Coromandel International Ltd Q1 FY27 Results Analysis: PAT Falls 24.6%, Revenue Grows 15.9%

Coromandel International Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 8,164.77 Cr (+15.94% YoY) and PAT growth of -24.59% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Coromandel reported strong revenue growth of 15.9% YoY, but profitability declined sharply due to input cost inflation, with EBITDA margin compressing 185 bps and PAT falling 24.6%. The crop protection segment, boosted by the NACL acquisition, showed strong growth but margins were lower than standalone. The core nutrient business faced severe margin pressure from rising raw material costs, and no management guidance was provided to assess forward trajectory.

Key Investment Insights

Key Positives

• Consolidated revenue grew 15.94% YoY to Rs.8,164.77 Cr, driven by both nutrient and crop protection segments.
• Crop protection segment revenue jumped 72.55% YoY (consolidated) and 20.10% standalone, with standalone margins improving from 15.27% to 18.25%.
• No exceptional items were booked in Q1 FY27, and the effective tax rate remained stable at ~25.7%.

Risk Factors

• PAT attributable to owners declined 24.59% YoY to Rs.380.82 Cr, with the entire decline operating in nature.
• EBITDA margin compressed 185 bps YoY to 9.26%, as raw material cost ratio rose 588 bps due to input cost inflation.
• Nutrient segment (84.75% of consolidated revenue) saw EBIT margin compress 310 bps from 9.91% to 6.89%.
• Finance costs rose 30.99% YoY and depreciation jumped 68.17% due to the NACL acquisition.