Coromandel International Q2 FY27 Results Analysis: PAT Falls 34%, Crop Protection Surges 22%
Coromandel International Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 10,294.13 Cr (+6.63% YoY) and PAT growth of -34.04% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 10,294.13 Cr (+6.63% YoY) |
| PAT (Q2) | Rs. 523.37 Cr (-34.04% YoY) |
| EBITDA margin | 9.15% (-273 bps YoY) |
| EPS (Q2) | Rs. 18.14 (-33.58% YoY) |
Quarter Snapshot
Q2 FY27 revenue grew 6.63% YoY with Crop Protection up 22.42% and on track for the FY 20-25% guidance, but consolidated PAT fell 34.04% YoY as raw-material costs grew 23.66% against unchanged Kharif NBS subsidy rates. H1 cash conversion was weak (CFO/PAT 0.06x) with subsidy receivables at 3,535.41 crore and negative FCF of −586.71 crore. The H2 margin recovery path hinges on the pending Rabi NBS rate notification and subsidy collection pace.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Fertilizer revenue behind-to-in-line (August complex sales −34%, rain deficit — per pre-call note, web-sourced, dated) | Consol revenue +6.63% YoY; Nutrient segment +4.40% YoY — muted as expected, but positive | Partially |
| CP in-line, recovery from July | CP +22.42% YoY (consol) — stronger than in-line | Played out |
| Margins compressing ($1,700 phos acid, doubled sulphur, weak rupee — per pre-call note, web-sourced, dated) | EBITDA margin 9.15% vs 11.88%; PAT-to-owners −33.67% | Played out |
| No mid-season NBS revision | Filing note 5: Kharif rates applied; Rabi pending | Played out |
| Subsidy receivable the swing factor | 3,535.41 vs 3,254 at Jun-26 — deteriorated | Played out |
| Costly inventory rebuild on lag protection | Inventories +22.13% to 8,798.27; Q2 drawdown only 99.50 vs 849.72 yr-ago | Played out |
| DAP trading H2 normalisation; Sarigam confirmation; EBITDA/ton quantification | Not addressed in the filing — remains open for the earnings call | Not observable |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| CP revenue growth FY27 +20–25% | Q4 FY26 earnings call (May 8, 2026) | Consol CP +22.42% YoY (Q2), +42.67% (H1) | On Track |
| Subsidy recognised per notified Rabi NBS rates | Q2 FY27 results filing, note 5 | Recognised at Kharif rates; Rabi notification pending | Too Early |
| Sarigam CP commissioning (Q2 FY27); granulation (Q4 FY27); NACL 9–10% margins; 500-drone fleet; DAP-trading H2 normalisation | Q4 FY26 / Q1 FY27 earnings calls | No disclosure in this filing | Too Early / Cannot assess |
| Elevated raw-material costs weigh on the fertilizer business | Q1 FY27 press release framing | Nutrient segment margin 8.25% vs 11.35%; EBITDA −17.83% YoY with materials +23.66% vs revenue +6.63% — continuing | Confirmed |
| Government "prompt" on subsidy collections | Prior-quarter earnings calls | Subsidy receivable 3,535.41, +63.06% since Mar-26, +10.52% vs year-ago close of ~3,199 — seasonal build is normal, but the stock is larger YoY and H1 build is 1,367.27 | Contradicted |
Key Investment Insights
Key Positives
- Consolidated revenue grew 6.63% YoY to 10,294.13 crore and 26.08% QoQ
- Crop Protection consolidated revenue grew 22.42% YoY to 1,308.48 crore, within the guided 20-25% band; H1 CP revenue up 42.67%
- H1 CP revenue of 2,559.24 crore needs only +1.29% YoY growth in H2 to hit the FY +20% target
- Q2 PAT rose 37.17% QoQ to 523.37 crore; no exceptional items booked this quarter
- BMCC loan-to-equity conversion completed: USD 9.70 million converted into 1,11,355 equity shares; Coromandel Chemicals holds 71.51% of BMCC
- CWIP nearly doubled to 614.55 crore (+107.64% vs Mar-26), reflecting capex pipeline build
- Auditors issued unmodified review reports on both standalone and consolidated results
Risk Factors
- Consolidated PAT fell 34.04% YoY to 523.37 crore; EBITDA fell 17.83% YoY with margin down 273 bps to 9.15%
- Nutrient segment margin compressed 310 bps YoY to 8.25% as materials cost grew 23.66% YoY vs revenue +4.40%
- Subsidy receivable rose 63.06% since Mar-26 to 3,535.41 crore; H1 CFO of 53.76 crore was 0.06x of PAT
- H1 free cash flow was negative at −586.71 crore; acceptances rose 56.35% to 7,852.19 crore to fund working capital
- Other income halved YoY (−53.42% to 54.26 crore), a recurring-level drag
- Crop Protection consolidated segment result fell 10.21% YoY with margin at 9.96% vs 13.58% year-ago
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.