Chambal Fertilisers Q1 profit slips as revenue falls, but margins improve sharply

Chambal Fertilisers Q1 profit slips as revenue falls, but margins improve sharply


Chambal Fertilisers and Chemicalsreported a 4.6% year-on-year decline in consolidated net profit for the quarter ended June 30, even as operating profitability improved.

The company posted a consolidated net profit of ₹544 crore for the first quarter, compared with ₹549 crore in the corresponding period last year.

Revenue from operations fell 11.8% year-on-year to ₹5,027 crore from ₹5,698 crore.

The results reflect a mixed quarter, with lower sales offset to an extent by stronger operational efficiency and better margins.

Margins expand despite lower sales

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 11.8% to ₹851 crore from ₹761 crore a year ago.

EBITDA margin expanded sharply to 16.9% from 13.3% in the corresponding quarter last year.

The improvement in margins suggests the company earned significantly more operating profit from every rupee of revenue, indicating better cost control, a more favourable product mix or improved realisations.

Business spans multiple agri segments

Chambal Fertilisers operates across five reportable business segments:

  • Own Manufactured Fertilisers
  • Complex Fertilisers
  • Crop Protection Chemicals
  • Speciality Nutrients and Seeds
  • Others, which includes Technical Ammonium Nitrate (TAN).

The diversified portfolio helps reduce dependence on any single product category and provides multiple avenues for growth across the agriculture value chain.

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Comes after a strong March quarter

The June-quarter performance follows a strong finish to FY26.

For the quarter ended March 31, 2026, Chambal Fertilisers had reported a 29.8% year-on-year increase in consolidated net profit to ₹169.3 crore from ₹130.4 crore.

Revenue rose 13.7% to ₹2,785 crore from ₹2,448.7 crore, while EBITDA jumped 56.1% to ₹255.1 crore from ₹163.4 crore.

EBITDA margin improved to 9.2% from 6.7%.

That strong March-quarter performance had reflected improving profitability, making the June quarter a contrast where margins remained robust but weaker revenue growth weighed on the bottom line.

Dividend proposal remains in focus

The company’s board had earlier recommended a final dividend of ₹6 per equity share of face value ₹10, equivalent to 60%.

The dividend is subject to shareholder approval at the upcoming annual general meeting and will be paid within the prescribed timeline thereafter.

Shares of Chambal Fertilisers and Chemicals ended 1.87% lower at ₹443 on the National Stock Exchange on Thursday.

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