Hi. Thank you all for joining the call today.

We would request Mr. S.

Sankarasubramanian to start the session with his opening remarks, and then we will follow it up with Q&A. Over to you, sir.

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.

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, erratic distribution delayed withdrawal and affected crop cycles and overall consumption, particularly during the rabi season. Encouragingly, the reservoir levels were quite strong, supporting the improved sowing activity.

As you all know, kharif 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 tonnes. As on April end, all-India reservoir levels were 115% of the last year's storage and 126% of the normal storage.

South region is 90 to 93% of the last year's storage and 121% of normal storage. Going forward, weather forecasting agencies have estimated a below monsoon for the upcoming kharif season.

Based on recent estimates, key operating southern 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 are strong on a positive note.

As on April end, crop sowings stood at 8 million hectares, marginally better than last year. As you are aware, government has announced the NBS rates for kharif 2026, increasing nutrient rates by 10% for N, P, and S.

These rates do not reflect the sharp increase in raw material prices and rupee depreciation post the Middle East crisis. Industry expects 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 fag end of the year.

We have seen sudden spurt in key raw materials like ammonia and sulfur, and availability of these fertilizers became a challenge. As you are aware, Middle East contributes significantly to raw material feedstocks and finished products.

Our India dependence on ammonia and sulfur is upwards of 80%, and most of the shipments cross the Strait of Hormuz, and thereby the disruption in the region has led to sharp rise in commodity prices. While challenging, industry stocks remain balanced at this point.

Industry is making concerted efforts to maximize supplies in Q1. An empowered committee comprising of government and industry officials have been working in close coordination for fertilizer production planning and raw material sourcing.

During the year, domestic phosphatic industry increased its production to 16 million tonnes. Industry also resorted to higher level of imports, both DAP and NPK, which added up to 10 million tonnes against previous year of 7 million tonnes.

Consumption for the year is 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. Their share in the overall phosphatics, NPK currently is having a share of 60%.

During the year, industry players signed offtake agreement close to 7 lakh tonnes 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 have also taken the 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, situations presented broadly constructive operating environment for the global industry.

After 2 years of destocking and demand suppression driven by inflated post-pandemic inventories, channel inventory levels showed signs of normalizing across major geographies. Indian agrochemical market experienced a recovery phase in the first half with a near-normal monsoon, healthy kharif sowing.

It 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 5-star rating and also got this British Safety Council Sword of Honour awards. All the plants undertook annual maintenance turnaround in March-April month, and they have now resumed normal operations.

Phosphoric production for the year was up by 3% to 4.5 lakh tonnes. In March month, company successfully commissioned, as we communicated in the past meetings, the 2,000 tonnes per day sulfuric acid plant and 650 tonnes per day phosphoric acid plant at Kakinada, strengthening its backward integration capabilities.

This plant is capable of producing annually 200,000 tonnes 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 plant.

Operations are getting overall stabilized, and we expect to operate at a desired capacity from April-May May 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 rock phosphate project at Senegal has stabilized very well, and we have reached the output of more than 3.5 lakh tonnes last year and planning to increase the volume further by 30-40% in the current year.

The company also has enhanced its stake in Senegalese entity and currently holding 71.5% in the mining company. We have been diversifying our raw material sources through long-term contracts with various countries beyond Saudi and Qatar like Southeast Asian countries, African countries, and Canada, and sometimes from Russia and China as well.

Far, we are reasonably covered in terms of the raw material for the first quarter. We do hope that there can be an early resolution to the vexation trends crisis, and we'll 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 we 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.

Currently, it's quite abnormal and beyond affordability of any industry player to secure and produce and convert them into fertilizers. On the marketing front, we delivered record sales of 4.3 million tonnes of DAP and NPKs, a growth of 7% over last year.

Our consumption has reached a peak of 4.1 million tonnes, making us the largest player with highest market share of 17.5% in the phosphatic 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 farmer connect initiatives, and we registered a growth of more than 24% in these markets. Our single superphosphate business registered highest-ever sales volume of 8.4 lakh tonnes with differentiated grades like Gromor Drive initiative and also through our own retail centers, we had 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 crop-specific and performance-enhancement solutions.

Business is strengthening its manufacturing capability and is setting up a MEK 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 DAP 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 outflow 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 '25-26. Business expanded its footprint with 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 segments which have been growing consistently over the last 2-3 years, and also where we made a significant investment through acquiring Nagarjuna Agrichem 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, new product introduction, and disciplined cost management.

Our standalone crop protection business of Coromandel, the revenue moved up by 15% to cross ₹3,054 crores led by higher sales across segments: formulations, exports, B2B, and bio volumes have shown significant growth. Margins have improved significantly, and profitability of crop protection business has grown by 55% to reach ₹569 crores, benefiting from favorable demand for a key molecule across exports and domestic market.

On a combined basis, our Coromandel crop protection business as well as Nagarjuna Agrichem has reported a combined revenue of ₹4,000 crores, which could have been better but for the late withdrawal of monsoon in the rabi season. 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 over new dealers close to 1,000, 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 the technical plant at Dahej and is further expanding technical capacity at Sarigam.

Bio business, where we are a large player in neem-based biopesticides, the demand for neem-based azadirachtin 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 5 biopesticides and 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 rights issue of ₹250 crores to reduce the high-cost debt.

The borrowing cost has come down significantly from the mid-year, and we have brought in the best practices of Coromandel. 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. KNL is working closely with NACL team and leveraging synergies across product development, manufacturing, and sourcing.

Talking about our other subsidiary, Daksha, a drone subsidiary, it is currently in 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. Daksha and Coromandel's agri business has been working very closely to develop agri drones specifically to address the need and provide comprehensive solution to farming community of India.

Overall, Coromandel has reported strong operational performance in fourth quarter with revenue growing by 19%, reaching ₹6,058 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 sale against the current-year provision of ₹71 crores which we have taken towards the impairment of investment.

Hence, the reported profit is modest at ₹115 crores due to this variation of almost ₹418 crores between the corresponding periods. 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 situations industry is facing due to sudden spurt in global prices, not adequately covered by subsidy rates, Coromandel has turned around with a resilient performance. There has been a compression in fertilizer margins.

However, our other business segments like specialty nutrients, our 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 ₹3,232 crores.

Recently acquired NACL, as I mentioned, has turned profitable and registered EBITDA of ₹103 crores. Coromandel has invested significant investment of over ₹3,000 crores in the last 2 years across business segments, and I'm sure this will generate targeted 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 here.

Thank you, Shankar. Good afternoon, everyone.

The company recorded a consolidated total income of ₹6,068 crores during the quarter and ₹31,827 crores during the financial year FY2025-26 versus the corresponding period of ₹5,114 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 in the previous year. On a full-year basis, the consolidated EBITDA stands at ₹3,232 crores against 2,628 ₹2,628 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 ₹115 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.

The net profit after tax for the full year stands at ₹1,898 crores against ₹2,055 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 1,654 ₹1,654 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 ₹1,500 crores in NBS in March, and this has helped settle dues in the month of March.

Inventory has remained at a slightly elevated levels, driven primarily by elevated raw material prices and certain intermediary 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 investments and goodwill in the standalone and consolidated financial results of the company relating to the drones business. This was 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.

Coromandel has continued to hedge its exposures on a conservative basis. Thank you.

Sir, should we open the floor for the Q&A?

Please.

Thanks for the opportunity. I have a few questions.

Firstly, if I compare the consolidated P&L and standalone P&L, there is a gap. Obviously, NACL doesn't have incremental loss.

I'm assuming that it's coming from the mining entity, BMCC, and even the depreciation numbers are much higher compared to last year. If you can expand on how is BMCC as a entity placed in terms of financials, and also explain how the depreciation, amortization of the mining asset moves forward in next year and thereafter, and how do you see the profitability trends of the BMCC entity?

See,

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 ore. That gets amortized over a period of time as per the accounting requirement that needs to be accounted under the amortization.

That's the reason when the volume of operation goes up, that amortization cost increases. 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 financials. 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 cost, improved efficiencies. That price is linked to the market price because it's a inter-company transfer, and factoring that market price for rock phosphate, it turns profitable.

It will improve its margin going forward with increased volume of production coming through. This as far as BMCC is concerned.

In terms of the overall subsidiary 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 subsidiaries, there will be certain amount of the intangibles which get amortized over the period, and that has gone into the accounts.

While operationally, standalone Nagarjuna has turned profitable at EBITDA level. In a consolidated level, we need to have some amortization of certain expenses it's more of a consolidation accounting between the acquisition value versus the holding value that gets amortized over the period.

That is reflected there. That is why you see the change in the depreciation compared to standalone numbers.

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?

How do you see government response coming in, whether there can be another sort of a 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 subsidy.

How do you see the current situation, and what is your broad sense of how you'll be compensated for the higher raw material costs because I'm assuming the current subsidy and the MRPs are not sufficient for it?

You're right. It's too early stages for this.

Raw materials are coming at a higher prices. Of course, industry has some benefit of the carryover inventory in the first 1 or 2 months.

Farmers also will be able to have access to the opening stock of these fertilizers. The replacement cost is very high.

One is the availability, another is the price. As I mentioned in my opening remarks, the prices of ammonia and 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 they have positively looked at it, and hopefully we should get the pass-through on these costs. Basic objective is to see that how best we can secure first and produce these fertilizers, and then try and see how best we can retain the price to the farmer at moderately level.

If that calls for additional subsidy, it will happen. Or if any gap still remains, you may have to correct the prices.

Because these are all too early stages, and with 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 restored. 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 earlier rates. We need to have additional subsidy, and some pass-on will also happen, which industry also has taken some corrections in the last 1 or 2 months.

As far as DAP is concerned, government has been considerate and they have given a pass-through last year, and hopefully same should continue now.

Sure. My third question was on the crop protection business.

If we look at the performance in terms of standalone has been pretty good in terms of margin improvement. Can you just elaborate how do you see overall opportunity with the NACL acquisition done now, and the entity has been consolidated for about 2 and a half quarters?

How do you see the opportunity in terms of export side, in terms of scale-up of your agrochemical business? NACL's margins, how do you see the trend changing?

Lastly, the standalone crop protection had low growth, about 2 to 2 and a half percent. Were there any factors that led to that, and how do you see the growth moving forward?

No, standalone has grown well. It's not 2-3%.

We have grown ₹3,253 as against

Standalone crop protection, I meant. Standalone crop protection,

Shankar. I also referring to crop protection only.

It's 15.8% if I am right. It's revenue has grown significantly.

See, this year video overall I just have a look at the map,

but I meant I meant for Q4. I meant for Q4, sir.

Oh, Q4. Q4 is a off-season generally, and

Yeah, yeah. Yeah.

Okay. I'm I was talking about the overall number.

Fair fair, yeah. Overall, as I said initially that you've done well.

I meant just for Q4.

In terms of the profitability, they've gone up. It's also be overall, if you want 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, mancozeb.

We got a better volume growth as well as better realization. Our additional capacity which came up in Dahej during the year were quite helpful to meet the additional demand.

In the domestic B2B 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 de-growth.

Coromandel, thanks to the new territory 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 rabi season, which 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 mancozeb, and we have scaled up well. Prices of most of the AIs also improved during this year, and that has resulted in improved margins.

On a standalone basis, crop protection business has reached the record turnover and record profitability. As you can see, on it's close to 19% EBITDA margin and a revenue of ₹3,000 crores.

This includes bio business as well, where the neem-based bio business has recorded good export volume, and we started our own channel in bio for domestic sale as well. 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.

Capacity utilization of the technical plants have improved significantly, and we are also looking at additional intermediates and technical capacities in the Dahej plant, which is currently operating at low level. Coromandel and NACL team working together for leveraging synergy benefits and cross-selling products across various markets depending on the strength of the each company.

Overall, on a consolidated basis, we have reached ₹4,000 crores, and margin of NACL has improved to 6% to 7%. That is what we indicated in the beginning.

Going forward, next year with the change in product portfolio, that should stabilize around 9% to 10%. We need some time to introduce new products, register new products, introduce 9(3) formulations to significantly improve EBITDA in line with Coromandel.

It will 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. Currently, we can say we can restore the margins what it was, 7-8%.

Beyond that, it requires investment, which we will take a view at appropriate time.

Sure, sir. Thank you so much.

Hi sir. Good afternoon, and thanks for the opportunity.

First, if you can give the EBITDA break-up for the full year in terms of subsidy, non-subsidy? The revenue break-up for crop protection in terms of B2B, B2C, and export and domestic?

Sorry, come again. First one, what is it?

EBITDA?

The non-subsidy EBITDA share for the full year, if you can share that, as well as the break-up for the crop protection business, break-up between export, domestic, as well as B2B, B2C revenues there for the full year.

Subsidy business share for the full year is 57%. That is clear.

In terms of

Hello?

Just give me a minute. Just checking

It's 66% for the year as a whole. What I said 57 is for the quarter, and 66% for the year as a whole.

Sure, sir. The break-up between export, domestic, and B2B, B2C for crop protection?

You need this for the full year or for the quarter?

Full year, sir.

Coromandel crop protection business, right? Exports will be 14 ₹1,450 crores exports.

Domestic will be ₹700 crores. Domestic B2B and formulation will be ₹900 crores.

Sure, sir. That's helpful.

Yeah.

Okay. As you rightly highlighted in terms of the growth that we have seen for the non-subsidy business, as well as the strong operating profits, the margin expansion as well for the full year, given the macro, one, is there any concerns from an RM availability perspective for the crop protection business or even from a pricing perspective?

Second, how do you look at the growth going ahead? You did allude towards NACL sort of cross-selling opportunity being there.

Let's say on Coromandel own portfolio basis, what sort of growth are you looking at, and sustainable margins there?

As far as raw material supply chain is concerned on crop protection, we are quite comfortable and we are fairly covered. I don't see any challenge.

It continues to be available. Whatever input cost increase has happened because of global phenomenon, we are able to pass through.

We don't see any impact on margin due to input costs. For crop protection business, we are comfortable.

In terms of the growth opportunities, it will be driven by active ingredient volumes for mancozeb, where additional capacity is coming up, that will be commissioned during the year. That will be the major volume trigger for active ingredient.

On the domestic formulation business, we are planning to grow aggressively by another 20-25% because of the new registrations which are coming through. In this year, we'll be launching another six new products.

Also, we are increasing our import of active ingredients from China and also introducing new products in India. Overall, we can see a revenue growth of 20% to 25% besides the capacity-driven growth in active ingredients, which were mainly for the export market.

Sure, sir. On the margins, do we think we'll be sustaining let's say 19-ish percent non-NACL EBITDA margin for our business, or?

I don't see any challenge. Also, we should note that with the currency depreciation fairly helping this business with significant share of exports happening.

Sure, sir. That's very helpful.

Just lastly, you did cover up in your opening comments on the raw material inflation on the fertilizer side and our expectation that probably there could be another round of maybe an increase in subsidy from the government side. My question here was, one, given that Q1 is fairly there, but Q2, there could be RM inflation which could hit us.

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 because that will have an implication on your overall margins as well.

How should one look at that part?

These are all very abnormal situations, very difficult to predict how long it will take. It is very important, both for the sector health as well as for the farmer benefit, government responds favorably, which they are looking into it.

It should happen here and now if the production has to continue and fertilizer is to be made available to the farmers. We do hope that we will have a early resolution on this additional compensation to ensure that any further price increase on NPKs are reasonable for the farming community to absorb.

Sure, sir. Okay.

That's helpful. I'll get back into the queue if I have any more questions.

Thank you and all the best.

Hi sir. Thanks for the opportunity.

Sir, the domestic and export revenue share that you have mentioned for the CP business, that was the standalone business, or including NACL?

That is for the standalone business. He asked for the standalone business.

If you could mention including NACL number for the Q4 for the export revenues, that will be helpful.

I need to get back to you on export revenue. Overall revenue is ₹1,584 for the full year and ₹361 crores for Q4.

I need to just get back to you on domestic and export breakup. We'll pass it on later.

Understood, sir. In terms of the fertilizer business, could you please elaborate in terms of the finished goods inventory that you have as on March 2026?

It may be close to 5.5 lakh tonnes roughly finished fertilizers we will be having. That's our estimate at this point of time.

It can differ later. Will it be

entirely the manufactured volume, or including trading one?

Trading is not much. Probably 60,000-70,000 may be trading there.

Understood, sir. If I look at in terms of the Coromandel CP business, standalone CP business Coromandel, the growth was 2%.

That was mainly because of this poor growth in the domestic market, or it is mainly on account of both domestic and exports?

Sorry, come again. What are you saying?

If I look at Coromandel CP business for the standalone ones, the growth was 2, 2.5% for the quarter. The primary reason was there was a poor domestic business growth, or it is a mix of domestic and export both have performed not performed well?

No, actually it's off-season in domestic market. There also at least there's a volume increase.

It's exports we have moderated the sale in fourth quarter as we have opportunities to sell during season time in April-May. We have consciously taken a call to have a moderate sales in fourth quarter.

There has been significant increase in freight rates during that period. We have to look for right opportunity to sell.

Hence, we didn't push for more volume of exports in fourth quarter. It's a temporary slow down in fourth quarter, that will come back in first quarter.

Formulation business anyway it has grown well by 14% and in spite of being an off-season period. 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 per se segment. Area where we are 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 these export orders earlier in December.

Hence, it is showing a degrowth in the current year. That is why the overall crop protection CPC is looking marginal 2%.

Otherwise, overall for the year growth 16%, and that sort of a growth we do expect to sustain.

Understood, sir. One last thing.

If I look at in terms of the global industry, specifically in the LatAm market. LatAm market is struggling with the inventory issues.

How do you see that market for your growth? Second part is that if I look at mancozeb prices for the last maybe 1 or 2 months, the prices have gone up roughly by 30% to 40% in the range.

How do you assess that in terms of your Q1 performance? Second is that if you could share the unique grade contribution number in the fertilizer business for the?

See,

our understanding is destocking has already happened in Latin America market. We are not facing any challenge.

The mancozeb per se, our cost increase is getting passed on, and that is required in the current market situation. Also, our dependency is not only on Latin America.

We have a widespread reach across various continents. Plant protections, 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.

Understood, sir. The unique grade contributing for this quarter?

It more or less remains the same because some of the unique grades because of the price increase in imports are not that viable. Hence it remains at 35% on annualized basis for the year.

Understood. Thank you, sir.

Thanks for answering all my questions.

Thank you.

Thanks for the opportunity, sir. Sir, my first question is on phos acid price for the quarter.

Has it been decided? That's one.

In the international market, if you had to procure sulfur and ammonia, what is the current price index?

The phos acid price was fixed at $1,360 when there was a short gap of ceasefire when it happened that time. Around that time, we fixed that phosphoric acid price at $1,360 as against the previous of $1,290.

$1,290

to

$1,360, okay.

As far as ammonia has gone up significantly. There are deals which are happening around $840-$850 range.

That's what last we heard. Sulfur is also around the same level, $800 range.

Got sir. Sir, in terms of the backward integrated capacity that we have added last quarter, for the first half of this year, do we see any challenges in terms of raw material availability to run this at the fullest?

Also in terms of margin contribution, do we see it to be accretive given where, let's say, sulfur prices are

today? See, 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 whether product margin or a phos acid 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 increases of sulfur and other input prices will come in the next quarter. This may be one or two quarters of challenges and pressures, but it should get normalized.

Structurally, the value gap 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.

Our Senegalese mine is operating at full stream and we are getting rock phosphate from there. Sulfur, there is a challenge.

We have taken a lot of efforts. There is a visibility up to first quarter as I mentioned.

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.

Understood, sir. 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.

Would it be fair to say Q1 is kind of still manageable and Q2 is where definitely the subsidy support should come in, or is it in Q1 itself we need this incremental subsidy support?

Every day is a new day. We're not able to predict anything.

This time it's totally uncomfortable for us to put any number on the table. Let's wait for things to play out before we can come to any fair understanding on this.

It's pretty challenging. Right now, we're focusing more on securing raw materials and having the production, ensuring fertilizer availability for this.

There are a lot of things and government has to give them, they have to correct the prices, so many things are there. It's big fluid at this stage, I would say.

Okay. Sir, last question is on

Hi, sir. Thank you for having the call.

My first question is on the sourcing bit only. You said, sir, on the sulfur front, it's slightly challenging as of now.

Obviously, we have a visibility of Q1, but going into Q2, it's a bit difficult. Can you just help us with the current sourcing, it was earlier with the Middle East.

From where you are kind of now managing the sourcing for sulfur and the raw materials, if there is any change? That's my first question.

We used to source predominantly from Middle East only. Now we are diversified our sources.

Wherever sulfur is available, we started buying. We have been getting some shipments from Canada as well.

We have got trying some domestic sources also. We are getting something from Southeast Asian countries, Japan.

We're looking at all the opportunities. It's quite fortunate that we have got our own sulfuric acid plant coming up in Kakinada as well so that we can produce sulfuric acid because sulfuric acid prices have gone up significantly higher.

Hence, it comes handy to have our own sulfuric acid, which in turn can generate steam and produce power as well. We have multiple sources we are working on.

Whoever supplies sulfur to us, we're okay to take it. Right now it's more of a spot transaction which we are doing.

Otherwise, the major source used to be Qatar, NOC, and Saudi.

Sure, sir. As of now, there's no shortfall as such.

It's available at a higher price. That's about it, right?

We have visibility up to June. We have to keep covering.

Hopefully it should ease out. See, the major challenge is the bottleneck of the ships to cross.

It is not sulfur is not available. Sulfur is available in plenty.

It's the movement of ship through this Port of Hormuz is what making it difficult for us to predict anything. We are hoping things normalize, and sailing time is not much between Middle East to India.

For July, it is too early to predict whether it will happen or not. In a logical sense, it looks like it will happen.

Sure, sir. My second question is, I understand that it's highlight any on the subsidy front.

Obviously, you cannot give a clear timeline as if it will and when it will come through. Basis given the raw material price increase, any number you can just pass on to it in terms of the implied increase in subsidy or the price on the last number, and in percentage terms or rupee terms?

Yeah. See,

we have to wait and see. For the rabi season, NBS rate formula will kick in and probably it 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. It may be a cost-to-cost reimbursement is what we are looking at so that we can cushion the current spurting prices to a great extent by the time it price to the farmer.

Very difficult to predict how much they will give. Like a pass-through in DAP, we are trying whether that can be a pass-through in NPKs as well.

We need to wait and see how it's going to happen.

Sir. That's it from my side.

Thank you.

Hi, sir. Thank you for the opportunity.

I just had one question. Is there any key intermediate for mancozeb that we import from Middle East countries where we may be facing any constraint for importing it?

Fortunately, not. We are able to get everything from other than.

It's only comfort we have. This raw material, nothing is coming from Middle East here.

Of course, we have some products, but we have alternate sources. We're quite okay with.

We've been able to pass on the price increase even in the last 2 months. Fourth quarter of course we can see that, but over the last 2 months also we've been able to pass on the price increase?

Yes, and to some extent the currency depreciation also has aided this to absorb some shock.

Got it. Okay.

Not facing any shortage for sourcing the intermediate?

We had some small disruption in the month of April, but we have now looked at alternate coverages. Unlike nutrients, the import of these raw materials from China is quite okay.

It takes time, but it comes. We are fairly covered.

Okay. Got it.

That's all. Thank you.

Hi, thanks for the opportunity. In view of the raw material inflation, what should be our margin guidance as far as EBITDA per tonne is concerned for the whole year?

I prefer to pass this question.

It's

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.

It's a function of many things. It's very fluid.

I don't want to put any number now. Let's wait for things to get normalized.

See, structurally 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 2-3 months, how it's going to be, is not going to help any of us.

Sir. Thank you.

Thank you.

Hello. Am I audible?

Please go ahead. Very much.

Thank you for the opportunity. My first question is, what is our manufacturing EBITDA on fertilizer side, per tonne, for 4Q and for the full year?

Last year, it was around ₹5,000-plus that we have mentioned. Fourth quarter was compressed.

It was less than ₹3,500, around that number. It was around ₹3,500 for fourth quarter.

Okay. What about on a trading side, if you can share margins or EBITDA per

tonne? Too difficult to mention.

Depends on the grades, the timing of purchase, and there's a pass-through on DAP. It's different set of numbers are there.

On an average, what type of margin would we be making on a trading?

You can take roughly 4% to 5% sort of a number.

Okay. How do you see trading volume for FY27 on high base of FY26?

See,

we have a challenge in availability, especially in DAP. We need to see how things improve.

We doubt to do the same volume, and there can be a potential reduction in the first quarter because of non-availability, especially major imports coming through from Saudi may not happen. We also want to be conscious and working up in flexibility, we do not wish to push in unless it is absolutely essential to meet whatever the demand.

Second half, I think it should get normalized if things improve. The volume should come back,

which upon

availability and our risk appetite.

Understood. My last question is on, what would be the revenue for Nano DAP?

I can tell you 45 lakh bottles. I am not sure I didn't get the number now.

It's part of the overall segment. I'll come back to you on this in trading.

Sure. Thank you.

Thank you so much.

Thank you.

Hi, thanks for the opportunity. Sir, my question is related to this Dahej capacity that which we are expanding.

How much EBITDA or revenue or asset turn do we expect? What kind of product portfolio diversification it will help?

See,

we expanded our capacity by 10,000 tonnes of mancozeb. I'll get back to you on the revenue on Dahej.

The payback will be much faster, less than 1 year. The investment what we have made in debottlenecking the facility, that gets paid off less than 1 year.

In fact, we are expanding another 20,000 tonnes in Sarigam 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 2 years.

Okay. Hello?

Yeah.

Sir, and

earlier we were evaluating in foraying into CDMO. What stage we are with CDMO, and how is the opportunity that we look forward?

Any further progress?

Oh, this CDMO takes very long time, 2-3 years,

and

MNCs have responded favorably. They looked at the facility.

They moved to next stage. They take quite a long time.

Two-three European entities have shown interest. With our combined strength of Nagarjuna, we are able to fast-track some of the intermediate manufacturing.

We are looking at chlorination chemistry very seriously. While Nagarjuna has got the capability, and we are going to invest on chlorination chemistry in the coming quarters to showcase it to the potential CDMO players.

They are quite happy with this, and some of the Japanese collaborators 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 2 years down the line, we'll have significant play in this space. We are trying to do it organically and we will scale up.

We're not looking for big-ticket investment immediately looking at the current market situation. Wanted to focus on current investments what we have made, realize the value out of it before we make any fresh investment on a large scale on CDMO space.

We are doing well on the organic space. At this point of time, I'm not able to put out the participant, but things are progressing very well.

Could we see some revenue from FY28 or?

It may go into the year after that also because once they get the proof of concept ready and they start testing the product and then agree to the costing margins, etc., it may happen. We will start creating some capacities of smaller scale this year and that will go into production next year.

Some revenues will come in, but significant can come in a year after.

Now see with this price increase substantially in this fertilizer, how should we think that adoption of Nano DAP, going ahead, say post harvesting? See,

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.

As long as you have urea and DAP are available at affordable price, this situation will be difficult. 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.

The product is working well, and it can replace shortage situations, it can be a boon to the farmers. That's all we can see.

Okay. Last question, sir, if you permit.

Any update on Daksha?

Good question, and I thanks you raise this point because I've taken the diminution in the earlier remarks relating to Daksha. As we have got a large order which is pending for execution, and we have fixed all the technical-related gaps and we're awaiting for the execution of orders.

I'm personally driving this initiative, and we have made significant progress on introducing new products. A lot of projects have been identified, a lot of partnerships have been identified, and we are seeing good traction coming on the defense segment after the usage of drones in various warfare.

Besides that agri, Coromandel and Daksha has been working very closely. They've come up with new products.

We are going through type certification. We strongly believe there's one space in agriculture where drone response has been extremely good from the farming community, and we'll be scaling up volume.

We are participating in institutional tenders. We're also looking at drones for various institutional applications.

We are trying to develop the complete ecosystem for Daksha by tying up with various component manufacturers, whether it is for batteries or cameras or various other electronics instruments, and also for software development. Daksha will be moving to a larger place, more than 50,000 square feet, where they will build this facility where the entire team will sit in Chennai.

Hopefully this facility should be ready by May. A lot of progress 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're also strengthening the R&D, and we are going to introduce new products over the next 6 to 9 months.

We will try and realize the value of investment what we have made. We are bit ahead of time, but it's going to make a difference in next 2 years.

Thank you very much, sir, and all the best.

Thank you.

Thank you very much. Thank you for the insightful questions, 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 the continued support.