Krishana Phoschem Ltd (NSE: KRISHANA) Q1 2026 Earnings Call dated Jul. 23, 2025
Corporate Participants:
Pukraj Kanther — Project and Financial Advisor
Praveen Ostwal — Promoter and Director
Sunil Kothari — Whole Time Director and Chief Financial Officer
Analysts:
Unidentified Participant
Rasheed Mehta — Analyst
Ajit Sethi — Analyst
Shyam Sundar — Analyst
Shashi Prashar — Analyst
Anshu Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, a very warm welcome to Q1FY26 earnings hold of Krishna Forschem Limited from the senior management we have with us today Mr. Praveen Otswal, Managing Director and Promoter Mr. Sunil Kothari who Chief Financial Officer and Mr. Pukraj Khan, ther Group Financial Advisor 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 concludesshould you need assistance during the conference call please signal an operator by pressing 0 on your Touchstone phone Please note that this conference is being recorded I now hand the conference over to Mr. Pukraj Kanther thank you and over to you Sir
Pukraj Kanther — Project and Financial Advisor
Thank you Mr. Avirath and good afternoon to everyone our stakeholder and welcome to this earning call for Krishna Forscape Limited before we begin the earning calls I would like to mention that some of the statements made during this call may be forward looking in nature and hence it may involve risk and uncertainties including those relating to future financial and operating performance Please bear with us if there is a call drop during the course of conference call we would ensure that call is reconnected as soon as possible
Now I would like to hand over the conference to Mr. Praveen Ostwal, Managing Director over to Praveen Ji
Praveen Ostwal — Promoter and Director
Good afternoon everyone welcome to Krishna Firstcam Limited Quarter 1 Financial Year 26 we are pleased to report a strong start to the year with our highest ever quarterly EBITDA driven by robust revenue margin expansion and record production for the quarter ended June 30th. This reflects the success of our strategic initiatives and strong year on year growth. The first quarter typically sees a seasonal uptick in demand owing to KHARIF sowing activity. This quarter was no exception with the sector experiencing strong seasonal traction particularly in complex and phosphate based fertilizers. While demand fundamentals were supportive, the industry also faced inflationary pressure on key raw material and intense supply side competitiveness. Raw Material Headwinds Raw material prices remains volatile while ammonia saw a moderate softening, key inputs like sulphur experiencing sharp price escalation, nearly doubling in some cases over recent quarters. These fluctuations reinforce the importance of our disciplined procurement strategy and strong cost management which enabled us to maintain our operational momentum now coming to quarter one. Financial 26 financial performance delivering strong year on year Growth Our financial performance this quarter is testament to strong execution and resilient growth with remarkable year on year improvements. Revenue from operations surged 395.5 crore mark making an impressive 40.8 year over year increase. We delivered our highest ever EBITDA at 65.6 crore excluding other income, a 56.6% year on year increase supported by optimal operational execution. EBITDA margin expanded to 16.6%. PAT grew by an outstanding 86.6% year on increase to 30.6 crore with a PAT margin of 7.8%. Basic EPS rose significantly to 4.95 from 2.65 in quarter one. Financial year 25 now coming to Operational Highlights the operational momentum achieved during the quarter is clearly reflected in our financial performance. Total fertilizer production during the quarter stood at 94,222 metric ton up from 79,644 metric ton. Year on year Sales volume rose to 90,949 metric ton from 83,959 metric ton driven by strong seasonal demand and improved throughput. SSP sales sales down to 25,970 from 3,604 metric ton. NPK DAP sales stood at 64,979 metric ton up from. 53,355 metric ton with a healthy 81% capacity utilization. Strategic Product Innovation Driving Value led Growth we continue to drive value led growth through strategic product innovation. We started new Bharat Urea SSPA novel formulation designed to enhance nutrient use efficiency Andata Super 6 a fortified SSP enriched with zinc, boron and magnesium, specifically targeting micronutrient deficient soils. Both products have been successfully launched and are poised to contribute meaningfully to our performance in the upcoming quarters. Expansion and Strategic Investment Advancing our Growth Roadmap Our strategic expansion roadmap is advancing effectively positioning us for future growth Magnagar Capacity Expansion Our proposed project involves adding 1.65,000 metric ton per annum of NPK DAP complex and 99,000 metric ton of sulfuric acid capacity at a project cost of 142 crore. As of quarter one financial year 26, approximately 4 crore has been spent. Civil work has been commenced and orders for plant and machinery have been released. All necessary approval have been applied for with commercial production targeted with by March 2026. New growth opportunities we are actively evaluating new growth opportunities to future scale, diversify and strengthen our integrated operations outlook optimistic for financial year 26 and beyond as we look ahead, We remain optimistic about our performance trajectory for the remainder of financial year 26 supported by favorable market dynamics, increasing product acceptance and our well structured capacity expansion. Roadmap Expansion on Track the Megnagar expansion project is progressing as planned. Once operational, it will significantly augment our NPK DAP sulfurication capacities, enhance backward integration and unlock stronger economies of scale supporting both top line growth and margin improvement operation Excellence We continue to focus on improving process efficiency and optimizing product mix to protect margins amid input cost volatility. Our investments in quality assurance and production yield optimization are already delivering measurable gains RD and innovation. Our in house team is actively developing farmer centric products tailored to specific soil and crop needs. We remain committed to introduce our fortified and customized nutrient. Solution in the coming quarters aligned with evolving agricultural practices. Overall, we are confident in our ability to deliver sustainable growth and long term value to all stakeholders while contributing meaningfully to the vision of a more efficient, productive and resilient Indian agriculture sector. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press char and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press char and 2. Participants are requested to use answers 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 Raman KV from Sequent Investments. Please. Please go ahead.
Unidentified Participant
Hello sir, can you hear me?
Praveen Ostwal
Yeah. Yeah, I can.
Unidentified Participant
Sir, what was the current EBITDA pattern for this quarter?
Praveen Ostwal
For the quarter there are two products in this. So
Unidentified Participant
Yeah. For both the products.
Praveen Ostwal
Both the products it is around 16. 16%. Both. Both the products almost same EBITDA margin. In terms of amount. If I say in. In terms of amount. If I say it is around 6,000 rupees. 6,000 rupees. NPK.
Unidentified Participant
Answer. With respect to the margin difference between SSP and NPK, what’s the margin difference? I mean in NPK your margin EBITDA margin is 16%. What about NPK? Sorry? SSP?
Praveen Ostwal
SSP? 7 to 8% SSP. There is lesser margin.
Unidentified Participant
Okay, answer. What is the volume guidance for this year? For the entire year? FY20
Praveen Ostwal
Volumes. You are asking volumes for the target.
Unidentified Participant
Yeah. Volume guidance.
Praveen Ostwal
No, this quarter. You’re asking for this quarter or projected?
Unidentified Participant
I’m asking for the entire guidance.
Sunil Kothari
Yes. We propose we expect to sail around 2 lakh 40,000 ton of Middleton MPK and 1 lakh 15,000 SSP. Sir.
Unidentified Participant
So I just wanted to understand your capacity when you are giving which you give it either DAP and npk. So the. The plant which we have, does it manufacture NPK or does it manufacture? Or you can switch between
Praveen Ostwal
Both can be manufactured as per market situation.
Unidentified Participant
I am sure. With respect to a demand outlook. How is the demand outlook and do you expect margins to improve in the coming quarters or it will stabilize at 17% the demand outlook.
Praveen Ostwal
See, the rails are good and overall demands will be good. There are shortages fertilizer in Indian market. And for the margin point of view, I think margins will be nearly same. These are good margins and nearly same margins will be continued to be achieved.
Unidentified Participant
So you basically you are saying that 16% margin in NPK business is sustainable.
Praveen Ostwal
Yes.
Unidentified Participant
Okay. Thank you, sir.
Operator
Thank you. The next question is from the line of Rasheed Mehta, an individual investor. Please go ahead.
Rasheed Mehta
Hello.
Praveen Ostwal
Yeah, hello.
Rasheed Mehta
Hello. Sir, what is your expectation regarding business growth for the rest of financial year? 26
Sunil Kothari
In absolute terms. Last year we closed the year with 1358 crore rupees of turnover. And we expect it. We expect it to touch 1500 crores this year.
Rasheed Mehta
Okay. And how is the company positioned to deal with rising competition in fertilizer sector?
Praveen Ostwal
Sorry, can you come again?
Rasheed Mehta
How is the company positioned to deal with rising competition in our sector fertilizer sector.
Praveen Ostwal
See, India is always a net importer in fertilizer requirements. So. And with our backward integration, forward integration capacities and the location where we are placed, we feel we are well competitive to face any challenges either from sales point of view or either from promoter language.
Rasheed Mehta
Okay. Thank you, sir.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press shar and one to ask a question. The next question is from the line of Yashwardhan Banka from Tiger Assets. Please. Go ahead.
Unidentified Participant
Namaste sir. I just wanted to understand what is the peak revenue that we can you know sort of generate from the capex that we’re doing?
Sunil Kothari
Look, we. We expect the capacity utilization of 81% to be maintained. And this in the first quarter also we have maintained and we hope next two quarters we will be able to maintain this tempo her last quarter. Probably there may be some. Some maintenance issue and something so there will be some slicker. Otherwise this first quarter tempo will be maintained in quantity terms.
Unidentified Participant
Okay, so. So let me simplify it. I was asking if the. For the new capex that we are. You know you. I think you mentioned you incurred 4 crores for the. So for the new capex what can be, you know any internal target of epic revenues that we can generate from that.
Sunil Kothari
Look, because this is a 500 ton per day capacity plant. And normally first year 50% capacity utilization can be achieved. So 26, 27, 50%. And then next year onwards 60 and then third year onwards we can touch 80%.
Unidentified Participant
Okay. Understood sir. Thank you.
Operator
Thank you. Participants who wish to ask questions may please press Sharon 1 at this time. The next question is from the line of Ajit Sethi from Eco Quantum Solutions. Please go ahead.
Ajit Sethi
Thank you for the opportunity. My question is from the raw material perspective. As with several refineries globally expected to shut down or reduce operation. Are we likely to face a shortage of sulfur in the near future?
Praveen Ostwal
Right now our all sulfur is being fed through local Indian refineries. And we don’t expect any local disruption of any supply chain. And together with this we take sulfuric acid from smelters. So there is one more expansion of Adani. So we currently we don’t see any major major disruption.
Ajit Sethi
Okay, so correct me if I’m wrong but the smelter based sulfur is not the grade in which the fertilizer can be make, right?
Praveen Ostwal
No, that acid is used for making fertilizer from many years and it will be continued to be used.
Ajit Sethi
Okay. Thank you.
Operator
Thank you. Before we take the next question we would like to remind. Participants that you may press star and one to ask a question. The next question is from the line of Raman KV from Sequent Investments. Please go ahead.
Unidentified Participant
So what are the current price trend with respect to sulfur prices?
Praveen Ostwal
Sorry.
Unidentified Participant
What are the current price trends with respect to sulfur prices?
Praveen Ostwal
Current trend. You. You mean to say you are asking sulfur prices?
Unidentified Participant
Yes. Yes.
Praveen Ostwal
Around 270. 270. 280 Dollar and current price of sulfur is around 28, 29,000.
Unidentified Participant
28, 29,000 per kg. Thank you sir.
Operator
Thank you. The next question is from the line of Shyam Sundar and individual investors. Please go ahead.
Shyam Sundar
Good afternoon sir. I would like to ask you that there is any updates on export and plants to international markets.
Praveen Ostwal
Right now India is itself fertilizer deficient. So our main products we are scattering to domestic demand only. But still group is exploring opportunities for for other other new trends. But it will be mainly domestic only.
Shyam Sundar
Okay. Thank you very much.
Praveen Ostwal
Thank you.
Operator
Thank you. We would like to remind participants that you may press chart in one to ask a question. The next question is from the line of Shashi Prashar an individual investor. Please go ahead.
Shashi Prashar
Hello. Hello. Good afternoon sir. My question is what is the current status of new product launching for fitted ssp?
Praveen Ostwal
What is the.
Shashi Prashar
What is the current status of your new product launch forfeited SSP
Praveen Ostwal
For 45.45ssp and urea SSP has been successfully launched in the market and we hope a good demand from market.
Shashi Prashar
Okay sir. Okay. Thank you sir.
Praveen Ostwal
Thank you.
Operator
Thank you. The next question is from the line of Harish Sharma from Meta Associates. Please go ahead.
Unidentified Participant
Hello.
Praveen Ostwal
Hello.
Unidentified Participant
Thanks for opportunity. Sir. What is your plans for online marketing?
Praveen Ostwal
Plus we are selling some quantity through online platform. But still. This market is the percentage share of this online selling is very less. So maybe in future years that may probably increase. There are. There are some subsidy challenges. So currently in current years, I think the physical delivery and distributor dealer network selling process will continue.
Unidentified Participant
Okay. Okay. Sir, are you looking for more large area? Larger area?
Praveen Ostwal
More, more
Unidentified Participant
Larger area?
Praveen Ostwal
Sorry, could not get you
Unidentified Participant
Like Flipkart Amaz.
Praveen Ostwal
These are subsidized Items and a 50kg bag is difficult to sell on online platforms because of delivery costs and challenges. So.
Unidentified Participant
Okay. Okay. Okay. Okay. Thank you, sir.
Praveen Ostwal
Thank you.
Operator
Thank you. Thank you. Participants who wish to ask questions may please press Sharon one at this time to ask a question, please press Char and one now. The next question is from the line of Karima from Rdangya Associates. Please go ahead.
Unidentified Participant
Good afternoon, sir. My question is what are the in the sector, particularly industry sector, the margins are very less. What are the expansion plans and what are the future plans so that the margins can get improved profit margins?
Sunil Kothari
Yeah. I think it is unfair to tell that profit margin are less or more if the profit margin is as per industry trend. And our profit margin are slightly better than the industry trend as such. And this we propose to maintain it. You should understand that fertilizer is an product which is highly regulated and subsidized. Part of cost of production is compensated by government through subsidy. So looking to that trend, whatever profit we are making is must be considered as reasonable. Reasonable.
Unidentified Participant
Okay. Thank you, sir.
Operator
Thank you. Participants who wish to ask questions may please press Sharon 1 at this time. The next question is from the line of Anush Jain from Fintresh Capital. Please go ahead.
Anshu Jain
Hello sir. Congratulations for this beautiful quarter. Just a question regarding the revenue and the opm. We see there was a good jump in the revenue compared to the last quarter. So could you help us understand the breakup of the revenue and even the.
Unidentified Participant
But my question here is, if you say there is good rainfall happening and if there is good demand for the fertilization, fertilizers and there is shortage of fertilizers, fertilizers, why are we not going aggressive in this? Why can’t we increase the capacity further? Or is there any constraint on the capacity that hinder our growth?
Praveen Ostwal
The capacity inflation of 81% is also far above from industry parameters. So achieving this and still to go ahead, we are trying to debottleneck the complete campus and we hope to increase the capacities in future.
Sunil Kothari
It is a very complex plant. This is a big and complex plant with phosphoric acid. A used plant and you cannot rule out some breakdown. Particularly rock phosphate is being used if some impurities are there. Therefore 81% from industry point of view is considered very good. Yes, of course we will try. If even if we make hundred percent, we will be able to sell it. So marketing is not an issue. And our efforts are going on to make better capacity utilizes than 81%. And with your best wishes, I’m hopeful that we will be able to achieve that.
Unidentified Participant
Okay, so to carry on this further, I believe in March 2026 we’ll be coming up with new capacities in NKP, right? If I’m not wrong, that should be around 1 lakh 65, 1 65,000 metric term. If I’m not wrong. So is it fair to assume that until that period, unless and until there are some efficiencies which we generate in our plant, our capacity utilization and our sales growth in the NKP segment would be more or less flat Unless we achieve some dewater like as you mentioned earlier.
Praveen Ostwal
Yeah, more or less. More or less. Same
Unidentified Participant
Or less Same. Right. And I was able to see that currently we are having around capacity of three 30,000 metric ton. Right. And the additional capacities of one 65,000. So I just want you to understand that in the past three years we have been able to grow our sales by more than 50% every year on a CAGR basis, if I’m not wrong. And now with the additional capacity of 50% of our existing capacity, what kind of growth rate we are comfortable for the next three years? In the NPP segment,
Sunil Kothari
The capacity 50% which we are increasing, we expect a growth of 20% when this new plant comes up 20 to 25%. But then again, having achieved a turnover capacity of better utilization of 25% growth. So after that the whatever growth will come will come from the better capacity utilization of a new plant. Existing plant we are already operating at optimum level of 80, 82%. So whatever improvement we can bring will be through capacity utilization. And we hope by in after within 3 years we will be able to achieve 80 percentage new plant also.
Unidentified Participant
Okay. Okay. Thank you so much.
Operator
Thank you. The next question is from the line of Ajit Sethi from Eco Quantum Solutions. Please go ahead.
Ajit Sethi
Thanks for the follow up. So you said India is facing shortage of fertilizer. Can you provide a demand and supply dynamics of that?
Praveen Ostwal
See if we see our India’s total requirement. The N. Okay. P requirement is 200200 roughly around 25 million ton. India requirement.
Ajit Sethi
Okay.
Praveen Ostwal
[Foreign Speech] Those are at. At around minimum. At very minimum level. So if we talk about all over India geographically, what’s the point? There is zero inventory or very less inventory and imports and manufacturing combined. And with the raw material limitations and the share we hold, we don’t see any challenge for marketing and we hope a good, good and better season.
Ajit Sethi
Okay. And you expect this 17 EBITDA margin to be sustainable, right?
Praveen Ostwal
Yeah. Yeah. This will be. This will continue to continue to be maintained.
Ajit Sethi
Okay. Thank you.
Operator
Thank you. The next question is from the line of Raman KV from Sequent Investments. Please go ahead.
Unidentified Participant
So my question is on the follow up of what the previous participant has asked. You said the total NPK demand in India is around 25 million tons per annum. And what is the current capacity at which the supply is coming at
Praveen Ostwal
25 million. Includes SSC on a regular demand basis. It is coming because across the world it is highly shortage.
Unidentified Participant
No, I just wanted to understand the figure, the supply figure.
Praveen Ostwal
It is on. It is on. It all depends on the importers and the season and the demand. So right now the preparation for the Rabi season is going on and demand for the Ruby season is around around almost 5 million tons. So government and the importers are working on it to bring the material on a continuous basis. And the productions are also going on. Production efficiencies are being improved across the country on all the plants. So we don’t foresee any issues for the imported or the manufacturing products in the country. And specifically to your answer, if we say these are bulk products and looking to the Indian inventory there will be shortage throughout this year for India. In summary, I can say throughout this year there will be a shortage of fertilizer in India.
Unidentified Participant
No, I just wanted to understand key what’s the installed capacity within India with respect to only Indian players?
Praveen Ostwal
Like there are sectors, almost 60, 70% is through imports. And Indian capacities around 30%. And that too there are plants like we are fully integrated, backward forward integrated. But some plants are not with phosphoric acid. Some plants are not with ammonia. So they’re predicting this number. The data can be given. It can be given later on if you can.
Unidentified Participant
Okay.
Praveen Ostwal
If you can send a mail, we can share that data.
Unidentified Participant
Sure. Thank you sir.
Operator
Thank you. Before we take the next question we would like to remind that you may press char and one to ask a question. The next question is from the line of Yashwar then Manka from Tiger Research. Please go ahead. Mr. Banka, your line has been unmuted. Please go ahead with your question.
Unidentified Participant
Can you hear me now?
Praveen Ostwal
Yes.
Unidentified Participant
Yeah. So I just wanted a bit of understanding on the new capex of 142 crores that we are incurring. So what is the breakup of that into the sulfuric and the DAP?
Praveen Ostwal
Roughly 110. We will be spending about 65 crore rupees. And sulfuric acid 39 crore is less in common utilities. Common utility.
Unidentified Participant
All right.
Sunil Kothari
And it includes working capital margin also.
Unidentified Participant
Sorry.
Sunil Kothari
Working capital margin also.
Unidentified Participant
Right. Historically I was just.
Unidentified Participant
Going through and we’ve maintained around 2 to 3x of asset loans. So we have plan on maintaining that moving ahead.
Praveen Ostwal
Sorry, can, can you repeat your question?
Unidentified Participant
So our asset turns historically have been around say 2 to 3x. So we are planning to maintain that
Sunil Kothari
Asset turnover.
Unidentified Participant
Asset turnover? Yes.
Sunil Kothari
Second, or look here, because of the bulk procurement of raw material and then during the off season the subsidy which is dispersed only after the farmers buy fertilizer, we have to carry higher degree of assets and therefore asset turnover ratio, what we are carrying on, we can improve only little bit, not substantial.
Unidentified Participant
Okay, and so last question. So any medium term, say internal vision or target of say turnover in the next two to three years,
Sunil Kothari
As I told you earlier, once this new plant comes, we will be clocking and growth rate of 20% for first year and then subsequently with the better capacity utilization, the growth will come.
Unidentified Participant
Understood, sir. Thank you so much. All the best.
Operator
Thank you. Participants who wish to ask questions may please press CHARN1 at this time to ask a question. Please press CHARN1 now. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Praveen Ostwal
Thank you very much. Thank you again for joining this call and if you have any further questions, please don’t hesitate to reach out to our investor relations team either through mail or through WhatsApp. We will be happy to respond. Thank you very much and good day.
Operator
Thank you on behalf of Krishna forcecam limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.