Company Overview

Chambal Fertilisers and Chemicals Limited (CFCL), established in 1985, is India's largest private-sector manufacturer of Urea with ~10% market share. The company operates 3 Urea plants and 1 Technical Ammonium Nitrate (TAN) plant with total capacities of 3,400,000 MT Urea and 240,000 MT TAN. CFCL has an extensive distribution network with 19 regional offices, 4,976 dealers, and over 93,000 retailers across 18 states. The company holds a CRISIL AA+ rating for bank loan facilities (long term) and reported ROE of 20.83% and ROCE of 25.36% for FY26.

Financial Performance - Q2 FY27

Consolidated Results:

  • Operating Income: ₹69,995 Mn (9% YoY increase from ₹64,128 Mn in Q2-FY26)
  • Operating EBITDA: ₹9,009 Mn (7% YoY increase from ₹8,417 Mn)
  • EBITDA Margin: 12.87% (down from 13.13% YoY)
  • Net Profit: ₹6,319 Mn (3% YoY decrease from ₹6,488 Mn)
  • Basic & Diluted EPS: ₹15.77 (3% YoY decrease from ₹16.19)
  • Other Income: ₹512 Mn (26% YoY increase)
  • Finance Cost: ₹224 Mn (2,417% YoY increase from ₹9 Mn)
  • Share of Profit from JV: Loss of ₹31 Mn (compared to profit of ₹470 Mn in Q2-FY26)

Standalone Results:

  • Operating Income: ₹69,995 Mn (9% YoY increase)
  • Operating EBITDA: ₹9,009 Mn (7% YoY increase from ₹8,419 Mn)
  • EBITDA Margin: 12.87% (down from 13.13% YoY)
  • Net Profit: ₹6,350 Mn (6% YoY increase from ₹6,018 Mn)
  • Basic & Diluted EPS: ₹15.85 (6% YoY increase from ₹15.02)

Financial Performance - H1 FY27

Consolidated Results:

  • Operating Income: ₹1,20,265 Mn (1% YoY decrease from ₹1,21,104 Mn)
  • Operating EBITDA: ₹17,516 Mn (9% YoY increase from ₹16,027 Mn)
  • EBITDA Margin: 14.56% (improved from 13.23% YoY)
  • Net Profit: ₹11,555 Mn (4% YoY decrease from ₹11,976 Mn)
  • Basic & Diluted EPS: ₹28.84 (4% YoY decrease from ₹29.89)

Standalone Results:

  • Operating Income: ₹1,20,265 Mn (1% YoY decrease)
  • Operating EBITDA: ₹17,517 Mn (9% YoY increase from ₹16,030 Mn)
  • EBITDA Margin: 14.57% (improved from 13.24% YoY)
  • Net Profit: ₹13,384 Mn (8% YoY increase from ₹12,397 Mn)
  • Basic & Diluted EPS: ₹33.41 (8% YoY increase from ₹30.94)

Segmental Performance - Q2 FY27

Urea Segment:

  • Sales: ₹46,292 Mn (compared to ₹33,174 Mn in Q2-FY26)
  • EBIT: ₹785 Mn (compared to ₹1,242 Mn in Q2-FY26)
  • Production & Sales Volume: 9.13 Lakhs MT (compared to 8.81 Lakhs MT in Q2-FY26)

Complex Fertilisers Segment:

  • Sales: ₹6,685 Mn (compared to ₹5,526 Mn in Q2-FY26)
  • EBIT: ₹870 Mn (compared to ₹1,043 Mn in Q2-FY26)
  • Sales Volume: 1.70 Lakhs MT (compared to 2.42 Lakhs MT in Q2-FY26)
  • Breakdown: DAP/TSP: 0.63 Lakhs MT, MOP: 0.52 Lakhs MT, NPK: 0.25 Lakhs MT

CPC, SN and Seeds Segment:

  • Sales: ₹3,251 Mn (compared to ₹3,741 Mn in Q2-FY26)
  • EBIT: Negative (specific figure not provided, shown as superscript 870)

Technical Ammonium Nitrate (TAN) Segment (New Business):

  • Revenue: ₹669 Mn
  • Contribution: ₹233 Mn
  • EBIT: ₹120 Mn (18% margin)
  • Sales Volume: WNA: 24,985 MT, ANS Melt: 16,269 MT, HDAN: 554 MT
  • Trial Run Performance: Revenue ₹803 Mn, Contribution ₹289 Mn (decapitalized)
  • Commercial production started from August 20, 2026

Operational Highlights

New Urea Project Preparation:

  • Additional land parcel acquired for new plant
  • Site enabling activities completed (fencing, geo-technical studies, contouring)
  • Environmental Clearance in progress
  • In principle approval from gas supplier obtained
  • LSTK/EPC bidders submitted Expression of Interest; technical bid submission expected shortly
  • Pre-project engineering activities in advanced stages
  • Project subject to approval by Department of Fertilizers and Board of Directors

Product Launches:

  • Launched 13 products in H1 FY27 out of 14 planned for the year
  • Q2 launches: 1 product - "Uttam Fertilis" fortified NP Liquid Fertiliser
  • New CPC products introduced in Q2: 4 new age products covering Herbicide, Fungicide and Insecticide
  • Biologicals: Introduced "Uttam Aris Gold" in Q1 and "Uttam Fertilis" in Q2
  • Seeds: 32% revenue growth and 69% margin improvement YoY

Joint Venture Performance:

  • IMACID JV reported net loss of ₹31 Mn in Q2 FY27 (compared to profit of ₹470 Mn in Q2-FY26)
  • Prolonged shutdown due to sulphur shortages and higher prices
  • Resumed production at lower capacity due to higher input cost

Corporate Social Responsibility Initiatives

CFCL implemented multiple CSR projects:

  • Project Akshar: Supported 57 government schools and 47 Anganwadi centres benefiting 10,000+ children
  • Project Saksham: Technical & vocational education initiative across 5 ITIs, 1 polytechnic college, benefiting 3,000+ youth
  • Project Arogya: Healthcare initiatives across 4 PHCs, 31 villages, 100+ educational institutions, benefiting 200,000+ people
  • Project Pragati: Employability and empowerment initiatives supporting 4,000+ women
  • Project Saakar: Rural development initiatives in Kota, Baran & Bundi districts
  • Project Bhoomi: Environmental sustainability initiatives including 50,000+ saplings planted
  • Project Udaan: Sports promotion across 20 schools, 6 technical institutes, 9 sports development centers

Market and Environmental Factors

  • El Niño conditions resulted in 12.6% monsoon deficit (759.4 mm against normal 868.6 mm)
  • Fourth-lowest monsoon rainfall since 2001 and lowest since 2015
  • Impact on agriculture: delayed sowing, moisture stress in rainfed regions, potential yield reduction
  • Implications for fertilizer industry: shifts in crop acreage, greater emphasis on efficient nutrient management

Capital Market Information (as of September 30, 2026)

  • Face Value: ₹10
  • CMP: ₹409.25
  • 52 Week H/L: ₹521.9/400.0
  • Market Cap: ₹1,63,966.95 Mn
  • Shares Outstanding: 400.65 Mn
  • Average Volume: 912.10 ('000)

Balance Sheet Highlights (Consolidated H1-FY27)

  • Total Equity: ₹1,13,384 Mn
  • Total Liabilities: ₹71,081 Mn
  • Total Assets: ₹1,84,465 Mn
  • Property, plant and equipment: ₹74,918 Mn
  • Inventories: ₹36,239 Mn
  • Trade receivables: ₹48,179 Mn
  • Cash and Cash Equivalents: ₹2,079 Mn