New Delhi, Nov 6 (PTI) Coromandel International Ltd on Friday reported a 34 per cent drop in consolidated net profit to Rs 523.37 crore for the second quarter of FY27, as higher raw material costs linked to the Middle East crisis squeezed margins in its fertiliser business.
The company’s net profit declined from Rs 793.44 crore a year earlier, according to a regulatory filing.
Total income rose 7 per cent to Rs 10,294.13 crore from Rs 9,651.13 crore. Expenses jumped 11 per cent to Rs 9,642 crore from Rs 8,711.6 crore a year ago.
Earnings before interest, tax, depreciation and amortisation (Ebitda) declined, which the company attributed largely to margin pressure in the fertiliser business, where a spike in raw material costs was not adequately covered by government subsidy.
In fertilisers, deficit rainfall, elevated input prices and lower Nutrient Based Subsidy (NBS) rates for the Kharif season hurt product offtake and margins in the NP/NPK segment, the company said.
It supplied about 3.3 million tonnes of fertilisers in the first half, and its share of the phosphatic segment rose to 19 per cent from 17 per cent a year earlier.
The newly commissioned phosphoric acid and sulphuric acid plant at Kakinada helped offset external supply disruptions, the company said.
“Coromandel delivered a resilient performance in a challenging business environment experienced during Q2,” Managing Director and CEO S Sankarasubramanian said.
The company expects Rabi-season NBS rates to reflect movements in raw material prices, he added.
The crop protection business posted 22 per cent revenue growth, aided by exports, while domestic consumption remained soft. The company launched ten new products across its nutrients and crop protection businesses during the quarter.
The retail arm opened close to 100 new stores in the quarter, taking its network to more than 1,300.
On expansion, the company said new NPK fertiliser capacity is expected to be completed by the fourth quarter of FY27, while additional capacity for a key crop protection molecule is due to come on stream in the third quarter.
It also plans to set up a launch plant for fluoro intermediates to support the scale-up of its speciality chemistry research.
