Krishana Phoschem Ltd (NSE: KRISHANA) Q3 2026 Earnings Call dated Jan. 13, 2026
Corporate Participants:
Unidentified Speaker
Pankaj Ostwal — Promoter & Director
Analysts:
Vignesh Iyer — Analyst
Maitri Shah — Analyst
Keshav Sharma — Analyst
Nirav Gandhi — Analyst
Bhagyavant — Analyst
Unidentified Participant
Presentation:
Operator
Good afternoon. Ladies and gentlemen, a very warm welcome to the Q3 and Nine Months FY ’26 Earnings Conference Call of Krishana Phoschem Limited. From the senior management [Technical Issues].
Unidentified Speaker
We welcome you everybody for this earning call of Krishana Phoschem Limited. Before we begin the earning call, I would like to mention that some of the statements made during today’s call might be forward-looking in nature and it may involve risk and uncertainties including those related to the future financial and operating performance. Please bear with us. If there is a call drop during the course of conference call we would ensure the call is reconnected the soonest.
I would now hand over the conference to Mr. Pankaj Ostwal, Director, Promoter Director. Over to Pankaj.
Pankaj Ostwal — Promoter & Director
Good afternoon everyone and thank you for joining the earnings call of Krishana Phoschem Limited for the quarter ended December 2025. We are pleased to share the details of our record-breaking quarterly performance. The milestone quarter was driven by new strategic initiatives, specifically the expansion of in-house capacity utilization beyond core function. With demand visibility significantly stronger over year-to-year, we successfully leveraged enhanced operating efficiencies and a robust expansion of our distribution network to capture greater market share and ensuring sustainable growth. The company’s performance was supported by a favorable agricultural landscape and supportive government policies in India.
Rabi sowing. The total rabi crop acreage reached over 614 lakh hectares as of late December 2025, an increase of nearly 7 lakh hectares over the previous year, reflecting healthy farmers confidence. Reservoir levels improved in the country, remain higher than the last year and above long term averages supporting irrigation availability and crop productivity particularly in all parts of India; central, northern and western India. Government support. The government approved nutrient based subsidy rates for rabi ’25-’26 which included enhanced subsidy to ensure affordability. Policy initiatives.
The mission for Atmanirbhar in pulses was launched with INR11,440 crore budget to boost domestic production and ensure assured procurement at minimum support price which is supporting increased fertilizer demand. At the same time, the government undertook large scale enforcement actions to curb diversion, hoarding and black marketing of fertilizers under the FCO and Essential Commodities Act. This has strengthened distribution discipline and ensured timely availability of fertilizers to genuine farmers. Heading into the rabi season. The first advanced estimates for Kharif 2025-’26 project, record food grain production further reinforces the positive agri backdrop heading into the rabi season and supporting balanced fertilizer consumption. Promoting balanced nutrient use remains a strategic priority. Government initiatives including the expansion of soil health cards, the promotion of organic bio and nano fertilizers and advisory-led interventions are actively shaping the long term agriculture capital and patterns.
As regards industry trends, the Indian phosphatic fertilizer industry continues to undergo a significant evolution characterized by a notable shift from traditional DAB use towards balanced NPK and SSP brands. This dynamic creates a distinct opportunity for agile integrated manufacturers like Krishna to capitalize on evolving pharma preferences by consistently delivering both quality products and timely supply. The raw material landscape for India’s phosphatic fertilizer sector remained stable during the quarter. While rock phosphate availability was consistent, phosphoric acid prices saw a demand-driven upward trend. Sulfur and sulfuric acid prices experienced significant price surge due to the tighter supply and high demand from chemical and agriculture sector. Manageable input costs coupled with robust government subsidy support including the INR37,952 crores allocated for rabi ’25-’26 season provided strong operating and cash flow visibility. As an integrated producer we remain uniquely positioned to mitigate cost risk and absorb short term fluctuations.
In parallel the industry offered additional opportunities and Krishana Phoschem strategically expanded its operations and enhanced distribution, leveraging these opportunities to complement fertilizer volumes and positively contribute to the revenue and positive profit growth. Our next phase of growth is well underway. A 50% expansion of our TAP and PK fertilizer capacity at Meghnagar is advancing as scheduled and remains on track for commissioning by March ’26. These expansions are expected to strengthen our operating performance and enhance long term growth visibility. In parallel with our current projects, we are actively evaluating new strategic opportunities to diversify our portfolio and further scale our integrated operations. As we enter the final quarters of FY ’26, our outlook remains robust. Our confidence is anchored by a synergy of favorable macro agricultural tailwinds and strong operational and financial execution at the company level, positioning us well to deliver outstanding long term values for our shareholders.
Moving to the financial performance for the quarter and nine months, the company’s strong performance was driven by a substantial increase in fertilizer demand and volume expansion. Revenue from operations, reached a record INR659 crores in Q3 FY ’26, up from INR304 crores in Q3 FY ’25. EBITDA increased to INR70 crores, up 58% Y-o-Y, benefiting from operating efficiencies on volume growth and managed cost environment. Operating margins. While overall operating margins compressed to 10.64% from 14.56% year-on-year, we achieved margin expansion from 14% to 15% within our integrated production line due to higher volume and capacity utilization beyond 100%. Furthermore, our non-integrated products are further adding 4% to 5% contribution to incremental profitability ensuring robust growth in absolute bottom line results.
Highest ever PAT grew to INR33 crores registering to 62% Y-o-Y growth supported by higher operating scale and stable financing costs. EPS, hit an all-time high of INR5.39 for the quarter. Our operational performance has shown our excellence. Highest ever fertilizer production volumes of 1,13,155 metric tonne. DAP NPK operations at an all-time high with 98% utilization. SSP plant utilization at 107%. On the nine-month front, the company’s best ever performance is reflected in new records across all key financial matrices. Revenue was highest ever at INR1,663 crores, up 88%, driven by strong fertilizer demand and higher sales volume enabled by improved plant utilization. EBITDA was also highest ever at INR209 crore, up 65% supported by operating leverage from higher volumes and operational efficiencies. PAT doubled to INR97 crore from INR54 crore, up by 80%. EPS also doubled to INR15.7 from INR8.7, up 81%, driven by higher profitability.
So let me thank you for your continued support and interest in Krishana Phoschem Limited. We are now open to the floor for questions-and-answer session. Thank you. Thank you very much.
Questions and Answers:
Operator
Thank you, sir. We will now begin the question-and-answer session. [Operator Instructions] The first question comes from the line of Vignesh Iyer with Sequent Investments. Please go ahead.
Vignesh Iyer
Hello. Yeah, sir my first question is more on the overall industry as such from point of view of DAB. So can you help us understand how is the inventory situation when it comes to DAP post the rabi season? And how are we set up for upcoming Kharif season in terms of requirement of DAP vs availability of DAP?
Pankaj Ostwal
See firstly you need to understand what is the fertilizer requirement of a farmer in terms of nutrients. So DAP is one of the quality fertilizer which is available in the country and across the world which contains a nutrient of 18% P and 46% N. So 46% P. But now what has evolved is that DAP across the world it is going down and the different grades of NPKs are coming up. So now it is not the issue of DAP availability in the country or the quantity available in the country. Now it is the issue what is the nutrient required for a soil in the country, at what time, in what type of crops and at what stage. So coming to your question, that DAP availability or DAP stocks in the country will not make any difference because now the farmers are liking the NPK, and various type of NPKs. And as far as the productivity is concerned, NPKs of various new — various variants in the country will ensure the higher productivity of crop production rather than DAP availability.
Vignesh Iyer
Right?
Unidentified Speaker
I think as far as the deficit, anything is concerned because the phosphatic fertilizer supply from the domestic player is less than what is the demand. So obviously the we will have to resort to the import. But with all the initiative government is taking and we are also taking, we are also importing to meet the deficit, I hope you will able to meet the demand.
Vignesh Iyer
Okay, because the reason I was asking this is because FAI had earlier stated that in the first eight or nine months of FY ’26, we had seen 55% to 60% increase in import of DAP. Okay? So at some point of time, and at a point of time there would be a situation where the demand is more than what we are able to manufacture domestically. So that is why I was asking how is the situation? Because that in turn would mean that NPK would be selling higher if the farmers decide to choose NPK over DAP.
Unidentified Speaker
That is what the intention of government is. Because DAP is a generic product. NPK is in specific product. Generic cannot be used for all crops, all soils, all environment, all the country. NPK is a soil crop specific. That is what government wants that they should — DAP is nothing but NPK with different composition.
Vignesh Iyer
Right, right, right. Got it. So in view of this situation, how do you see our EBITDA per tonne for NPK panning out for quarter four and the upcoming Kharif season? I mean there would, if there is a difference between demand and supply of this magnitude, would we see that some improvement in realization coming and some improvement in EBITDA as well going forward?
Pankaj Ostwal
Look, we are operating in a competitive environment notwithstanding the domestic production being less than the demand. At the same time we are dependent on government subsidy and we have to look for the interest of farmers keeping in view the interest of our stakeholder in our company. Keeping in all these facts, we continue to earn an EBITDA of 14% to 15% on our manufacturing product. And we do not see that just to enter any demand supply gate we will increase the MRP and increase the profit. This has never been our intention and we will not do it.
Vignesh Iyer
Right. But then the cost of sulfur and sulfuric acid is also putting up some pressure on our raw material cost. Right? I mean on that part if you could give us some understanding.
Pankaj Ostwal
That is why I am telling you that we will maintain 14% to 15% of EBITDA by taking care of increase in sulfur cost and the raw material input cost everything. We will maintain 14% to 15%.
Vignesh Iyer
Okay.
Pankaj Ostwal
And if it requires change in our marketing policy, we will change it. Increase in MRP also we’ll do it.
Vignesh Iyer
Right. Right. Perfect. Perfect. So in considering the situation of increasing raw material, we’ll be taking adequate price rise to maintain our EBITDA.
Pankaj Ostwal
Perfect.
Vignesh Iyer
Okay sir, just one last question from my side. Can you share pricing per tonne when it comes to sulfur and sulfuric acid for quarter three and what is the price right now, I mean in the month of January?
Pankaj Ostwal
See the prices for sulfur from April to December, if we go back, way back, go back to sulfur, go back to April it was around INR28,000, INR29,000 per tonne. And the prices in December or October, November, it has grown to INR35,000 and INR35,000 to INR45,000 in December.
Vignesh Iyer
INR35,000 from INR28,000 is what you are saying, right?
Pankaj Ostwal
INR28,000 to INR35,000 in October and October to December it is INR45,000.
Vignesh Iyer
And sulfuric acid?
Pankaj Ostwal
Sulfuric acid in April it was around INR8,000 rupees which increased in October to around or INR9,500-odd and in December it has gone up to INR12,000. But see again what happens is it all depends on the company’s policy how you are able to manage your suppliers, how you are able to manage your contractual positions, the industry or your supplier or the inventory levels in your company and others supplier companies. So this is all — this may differ from company to company. It may change from — it may change to change in other manufacturers. It is our numbers right now.
Vignesh Iyer
Got it. Got it, sir. That’s all from my sidelines. Thank you.
Pankaj Ostwal
Thank you.
Operator
Thank you. [Operator Instructions] The next question comes from the line of Maitri Shah from Sapphire Capital. Please go ahead.
Maitri Shah
Hello.
Pankaj Ostwal
Yes please.
Maitri Shah
Yeah. Am I audible?
Pankaj Ostwal
Yes. Yes.
Maitri Shah
Yeah. Thank you so much for the opportunity. So just a couple of questions. So what was the proportion of trading revenue for this quarter?
Pankaj Ostwal
INR245 crore is trading.
Unidentified Speaker
INR245 crore is trading.
Pankaj Ostwal
And I will say it is an import.
Unidentified Speaker
It is import, it is not trading.
Pankaj Ostwal
INR245 crores is import and INR413 crores is manufacturing. Look why we resort to import. Why we resort to import is also an vital question. Look, we have been operating at almost 100% capacity for SSP as well as DAP/NPK. And we are producing only one variant of NPK. A demand is used. There is a demand of other variant also. And to make available all type of product at oneself from our site, we are importing other variant and making available to farmer. And that is why we are resorting to import despite the fact that profitability in import is very less.
Maitri Shah
Right. So that’s why I think the margins have tapered down to around 10.6%.
Pankaj Ostwal
Yes, yes, that is the reason.
Maitri Shah
Any other reason sir?
Pankaj Ostwal
No, nothing. This is the purely one reason where trading profitability is there. And one slight reason you can say that because of the logistic issue the our dispatches in the last week of December they unfortunately spill over to the first week of January. So to that extent our manufacturing turnover has affected the — but it will be made good in this current quarter. Otherwise nothing. It’s only because of the trading because margins are less. So overall there is a compression on the profitability.
Maitri Shah
Okay. Sir, going like in the four going ahead in the next quarter how do we see margins panning out and also what sort of revenue are we targeting overall for FY ’26?
Pankaj Ostwal
Look, as far as manufacturing production is concerned as I have been telling we will continue to maintain and EBITDA percentage of 14% to 15% or maybe sometimes 16% also. And as far as import is concerned depending upon the opportunity and the orders being received from various wholesellers and our cooperative federations we may resort to import and giving order. So for manufacturing we will maintain the profitability.
Maitri Shah
Okay. But then do we expect some improvement quarter-on-quarter going ahead?
Pankaj Ostwal
Madam, I can only assure we will maintain it.
Maitri Shah
Okay. And what sort of revenue are we building in for the entire year since now we’re in the last quarter.
Unidentified Speaker
You can analyze it from the trends.
Pankaj Ostwal
But yes, it will be more than the proportion what we have achieved in nine months. That much I can tell you. Nine months average is coming at about INR570 crore. And this quarter it will be more than that.
Maitri Shah
Okay. And for the new plant that we’re expecting to commission in March what sort of revenue potential do we see at optimum utilization level?
Pankaj Ostwal
Look, the plant has a capacity to add an revenue of almost INR1,000 crores. But because the plant will be starting from April there will be — there may be teething problem. So the first year we are expecting 60% capacity utilization. So that way you can calculate how much we will be adding.
Maitri Shah
Yeah. So what do you say, sir? INR1,000 crore revenue potential. Right?
Pankaj Ostwal
It has a capacity of trading INR1,000 crores turnover.
Maitri Shah
Okay. All right. And first year we’re targeting 60%.
Pankaj Ostwal
Yes.
Maitri Shah
Okay. Yes. That’s it from my side. Thank you.
Operator
Thank you. [Operator Instructions] The next question is from the line of Keshav Sharma, an individual investor. Please go ahead.
Keshav Sharma
Hi, sir. Good evening, sir. Can you update on DAP/NPK and sulfur acid expansion at Meghnagar? Is there any divergence timeline of commission by March ’26?
Unidentified Speaker
That is what we hope. So our all the order for the machineries have been placed. Civil work is almost on the completion stage. And all machines and plant will be in place by March. And we will have a trial production. So we hope by — in April we will start a commercial production. And we will have DAP/NPK capacity and sulfuric acid.
Keshav Sharma
Okay. Okay. Thank you, sir. Thank you.
Operator
Thank you. [Operator Instructions] The next question comes from the line of Nirav from Sunidhi Securities. Please go ahead.
Nirav Gandhi
Yeah. Hello? Am I audible?
Operator
Yes, sir. Please go ahead.
Nirav Gandhi
Yeah. So my first question is on, sir what are the expansion plans for the company beyond March ’26? And how does the company intend to fund the future incremental [Indecipherable]?
Unidentified Speaker
Look, the company has been earning substantial cash profit. And whatever plan we have, we are under implementation. And once this plant is implemented successfully as we have been doing in the past to utilize our cash accruals we will definitely explore some possibility. But at the moment we do not have on the pipeline. But of course once the year come to enclose and our figures are ready we will examine and we will explore the possibility of going for some addition.
Unidentified Speaker
Sure. We will keep updated. We’ll keep updated to the shareholders as and when we finalize the plan.
Nirav Gandhi
Sure, sir. Sure. The second question was on that the [Indecipherable] at Meghanagar, do we intend to add any newer variants of NPK? Because you said that we only manufacture one variant of NPK at present. So do we intend to add any new variant of NPK fertilizer?
Unidentified Speaker
Obviously, we have the capacity to add new variant. But as I told you, even the one variant which we are manufacturing, we are unable to meet the demand. So there is no point that we switch over to other variant when we are not able to meet the demand for this variant itself. And that is the reason to meet the demand of the market for the other variant we are importing. So that in case we need to switch over to some other variant, at least we are already known in the market about that other variant. So this other that import is nothing but seeding operation where the farmers and customers and wholesalers, they know that yes, we are supplying all type of variants.
Nirav Gandhi
Sure. So the new plant would add new variants?
Unidentified Speaker
It depends on the market, depend upon the demand, depend upon opportunities, depend upon the profitability, depend upon the how — because we may add some new geographical area also. So so many factors are there. The management will take a call when we start the production and when we see the inflow of orders and inflow of the variants.
Nirav Gandhi
Sure, sir. Could you — our corporate tax rate is high at around 40%. So why is that happening?
Pankaj Ostwal
See right now we under MAT and you would be already aware that for calculation of deferred tax we need to consider the rate in which the company lies. The company is already into the tax lab of 30% plus-plus-plus. That is why the overall tax liability you will — you are seeing is at around 40%. So once whenever we are coming out of MAT, definitely we will switch to that lower tax alternative of 22%. And in that particular year you will find that the tax liability goes down with a huge number and thus impacting on the overall EPS. Also it is more of a regulatory requirement. It is more of a income tax requirement rather than a required rather than a liking of a company because income tax is that it should be on 30%, 30% rate.
Nirav Gandhi
Sure, sir. Yes, sir. That’s it from my side. Thank you so much.
Pankaj Ostwal
Thank you.
Operator
Thank you. The next question comes from the line of Bhagyavant, an individual investor. Please go ahead.
Bhagyavant
Yeah. Hello. Good evening, sir. Congratulations on a good side. Just had one question for Q4 and going into the next fiscal what kind of proportions do we expect to maintain between trading and manufacturing?
Pankaj Ostwal
I have already told you, as far as our manufacturing production is concerned, we are operating almost at 100% capacity, so that is fixed. And as far as trading that import portion is concerned, we will see the demand from the market and the orders from our wholesaler and cooperative federations. So that will keep on changing. It is difficult at the moment to predict how much import we will undertake in Q4 and next year.
Bhagyavant
Okay. Got it, sir. That’s it. From my side. Thank you.
Operator
Thank you. The next question comes from the line of Keshav Sharma, an individual investor. Please go ahead.
Keshav Sharma
Sir, there is any plan for listed company on BSE given that such a listing could enhance shareholder value?
Pankaj Ostwal
See, right now it is being not discussed in the Board and in the company and since you have come up with this question we will examine it and we will explore the possibility of listing it on BSE.
Keshav Sharma
Okay. Okay. Thank you, sir.
Operator
Mr. Keshav, does that answer your question? We’ll move on to the next question. It’s from the line of Bhaskar with Tree Head Capital [Phonetic]. Please go ahead.
Unidentified Participant
Hello, I am audible?
Operator
Yes, sir, you’re audible.
Unidentified Participant
Sir. I am new for this industry. Can give you overview on seasonality. Which time is peak, demand is high or when, regional, can you give overview? Thank you.
Unidentified Speaker
We did not get your question.
Unidentified Speaker
No. I think what you are asking. Our director has already covered all these points in his opening remarks. How the industry is functioning. How the demand supply is there. How nutrient beds. How the attitude of the farmer is shifting from one product to another. How government is support. I think he has covered. If you have any specific questions I think we’ll be happy to respond to you.
Unidentified Participant
Okay. I am late join. Okay. I also listen the audio. Okay.
Operator
Thank you. [Operator Instructions] The next question comes from the line of Gaurav Gandhi with Krishna First Cap [Phonetic]. Please go ahead.
Unidentified Participant
Sir, we have taken the shareholder approval in the AGM regarding the issuance of share debenture CTC. Is there any future plan for that? In near future?
Pankaj Ostwal
So far not. Because our cash accruals and the expansion plan are synchronizing. And for the time being we are not in need of any additional capital. So so far not. But that is an enabling provision. We always keep such things so that last moment rush can be avoided.
Unidentified Participant
Okay, sir. Thank you. Thanks from my side.
Operator
Thank you. [Operator Instructions] As there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Pankaj Ostwal
Thank you all the participants. Thank you very much. Thank you once again for joining in this con call. Still if you have any questions, please do not hesitate to reach out to our Investor Relation team. We will respond to you through e-mail. Thank you and have a great day.
Operator
[Operator Closing Remarks]