Coromandel Q2 FY27: Profit Down 34% as Fertilizer Margins Squeeze
The short answer
Coromandel International (Murugappa Group) reported Q2 FY27 results on 6 November 2026 with revenue growth but sharp profit compression. Consolidated revenue from operations was about ₹10,294 crore (+~6.7% YoY from ~₹9,651 crore). Consolidated net profit fell ~34% to about ₹523 crore (₹523.37 crore in PTI’s reading of the filing; prior-year ~₹793 crore). EBITDA dropped ~18% to about ₹942 crore, with margin near 9.2% vs ~11.9% a year earlier — fertiliser raw-material costs linked to the Middle East supply shock were not fully offset by subsidy, per the company’s own press release.
Revenue up, earnings down — the classic fertiliser squeeze
Fertiliser companies can grow tonnes and still lose margin when phosphoric acid, ammonia and other inputs spike faster than Nutrient Based Subsidy (NBS) resets. Coromandel said Q2/H1 revenue rose (~6% in the quarter, ~10% in H1) while EBITDA declined for exactly that reason: RM inflation from the ongoing Middle East crisis was “not adequately covered by subsidy.”
Deficit rainfall and lower NBS rates for Kharif also hurt NP/NPK offtake and margins, MD & CEO S. Sankarasubramanian said in the release.
Segment colour that matters
Phosphatic leadership: market share improved to ~19% from ~17% last year; ~3.3 million tons of fertilisers supplied in H1.
Crop Protection: revenue +22% in the quarter, helped by exports; domestic consumption softer, with focus on differentiated combinations.
Retail: ~100 new stores in the quarter; network over 1,300 stores; specialty nutrients, organics and biologicals strong.
Capacity: new NPK capacity targeted for completion by Q4 FY27; crop-protection molecule capacity in Q3; fluoro-intermediates launch plant planned; Kakinada phosphoric/sulphuric acid plant helping offset external acid disruption.
Reconciling headline PAT figures in the press
Some secondary outlets rounded consolidated PAT near ₹534 crore with a prior-year comparison near ₹805 crore; PTI and filing aggregators emphasise ₹523.37 crore vs ₹793.44 crore. For this explainer we treat ~₹523 crore consolidated PAT (−34%) and ~₹10,294 crore revenue as the verified core, and note press rounding differences without inventing a third number. Always prefer the exchange XBRL / company PDF when trading.
How to think about Coromandel’s earnings power
Coromandel is no longer “only urea/DAP.” The portfolio spans fertilisers, crop protection, specialty nutrients, organics, bio-products and rural retail. That diversification helped revenue resilience this quarter — crop protection and retail specialty lines offset some fertiliser pain — but the P&L still shows fertiliser margin as the swing factor. When NBS for Rabi better tracks RM, management expects relief; until then, EBITDA quality stays tied to subsidy timing.
What to watch into H2 FY27
Rabi NBS announcement vs global RM benchmarks.
NPK capacity commissioning by Q4 FY27.
Crop-protection export sustainability.
Retail store productivity after the 100-store addition.
Working capital as RM stays elevated.
Subsidy maths without the jargon
India’s Nutrient Based Subsidy framework pays fertiliser companies based on nutrient content, with rates reset periodically. When global phosphoric acid or ammonia prices jump faster than the subsidy reset — especially after a geopolitical shock in a key supply region — manufacturers face a lag. They can still sell tonnes (revenue holds), but conversion to EBITDA collapses. That is Q2 FY27 for Coromandel’s fertiliser line in one paragraph.
Management’s forward-looking comment is that Rabi NBS should better reflect RM moves. Equity holders are underwriting that policy responsiveness. If Rabi rates disappoint, H2 margin recovery slips.
Why share gains still matter in a bad margin quarter
Growing phosphatic market share to ~19% from ~17% while supplying ~3.3 MMT in H1 is a volume-franchise signal. In a subsidy-lag quarter, weaker players cut pushes first. Share gains in pain periods often compound when margins normalise — *if* the balance sheet can fund RM inventory without distress. Coromandel’s integrated acid capacity at Kakinada is precisely an attempt to soften external acid shocks.
Crop protection as the shock absorber
A 22% crop-protection revenue rise, export-led, is the portfolio diversifier working. Domestic agrochem demand can be weather- and pest-sensitive; exports add another demand geo. The company’s focus on differentiated combinations and a fluoro-intermediates launch plant points to specialty chemistry ambition — higher complexity, potentially better margins than generic formulations, with execution and regulatory risk attached.
Retail: 1,300 stores as a data and distribution asset
Opening ~100 stores in a quarter is aggressive distribution CapEx/OpEx. The strategic bet: own the last mile to the farmer, push specialty nutrients/organics/biologicals, and bundle advisory. That can raise stickiness beyond bag fertiliser. The KPI to demand next is per-store productivity, not store count alone.
Capital projects pipeline
NPK capacity by Q4 FY27, additional crop-protection molecule capacity in Q3, fluoro intermediates launch plant, and acid integration at Kakinada form a multi-year earnings bridge. Near-term PAT pain does not automatically invalidate that bridge — but markets will not pay peak multiples until fertiliser EBITDA stabilises.
How this quarter fits the Murugappa agri stack
Coromandel sits inside a broader Murugappa agri/engineering portfolio. For P21 readers, the takeaway is simpler: India’s agri-input majors are becoming platform companies (nutrition + protection + retail + digital spraying). Q2 FY27 shows the old fertiliser cyclicality still dominates the quarterly P&L even as the platform story advances.
Frequently asked questions
What was Coromandel’s Q2 FY27 net profit?
About ₹523 crore consolidated (−~34% YoY), per PTI/filing reads.
Did revenue grow?
Yes — about ₹10,294 crore, up ~7%.
Why did margins fall?
Fertiliser RM cost spike (Middle East-linked) not fully offset by subsidy; EBITDA margin ~9.2% vs ~11.9%.
How is crop protection doing?
+22% revenue in Q2, export-led.
Is the retail network expanding?
Yes — ~100 new stores in the quarter; 1,300+ total.
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Sources
Coromandel press release (6 Nov 2026); PTI; CNBC-TV18; BSE/NSE results references via filing aggregators (alfafinder). Last updated 7 November 2026 (Asia/Calcutta).
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