Chambal Fertilisers hits new high; up 33% so far in CY25 on healthy outlook

Fertilizer companies should continue to outperform their agrochemical counterparts in Q4FY25, driven by healthy volume growth and better profitability.

Chambal Fertilisers and Chemicals share price hit a new high of ₹654.85, gaining 3 per cent on the BSE in Friday's intraday trade, on expectations of a healthy outlook. In the past one month, the stock of the fertilizers company has outperformed the market and rallied 18 per cent. In comparison, the BSE Sensex was up less than 2 per cent during the same period.

 

Besides, thus far in the calendar year, the market price of Chambal Fertilisers soared 33 per cent as compared to 4 per cent decline in the BSE Sensex. In the past one year, it zoomed nearly 75 per cent.

 

 

Chambal Fertilisers is a large manufacturer of Urea, and markets bulk fertilisers such as Di-Ammonium Phosphate (DAP), NPKs and Muriate of Potash (MOP). Reliable supply channels, established marketing network, and financial strength, offer an opportunity to grow the volumes of bulk fertilisers, Crop Protection Chemicals (CPC) and Speciality Nutrients (SN) business.

 

According to analysts at Elara Capital, fertilizer companies should continue to outperform their agrochemical counterparts in January to March quarter (Q4FY25), driven by healthy volume growth and better profitability. Fertilizer volumes continue to show demand resilience.

 

Within Elara fertilizers universe, the aggregate growth for three fertilizer companies – Coromandel International, Chambal Fertilisers and Paradeep Phosphates – is likely to be 7 per cent on topline, 86 per cent on earnings before interest, taxes, depreciation, and amortisation (EBITDA) and 135 per cent on profit after tax (PAT) in Q4E, driven by good growth for all the three companies.  ALSO READ | RVNL wins project worth ₹143-cr from Southern Railway; share price up 3%

 

The Fertilizer industry is also fully insulated from the impact of US tariffs. Further, China is not a major player in the Indian fertilizer industry because of huge barriers to entry, the brokerage firm said in the quarterly preview.

 

For the nine months, Chambal Fertilisers achieved an EBITDA of ₹2,619 crore as against ₹2,199 crore last year, which is a growth of about 19 per cent and a PAT of ₹1,557 crore, as against ₹1,245 crore, showing a growth of 25 per cent year-on-year.

 

Meanwhile, the southwest monsoon is expected to be ‘normal’ this year at 103 per cent of the Long Period Average (LPA), private weather forecasting agency Skymet said on Tuesday. The LPA for the June-September monsoon months is 868.6 millimetres, according to Skymet. Rainfall between 96 and 104 of the LPA is considered ‘normal’.

 

Besides, Chambal Fertilisers, the stock price of Coromandel International too hit a new high of ₹2,172, surging 8 per cent in today’s intra-day trade. In the past one month, the stock rallied 26 per cent.

 

On March 12, 2025, Coromandel International, the Murugappa group company, announced the acquisition of a 53 per cent stake, worth around ₹820 crore in NACL. This transaction is expected to be completed by the first half of fiscal 2026, subject to regulatory approvals.  ALSO READ | Here is why JSW Energy shares were buzzing in trade on April 11

 

Synergies from combined sourcing, consolidation of research and development center, benefit from the management’s expertise and financial reputation shall improve NACL’s business and financial risk profiles in the near- to medium-term. This will remain a monitorable, according to analysts.

 

Coromandel said the acquisition would establish it as a leading player in India’s crop protection industry, expanding its technical portfolio and strengthening its domestic formulation business. The deal will also help Coromandel scale up, enter the contract manufacturing business, fast-track new product commercialisation, and expand its product lineup. The management added that the acquisition would bolster Coromandel’s presence in both the domestic and export markets.