Coromandel International Limited, one of India’s leading agri-solutions providers, has reported a sharp decline in profitability for the second quarter of FY27, as soaring raw material costs triggered by the ongoing Middle East crisis squeezed margins in its fertiliser business.
The company’s consolidated revenue rose 6% year-on-year to Rs 10,348 crore in Q2 FY27. However, EBITDA slumped 18% to Rs 944 crore, while profit before tax (PBT) dropped 33% to Rs 706 crore. Profit after tax (PAT) declined 34% to Rs 523 crore, against Rs 793 crore in the corresponding quarter last year.
On a standalone basis, total income increased 5% to Rs 9,987 crore, while EBITDA fell 21% to Rs 904 crore. PBT and PAT declined 33% each to Rs 737 crore and Rs 548 crore, respectively.
The pressure on profitability continued through the first half of FY27. Consolidated revenue grew 10% to Rs 18,563 crore during H1, but EBITDA fell 12% to Rs 1,705 crore. PBT declined 30% to Rs 1,220 crore, while PAT dropped 30% to Rs 905 crore.
The company attributed the margin squeeze primarily to a sharp spike in raw material costs amid the ongoing Middle East crisis, with the increased costs not adequately offset by subsidies.
Despite the earnings pressure, Coromandel continued to advance its long-term expansion and growth initiatives across its businesses.
The new NPK fertiliser capacity is progressing as planned and is expected to be completed by Q4 FY27. In the Crop Protection segment, additional capacity for one of the company's key molecules is expected to become operational in Q3.
The company is also planning a launch plant for fluoro intermediates, aimed at supporting a phased transition from research and development to commercial-scale production and strengthening its capabilities in speciality chemistry.
Its retail expansion also gained momentum, with nearly 100 new stores opened during the quarter, taking the overall network to more than 1,300 stores.
Coromandel is stepping up its focus on differentiated products, digital initiatives and technology-led agricultural solutions, including agri-drone spraying, to strengthen farm productivity and sustainability.
Commenting on the results, S Sankarasubramanian, Managing Director & CEO, Coromandel International Limited, said: “Coromandel delivered a resilient performance in a challenging business environment experienced during Q2, reflecting the strength of its diversified portfolio, customer connect and market presence across Indian and global geographies. The Company sharpened its focus on differentiated offerings, launching ten new products across the Nutrients and Crop Protection businesses during the quarter.
"The company continues to strengthen its presence across fertilisers, crop protection, bio-products, speciality nutrients, organic fertilisers and agri-retail, while pursuing capacity expansion and technology-driven initiatives.
"While revenue growth remains encouraging, the sharp decline in profitability highlights the mounting cost pressures facing the fertiliser business. The coming quarters will be crucial as Coromandel looks to navigate raw material volatility, protect margins and translate its ongoing investments into sustained growth."
