Financial Performance Highlights
Q2 FY27 Consolidated Performance:
- Revenue from operations: ₹403.5 crores, representing 58.2% YoY growth and 44.1% sequential growth from Q1 FY27 (₹280.1 crores)
- EBITDA: ₹49.2 crores, up 87.7% YoY with EBITDA margin of 12.2%
- Profit After Tax: ₹35.7 crores, up 96.1% YoY with PAT margin of 8.9%
H1 FY27 Consolidated Performance:
- Revenue from operations: ₹683.60 crores, representing 34.1% YoY growth over H1 FY26 (₹509.6 crores)
- EBITDA: ₹81.2 crores, up 46.7% YoY
- Profit After Tax: ₹58.6 crores, up 49.7% YoY
Segmental Performance
Chemical Business (Q2 FY27):
- Sales value: ₹245 crores (85.6% YoY growth)
- Sales volume: 14,368 metric tons
Fertilizer Business (Q2 FY27):
- Sales value: ₹158 crores (27.5% YoY growth)
- Sales volume: 79,277 metric tons
Total Consolidated Sales Volume: 93,645 metric tons (4.3% YoY growth)
H1 FY27 Volume Performance:
- Chemical business: 23,500 metric tons
- Fertilizer business: 145,000 metric tons
Operational Developments
Capacity Expansion:
- Commercial production commenced at Unit 5 during Q2 FY27, adding approximately 6,000 metric tons per annum dye manufacturing capacity
- 10 MW DC solar project at Nanded, Maharashtra commenced operations, increasing total installed solar capacity to 20.6 MW DC on consolidated basis
- Expansion of Madhya Bharat Phosphates Private Limited (wholly-owned subsidiary) at Meghnagar, Jhabua, Madhya Pradesh progressing as planned
- ₹92 crores already invested in ongoing capex projects as of 30th September 2026, funded entirely by internal accruals
New Capital Expenditure Approval
Board approved ₹70 crores capital expenditure for establishing new chemical plant at Unit 5, Lote Parshuram with additional capacity of 3,000 metric tons per annum. Project expected to be commissioned by March 2028.
Fundraising Initiative
Board approved issuance of 8,54,060 fully convertible warrants to Mr. Punit Gopikishan Makharia (Promoter and Chairman & Managing Director) at issue price of ₹526.90 per warrant, aggregating up to ₹45 crores. This preferential issue is subject to requisite shareholder and other applicable approvals.
Liquidity Position
Company maintained comfortable financial position with non-limited budget of ₹142 crores as of 30th September 2026.
Management Guidance and Commentary
FY27 Outlook:
- Revenue guidance: ₹1,250-1,300 crores
- Profitability expected to reach "three digits" (₹100+ crores)
- Q3 FY27 expected to be subdued for fertilizer business due to seasonal factors
FY28 Outlook:
- Revenue potential: Approximately ₹2,000 crores (±10% variation)
- Unit 6 expected to be fully operational contributing to growth
Unit 6 Update:
- Trial production expected to commence by end of November 2026 post-Diwali
- Commercial production expected in FY28
- Revenue potential: Approximately ₹250 crores at 75% utilization (3,000 tons)
Q&A Session Key Points
Volume and Realization Drivers:
- Growth attributed to mixture of volumes and improved realizations
- China factor (shortage of dye intermediates due to environmental and safety compliance issues) contributing to margin improvement
- Kharif season peak supporting fertilizer volumes
Margin Outlook:
- Company has potential for 15-20% improvement in EBITDA and PAT margins from current levels
- Current margins: EBITDA 12.2%, PAT 8.9%
Receivables Management:
- Higher receivables due to increased realizations (products previously sold at ₹100 now selling at ₹105-110)
- Management confirmed receivables are well-managed and safe
Gross Margin Analysis:
- Gross margin decreased from 33% in Q2 FY26 to 30% in Q2 FY27
- Attributed to inventory level changes rather than operational issues
- No significant inventory gains or losses reported
Merger Update:
- Withdrawal of Kisan and Madhya Bharat merger application due to delays at NCLT
Product Confidentiality:
- Management declined to disclose specific product details for new ₹70 crores capex, citing different chemistry and higher capital intensity