Chambal Fertilisers and Chemicals Limited, a leading player in India’s fertiliser industry, announced its Q1 FY26 results on 31st July 2025. The company reported robust growth in both revenue and profitability, reflecting strong demand for fertilisers and effective operational performance.
The first quarter of FY26 saw double-digit growth in revenue and profit, with consolidated PAT up 22.44% YoY and revenue up 15.49% YoY, despite market volatility and seasonal pressures.
Financial Performance Overview
Chambal Fertilisers delivered a solid Q1 FY26 performance, driven by higher fertiliser demand and improved market conditions. The consolidated PAT crossed ₹548 crore, supported by a healthy increase in revenue and operational efficiency.
Consolidated Financial Performance
| Particulars (₹ in Crores) | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | 5,697.61 | 4,933.23 |
| Profit Before Tax (PBT) | 804.29 | 803.17 |
| Profit After Tax (PAT) | 548.96 | 448.36 |
Highlights:
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Revenue growth: 15.49% YoY
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PAT growth: 22.44% YoY
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Strong bottom-line improvement despite nearly flat PBT due to lower tax outflow and cost management
Standalone Financial Performance
| Particulars (₹ in Crores) | Q1 FY26 (30-06-2025) | Q1 FY25 (30-06-2024) |
|---|---|---|
| Revenue from Operations | 5,697.61 | 4,933.23 |
| Profit Before Tax (PBT) | 929.48 | 942.12 |
| Profit After Tax (PAT) | 637.97 | 552.16 |
Observations:
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Standalone revenue grew 15.49% YoY.
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Standalone PAT improved 15.54% YoY, supported by higher fertiliser sales volumes.
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PBT dropped slightly due to higher input costs and operational expenses.
Key Growth Drivers
Several factors contributed to Chambal Fertilisers’ strong Q1 FY26 performance:
1. Higher Fertiliser Demand
The company benefited from pre-monsoon and early sowing season demand, leading to strong urea and complex fertiliser sales in domestic markets.
2. Stable Pricing and Government Support
Government subsidies and stable fertiliser pricing protected margins despite volatility in global input costs like natural gas and imported raw materials.
3. Operational Efficiency
Optimised plant utilisation and efficient working capital management helped maintain healthy profitability, even with a marginal decline in PBT.
Segmental Performance and Market Trends
Chambal Fertilisers’ Q1 FY26 growth is largely driven by its core fertiliser business, supported by domestic demand and a favorable policy environment.
Fertiliser Sales
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Strong urea sales volumes boosted revenue.
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International prices remained moderate, aiding cost management.
Trading and Other Businesses
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Marginal contribution from trading operations.
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Focus remained on core fertiliser production, ensuring consistent earnings.
Profitability and Margins
Despite moderate operational pressure, the company maintained healthy profit margins due to:
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Effective subsidy disbursement cycle.
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Efficient procurement of raw materials.
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Stable gas sourcing and energy efficiency measures.
Profit Margins Q1 FY26 (Consolidated):
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PAT Margin: ~9.63%
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EBITDA Margin: Estimated ~14% (driven by operational efficiency)
Chambal Fertilisers Share Price Performance
Following the Q1 FY26 results, Chambal Fertilisers’ stock showed a mixed reaction on the markets.
| Date | Price (₹/Share) |
|---|---|
| Opening (1st Aug 2025) | 538.85 |
| Current Trading Price | 523.25 |
Stock Performance Highlights:
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1-Year Return: ~0.59%
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5-Year Return: ~227.83%
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All-Time Return: ~3,591.04%
Despite stellar long-term returns, the near-term price dip reflects profit booking and cautious investor sentiment amid fertiliser sector volatility.
Long-Term Investment Perspective
Chambal Fertilisers continues to be a key beneficiary of India’s agricultural growth and fertiliser subsidy policies.
Strengths for Investors
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Market Leader in Urea Production
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Strong Government Support for Subsidy Payouts
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Operational Efficiency and Cost Control
Risks to Monitor
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Fluctuating Natural Gas Prices (key raw material)
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Policy Changes in Fertiliser Subsidies
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Monsoon Dependency for Rural Demand
Strategic Outlook for FY26
The company’s strategy focuses on:
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Enhancing Production Efficiency: Maximise plant capacity utilisation.
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Strengthening Supply Chain: To ensure timely fertiliser availability in peak seasons.
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Cost Management: Optimise raw material sourcing to protect margins.
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Leverage Government Policies: Benefit from subsidy disbursements and rural demand push.
With India’s fertiliser demand expected to remain robust, Chambal Fertilisers is well-positioned to sustain growth and profitability in the coming quarters.
Analyst and Market Sentiment
Analysts view Q1 FY26 as a strong start for the fiscal year, with:
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Positive signals in revenue and PAT growth
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Stable operational performance despite cost pressures
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Long-term bullish outlook on rural and agri-demand
Short-term stock movement may remain volatile, but long-term investors could consider accumulating on dips.
Conclusion
Chambal Fertilisers’ Q1 FY26 results reflect robust financial health, with double-digit revenue and profit growth despite operational pressures.
The company’s market leadership, rural demand exposure, and government support position it for sustained long-term growth. Investors seeking exposure to the agriculture and fertiliser sector may find Chambal Fertilisers a resilient option, while closely monitoring raw material and policy risks.
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