Chambal Fertilizers and Chemicals Limited (NSE: CHAMBLFERT) achieved consolidated operational income of ₹58,983 million for the third quarter, supported by strong performance in the crop protection and biologicals segments. Management continues to prioritize its Technical Ammonium Nitrate project to diversify revenue streams beyond traditional agricultural markets.
The company reported a 20% year-over-year increase in consolidated operational income for the third quarter ended December 31, 2025, reaching ₹58,983 million. Net profit for the quarter rose 10% to ₹5,864 million, while basic and diluted earnings per share (EPS) increased by the same margin to ₹14.64. The company’s performance reflects steady growth in its non-urea portfolio despite operational challenges in its manufacturing segment.
Market Data (As of December 31, 2025)
- Current Stock Price: ₹482.10
- Market Capitalization: ₹1,93,154.47 Million
- Valuation: Based on the nine-month consolidated EPS of ₹44.53, the stock’s performance reflects its position as India’s largest private-sector urea manufacturer
Strategy Update
The primary driver of recent activity is the Board of Directors’ approval of the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. This reporting period highlights a significant shift toward higher-margin products, with the Crop Protection Chemicals (CPC) and Speciality Nutrients (SN) segment contributing to a 30% growth in contribution during the first nine months of the fiscal year. Additionally, the company is nearing completion of its strategic diversification into industrial chemicals.
Product Highlights
CFCL introduced five new products in Q3 FY26, including bio-pesticides, bio-fungicides, and insecticides. The company reported that “UTTAM PRANAAM” (Bio Nano Phosphorus), launched in Q1 FY25, has shown promising results, with volume and revenue growth increasing by 250% year-over-year. Furthermore, CFCL has a pipeline of 12 new CPC products and one SN product scheduled for launch in FY27. In its seeds business, the company introduced a research variety of wheat seeds during the quarter.
Financial Performance
For the quarter ended December 31, 2025, consolidated EBITDA stood at ₹8,208 million, a 6% increase over the ₹7,780 million reported in the prior-year period. However, EBITDA margins contracted to 13.92% from 15.82% a year earlier.
On a nine-month basis, consolidated operational income reached ₹180,086 million, a 27% increase over the previous year.
The standalone balance sheet as of September 30, 2025, showed total equity of ₹96,560 million and a reduction in long-term borrowings to zero from ₹10,639 million in March 2024. As of December 31, 2025, subsidy debtors remained a material factor at ₹19,794 million, while market debtors stood at ₹2,858 million.
Product Pipeline
The company plans to launch 12 new crop protection products in FY27, a move expected to sustain strong growth in its non-urea businesses and support margin expansion across the Crop Protection Chemicals (CPC) and Speciality Nutrients (SN) segments.
The launches form part of a broader strategic shift toward higher-margin offerings. Momentum in the CPC and SN portfolio is already evident: segment revenue rose 30% year over year to ₹11,724 million in the first nine months of FY26, compared with ₹8,873 million in the prior-year period. Profitability remains structurally stronger than in regulated fertiliser categories, with EBIT margin at 23.69% for the period, up slightly from 23.37% a year earlier.
Management is using the expanded product pipeline to diversify earnings beyond urea and increase exposure to higher-value crop segments such as fruits and vegetables. The new launches are also expected to benefit from the company’s established “Uttam” brand and distribution footprint of more than 76,000 retailers, enabling cross-selling through a single-window agri-solutions model.
In addition to the FY27 pipeline, Chambal introduced five new products in Q3 FY26 across bio-pesticides, bio-fungicides and insecticides, and continues to develop biological solutions for rollout over the next financial year, reinforcing its push into higher-value, non-urea growth drivers.
Industrial Foray
Management’s core strategy involves diversifying into industrial chemicals through its Technical Ammonium Nitrate (TAN) project at Gadepan, Rajasthan. The project, with a total cost of ₹16,450 million and a capacity of 2.4 lakh MTPA, has reached 92.65% overall completion. As of the end of Q3 FY26, the company had spent ₹11,836 million on the facility. This plant is intended to allow CFCL to expand beyond agriculture into industrial end-markets.
Demand Backdrop
Favourable agronomic conditions supported the operating backdrop in the December quarter, with cumulative rainfall running 11% above normal between October and December 2025. Rabi sowing for FY26 rose 2.8% year over year to 652.33 lakh hectares as of January 2026, led by a record wheat acreage of 334.1 lakh hectares.
Despite supportive demand indicators, the company reported lower urea volumes for the quarter following an unscheduled shutdown at one of its urea plants. The company continues to hold an estimated 10% share of India’s urea market.
Investment Thesis (Bull vs. Bear)
Bull Thesis:
- CFCL demonstrates strong growth in high-margin non-urea segments, with biologicals recording a 31% volume increase.
- The company maintains a robust financial position with nil net debt to equity as of FY25 and an ROE of 21%.
- The near-completion of the TAN project provides a clear path for revenue diversification and reduced dependence on agricultural cycles.
Bear Thesis:
- The company’s EBITDA margins declined by 190 basis points year-over-year in Q3.
- Heavy reliance on government subsidy policies remains a structural risk, and unscheduled plant shutdowns can impact production volumes of its core urea product.