?
Abhay Baijal
I can only give you a range. They were quite a bit. I would say 5 to 6%. 4 to 5% lower than the normal for G1 and G2 and about. Let’s say about 4 to 5% lower. About 2%. 2 to 3% lower for Jada Point 3.
Prashant Biani
Okay sir. Okay sir. Thank you.
operator
Thank you. We take the next question from the line of Dhruv Muchal from HDFC amc. Please go ahead.
Dhruv Muchal
Yes sir. Just a question on the NPK and the DAP business. So we are seeing that the input prices have increased both phosphate sulphuric acid significantly which will probably lead to an increase in the NPK pricing if you have to probably pass it on. And the DAP pricing remains steady because of whatever government policy. So does it start to have an impact in terms of the offtake of NPK? Because for the last nine months, 12 months we are seeing a good offtake in NPKs. Probably also because of the shortage in DAP. But the does the economics don’t work very favorably for the farmers if you have to take that price hike.
I mean just trying to understand how does this dynamic work.
Abhay Baijal
Naturally there is a substitution effect. If prices are beyond a certain range, farmers will tolerate a certain price gap beyond which they will not. Now that is also incumbent upon the availability of the substitute. Last year the substitute was not available to some extent that is why the NPK’s worked well for the industry. The second part is we are not prognosticating what is going to happen to the DAP availability this year. But you rightly said there are pointers which are worrying. One is that the price sulphur is very high and not seen to be coming down very soon.
The second part is that it has a knock on effect on the price of phosphoric acid. And that also is not conducive to the production of a high P percentage fertilizer like dap. So naturally the cost of production of DAP is going high from rock. Yes, if people have got the rock root definitely they have still some margin left although it’s getting squeezed. But it all depends on what the price fixation for Dapfar phosphoric acid happens in this quarter. But from my understanding it has not yet happened, although discussions are going on. That is one part.
The other part is that ammonia itself also has a little elevated levels at this point of time. What I am trying to say ultimately is that it will depend on the price dynamics and. And what the government of course have got the policy for advantage disadvantage as far as DAP is concerned for the importers where as I told you that the increasing involvement of working capital is an issue. And secondly, as far as the producers are concerned, they have a slightly different formula. I think if I’m not wrong, this past six months, prices and then their subsidies derived from the import of the actual import of the material for the last six months.
How it will work for them is something that you should ask either Paradeep or Coromandel or somebody who is actually producing that. So that would decide the availability in terms of the DAP in the country going forward. The situation looked to be okay sometime back in January when prices were at significant 650 levels, 670 levels, but of late they have climbed up rather sharply. My understanding is that they are reaching levels of 720, 730 already. And where it will end up and what it will do to the availability once again is something. Although the starting point this time is more favorable in terms of better stock position.
It’s a little complex interplay I will not be able to predict. But I think still there will be demand for NPK in a certain percentage and Chumbal is well poised to take advantage.
Dhruv Muchal
Sure, sir. Thank you. So just to extend on this. So basically there are two things. First is the pricing of dap. Sorry, the availability of DAP and the relative price gap between DAP and npk. So keeping the availability aside, because that will. I’m not sure how it will play out, but just on the pricing gap, I mean, is there space to take price hikes in NPK’s for the cost increase or the tipping point is reached where the affordability versus the DAP becomes increasingly more challenging.
Abhay Baijal
It is then a question of positioning and who has taken what position in terms of pricing in the market. So that is an important issue because as you rightly said, there is a tipping point whereby after which the consumption will drop to some extent. So that will be pressure all around. But on the same, you know, let’s look at it this way, that the availability itself of these will be domestically quite constrained because the economics don’t work out at all for NBC dap. Still there is some protection and npk, there is no option except for a grade like possibly 20, 2013, where also because of sulphur prices, margins are under pressure.
Dhruv Muchal
And sir, the second question was on the, on the tan you mentioned about horizontal and vertical possibilities. So any, if you can provide some more comments here, what are these possibilities? Could be.
Abhay Baijal
I think I’ve thrown a very broad and encompassing hint on this.
Dhruv Muchal
It’s a very broad encompassing hint. If you can give more.
Abhay Baijal
Horizontally means that you produce more of the same stuff and vertically means that you go forward in the value chain.
Dhruv Muchal
Sure. And so how, when do you, I mean is there a point where you decide that you go ahead with this or I mean how does that happen?
Abhay Baijal
There are two points to it. One is that we have to. We decide with it when we go to the board and say, okay, here is a specific proposal, okay. That this plant will be put at this place with this cost and with this return and this product kind of mix. And that is when we will announce. In the meantime there are all kind of things going on in the wet room.
Dhruv Muchal
Sure. Agreed. Thank you and all the best. Thank you.
operator
Thank you. We take the next question from the line of Prashant Biani from Elala Securities. Please go ahead.
Viraj Kacharya
Yeah.
Prashant Biani
Sir, ideally for dap, how much availability would the government want to ensure every year, be it from domestic production or importance?
Abhay Baijal
As much as possible. DAP has now become as important a product as urea in terms of the requirement from the farmers. Ideally, in my opinion, what I have seen in the past, and Ashish can bear me out on that, is that we have seen levels of about 2.3, 2.4 million tonnes in April which was considered safe. But if you see what I mentioned in the first paragraph, that there has been extensive sowing of wheat and so on, of course some part of it has already been used as basal dose, which is where most of the DAP goes.
But there are sometimes top up dressing and so on what they call. I will like Ashish to explain that further. So my feeling is that the consumption in the balance period from January to March is also not going to be a small number. What it will do to the availability on 1st of April is something to guess at at the moment. But I’ll ask Ashish to give some color on this.
Sandeep Mukherjee
Okay. So Prashant, you know if you look at the DAP availability as of now vis a vis, vis a vis end January last year, so the inventories end of January last year were around 1.3 million tonnes and the end of January it is around 2.5 million tonnes. And if you look at the import contracts and the production for February, March we should open up with an inventory of 2.8 million tons on the 1st of April. Which is a very safe inventory to start the season with. So I think no panic as of now as far as DAP is concerned.
Prashant Biani
No sir, my question was, you know, irrespective of any month in any calendar year what is the minimum amount of dap? Would anyone would India want be it from domestic source or import?
Sandeep Mukherjee
So if you look at the capacities, you know India produces a minimum of 3,300,000 tons and a magnum of 3.6. 3.636,000 tons in a month. So that’s the range.
Abhay Baijal
No, I think Ashish, what he’s asking is what is the minimum comfortable inventory which the government would want. Now I think you should come from there Prashant, that there is a Kharif Rabi split in this total amount is about 105, 106 lakh metric tonight. Although if you see the numbers last year and sometime that is more due to availability. There was no availability. That’s why the amount fell. Although the latent demand in my opinion is close to 106 to 107 lakh metric tonnes. Now given that most of that I do not know the exact split between Karif and Ravi.
You divide by the number of months and take a center point and that would be the kind of inventory that the government would like to have. So assuming, let’s say I’m just doing a very, very crude math on this. Most of the consumption takes place in Rabi somewhere around. Around 55, 60% I think goes into Rabi. So we are talking about 6 million tons in the two and a half months or three months of Rabi which is active. So we are talking about 2 million tons a month will get flushed out of the system. If that is the case, the government should have a by Rabi at least three, three and a half million million tons in its pocket.
That’s the way to look at it.
Viraj Kacharya
Sure.
Prashant Biani
Thank you for that. And sir, how much is the net cash and liquid investment right now?
Abhay Baijal
I will ask Anuj to answer this question.
Sandeep Mukherjee
About 800 crores. About 800 crores as of today.
Viraj Kacharya
Okay.
Prashant Biani
And Mr. Baja, it has been a while since you are talking about overseas investment. Nothing concrete you have shared.
Abhay Baijal
As of now I can only report that we are in active discussion and we continue to have active discussions. But as I said last time sometimes you break off and then engage. So this time When I am talking to you, we have had a significant RE engagement and where it will lead to we will have to wait for some time. But I think there has been a RE engagement and a positive RE engagement.
Viraj Kacharya
Okay, thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question, please press star and 1. We take the next question from the line of Viraj Kacharya from Simpl. Please go ahead.
Viraj Kacharya
Yeah, hi. Thanks for the opportunity. Any color changes? How we are looking at wrapping up?
Abhay Baijal
I think your voice is breaking. I could not really hear.
Viraj Kacharya
Is it audible now?
Abhay Baijal
Yeah, you are audible but there was a break in the. In the sound.
Viraj Kacharya
Yeah. So I was just trying to understand, you know, how are we looking at scaling in the seed business? Any tie up with MMCs?
Abhay Baijal
No, we are doing a two pronged approach. First of all, this year we just introduced and tested the market and we went into mustard, we went into palm millet, we went into wheat and so on, small quantities to just test out what really happens in this market. What are the operating realities of this market. So we have got a good fix. We are going to scale this up while we look for opportunities. And there are, because of our entry into this, we have started receiving inquiries of a significant nature on people who want to tie up or offer a stake.
So we will look at those and once we have something to tell you, we shall.
Viraj Kacharya
But in the stake also we will be looking at a majority ownership kind of.
Abhay Baijal
We don’t know what will work depending on the valuations and so on. We don’t know what will work. But we have started receiving inquiries. That much I can say.
Viraj Kacharya
Okay. And second question was on the cpp, you know, we were also evaluating into the own manufacturing setup. So any, in any decision we have come to in terms of, you know.
Abhay Baijal
We really have not thought in terms of proactive going out and snagging some asset or something like that. What we are talking to one or two people is that they develop some generic combinations for us. And although this is very embryonic, very embryonic, we have had just a discussion on this. There are people who are willing to develop our white label generic combinations which we will then see if it is, once it is and then also manufacture it for us if it is possible. So at the moment asset acquisition in this site is not really on the table.
But this way where we get again a Terry kind of model where we get stuff done for us and then also get manufactured what we are actually exploring.
Viraj Kacharya
Okay, that’s all. Thank you.
operator
Thank you ladies and gentlemen. If you wish to ask a question, please press star and one, we take the next question from the line of Karan Gupta from Kavi Capital. Please go ahead.
Viraj Kacharya
Yes, thank you for the opportunity. One question on the demand supply dynamics in the Tan market. There were some recent reports about CIL also wanting to set up its own manufacturing facilities. So could you just talk a little bit more about your thinking about the market?
Abhay Baijal
No, this is a good. It’s an expanding market, let me tell you. We are anyways growing in the market. I think around 5 to 6% CAGR and that you can recheck from Deepak as well. But. And the market will shortly become short, I mean long in the sense that there will be some capacities added by us, by even Gopalpur at Deepak and so on in the next one or two years. But overall, if you see the trajectory of what’s going to happen in India, infrastructure, data centers, copper, cement, requirement of power through coal and so on, I’m pretty confident that the trajectory is going to go higher.
Secondly, the other trigger that we think is going to happen is the private sector involvement in mining, especially metals and so on. This is going to open up a big way in the next three, four years. That is real opportunity because there will be requirement for specific stuff there. Which is why we talked about some kind of vertical integration into this. Then that in any case doing vertical integration insulates us to some extent. The second part is that we have heard about CIL and bhel. Coal technology is definitely gives a lot of advantages in terms of ammonia manufacture.
But it’s a difficult technology to master and it’s very emission intensive. We have a lot of respect for coal India and bhel. But by their own admission they are talking about four years from now. So we are looking at a space where the market is already going to go long. And that point of time I think we will have enough space for everybody around. I think to tackle this issue. We are quite confident.
Viraj Kacharya
Okay, thank you sir. Another question is regarding capital allocation. So apart from the expected time expansion and any inorganic opportunities, is there any consideration of increasing cash returns to shareholders?
Abhay Baijal
I think if our plans work out, we don’t have anything to offer in the next one or two years. Beyond that we’ll see.
Viraj Kacharya
Okay. And lastly on the pending dues, subsidiary dues, when do you expect to receive those from the government?
Abhay Baijal
My understanding it is a cycle goes back and forth. We have a total of.
operator
Ladies and gentlemen, we have lost the line of the management. Please stay connected while I reconnect the Management. Thank you.
Parvagi Jain
Sam.
operator
Ladies and gentlemen, thank you for your patience. We have the management line reconnected. Karan, if you could please repeat the question for the management. Thank you.
Viraj Kacharya
Yeah, I think they were in the process of telling us about any.
Abhay Baijal
I will ask if I’m not wrong. As of end of December we had something like 16, 1700 crores or little bit tad more, 50, 100 crores here or there. That’s my memory. Anuj can feed me on that. That was outstanding as receivable from the books of which about 700 crores is what has been built and the balance is unbilled because there is a certain process of flushing it out through pause and all that. So that is a. That will keep on coming and going. So we know that the government has taken some extra for the sector by way of some supplementary grants and all that.
So I think we are comfortable there. I don’t think there’s much of an. But you can either. I can ask Anush to give you the exact numbers.
Sandeep Mukherjee
About 1980 crores and as Mr. Bazel rightly said that about 600 odd crores is the build value balance is because of some pause clearance or some advantage, disadvantage and fate etc. And in January and February till date we have received about 1000 crores.
Viraj Kacharya
Thank you.
operator
Thank you. We take the next question from the line of Akash Maji from IIFL capital. Please go ahead.
Prashant Biani
Hello sir. Thank you for the opportunity. Can you please share the urea sales volume for Gardipan one facility?
Abhay Baijal
I’ll ask Anush to answer that.
Sandeep Mukherjee
Yeah. So we have sold in the quarter Garapan 1 2.87 lakh ton, Garapan 2 2.79 lakh ton and Garapan 3 4.18 lakh tons to total 9.83 Lakton.
Prashant Biani
Okay, and what would be the estimated volume loss from this unplanned shutdown in 3Q? Would that be minimal or is there a figure for that?
Abhay Baijal
So that’s not much. We are talking hardly 3,4000. We had enough stock to make up for that loss of 10,000.
Prashant Biani
Okay, the last question would be given the unplanned shutdown in 2Q now in 3Q and now the plan shut down in 4Q as well. What would be the urea volume growth that you are expecting for FR26? Is there any figure for that?
Abhay Baijal
I think urea volumes normally Mr. Kash remain static because we run as it is beyond 100% capacity for all three plants. We are fully and more exploiting the capacity. And these plants have a certain number beyond which you cannot sort of exploit capacities unless you run for a larger number of days in a year. So, as you know, we are already in a two year cycle before we do turnaround for all the three plants. Our effort technically is to go to three year cycle in this as. And when we do that, some unexploited capacity will come out in all three plants.
operator
Okay, thank you.
Prashant Biani
Thank you for answering my question.
operator
Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and 1. As there are no further questions from the participant, I now hand the conference over to the management for their closing comments.
Abhay Baijal
Thank you. I would like to thank all of you for the call today. And I hope that you were able to address all your queries. If you have any further questions, you can reach out to hire partners at Valorum Advisors. Thank you once again for participating in the forum.
operator
Thank you. On behalf of Chumbal Fertilizers and Chemicals Limited. That concludes this conference call. Thank you for joining us. And you may now disconnect your lines.