Coromandel International’s September quarter brought higher income but substantially lower profit. Consolidated profit after tax fell 34% to ₹523 crore, while total income rose 6% to ₹10,348 crore in Q2 FY27, the three months ended September 30, 2026.
Management attributed the pressure in fertilisers to higher raw-material costs, lower Kharif nutrient-based subsidy rates and deficit rainfall. Crop protection sales grew, but the group’s year-on-year comparison also reflects a change in the businesses being consolidated.
The Breakdown
Revenue from operations was ₹10,294.13 crore, compared with ₹9,654.13 crore a year earlier. Makhana Mornings calculates that increase at 6.6%. Total income includes ₹54.26 crore of other income, so the two measures should not be used interchangeably.
Consolidated profit before tax declined to ₹706.35 crore from ₹1,059.45 crore. Profit after tax was ₹523.37 crore against ₹793.44 crore. These figures describe total consolidated profit, including the share attributable to non-controlling interests.
Crop protection needs a careful comparison
The company reported 22% growth in crop protection revenue, supported by exports. Domestic consumption was softer, according to management.
There is an important qualification: Coromandel acquired 53.08% of NACL Industries, which became a subsidiary on August 8, 2025. That acquisition belongs to the crop protection business. The latest quarter therefore includes NACL for a full three months, while the year-earlier quarter includes it only from the acquisition date.
The company flags that the consolidated comparisons may not be comparable because of this acquisition. The reported increase should not be read as a like-for-like or purely organic growth rate.
The subsidy timing matters
The results say subsidy income was recognised using existing Kharif rates while notification of Rabi 2026–27 rates was pending. Any consequential adjustment would be made in subsequent quarters after the final announcement.
Management expects Rabi subsidy rates to better reflect raw-material prices. That is an expectation, rather than a policy change established by these results.
The company also expects its new NPK fertiliser capacity to be completed in Q4 FY27. It remains a project target, not operating capacity already contributing for a full quarter.
The Crunch
Coromandel’s income growth did not translate into higher earnings. The next useful checks are whether fertiliser margins recover and how crop protection performs on a comparable business base. Subsidy adjustments and new capacity need to be judged when they are confirmed and reflected in the numbers.
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