Madhya Bharat Agro Products Limited (NSE: MBAPL) Q4 2026 Earnings Call dated Apr. 20, 2026
Corporate Participants:
Sourabh Gupta — Whole Time Director and Chief Financial Officer
Pankaj Ostwal — Managing Director
Analysts:
Nishita — Analyst
Jainam Ghelani — Analyst
Avnish Tiwari — Analyst
Keshav Sharma — Inidividual Investor
Vignesh Iyer — Analyst
Anupam Agarwal — Analyst
Rishi Mehta — Individual Investor
Presentation:
Operator
Good afternoon, ladies and gentlemen. A very warm welcome to the Q4 and FY ’26 Earnings Call of Madhya Bharat Agro Products Limited. From the senior management, we have with us today Mr. Pankaj Ostwal, Managing Director; Mr. Sourabh Gupta, Chief Financial Officer; Mr. Gaurav Ranka, Chief Accounting Officer; Mr. Pukhraj Kanther, Group Financial Advisor.
[Operator Instructions]
I now hand the conference over to Mr. Sourabh Gupta. Thank you and over to you, sir.
Sourabh Gupta — Whole Time Director and Chief Financial Officer
Thank you, Farah. Good afternoon everyone and welcome to the earnings call for Madhya Bharat Agro Products 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 hence it may involve risks and uncertainties including those related to the financial and operating performances. Please bear with us. If there is call drop during the course of conference call, we would ensure that all is reconnected soonest.
I would like to hand over the conference to Mr. Pankaj Ostwal, Managing Director. Over to you, sir.
Pankaj Ostwal — Managing Director
Good afternoon, everyone and thank you for joining us today. On behalf of the Board and the entire MBAPL family, welcome you to our Q4 and full year FY ’26 earnings call. FY ’26 has been a year of meaningful transformation, not just in financial performance but in how we position ourselves within India’s evolving agriculture ecosystem. Across the fertilizer sector, the year was marked by strong domestic production and more streamlined subsidy framework and a continued structural shift towards balanced nutrition and usage.
Early developments in green ammonia also signal the beginning of a transition towards more sustainable input sourcing. These trends align closely with MBAPL’s integrated strategy and strengthen our positioning for the future.
Let me start with a brief overview of the industry and then walk you through our performance, key milestones and outlook before opening the floor for questions.
Industry overview, Rabi season and operational environment, domestic production and supply adequacy. India’s fertilizer production remained strong through Q4 FY ’26 driven by policy support and operational depth. The quarter witnessed stable dynamics during the Rabi season with peak activity concentrated in January and February, a period that saw P&K production reach approximately 15.76 lakh metric tonnes, marking one of the highest monthly output levels on record. This momentum continued in March ’26. Domestic production remained steady despite the typical seasonal dip in demand as key Rabi crops like wheat and mustard reached maturity.
In the first three weeks of March alone, DAP and NPK production reached 7.62 lakh metric tonnes while SSP contributed another 3.06 lakh metric tonne. These figures highlight an industry maintaining strong operational depth even against seasonal headwinds.
Input cost environment and feedstock trends, the fertilizer sector is currently navigating a period of unstable and supply chain disruption arising from Southwest Asia disturbance. This has led to the direct impact on the escalation of raw material input costs that includes natural gas and ammonia apart from others. DAP prices remained elevated due to the tight global supply while MOP prices were relatively stable supporting NPK economics. From our perspective, this mix was manageable given our product portfolio and sourcing strategy.
Sulphur, which is a key input for SSP and phosphoric acid, saw a sharp increase during FY ’26 moving from $100 in FY ’24 to almost $700 per metric tonne. This remained a cost measure for phosphatic fertilizer manufacturers. However, given our integrated setup and captive sulfuric acid capacity, we were relatively better placed to curb down this impact. Rock phosphate prices remained stable during the year which provided some support to overall inputs.
Policy architecture, stable, responsive, farmer-centric. India’s fertilizer policy framework continues to remain supportive for the industry. The nutrient based subsidy regime now covering 28 grades compared to 22 earlier, has helped improve flexibility in product mix while keeping fertilizers affordable for farmers. The overall subsidy outlay for FY ’26 was increased to INR1.86 lakh crore, reinforcing the government’s continued focus on the sector. From our perspective, this policy stability provides a strong operating environment and supports demand visibility going forward.
Structural market trends, a shift in nutrient logic. We are clearly seeing a shift in India’s fertilizer consumption pattern. Increasing awareness around balanced nutrition use are driving demand towards NPK complexes and SSP. NPK production grew by 18.6% in FY ’25 while SSP also saw a strong growth in both production and sales. This indicates a gradual move towards more balanced crop nutrition.
For MBAPL, this is a positive trend as it aligns well with our product portfolios and integrated strategy. Green ammonia, the structural transformation of Indian fertilizer. One of the key developments this year has been the progress on green ammonia under the National Green Hydrogen Mission. Under SECI SIGHT program, most of the planned options have now been completed covering a significant part of targeted capacity across fertilizer plants.
Importantly, the price discovery has been encouraging. The lowest price discovered is around INR49.75 per KG, which is now much lower to gray ammonia levels than earlier expectations. The green ammonia is becoming commercially viable in the Indian context.
For the industry, these long-term contracts provide better visibility on a critical input. For us, it is an important step towards securing our future feedstock requirements with greater cost stability.
Having outlined the industry development, I will now cover our financial performance for the Q4 and full year FY ’26. Quarter performance Q4 FY ’26. The Company delivered a resilient quarter in Q4 FY ’26. Revenue from operations stood at INR394.7 crore, up 33% Y-o-Y supported by healthy volumes aligned with the robust Rabi season demand and stable product free license.
EBITDA stood at INR41.2 crore, up 14% Y-o-Y, reflecting disciplined cost management and operating leverage even as feedstock costs intensified in the latter half of the quarter. Profit after tax stood at INR59.8 crore, up 318.2% Y-o-Y. Earnings per share for the quarter stood at INR6.82.
Full year performance FY ’26. For the full year FY ’26 MBAPL delivered record high performance across all key matrices. All time high revenue from operations stood at INR1,867 crore up 76% Y-o-Y driven by volume growth and steady demand across our product portfolio.
Highest ever EBITDA stood at INR227 crore, up 55% Y-o-Y, supported by operational efficiency, a favorable product mix, and our backward integration advantage. Record high profit after tax stood at INR150 crore, up 161% Y-o-Y and earnings per share stood at INR17.14, driven by tax benefits along with improved operational efficiency.
Now moving to operational performance, Q4 FY ’26. Strong fertilizer production for the quarter stood at 1,16,281 metric tonnes and healthy sales stood at 99,146 metric tonnes. SSP utilization stood at a robust 99% while NPK utilizing remained healthy at 95%. Our plants demonstrated consistent throughput despite the challenging input environment, a testament to our supply chain agility and operational discipline.
Full year FY ’26. For FY ’26 record high production stood at 4,75,154 metric tonnes and sales at 4,72,270 metric tonnes. SSP utilization reached a record high of 98% while NPK/DAP fertilizer operated at a peak capacity utilization of 100% reflecting strong market acceptance and efficient land operations.
We enter FY ’27 —
Operator
Mr. Ostwal, we are not able to hear you. Participants, please hold the line. Screen disconnected. We’ll just try and call him back. We have the management line reconnected.
Pankaj Ostwal — Managing Director
Yes. So I will start with full year FY ’26. For FY ’26, record high production stood at 4,75,154 metric tonne and sales at 4,72,270 metric tonne. SSP utilization reached a record high of 98% while NPK/DAP fertilizer operated at peak capacity utilization of 100%, reflecting strong market acceptance and efficient plant operations. We enter FY ’27 with our facilities calibrated with new capacities and our team’s experience in navigating supply volatility.
Strategic expansion, building tomorrow’s capacity today. Dhule project based at Maharashtra, integrated platform. Our Dhule integrated manufacturing platform represents MBAPL’s next phase of growth. In the early commissioning phase, we have already crystallized 3,30,000 metric tonne per annum of SSP fertilizer capacity and 1,98,000 metric tonnes per annum of sulfuric acid, delivered ahead of schedule. This is not just a milestone. It is a true point of execution quality. Our fully integrated DAP/NPK fertilizer facility at Dhule with 3,30,000 metric tonne per annum NPK and 99,000 metric tonnes per annum phosphoric acid is progressing as planned with commissioning targeted before October 2026.
This backward integrated into phosphoric — into phosphoric and sulfuric acid positions us to control our cost curve in a volatile raw material environment. Next phase which will scale up to an additional 3,30,000 metric tonne per annum of DAP/NPK fertilizer, 66,000 metric tonne per annum of phosphoric acid and 3,96,000 metric tonne per annum of sulfuric acid is targeted for commissioning by October 2027. The strategic intent is clear. We are building an integrated phosphoric manufacturing complex that will be structurally insulated from import dependency.
Sagar, Madhya Pradesh, commissioned and contributing. At our Sagar facility the 90,000 metric tonnes per annum DAP/NPK expander and 1,65,000 metric tonnes per annum sulfuric acid capacity have been successfully commissioned in March 2026. This facility strengthens our market presence and announces our route to farmer in central India.
Overall, we have significantly scaled our capacities during the year. Our SSP capacity now stands at 5,70,000 metric tonnes per annum and NPK/DAP fertilizer at 3,30,000 metric tonne per annum, taking our total fertilizer capacity to 9 lakh metric tonnes per annum. On the backward integration front, sulfuric acid capacity stands at 5,28,000 metric tonnes per annum with total intermediate capacity at 7,86,000 metric tonne per annum. With the ongoing expansion, we are targeting to scale our total fertilizer capacity to 1.56 million metric tonne per annum by FY ’28, significantly enhancing our growth visibility, sustainability and credit recognition.
Green ammonia, long term supply security, MBAPL has entered — MBAPL has entered into a long term green ammonia procurement agreement under the National Green Hydrogen Mission for 1,30,000 metric tonne per annum. This is a strategic decision on multiple dimensions. It reduces our dependence on imported grey ammonia which currently costs approximately $750 per metric tonne and is subject to geopolitical disruption. It provides 10-year price visibility through SECI’s fixed rate contract structure and it positions MBAPL as an early mover in India’s agricultural decarbonization journey. As green ammonia prices coverage towards grey ammonia parity improve, it improves commercial viability and positioning green ammonia as a sustainable and economically feasible input over time.
Credit rating upgrade, A+ stable. We are pleased to report that CRISIL and ICRA have upgraded MBAPL’s credit rating to A+ stable during the year. This reflects the rating agencies’ recognition of our improved financial strength, expanding asset base, disciplined balance sheet management and the strategic logic of our integrated growth model. A stronger rating translates into better financing terms for our program and reaffirms the confidence of our lenders, customers and partners in MBAPL’s trajectory.
Outlook, FY ’27 and beyond. As we look ahead to FY ’27, the industry stands at an inflection point navigating a landscape shaped equally by structural opportunity and evolving challenges. The demand foundation remains compelling. India’s fertilizer consumption in FY ’26 approached 680 lakh metric tonnes sustaining the sector’s multi-year growth trajectory underpinned by 140 billion-plus [Phonetic] farming households and MSP support that continues to provide feasible rural liquidity and confidence in agricultural productivity.
A favorable monsoon outlook further reinforces a constructive Kharif demand environment. At the same time, input cost, volatility, subsidies, disbursement timeline, global supply dynamic and monsoon variability remains e-monitorable and have been factored into our planning assumptions. Against this backdrop, MBAPL is strategically positioned to capitalize on these opportunities through focused execution across key growth levers.
Capacity expansion and exponential growth. Phase one of the Dhule facility has been partially commissioned with backward integration alongside the completed expansion at the starter unit. The balanced phase one capacity at the Dhule facility is expected to be commissioned before October 2026. These phase integrated tech functions is expected to generate 100% revenue growth over the current baseline. This will be followed by a further phase of expansion by October 2027 resulting in an additional 25% revenue off site. These phased expansions supported by backward integration are expected to enhance operational efficiency and provide strong medium term volume and profitability visibility.
Scaling towards leadership position. With ongoing expansion today, total capacity is expected to increase from 9 lakh metric tonne per annum to 1.56 million metric tonne per annum, supporting the Company’s vision to become India’s third largest private sector phosphatic fertilizer company.
Capital strength supporting growth. The Company’s upgraded credit rating strengthens its access to capital markets, supporting funding requirements for ongoing and planned capacity expansion.
Green ammonia initiative. The Company has entered into an agreement for green ammonia and expected to commence after three years, strengthening input security while aligning with long term sustainability and cost optimization objectives.
Geographical diversification. With new capacities coming on stream, the Company is strengthening its presence in high growth certain markets and plans to establish a dedicated marketing office to enhance distribution reach and demand capture. In this context, the combination of favorable demand dynamics policies support expected restrained supply of imported fertilizer due to war and MBAPL’s ongoing capacity expansion, backward integration and a strategic initiative positions the Company primed to deliver sustainable growth while maintaining resilience against sectoral volatility.
Closing remarks. Ladies and gentlemen, MBAPL is a company in purposeful motion. We are scaling intelligently, integrating vertically, decarbonizing proactively and earning the trust of our financial stakeholders through consistent execution. India’s agriculture story is one of the most durable long-term growth narratives in the world. We are honored to be part of it and determined to be one of the best participants. On behalf of entire MBAPL team, I thank you for your continued confidence and partnership.
We now open the floor for your questions.
Questions and Answers:
Operator
Thank you very much, sir. [Operator Instructions] The first question is from the line of Nishita [Phonetic] from Crown Capital. Please go ahead.
Nishita
Yes. Hello.
Pankaj Ostwal
Yes.
Nishita
Yeah, congratulations on a very good set of numbers. So I just had a question under revenue growth that you just mentioned. So you mentioned that from the partial phase one capacity expansion that we’ve already done — like that is already commissioned, we can expect a 100% of revenue growth. So I am assuming that is going to be on the full capacity utilization. So how fast can we ramp up that capacity utilization? Like can we see this growth in FY ’27?
Pankaj Ostwal
See the SSP fertilizer plant is already commissioned and it is already on in FY ’26 in the last part of March and there are some new government compliances which are being taken care of and it is supposed to be starting in another two months. Two months commercial production it is going to start — sale of fertilizer will start in two months. And the DAP/NPK fertilizer is supposed to start before October ’26. So what we can expect is this year it will be, it can be around 50%, 60% of the total capacities which we are putting up. And then further next year we can say that it could be around that 75%, 80% — or around 80%.
Nishita
Okay, okay, understood. So like what is the growth that we can expect this year? Overall growth?
Sourabh Gupta
As we have already spoken, during the current year we expect a growth of 50% to 60% and another growth of next FY ’28 when the full benefit of the pool expansion will be available. So at that time the growth rate adds on. FY ’26 will be more than 250%. You can say 200%.
Nishita
So in FY ’28 we can have more than 200% growth.
Pankaj Ostwal
From FY ’26.
Nishita
Okay. So the baseline of — on the baseline of FY ’26 we can expect a 200% growth in FY ’28.
Pankaj Ostwal
In FY ’28.
Sourabh Gupta
Yes.
Nishita
Right. Right. Okay, understood. And my next question would be on the capex amount that we — like that is required for this whole capex that we are doing in the Dhule plant. What is the total capex?
Sourabh Gupta
See, already Dhule expansion — Dhule project has fully been funded. Financial closure has been achieved and [Indecipherable] have started disbursing.
Our margin contribution, we are confident that through these internal accruals and the coming six month accruals we will be able to meet. So as far as the current ongoing expansion is concerned, we are fully financially closed and there should not be an issue.
But as regards that second expansion which our MD has spoken about, which we are yet to undertake, there, it is still under process and we will be able to give you the full details only after this operational commercialization starts producing results. So maybe in the month of October, November, we will be able to undertake that exercise.
Nishita
Okay, understood. And my next question was on margins. So like in Q3 and Q4, our EBITDA margins were around 10%. And like in Q1 it was around 13%. So is there any seasonality that we see in our business? So like the first half, we experienced more margins than the second half. Is there any seasonality?
Sourabh Gupta
In fact, the last quarter, because of the rise in input cost, there has been some pressure. So the EBITDA margin has been low. But going forward, there are certain positive factors which particularly phosphatic fertilizer industries are witnessing. Number one, the supply of raw material is not going to be affected, except that ammonia which we procure from domestic supplier.
For ammonia, the domestic urea manufacturers who have been restored full gas supply are expected to give adequate ammonia to us. As far as the question of pricing is concerned, the government of India has already directed all the urea manufacturers to quote reasonable rate for ammonia.
Another point is during this current quarter, all the fertilizer manufacturers, taking into account the increased NBS subsidy, we have increased the MRP which will be further reviewed in next one to two months. So put together all these factors where raw material supply is ensured, costing whatever has increased is going to be curtailed. MRP going up. NBS subsidy increased by government, further government support. We hope that whatever situation we have seen in the past or the war situation, it will be a blessing in disguise and we should be in position to show you a better result with newer capacities coming into office [Phonetic].
Nishita
So like there’s no seasonality because of which the margins have fallen. It’s just the outside factors and raw material cost because of which it’s new, right?
Sourabh Gupta
Whatever seasonality has been there for the decades, it will be there. Nothing new.
Nishita
Okay. Okay. So what are the sectional margins that you can expect?
Sourabh Gupta
We will be able to maintain the margin. That is what I have told you. We will be able to maintain margin. And if there is any — any deficiency is occurred on account of the raw material increased prices, we will adjust the same with increase in MRP.
Nishita
Okay. Okay. So like can we maintain the margins around 14%?
Sourabh Gupta
Yes, 14%. Talking percentage wise, I think it will not be fair to tell that 14%. But absolute terms per metric tonne, we’ll be able to maintain that margin.
Nishita
Okay. Thank you so much. That is it for me.
Operator
Thank you. [Operator Instructions] The next question is from the line of Jainam Ghelani from Svan Investments. Please go ahead.
Jainam Ghelani
Hi, sir. Thank you for this opportunity. So as you mentioned to the earlier participant that you expect the EBITDA per tonne to be sustainable. So what is the EBITDA per tonne target that you are expecting could be sustainable by FY ’28?
Sourabh Gupta
By ’28?
Jainam Ghelani
Yes. Sorry. For ’27 and ’28 if possible.
Sourabh Gupta
’28. I think it is too early for fertilizer industries, going by the present geopolitical position, to forecast about ’28. But ’27, as I told you, we’ll be able to maintain per metric tonne EBITDA in ’27 also.
Jainam Ghelani
What could be the absolute EBITDA per tonne that you would maintain in ’27?
Sourabh Gupta
It will be in the range of RNR6,000 for NPK.
Jainam Ghelani
INR6,000 for NPK. And what about SSP?
Sourabh Gupta
SSP will be in the range of INR1,800.
Jainam Ghelani
Okay. And sir, sorry just to clarify that to the earlier participant you mentioned that we can expect revenues of almost INR4,000 crores by FY ’28. Is that right?
Sourabh Gupta
Absolutely correct. Yes. Yes.
Jainam Ghelani
Okay then that’s it from my side. Thank you.
Sourabh Gupta
Thank you.
Operator
Thank you. The next question is from the line of Avnish Tiwari from Vaikarya Change LLP. Please go ahead.
Avnish Tiwari
Hi. Can you explain this oil and gas shock which has happened? How has it flown through your business either in terms of volume, raw material, just an experience of how are you managing it and where are you seeing changes in the prices you have to take or volume impact in your business?
Sourabh Gupta
See basically there are three nutrients, N-P-K and N comes from this ammonia and ammonia is coming from natural gas. So natural gas is being imported into India. So one point is clear that when this oil and natural gas are impacted, this ultimately impacts the cost of ammonia. So the cost of ammonia it has increased due to the natural gas prices which is already impacted down the line from all these Middle East countries. One part is that.
And the other part is that we being a complex fertilizer manufacturer, DAP/NPK fertilizer manufacturer, we buy ammonia from urea manufacturers. Because what happens is there is — ammonia excess availability is there in urea manufacturing units. The ammonia prices have increased for our units also. But as already explained, due to this government initiatives and the hurdles from the imports and the other initiatives taken from the industries, the MRP has increased. So all these cost impacts of ammonia or sulfuric acid or sulfur have been taken care of and as such there is no impact on the EBITDA or the profitability.
Avnish Tiwari
Right. How much has ammonia increased and how much have you increased the prices of your products?
Sourabh Gupta
The ammonia increase. Ammonia prices have gone up by — it has gone up by —
Pankaj Ostwal
Almost by INR45,000 per metric tonne.
Sourabh Gupta
INR45,000 per metric tonne.
Avnish Tiwari
INR45,000 per metric tonne.
Pankaj Ostwal
Yes.
Sourabh Gupta
And we have increased our MRP by 60%.
Avnish Tiwari
Okay. So this increase of 60% in MRP, does it make up for all of this INR45,000 or you end up making some profit also?
Sourabh Gupta
Subsidy component has also been increased by government.
Avnish Tiwari
Okay, so including subsidy component increase, annual MRP increase of 60%. Does it cover all the raw material cost increase or you have extra profit also on that?
Pankaj Ostwal
No, it covers.
Sourabh Gupta
[Indecipherable]
Avnish Tiwari
Great. And this — you said this crisis could be blessing in disguise also for you as we look forward maybe some time ahead. Can you explain what would you look out for which can be positive for you let’s say sometime down the line?
Sourabh Gupta
See what happens is particularly this Iran and this part, they were supplying fertilizers to India and the raw material comes from the other side, Egypt, Jordan, Morocco and all those parts. So only this finished fertilizer part is affected. So what is happening is this finished fertilizer is coming less into India. So ultimately the domestic manufacturing units in India are in a position to produce maximum. In any case, Indian manufacturers produce maximum because the country is dependent on foreign fertilizer.
So it gives an imported — Indian manufacturer to produce maximum and get better revenues. This is one part. The second part is the government is already working out various types of initiatives to help the Indian manufacturers remain in reasonable profit. And the other part which is being scattered is that industry has already started increasing the prices which in turn will cover the increased cost of the raw material.
Avnish Tiwari
Right. This industry, the prices are same. You also have increased the prices, right? You are also part of the same industry.
Sourabh Gupta
Yes, yes, yes.
Avnish Tiwari
Lastly, if you had to look back in 2022 when Russia-Ukraine war happened, how —
Sourabh Gupta
[Indecipherable]
Avnish Tiwari
In 2022 we also had an oil and gas shock when Russia- Ukraine war happened. What were the things which were different that time versus now? What did you experience that time, if you can explain?
Sourabh Gupta
That year also has been displayed. We reported the best results.
Avnish Tiwari
And was it similar to this time that you were facing increase in raw material?
Sourabh Gupta
Not exactly. This time because of the Iran-Israel war, this belt of Gulf countries who supplies maximum phosphatic or other fertilizer and also other material, so this time it is more affected than as compared to Russia-Ukraine war.
Avnish Tiwari
Okay. But in terms of fertilizer supply globally getting reduced, that was similar phenomena which you’re experiencing this time?
Sourabh Gupta
Now, global fertilizer supply has no [Indecipherable]. And in our case, the import may be some restraint or there may be some issue out of these phosphatic and fertilizer.
So it can affect or because demand is maintained. Demand will be more. So the pressure for supply from domestic manufacturing will be more. So that is why I have been telling. This is going to be a blessing in disguise. We will reproduce to the extent of maximum. We will be able to stand in without any problem. And with these MRP increase NBS subsidy raw material rock not going to be in there because it comes from Jordan, ammonia supply is being regulated by government of India, we hope that we should be able to give you very good results.
Avnish Tiwari
Great. And your raw material supply anyway affected in terms of volumes. I know prices have gone up. But in terms of volume, are you getting as much volume as you want because it’s coming from Egypt, Jordan, Morocco or there is some degree of volume shortage on raw material side?
Pankaj Ostwal
No, no, we are getting appropriate quantities. That is not an issue.
Avnish Tiwari
That is not an issue. Great. Thank you.
Pankaj Ostwal
Thank you.
Operator
Thank you. The next question is from the line of Keshav Sharma, an individual investor. Please go ahead. Mr. Sharma, your line is unmuted. You may go ahead and ask your question.
Keshav Sharma
Hi. Good evening. Thanks for opportunity. You mentioned a target to become India’s third largest private sector phosphatic fertilizer company. What is the current ranking and who are the top two?
Pankaj Ostwal
Right now Coromandel and Paradeep are the top two. And we could be around on the fifth or sixth position. But after this all expansions being completed and then we would be manufacturing almost more than 1.5 million tonne of fertilizer, then we rank to be on the third position in private sector.
Keshav Sharma
Okay. Okay. Thank you. Thanks.
Operator
Thank you. Our next question is from the line of Vignesh Iyer from Sequent Investments. Please go ahead.
Vignesh Iyer
Sir, congratulations on good set of numbers and thank you for the opportunity. So for my first question is I just wanted to understand the prices of sulfur and sulfuric acid the average price for quarter four. And what is the price right now, I mean, in the month of April? If you could provide per kg what is the trend?
Sourabh Gupta
Prices of sulfur in last quarter?
Pankaj Ostwal
Last year?
Sourabh Gupta
Last quarter.
Pankaj Ostwal
Last quarter, INR55,000.
Sourabh Gupta
Last quarter it was around INR50,000, INR55,000. Now it is around INR70,000, this quarter.
Vignesh Iyer
And sulfuric acid?
Sourabh Gupta
Practically sulfuric acid comes from sulfur and the refined and the smelters. So smelters have their own prices. But from sulfur it is around INR15,000 which has increased to around INR22,000.
Pankaj Ostwal
INR20,000.
Sourabh Gupta
INR20,000.
Vignesh Iyer
INR15,000 was the price last quarter and INR20,000 is now, is what you are saying. Correct?
Sourabh Gupta
Yes. Approximate number.
Vignesh Iyer
Right. Perfect. Perfect. Yeah, that’s all from my side, sir. Thank you.
Sourabh Gupta
Thank you very much.
Operator
Thank you. [Operator Instructions] The next question is from the line of Anupam Agarwal from Lucky Investments. Please go ahead.
Anupam Agarwal
Thank you so much for taking my question and congratulations on great numbers, sir. My question is, sir, if you can elaborate more on the green ammonia project with the government. It’s a 10-year contract. By when are we looking to put capex for that? How much would that be? When are we looking to commence the project? What is the kind of incentive structure that is in place? If you can just maybe elaborate a little bit please?
Sourabh Gupta
See we have done the contract — buying contract with the government agency known as SECI, right? And we are not putting that green ammonia project. Green ammonia project is put by another player which is in contract with SECI. So there is another company who will put the green ammonia project, sell it to SECI at a price and SECI will sell us at certain price. So there is no capex involvement from our site. It is only that the contract fails that we will be able to receive this 1,20,000 tonnes of green ammonia at both of the plants at a fixed price for 10 years and which can be renewed enough — which can be renewed after 10 years.
Anupam Agarwal
Understood. And when is this going to start commencing?
Sourabh Gupta
In another three years. In another three years. And the quantity is not 1,20,000. The quantity is 1,30,000 tonnes.
Anupam Agarwal
1,30,000. Okay.
Sourabh Gupta
April ’29. April ’29 we expect the supply from —
Anupam Agarwal
April ’29.
Sourabh Gupta
And pricing wise it is an — upper price has been fixed. In case green ammonia goes down — grey ammonia goes down we will be charged the rate equivalent to gray ammonia.
Anupam Agarwal
Okay. If I may ask, sir, what is the price that we have signed the contract?
Sourabh Gupta
INR53,000 per metric tonne.
Anupam Agarwal
INR53,000 for 10 years.
Sourabh Gupta
Delivered at our factory site.
Anupam Agarwal
And this includes the incentive, sir, or it does not include the incentive?
Sourabh Gupta
No. In case — gray ammonia means the ammonia produced from natural gas. It’s available lesser than INR53,000 in market, then we got this green ammonia at lesser price. Currently that ammonia producing from natural gas is around INR90,000. In that case we also get this green ammonia at INR53,000 per metric tonne. The upper price is capped and the lower price is not capped, whichever price is low, whether it is grey ammonia or green ammonia charged by us.
Anupam Agarwal
But, sir, the product — the production process will have a different route for manufacturing, right? It may not be —
Sourabh Gupta
Yeah, yeah, yeah. Production process is completely natural.
Anupam Agarwal
So whether we use green ammonia or the gray does not matter.
Sourabh Gupta
No, no. It is ammonia.
Anupam Agarwal
Okay. What technology do we use, sir?
Pankaj Ostwal
See, I told you that we are not — we will not be into manufacturing.
Sourabh Gupta
For us it is the same ammonia. The process is different. One is produced by natural gas. Another will be produced by solar energy and air. So different supplies are there. So that the question of setting up or technology or how process, we are not concerned. We will get the ammonia from this player through government agency.
Anupam Agarwal
Understood. And then we’ll convert to DAP/NPK.
Sourabh Gupta
That process is same.
Anupam Agarwal
Understood? Got it, sir. Thank you so much for this.
Sourabh Gupta
Thank you.
Operator
The next question is from Rishi Mehta, an individual investor. Please go ahead.
Rishi Mehta
Hello. Sir, my question is what is the total capex outlay for the Dhule platform across phase one and phase two?
Sourabh Gupta
See, the total project cost is INR675 crores which includes our Sagar project. And the present expenditure has been made to the tune of INR460 crores. The balance — the cost will be incurred in another three, four months.
Rishi Mehta
Another question is the Dhule DAP or NPK facilities targeted for October ’26 commissioning, what are the key risks to this timeline?
Sourabh Gupta
Nothing. We hope to start even before October. Going by the present state of work going in progress even SSP was also targeted to start from October. We started in April. NPK, we targeted in October. We hope to start before that date.
Rishi Mehta
Okay. Thank you, sir. All the best for the projects. Thank you.
Sourabh Gupta
Thank you.
Operator
Thank you. [Operator Instructions] We have a follow-up from the line of Avnish Tiwari from Vaikarya Change LLP. Please go ahead.
Avnish Tiwari
Hi. This is green ammonia, you said INR50,000 per tonne is capped. So grey ammonia price is much lower, then do you pay INR50,000? You pay a lower amount which is there on grey ammonia?
Sourabh Gupta
Lower amount. We will pay lower amount.
Avnish Tiwari
Lower amount. And let’s say the supply of this ammonia, green ammonia, would be at a certain cost which is not changing. So who is bearing that in terms of —
Sourabh Gupta
Government of India.
Pankaj Ostwal
Government of India.
Avnish Tiwari
Got it. They are basically supporting the use of green ammonia through their own —
Sourabh Gupta
This is between the manufacturer of green ammonia and government agency. They have to make the assessment.
Avnish Tiwari
Right. And you got 1,50,000 tied up.
Sourabh Gupta
1,30,000.
Avnish Tiwari
1,30,000, right?
Sourabh Gupta
Yes.
Avnish Tiwari
Right. And who are the other fertilizer companies who have got this kind of sign-up?
Sourabh Gupta
IFFCO, Coromandel, Paradeep, we are aware of these three players. Around 7 lakh metric tonne contract has been done and we as Ostwal Group are the biggest with the tie up of —
Pankaj Ostwal
2.5 lakh metric tonne per annum.
Sourabh Gupta
2.5 lakh metric tonne per annum.
Avnish Tiwari
Okay. So, 1,30,000 here and 1,20,000 is in future or some other place?
Sourabh Gupta
[Indecipherable]
Avnish Tiwari
Okay. The Group you have got 2.5 lakh. So 1,30,000 is in here. Right?
Sourabh Gupta
Okay.
Avnish Tiwari
Yeah. Thank you.
Sourabh Gupta
Thank you.
Operator
Thank you. [Operator Instructions] There appears to be no further questions. Management, shall we close the call?
Sourabh Gupta
Okay.
Operator
Would you like to add any closing comments?
Sourabh Gupta
Yes. Yes. Thank you once again for joining us. If you have any further questions, please don’t hesitate to reach out to our investor relations team. Thank you. Have a great day.
Operator
[Operator Closing Remarks]