Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Coromandel International Limited (NSE: COROMANDEL) Q4 2026 Earnings Call dated May. 08, 2026
Corporate Participants:
Sankarasubramanian S — Managing Director & Chief Executive Officer
Deepak Natarajan — Chief Financial Officer
Analysts:
Prashant Biyani — Analyst
Unidentified Participant
Unidentified Participant
Darshita Shah — Analyst
Pripul Kumar — Analyst
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Coromandel International Limited Q4FY26 earnings conference call hosted by Ilara Securities. As a reminder, all participant lines will be 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 an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Prashant Biani from Elara Securities. Thank you. And over to you, Mr. Biani.
Prashant Biyani — Analyst
Hi. Thank you all for joining the call today. We would request Mr. Shankar Subrahmanyam to start the session with his opening remarks and then we’ll follow it up with Q and A. Over to you, sir.
Sankarasubramanian S — Managing Director & Chief Executive Officer
Good afternoon everyone and thank you Prashant for organizing this call. I’ll begin with brief overview of the business environment during the year followed by detailed comment on operations and thereafter I will request Deepak to talk on financial performance. The Indian agriculture sector in last year witnessed moderate growth with agri GDP expanding by 2.4% reflecting the impact of uneven climatic conditions and softening agri commodity prices. The southwest monsoon was above normal at 108% of the long period average.
However, its erratic distribution delayed with soil affected crop cycles and rural consumption particularly during the rubbing season. Increasingly, the reservoir levels were quite strong supporting the improved sowing activity. As you all know, Curry acreage increased to 112 million hectares and Rabi sowing rose to 68 million hectares culminating in record food grain production of close to 348 million tons as on April end. All India Lithuania levels are 115% of the last year’s storage and 126% of the normal storage.
South region is 93% of the last year’s storage 121% of normal storage going forward. Weather forecasting agencies have estimated a below monsoon for the upcoming Karif season. Based on the recent estimates. Key operating certain markets are likely to experience largely normal rainfall. IMD is expected to issue the updated forecast providing region wise view in the last week of May. I think this can provide better clarity for all of us. Summer sowings have started on a positive Note as on April 9th crop sowing stood at 8 million hectares, marginally better than last year.
As you are aware. Government has announced the MBS rate for Karib 2026 increasing nutrient rates by 10% for NP M days. These rates do not reflect the sharp increase in raw material prices and rupee depreciation. Post the Middle east crisis, industry expressed further support to address the affordability issue for the farming community. Industry has been constantly engaging with the government to address these issues and we are hopeful of a positive outcome. Last year has been tough year for the sector as the supply disruption from Middle east has resulted in elevated prices especially the fad end of the year.
We have seen sudden spurt in key raw materials like ammonia and sulphur and availability of finished fertilizers became a challenge. As you are aware, Middle east contributes significantly to raw material feedstocks and freeze products. Our India dependence on ammonia and sulphur is upwards of 80% and most of the shipment cross the straight up formos and thereby this disruption in the region has led to sharp price and commodity prices. While China and industry stocks remain balanced at this point, industry is making concerted efforts to maximize supplies.
In Q1. An empowered committee comprising of government and industrial features have been working in close coordination for fertilizer production planning and raw material sourcing. During the year domestic cosmetic industry increased its production to 16 million tonnes. Industry also resulted to a higher level of imports. Both DFE and NPK which added up to 10 million tonnes against previous 0. 7 million tons. Consumption for the year was close to 24 million tonnes more or less same as the previous year and the mix is favoring NPK despite relatively higher prices compared to DAP and the share in the overall phosphatex.
NPK currently having a share of 60% during the year. Industry players signed an offtake agreement close to 7 lakh tons of green ammonia. These efforts are expected to play a crucial role in reducing the carbon footprint of fertilizer production while aligning with India’s long term climate commitments. Happy to share Coromandel has also taken a lead in this government initiative and agreed for coverage of 20% of the total ammonia requirement to be met through green ammonia route. On the agrochemical industry side, situation presented broadly constructive operating environment for the global industry.
After two years of destocking and demand suppression driven by inflated post pandemic inventories, channel inventory levels show signs of normalizing across major geographies. Indian agrochemical climate as the market experienced a recovery period in the first half with a near normal monsoon healthy territory which translated into stronger feed level demand compared to the previous year. However, the Rabi demand was muted due to late withdrawal of monsoon leading to lower liquidation than expected.
Having covered the industry, I Will specifically now talk about company’s performance during the year. Company’s manufacturing plant registered record fertilizer production of 3.5 million tonnes with the highest level of safety and environmental management. In fact, it is heartening to note that one of our largest fertilizer plant has been given British Safety Council five star rating and also got British Safety Council Swaddle 100 awards. And all the plants undertook annual maintenance turnaround in March, April month and they have now resumed normal operations.
Phosphate production for the year was up by 3% to 4.5 lakh tonnes in March month. Company successfully commissioned, as we communicated in their past meetings, commissioned the 2,000 tons per day sulfuric acid plant and 650 tons per day phosphoric acid plant at Cartinada. Tempering its backward integration capabilities, this plant is capable of producing annually 200,000 tons of phosphoric acid. And we have also synchronized the receipt of rock from Senegal which will be used in this new plant. Currently this plant is going through trial runs and sulfuric acid volumes have scaled up.
Power generation has also been met through captive power plants. Operations are getting overall stabilized and we expect to operate at a desired capacity from April, May and onwards. Our project to expand our granulation capacity is gaining momentum. We are on our way to commission this plant by December of this financial year. Our off phosphate project at Senegal has stabilized very well and we have reached the output of more than 3.5 lakh tonnes last year and we are planning to increase the volume further by 30 40% in the current year.
The company also has enhanced its stake in Senegalese NK and currently holding 71.5% in the mining company. We have been digesting our raw material sources through long term contracts in various countries beyond Saudi and Qatar, like Southeast Asian countries, African countries in Canada and sometimes from Russia and China as well. So fabric we are reasonably covered in terms of the raw material for the first quarter. We do hope that there can be a yearly resolution to the vegetation crisis and we will be able to secure raw materials for Q2.
I would like to point out here the challenge is not only the availability but also the price and they are closely working with the government for suitable support to handle the current price volatility. I do hope when the supply side improves, price should get normalized. Currenting is quite abnormal and beyond the affordability of any industry player to secure and produce and convert them into fruit users. On the marketing front, we delivered record sales of 4.3 million tonnes of DS in NPK, a growth of 7% over last year our consumption has reached the peak of 4.1 million ton making us the largest player with the highest market share of 17.5% in the phosphoretic sector in the country.
Our share of unique grades remains at 35%. We continue to expand our footprint across north and Central India markets by active channel engagement and former current initiatives and we registered a growth of more than 24% in these markets. Our single super profit business registered highest level sale volume of 8.4 lakh tonnes with differentiated grades like grow plus and grow alpha contributing to more than 50% of the volume and we continue to be the market leader in the SSP sector. Colomanda’s drone strain service delivering through Bromo Drive initiative and also through our own retail centers.
We have covered close to 3 lakh acres and is witnessing strong adoption by the farming community. Our specialty nutrient business delivered strong performance supported by focused market development and farmer engagement activities. We introduced different products across organic and specialty segments offering cross specific and performance enhancing solutions. Business is central in its manufacturing capability and is setting up a map plant and also seaweed granulation capacity. These investments will generate revenue in the coming years.
Our nano business had a strong year emerging as a leader in the nano tap segment with around 50% market share while also expanding its presence in international markets through ongoing trials and registrations. Overall volumes expanded by 60%. Company marketed close to 42 lakh nano bottles by demonstrating product efficacy through extensive field trials, scientific studies and farmer outreach programs. We strongly believe during this period of challenge and crisis, alternate solutions like nanotechnology can make a huge impact and can save the country from the huge foreign exchange output as well as help the farmers to have the right nutrient application for the crop.
Company’s retail business reported strong performance growing over 30% in 2026. Business expanded its footprint with the addition of over 300 new stores in Andhra Pradesh, Telangana and Karnataka while also entering new markets such as Maharashtra and Tamil Nadu. We continue to leverage technology driven solutions including precision advisory, E Commerce, drone spraying services and last mile delivery. Moving on to one of our significant business segment which we have been growing consistently over the last and also where we made a significant investment through acquiring Nagazena Agriculture.
In the year beginning the crop protection business of Coromandel achieved a healthy growth both in terms of revenue and profitability. Performance was supported by strong domestic demand, recovery in export volume, a new product introduction and disciplined cost management. Our stand alone crop protection business of Coromandel the revenue moved up by 16% to go up to 3,054 crores led by higher sales across segments formulations. Exports, B2B and bio volumes have shown significant growth and margins have improved significantly and profitability of crop protection business has grown by 50% to reach 569 crores benefiting from favorable demand for its key molecule across exports and domestic market.
On a combined basis our permanent crop protection business as well as Nagarjuna Adrikam has reported a combined revenue of 4000 crores which could have been better but for the late withdrawal of monsoon and Jerabi season. But structurally the business has been going good and we are soon to reach a milestone. What we have been indicating in the past in domestic market we expanded our presence by introducing new territories, onboarding our new dealers close to 1000 and also introduced new formulations.
We have introduced 10 new products during this year which represent 21% of our total revenue. Our export business registered strong volume growth reflecting both the global inventory rebalancing cycle and targeted business development efforts by Coromandel in key geographies during this year. The Coromandel commissioned their technical plant at the hedge and is further expanding technical capacity at Seligam bio business where we are the large player in neem based bio pesticides. The demand for Neem based Haza received good traction during the year expanding beyond plant extracts.
The company has built a fermentation and microbial processing capabilities to diversify its biological portfolio. The launch of five BioPrecession 3 BioFertilizers has strengthened its innovation pipeline with new products gaining good traction in the domestic market. We have completed the acquisition of 53% stake in NACL and also followed on with the rights issue of 250crores to reduce the high cost debt. So the borrowing cost has come down significantly from nacl and we have brought in the best practice of Corona and wealth and we are now exploring the synergy opportunities between the two companies.
NaCl has made a significant progress with revenue moving up by 28% to register 1,585 crores of top line and EBITDA of 103 crores against last year loss. Al is working closely with NACL team on leveraging synergies across product development, manufacturing and sourcing. Talking about our another subsidiary Daksha, a drone subsidy. It is currently in a nascent phase with substantial headroom for growth. Focused efforts are being made to streamline operations and address early stage challenges with a clear emphasis on driving improved performance in the periods ahead.
The company is working towards building strategic collaboration and sharpening Execution capabilities to fast track product introduction improve business development and service aspects. DAXA and Peromandel’s agri business has been working very closely to develop agree tones specifically to address the need and provide comprehensive solutions to the farming community of India. Overall, Coromandel has reported strong operational performance in fourth quarter with revenue growing by 19% reaching 6068 crores and EBITDA growing by 16% and reached 494 crores.
It’s pertinent to note that last year Q4 had exceptional income of 347 crores relating to land sales against the current year position of 71 crores which have taken towards investment impairment of investment. Hence the reported profit is modest at 115 crores due to this variation of almost 418 crores within the corresponding period. Operationally we have done very well including the fourth quarter where we took annual turnaround, we operated the plant full. In spite of the challenging situation which industry is facing Due to certain spurt in global prices not adequately covered by subsidy rates, Permandel has turned around with a resilient performance.
There has been a compression in fertilizer margins. However, all other business segments like specialty nutrients or crop protection retail business have reported healthy growth in revenue and profitability on a full year basis. Coromandel has reported Highest ever revenue of 31,827 crores and EBITDA of 3232 crores. Recently acquired NACL as I mentioned has turned profitable and registered EBITDA of 1 or 3 crores. Coronel has invested significant investment of over 3000 crores in the last two years across business segments and I’m sure this will generate target revenue and profitability in the coming period.
I’ll now hand over to Deepak to comment on the financial performance before I take any questions from the team. Sir.
Deepak Natarajan — Chief Financial Officer
Thank you Shankar. Good afternoon everyone. The company recorded a consolidated total income of 6068 crores during the quarter and 31,827 crores during the financial year FY 2526. This is a corresponding period of 5114 crores and 24,444 crores registering a growth of 19% for the quarter and 30% for the full year. The subsidy business share in the revenue stands at about 75% for the quarter and 85% for the full year. From a profitability point of view, the consolidated EBITDA for the quarter stands at 494 crores against 426 crores previous year.
On a full year basis, the consolidated EBITDA stands at 3232 crores against 200628 crores last year. The subsidy business share in EBITDA stands at 57% for the quarter and 66% for the full year. Correspondingly last year it was 67% and 70%. The net profit after tax for the quarter stands at 15 crores in comparison to 578 crores in the previous year same quarter. That was essentially because of some of the exceptional items we had taken last year and this year. And the net profit after tax for the full year stands at 1898 crores against2055 crores in the previous year.
As far as subsidy is concerned, during the quarter the company received 3,441 crores towards subsidy claims for the full year we have received 10,649 crores as subsidy. This compares with 8,082 crores we received last year. Subsidy outstanding at the end of March stands at 2,168 crores compared with 16541654 crores in the previous year. We have received the subsidy claims till the third week of March 2026. While the subsidy outstanding at the end of the year is higher as compared to the previous year, it has come down sequentially quarter on quarter from 3,785 crores to 3,199 crores at the end of September.
As you may be aware, the government has also come up with supplementary grant of 1500 crores for NBS in March and this has helped settle use in the month of March. Inventory has remained at a slightly elevated level driven primarily by elevated raw material prices and certain incremental inventory that we have kept for our newly inaugurated phosphoric acid and sulfuric acid plant in Kakinada. We are also holding some level of strategic inventory considering the ongoing crisis in West Asia. During the quarter we took an impairment on the investments on goodwill in the stand alone and consolidated financial results of the company relating to the drones business.
This is primarily due to long lead time the execution of certain orders. Management believes the value of the investments to improve and has provided for impairment on a prudent basis. Finally, on forex during Q4, the rupee traded in a very broad range of 89.75 to 95.23 which continued to pose certain level of challenges. Core mindless continued to hedge its exposures on a temporary basis. Thank you
Operator
Sir. Should we open the floor for the Q and A?
Deepak Natarajan — Chief Financial Officer
Yeah, please.
Questions and Answers:
Operator
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press Star and one on the Touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ahmed Madha from Unified Capital.
Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity. I have a few questions. Firstly, if I compare the consolidated P and L and standalone P and L, there is a gap. Obviously NACL doesn’t have incremental loss. I’m assuming that is coming from the mining entity bmcc. And even the depreciation numbers are much higher compared to last year. So if you can expand on how is BMCC as an entity placed in terms of financials and also explain how the depreciation amortization of the mining assets moves forward in next year and thereafter and how do you see the profitability trends of the VMCC entity
Sankarasubramanian S
On the mining side? You are absolutely right. The amortization expenses depreciation is more of an accounting where the mining costs are also getting amortized and it is showing there basically it is a basic cost what we incur before we reach the war that gets amortized over a period of time as per the accounting requirement that needs to be accounted under the amortization. So that’s the reason when the volume of operation goes up, that amortization cost increases and we charge the entire initial mining cost over the volume of ore which we can extract in the pit.
We do our mining accounting and accordingly that gets reflected in the consolidated financial. Your observations right. In terms of the financial health and performance of bmcc. BMCC has turned profitable now with the increased volume of operations, better absorption of fixed costs, improved efficiencies and that price is linked to the market price because it’s an inter company transfer and factoring that market price for rock phosphates, it turns profitable and it will improve its margin going forward with increased volume of production coming through.
As far as BMCC is concerned, in terms of the overall and other amortization which are happening, it’s more of an accounting thing which you should get evened out. When you do the consolidation accounting involving subsidiary, there is a certain amount of the intangibles which get amortized over the period and that has gone into the accounts while operationally standalone Nagarjuna is turned profitable at EBITA level. But on a consulted level we need to have some amortization of certain expenses between it’s more of a consolidation accounting between the acquisition value versus the holding value that gets amortized over the period.
So that is reflected there. That is why you see the change in the depreciation compared to standalone numbers.
Unidentified Participant
Sure makes sense. Secondly, on the margins of the fertilizer business for the upcoming season, how should one look at it? Considering the very nominal increase in the subsidy numbers about 10% while the raw material prices have gone up materially. So how do you see government response coming in whether there can be another sort of a price increase rather subsidy increase which sort of happened in FY23. We were going through similar phase where raw material prices went up materially and government again revised the subsidies.
So how. How do you see the current situation and what is your broad sense of how the you how you will be compensated for the higher raw material cost? Because I’m assuming current subsidy and the MRPs are not sufficient for it.
Sankarasubramanian S
You are right. It’s too early stages after these raw materials are coming in at higher prices. Of course industry has some benefit of the carryover inventory in the first one or two months. Farmers also will be able to have access to the opening stock of finished places. But the replacement cost is very high. Only the availability. Another one is the price. As I mentioned in my opening remarks, the prices of ammonia sulfur have gone up exorbitantly higher. And it definitely calls for additional compensation subsidies which we have taken up with the government.
It’s under discussion stage and hopefully we should get some. They have positively looked at it and hopefully we should get a pass through on these costs. Basic objective is to see that how best we can secure first and produce new places and then try and see how best we can retain the price to the farmers at more or less same level. If that calls for additional subsidy, it will happen already. Gap still remains to correct the prices because these are all through early stages and these extraordinary times and we don’t want to put any number.
We don’t expect this scenario also to remain for long time. Abnormal event has happened and we hope the normalcy gets us to. Once the supply side improves, we do expect things to be back to normal. Having said that, it’s very critical for additional subsidies to come in beyond what has been notified. As these rates are based on ELA rates, we need to have additional subsidies and some pass on will also happen. Which industry also has taken some corrections in the Last one or two months. As far as DAP is concerned, government has been considerate and they have given a pass through last year and hopefully should continue now.
Unidentified Participant
Sure. My third question was on the crop protection business. If you look at. I mean the performance in terms of standalone has been pretty good in terms of margin improvement. So can you just celebrate how do you see overall opportunity with the NaCl acquisition done now? I mean and we have been. The entity has been consolidated for about two and a half quarters. So how do you see the opportunity in terms of export side, in terms of scale up of your agrochemical business and Nagarjuna’s NaCl’s margins, how do you see the trend changing?
And lastly, the standalone crop protection had low growth about 2 to 2.5%. Were there any sectors that led to that? And how do you see the growth moving forward?
Sankarasubramanian S
Standalone has grown. Well, it’s not 2, 3%. No, we have grown 3053 as it is. Standalone crop protection.
Unidentified Participant
I meant standalone crop protection.
Sankarasubramanian S
Yeah, I also referring to crop protection only 15.8% if I’m right, revenue has grown significantly this year. Really over. I’ll just have a look at the math. But I meant. I meant
Unidentified Participant
For Q4. I meant for Q4, sir.
Sankarasubramanian S
Oh, Q4. Q4 is the off season generally and yeah,
Unidentified Participant
Yeah, yeah,
Sankarasubramanian S
I was talking about the overall number. Yeah,
Unidentified Participant
Yeah, fair overall. As I said initially that you have done well so I meant just for Q4.
Sankarasubramanian S
So. But in terms of the probability that gone up also we overall if you want to. Just to give you a comment on the crop protection business, we have done extremely well on all segments whether it is global exports of active ingredients, especially the key molecule Nancosil. We have got better volume growth as well as better realization and our additional capacity which came up in the Hague during the year was quite helpful. To meet these additional Demand, the domestic B2C market, we added territories and we increased the volume.
Our formulation business overall has grown by 15 20% while the domestic sector as a whole had a deep growth. Coromandel, thanks to the new territories and the new products introduced during the year, we have done well. We could have done much better but for the challenges we faced in the rugby season. It is true for the entire industry. Domestic B2B segment where we do sell active ingredients to other institutional customers. We have broadened the portfolio beyond Nancozil and we have scaled up well.
Prices of Most of the AAs also improved during the year and that has resulted in improved margins on a stand alone basis. Crop protection business has reached the record turnover and record profitability. As you can see it’s close to 19% EBITDA margin and revenue of 3000 crores. This includes bio business as well where the invest bio business have recorded good export volume. And we started our own channel in bios for domestic sale as well. And we have also expanded the product portfolio in bio business to go in for microbials and plant extract products.
On the NACL side, as I mentioned in my opening remarks, overall turnover has grown by 28% and profitability has improved operationally while it has not added significantly to the bottom line mainly because of alignment of major accounting policies in line with Coromandel. And that has resulted in provisioning which has reduced the net profit on a standalone basis. But capacity utilization of the technical plants have improved significantly. And we are also looking at additional intermediates and technical capacities in the hedge plant which is currently operating at floor level and NACL team working together for leveraging synergy benefits and cross selling products across various markets depending on the strength of each company.
So overall on a consolidated basis we have reached 4000 crores. And margin of initial has improved to 6% to 7%. That is what we indicated in the beginning. And going forward next year with the change in product portfolio that should stabilize around 9 to 10%. And we need some time to introduce new products, register new products, introduce 9, 3 formulations to significantly improve EBITDA in line with Coromandel. It would be difficult for NACL on a standalone basis to increase the margins unless new active ingredients and new formulations are introduced which will take some time.
So currently we can say we can restore the margins but it was 78%. Beyond that it requires investment which we will take a view at appropriate times.
Unidentified Participant
Sure. Thank you so much.
Operator
Thank you. The next question is from the line of Ankur from Access Capital. Please go ahead.
Prashant Biyani
Hi sir, Good afternoon and thanks for the opportunity. First, you know, if you can give the EBITDA breaker for, you know, for the full year in terms of subsidy, subsidy and the revenue breaker for cost protection in terms of, you know, B2B, B2C and exports and domestic.
Sankarasubramanian S
Sorry, come again. First one, what is this? EBITDA.
Prashant Biyani
So the, the non subsidy, you know, EBITDA share for the full year. If you can share that as well as, you know the breakup in the. For the crop protection business, breakup between export domestic as well as B2B2C revenues there for the full year.
Sankarasubramanian S
Subsidy business share for the full year is 57%. That is clear in terms of.
Operator
I’m sorry sir, you are not audible right now.
Sankarasubramanian S
Hello.
Operator
Yes sir, the line is. Just give me a
Sankarasubramanian S
Minute, I’m just checking the. Sure. It’s 66% for the year at SEPUL. What? I said 57 is for the quarter and 56% for the year of Sepul.
Prashant Biyani
Sure sir. And you know the breakup between export domestic and B2B2C for.
Sankarasubramanian S
You need this for the full year or for the quarter?
Prashant Biyani
Full year sir.
Sankarasubramanian S
Coromandel crop protection business, right. Exports will be 1450 crores. Exports domestic will be 700 crores and domestic B2B and formulation will be 900 crores.
Prashant Biyani
Sure sir, that’s helpful. Yeah. Okay. So you know as you rightly highlighted in terms of the growth that we have seen for the non subsidy business as well as the strong, you know, operating profit, the margin expansion as well for the full year given the macro one, is there any concern from an RM availability perspective for the crop protection business or even from a pricing perspective. And second, how do you look at the growth going ahead? You did alluded towards NACL sort of cross selling opportunity being there.
But let’s say on Coromandel own portfolio basis what sort of growth are you looking at and sustainable margins there
Sankarasubramanian S
As far as raw material supply chain is concerned. On crop production we are quite comfortable and we are fairly covered. I don’t see any challenge. It continues to be available and whatever input cost increase has happened because of global phenomenon we are able to pass through. So we don’t see any impact on margin due to input cost. So crop protection business is fairly comfortable in terms of the growth opportunities. It is driven by active ingredient volumes. Mancos is where additional capacity is coming up that will be commissioned during the year.
That will be the major volume kicker for active ingredients. On the domestic formulation business we are planning to grow aggressively by another 2025% because of the new registrations which are coming through. In this year we’ll be launching another six new products and also we are increasing our import of active ingredients from China and also introducing new products in India. Overall you can see a revenue growth of 20 to 25% besides the capacity driven growth in active ingredients mainly for the export market.
Prashant Biyani
Sure sir. And on the margins do we think we will be sustaining let’s say 19 ish percent, you know non mecl EBITDA margin for our business or.
Sankarasubramanian S
Absolutely, I don’t see any challenge. And also we should note that with the currency depreciation terribly helping this business that significant share of exports Happen.
Prashant Biyani
Sure sir, that’s very helpful. And just lastly, you know you did cover up, you know in your opening comments on the raw material inflation on the fertilizer side and our expectation that probably you know there could be another round of maybe an increase in subsidy from the government side. My question here was, you know one given that Q1 is fairly there but Q2 there could be RM inflation which could hit us and what if the government is not increasing or maybe there is a delay in terms of increase in subsidy from the government side.
Are we looking to increase the finished good prices there as aggressively or how should. Because that will have an implication on your overall margins as well. So how should one look at that part?
Sankarasubramanian S
These are very abnormal situations, very difficult to predict how long it will take. But it is very important both for the sector health as well as for the farmer benefit government response favorably which they are looking into it and it should happen here and now if the production has to continue and fertilizer is to be made available to the farmers. So we do hope that we will have a yearly resolution on this addition composition to ensure that any further price increase on NPK are reasonable for the farming community to absorb.
Prashant Biyani
Sure sir. Okay, that’s helpful. I’ll get back into the view for if
Sankarasubramanian S
I have many more questions.
Prashant Biyani
Thank
Sankarasubramanian S
You. Thank
Operator
You. Thank you sir. The next question is from the line of Raju from Antique Stockbroking. Please go ahead.
Prashant Biyani
Yeah. Hi sir. Thanks for the opportunity. Sir, the the domestic and export revenue shared that you have mentioned for the city business that was the standalone business or including nacl
Sankarasubramanian S
That is for the standalone business. He asked for the standalone business.
Prashant Biyani
So if you could mention the NACL like including NACL number for the Q4 for the export revenue that will be helpful.
Sankarasubramanian S
I need to get back to you on export revenue. Overall revenue is 1584 for the full year and 361 crores for Q4. But I need to just get back to you on raw material export breakup. We’ll ask you something later.
Prashant Biyani
Understood sir. And in terms of the fertilizer business. So could you please elaborate in terms of the finished goods inventory that you have as on. As on. As on March 26.
Sankarasubramanian S
It may be close to 5.5 lakh tons roughly finished calculations we may be having and that’s. That’s where approximately at this point of time
Prashant Biyani
This is entirely the manufactured volume or including trading one
Sankarasubramanian S
Trading is not much, probably 60 70,000.
Prashant Biyani
Understood sir. And if I look at it in terms of the coramandal city business, standalone city Business Kodamandal so the growth was 2% so that was mainly because of this poor growth in the domestic market or it is mainly on account of both domestic and exports.
Sankarasubramanian S
Sorry, come again what you’re saying
Prashant Biyani
If I ever look at Kodamandal CP business for the standalone ones the growth was to 2 and a half percent for the quarters so the. The. The primary reason was to, you know because of the poor domestic business growth or it is a mix of domestic and export Both have performed. Not performed well
Sankarasubramanian S
No actually it’s off season in domestic market, you know so there also at least there is a volume increase its exports we have moderated the sale in fourth quarter as we have opportunities to sell food in season time in April May we have consciously taken a call to have a moderate sale sales in fourth quarter and there has been significant increase in site sales during that period so we have to look for right opportunity to sell Hence we didn’t push for more volume of exports in fourth quarter so it’s a temporary slowdown in fourth quarter that will come back in first quarter and formulation business Reheart has grown well by 14% and in spite of being an off season and domestic B2B is more of a function of demand requirement and that can always be made up in first quarter I don’t see any major issue per se in any personal segment area where we have marginally degrown compared to last year is in bio product category where we did exports in the fourth quarter of last year and we have executed this export as a earlier in December hence it is showing a T growth in the current year so that is why the Overall crop protection CPC is looking marginal at 4% otherwise overall for the year growth is 16% and that sort of a growth we do expect to sustain.
Prashant Biyani
Understood sir. And one last thing so if you look at in terms of the global industry specifically in the latter market so latter market is struggling with the. With the inventory so how do you see that market for your growth? And second part is that if I look at mancose prices for the last maybe one or two months so the prices have gone up roughly by you know, 30 to 40% in the range so how do you assess that in terms of your Q1 performance? And second is that if you could share the unit grade contribution number in the in the fertilizer business
Sankarasubramanian S
Our understanding is destocking has already happened in Latin America market We are not facing any challenge on the mancosis pulse. Our cost increase is getting passed on and that is required in the current market situation also our dependency is not only in Latin America. We have a widespread reach across various the transactions. We are very comfortable and we are awaiting for the new capacity to come up to increase our volumes and revenues in the coming quarters. I don’t see any challenge in improving our margins or performance or sustaining the same in the first quarter.
Prashant Biyani
Understood, sir. And the unit grade continuing for this quarter
Sankarasubramanian S
More or less remains the same because among the unique grades because of the slight increase in inputs, but not that viable. So it remains at 32% on the annualized basis for the year.
Prashant Biyani
Thank you sir. Thanks for answering. Thank you.
Operator
Thank you. The next question is from the line of Somaya V from Evandes Park. Please go ahead.
Prashant Biyani
Yeah, thanks for the opportunity, sir. So my first question is on false asset price for the quarter. Has it been decided? That’s one. And in the international market, if you were to procure sulphur and ammonia, what is the current pricing level?
Sankarasubramanian S
PA price was fixed at 1350 when there was a short gap of ceasefire. When it happened that time around the time we fixed that phosphoric acid price at 1360. That’s again the previous of 1290. The spread of ammonia has gone up significantly. There are deals which are happening around $848.50 range. That’s where last week had. And sulfur is also around the same level. $800.
Prashant Biyani
So in terms of this the backward integrated capacity that we have added last quarter. So for the first half of this year, do we see any challenges in terms of raw material availability to run this end of full list? And also in terms of margin contribution, do we see it to be accretive given where let’s say sulfur prices are today?
Sankarasubramanian S
These are all very extraordinary times. Very difficult to look at margins at this point of time. It doesn’t make sense even to look at either product margin or false asset value gap. If you take current quarter phosphoric acid price and try to project next quarter value gap, obviously it will be negative because this price increase of sulfur and other input prices will come in in the next quarter. This may be one or two quarters of challenges and pressures but it should get normalized and structurally the value curve, what we originally envisaged will come through.
I don’t see any challenge in availability per se for running the plant because we have a good coverage of rock phosphate and Senegal mines operating at full stream and we are getting rock phosphate from there and sulphur. There is a challenge. We have taken lot of efforts. There is a visibility up to first quarter as I mentioned and going forward, things ease out. We should be able to secure raw material for second quarter as well. We have to wait and see how this Middle east crisis is playing out.
Prashant Biyani
Understood, sir. In terms of between Q1 and Q2, I think we should be having a fair idea of at least how things stand today in terms of inventory that is there in the system, NPK subsidy that’s been given and pricing that’s happened. So would be fair to say Q1 is kind of still manageable and Q2 is where definitely the subsidy support should come in. Or is it like in Q1 itself? We need this incremental subsidy support.
Sankarasubramanian S
Every day is a new day. We are not able to predict anything this time. It is little uncomfortable for us to put any number on the table. Let’s wait for things to play out before we can come to any higher understanding. It’s a bit challenging right now. We are focusing more on securing raw materials and having the production ensuring fertilizer availability for the system. We have a lot of heaps and government has to give them. We have to correct the prices. So many things are there big fluid at this stage I would say.
Prashant Biyani
Okay, last question is on. I’m sorry to interrupt you,
Operator
Somaya. I would request you to kindly rejoin the queue for follow up questions please. There are others who are waiting for their time. Sure. Thank you so much. Yeah, we’ll take the next question from the line of Akash Mehta from Canada HSBC Live. Please go ahead.
Unidentified Participant
Hi sir, thank you for having the call. So my first question is on the sourcing bit only you said. I mean on the Sansa front it’s slightly challenging as of now. I mean obviously we have visibility of Q1 but going into Q2 it’s a bit difficult. So can you just help us with the current sourcing? I mean it was earlier with the Middle East. So from where you are kind of managing the sourcing for sunflower and raw materials if there is any change. So that’s my first question.
Sankarasubramanian S
We used to source predominantly from Middle east only now we are diversified sources. Wherever sulfur is available, we are buying. And we have been getting some refunds from Canada as well. We are trying some domestic sources also. We are getting something from Southeast Asian countries, Japan. So we are looking at all the opportunities. It’s quite fortunate that we have got our own sulphuric acid plant coming up in coconut as well so that we can produce sulfuric acid. Because sulfuric acid prices have gone up significantly higher and hence it comes handy to have our own sulfuric acid which in turn can generate steam and produce power as well.
So we have multiple sources we are working on. Whoever supplies sulfur to us, we are okay to take it. Right now it’s one more of a spot transaction which we are doing. Otherwise the major source is to be Qatar Energy and
Unidentified Participant
Sure. So as of now there is no shortfall as such it’s available at a higher price. That’s about it, right?
Sankarasubramanian S
We have visibility up to June. We have to keep covering so hopefully it should ease out. The major challenge is the bottleneck of the ships to cross. It is not selfish, is not available. Sulfur is available in 20 it is a moment of ship to this port of almost. It’s what making it difficult for us to predict any. We are hoping things normalize and sailing time is not much between Middle east to India. So for July it is too early to predict whether it will happen or not. In a logical sense it looks like it will happen.
Unidentified Participant
Shaun, my second question is. I mean by interest they just highlight any any on the subsidy front. Again, you cannot give a clear timeline if it will end when it will come through. But basis given the raw material price increase any number you can just help us out with in terms of the implied increase in subsidiary price on the last number and on big percentage terms or other things.
Sankarasubramanian S
See, we have to wait and see for the Ruby season NBS rate formula will kick in and probably will get updated. What we are talking about is the intervening period of June to September where the raw material prices have gone up very sharply. So it may be a cost to cost Reimbursement is what we are looking at so that we can cushion the current sporting prices to a great extent while the arrive at the final price to the founder. Very difficult to predict how much they will give like a pass through in dap.
We are trying whether there can be a pass through in NPK’s as well. We need to wait and see how it’s going to happen.
Unidentified Participant
That’s it from the side. Thank you.
Operator
Thank you. The next question is from the line of Darshita from DSP Asset Managers. Please go ahead.
Darshita Shah
Hi sir. Thank you for the opportunity. I just had one question. Is there any key intermediate for Mancosab that we import from Middle east countries where we may be facing any constraint for importing it?
Sankarasubramanian S
Fortunately not. We are able to get everything from Other than that the only comfort we have this raw material. Nothing is coming from within. Yeah, of course we have some products but we have alternate sources so we are quite okay with
Darshita Shah
And we’ve been able to pass on the price increase even in the last two months fourth quarter of course you can see that. But over the last two months also we’ve been able to pass on the price increase
Sankarasubramanian S
And to some extent the currency deposition also has aged this absorption.
Darshita Shah
Got it. Okay. And not facing any shortage for sourcing the intermediate.
Sankarasubramanian S
Yeah, we had some small disruption in the month of April but we have now looked at the alternate coverage. Unlike nutrients, the import of these raw materials from China is quite okay. So it takes time but it comes. We are fairly covered.
Darshita Shah
Okay, got it. Yeah, that’s all. Thank you.
Operator
Thank you. We’ll take the next question from the line of Vipul Kumar Shah from Sumangal Investments. Please go ahead.
Pripul Kumar
Hi, thanks for the opportunity. So in view of the raw material inflation what should be our margin guidance as far as EBITA pattern is concerned for the whole year?
Sankarasubramanian S
I prefer to pass this question. Very difficult to predict at this point of time. Let’s see how it goes because it’s a function of what government is going to compensate and how much we are going to look at price corrections as a function of many things. It’s very fluid. I don’t want to put any number now so let’s wait for things to get normalized. Actually nothing has changed except for the blockade which has happened which has resulted in shipments not going through. Once the supply situation improves, supply chain gets normalized.
Prices should come back putting any number for the next two, three months how it’s going to be. It’s not going to help any of us. Okay sir, thank you. Thank you.
Operator
Thank you. The next question is from the line of SHIELD Kumar Shah from Samiksha Capital. Please go ahead.
Unidentified Participant
Yeah, hello. Am I audible?
Operator
Yes. Okay,
Unidentified Participant
Thank you for the opportunity. My first question is what is our manufacturing EBITDA on fertilizer side? I mean part on for 4Q and for the full year
Sankarasubramanian S
Last year it was around 5,000 plants that we have mentioned and fourth quarter was compressed it was less than 3,500 around that number it was around 3,500 for fourth quarter.
Unidentified Participant
Okay and what about on a trading side if you can share margins or EBITDA per turn
Sankarasubramanian S
It’s too difficult to make. Depends on the grade, the timing of purchase and there’s a pass through on DAP so it’s different set of numbers are there
Unidentified Participant
But on an average what type of margin would we be making on a three day
Sankarasubramanian S
Can take roughly 4 to 5% sort of a number.
Unidentified Participant
Okay, and how do you see trading volume for food? I mean for FY27 on high days of FY26
Sankarasubramanian S
We have a challenge in availability especially on DAP. So we need to see how things improve. We love to do the same volume and there can be a potential reduction in the first quarter because of non availability. Major imports coming through from Saudi may not happen. And we also want to be conscious on working capital liquidity. We may not be shipping unless it is absolutely essential to meet the demand. But second of I think should get normalized. If things improve the volume should come back and our risk appetite.
Unidentified Participant
Understood. And my last question is on what would be the revenue for nano depth?
Sankarasubramanian S
I can tell you 45 lakh. What is. I’m not sure what I don’t get the number now. It’s part of the overall segment. I will come back to you on this.
Unidentified Participant
Yeah, sure. Thank you. Thank you so much.
Sankarasubramanian S
Thank you.
Operator
Thank you. The next question is from the line of Bharat Seth from Quest Investment Advisors Private limited. Please go ahead.
Unidentified Participant
Hi, thanks for the opportunity. My question is related to this bridge capacity that which we are expanding. So how much additional revenue or acceptance if you can be do we expect and what kind of. I mean product portfolio diversity verification it will help.
Sankarasubramanian S
We expanded our capacity by 10,000 tensor microgrades. And I will get back to you on the revenue per day on the hedge but the payback will be much faster, less than one year. So the investment what we have made in debuglinking the facility that gets paid off less than one year. In fact they are expanding another 20,000 times at Belem as well. And that project is underway. That should come through by middle of this year. Hopefully there also I think margins are pretty good and we should have a payback in a shorter time frame of less than two years.
Unidentified Participant
Okay. Hello. Sorry. Earlier we were evaluating in foraying into crdmo. So what stage we are, I mean the CDMO and how is the opportunity that we look forward any further progress?
Sankarasubramanian S
So the CDMO takes very long time, two, three years and yeah MNCs have responded favorably. They looked at the facilities, they moved to the next stage. They take quite a long time to. The European entities have shown interest and with the combined strength of Nagarjuna we are able to fast track some of the intermediate manufacturing. We are looking at fluorination chemistry very seriously. Like Nagarjuna has got the capability and we are going to invest on fluorination chemistry in the coming quarters to showcase it to the potential CDMO players.
We are Quite happy with this and some of the Japanese collaborators are also keen to work with us. Things are progressing well While it is not materially impacting the revenue in the current year but I’m sure few years down the line we will have significant play in this space. We are trying to do it organically and we will scale up. We are not looking for big ticket investment immediately. Looking at the current market situation wanted to focus on current investments what we have made release the value out of it before we make any fresh investments in a large but we are doing well on the organic space at this point of time not able to put out the parties thing but things are progressing very well.
Unidentified Participant
Could we see. I mean revenue from FY28 or
Sankarasubramanian S
It may go into the year after that also because once they get the proof of concentration and they start registering the product and then agree to the costing margin structure it may happen but we will start creating some capacities of smaller scale this year and that will go into production next year. So some revenues will come in but significant can come in hereafter.
Unidentified Participant
Now taking see with this price increase substantially in this fertilizer how should we think that adoption of nano Dap I mean going ahead say post. I mean harvesting
Sankarasubramanian S
Ideally this is a great opportunity like Covid many things have happened. I wish farmers adoption increases. We are trying to do and promote balanced nutrition but as long as you have urea and dapa available at affordable price the situation will be difficult. So unless there is a major policy correction happens and restrict the availability in terms of actual need for the marginal farmers this adoption will be slow and steady and we are also not in a hurry to push through. But the product is working well and it can deep tail shortage situations can be a boon to the farmers at Solidarity.
Unidentified Participant
And last question sir, with your permission, any update on Daksha?
Sankarasubramanian S
Good question. Thank you. Raise this point because I’ve taken the diminution in the value of renforcement relating to Daksha. As you know, we have got a large order which is pending for execution and we have fixed all the technical related gaps and we are waiting for the exhibition of orders. I am personally driving this initiative and we have made significant progress on introducing new products. Lot of projects have been identified, lot of partnerships have been identified and we are seeing good traction coming on the defense segment after the usage has grown in various warfare.
And besides that agree Coromandel and Daksha has been working very closely. They have come up with new products, they are going through types and we strongly believe there is one space in Agriculture where drone response has been extremely good from the farming community. And we will be scaling up volume. We are participating in the institutional tenders. We are also looking at drones for various institutional applications. And we are trying to develop the complete ecosystem for DAKSHA by tying up with the various component manufacturers, whether it is for batteries or cameras or various other electronics instruments and also for software development.
That’s why we are moving to a larger place, more than 60,000 square feet where they will build this facility where the entire team will sit in Chennai. Hopefully this facility should be ready by May. Lot of projects are happening and I think we are in a good recovery mode. After we execute the first order during this year that will give us the confidence to have repeat orders across various segments of defense. Meanwhile, we are also centering the R and D and we are going to introduce new products for the next six to nine months.
We will try and realize the value of investment. What we made a bit ahead of time. But it’s going to make a difference in next two years.
Unidentified Participant
Thank you very much sir. And all the best.
Sankarasubramanian S
Thank you.
Operator
Thank you ladies and gentlemen. We’ll take that as the last question for today. I would now like to hand the conference over to the management for closing comments. Thank you. And over to you sir.
Sankarasubramanian S
Thank you very much. Thank you for the insightful question and I know it’s a challenging time and definitely I’m sure we’ll do our best to serve the farming community. Thank you for your continued support.
Operator
Thank you members of the management. On behalf of Ilara Securities. That concludes this conference. We thank you for joining us. And you may now disconnect your lines. Thank you.