Chambal Fertilisers & Chemicals Ltd (CHAMBLFERT) Q1 FY27 Results Analysis: EBITDA Margin Expands 356 bps, Revenue Slips 12%

Chambal Fertilisers & Chemicals Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 5,027.02 Cr (-11.77% YoY) and PAT growth of +10.27% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Standalone EBITDA margin expanded 356 bps YoY to 16.92% despite an 11.8% revenue decline, driven by strong cost management and a sharp turnaround in Complex Fertilizers margins. The TAN project has commenced production, but revenue contribution is yet to materialize, and the IMACID joint venture swung to a loss, weighing on consolidated earnings.

Key Investment Insights

Key Positives

• Standalone EBITDA margin expanded 356 bps YoY to 16.92%.
• Complex Fertilizers segment profit surged 67.1% YoY to Rs.238.71 Cr, margin doubled to 13.75% from 6.70%.
• CPC segment margin expanded to 25.18% from 20.98% YoY.
• Promoter group acquired over 3,30,000 shares in open market during May-June 2026.
• TAN project commenced WNA production from June 1, 2026.
• Total expenses declined 14.76% YoY, faster than revenue decline of 11.77%.

Risk Factors

• Revenue declined 11.77% YoY due to weak Kharif season demand.
• Finance costs surged 6.9x YoY to Rs.16.77 Cr due to higher working capital borrowing.
• Consolidated PAT declined 4.62% YoY, dragged by JV loss (IMACID swung from profit Rs.36.12 Cr to loss Rs.25.10 Cr).
• Consolidated other income dropped 37.81% YoY to Rs.26.94 Cr.
• TAN project revenue not yet visible in standalone segment.