CHAMBLFERT - Chambal Fert.
📢 Recent Corporate Announcements
Chambal Fertilisers and Chemicals Limited has been served a penalty order of Rs. 96.86 lakhs by the Income Tax Department regarding Assessment Year 2011-12. The penalty stems from disallowed claims related to anicut construction expenses and the timing of losses on Fertilizer Bonds. The company has clarified that while the revenue expenditure claim was disallowed, depreciation was permitted, and the bond loss was eventually allowed in the year of sale. Management intends to contest the order at the appellate level and expects no significant impact on operations.
- Aggregate penalty of Rs. 96,86,205 levied under Section 271(1)(c) of the Income Tax Act.
- Matter pertains to tax deductions claimed in the return for Assessment Year 2011-12.
- Issues involve classification of capital vs. revenue expenditure and diminution in Fertilizer Bond values.
- Company plans to challenge the order, asserting a strong case on merits at the appellate forum.
Chambal Fertilizers & Chemicals Limited has received a penalty order of ₹1.35 crore from the Income Tax Department for Assessment Year 2020-21. The penalty relates to a claim for education cess deduction which was originally supported by a 2018 Rajasthan High Court ruling but later disallowed by a retrospective amendment in the Finance Act 2022. While the company had already surrendered the claim and paid the applicable tax, the department has still levied this penalty. The company intends to challenge the order at the appropriate appellate forum, asserting it has a strong case on merits.
- Penalty of ₹1,35,24,064 levied under Section 270A of the Income Tax Act, 1961.
- Issue involves a deduction claim for Education Cess for AY 2020-21 based on a prior High Court ruling.
- Finance Act 2022 retrospectively reversed the ruling, leading the company to pay the tax and surrender the claim.
- Company states there is no impact on operations and will contest the penalty in an appellate forum.
Chambal Fertilisers has been served a penalty order of ₹58.28 Lakhs by the Income Tax Department for Assessment Year 2017-18. The penalty pertains to a deduction claim for education cess that was originally supported by a Rajasthan High Court ruling but later invalidated by a retrospective amendment in the Finance Act 2022. Although the company had already surrendered the claim and paid the tax following the amendment, the penalty was still levied. Management intends to contest the order at an appellate forum, and the financial impact is considered immaterial to the company's overall operations.
- Penalty of ₹58,27,971 levied under Section 270A of the Income Tax Act, 1961.
- Dispute relates to education cess deduction for AY 2017-18 based on a 2018 Rajasthan HC ruling.
- Finance Act 2022 retrospective amendment reversed the previous legal standing regarding cess deductions.
- Company had already surrendered the claim and paid the applicable tax prior to the penalty order.
- Management plans to challenge the penalty order at the appropriate appellate forum.
Chambal Fertilisers reported a 20% YoY revenue growth to ₹5,898 crores in Q3 FY26, with PAT rising 12% to ₹565 crores. The growth was primarily driven by the complex fertilizer segment, which saw an 81% revenue jump, and the high-margin crop protection business, which grew 33%. The company's ₹1,645 crore Technical Ammonium Nitrate (TAN) project is nearing completion (92%) with a target date of April 30, 2026. Subsidy management remains stable with total receivables at ₹2,346 crores.
- Standalone Q3 Revenue increased 20% YoY to ₹5,898 crores; 9M PAT grew 16% to ₹1,804 crores.
- Complex fertilizer segment revenue surged 81% to ₹1,850 crores with sales volumes up to 2.94 lakh MT.
- TAN project reached 92% completion with ₹1,184 crores spent; commissioning scheduled for April 2026.
- Biologicals revenue grew 58% YoY in the 9M period, with the 'Uttam Pranaam' product seeing 250% growth.
- EBITDA margin stood at 13.92% for Q3, despite a ₹31 crore hit from new labor code provisions.
Chambal Fertilizers and Chemicals Limited has released the audio recording of its earnings conference call held on February 11, 2026. The call focused on the company's financial performance for the third quarter and the nine-month period ending December 31, 2025. This disclosure is a standard regulatory requirement under SEBI Listing Obligations and Disclosure Requirements. Investors can access the full recording via the provided link on the company's investor relations portal to gain insights into management's commentary.
- Audio recording of the Q3 FY2025-26 earnings call is now publicly available.
- The call covers financial results for the nine-month period ended December 31, 2025.
- Filing is in compliance with Regulation 30 of SEBI LODR Regulations, 2015.
- Direct access link provided for transparency to all shareholders and analysts.
Chambal Fertilizers reported a 20% YoY growth in Q3 FY26 standalone revenue to ₹5,898.3 crore, while PAT increased 12% to ₹564.5 crore. The company's 9M FY26 performance remains strong with a 16% rise in standalone PAT to ₹1,804.3 crore. A key growth driver is the non-urea segment, particularly Biologicals, which saw a 58% revenue jump in the 9-month period. Additionally, the ₹1,645 crore Technical Ammonium Nitrate (TAN) project is nearing completion at 92.65%, signaling future diversification into industrial chemicals.
- Standalone Q3 Revenue grew 20% YoY to ₹58,983 Mn, while 9M PAT rose 16% to ₹18,043 Mn.
- The Technical Ammonium Nitrate (TAN) project is 92.65% complete with ₹11,836 Mn already invested out of ₹16,450 Mn.
- Biologicals segment showed robust growth with a 58% YoY increase in revenue and 31% volume growth for the 9-month period.
- Urea production and sales volumes were slightly lower in Q3 due to an unscheduled plant stoppage.
- Maintains a strong balance sheet with Nil Net Debt to Equity and healthy ROCE of 25% as of FY25.
Chambal Fertilizers reported a steady performance for Q3 FY26, with standalone revenue growing 20% YoY to ₹5,898.26 crore. Net profit increased by 12% YoY to ₹564.54 crore, supported by a significant surge in the Complex Fertilizers segment, which saw revenue nearly double to ₹1,850.05 crore. However, on a sequential basis, both revenue and PAT saw a slight decline compared to Q2 FY26. The company also accounted for a one-time impact of ₹30.39 crore due to the implementation of New Labour Codes.
- Standalone Revenue from Operations grew 20% YoY to ₹5,898.26 crore.
- Profit After Tax (PAT) increased 12% YoY to ₹564.54 crore despite a ₹30.39 crore labor code impact.
- Complex Fertilizers segment revenue surged 81% YoY to ₹1,850.05 crore.
- Finance costs significantly reduced to ₹0.92 crore from ₹6.94 crore in the same quarter last year.
- Nine-month (9M FY26) PAT stands at ₹1,804.28 crore, up 16% compared to 9M FY25.
Chambal Fertilisers and Chemicals Limited has officially executed a tri-partite agreement to change its Registrar and Share Transfer Agent (RTA). The agreement was signed on February 6, 2026, between the company, the outgoing RTA (Zuari Finserv Limited), and the incoming RTA (KFin Technologies Limited). This administrative transition follows previous board decisions announced in November 2025 and January 2026. The move is a standard regulatory compliance procedure under SEBI LODR Regulations.
- Tri-partite agreement signed on February 6, 2026, for RTA transition.
- KFin Technologies Limited officially takes over as the new Registrar and Share Transfer Agent.
- Zuari Finserv Limited ceases to be the RTA for the company.
- Compliance fulfilled under Regulation 7(4) and 7(5) of SEBI LODR Regulations, 2015.
Chambal Fertilisers and Chemicals Limited has scheduled an earnings conference call for Wednesday, February 11, 2026, at 2:30 PM IST. The call is intended to discuss the company's financial performance for the third quarter and nine months ending December 31, 2025. Senior management, including the Managing Director and Chief Financial Officer, will be present to address queries from analysts and investors. This is a standard regulatory disclosure following the conclusion of the reporting period.
- Earnings conference call scheduled for February 11, 2026, at 14:30 IST.
- Focus on financial results for the quarter (Q3) and nine months (9M) ended December 31, 2025.
- Senior management participation includes MD Abhay Baijal and CFO Anuj Jain.
- Universal dial-in numbers provided are +91 22 6280 1341 and +91 22 7115 8242.
- International toll-free numbers available for USA, UK, Singapore, and Hong Kong investors.
ICRA Limited has re-affirmed the highest short-term credit rating of [ICRA] A1+ for Chambal Fertilizers and Chemicals Limited's Commercial Paper Programme. Notably, the rated amount for this programme has been revised downwards to Rs. 2,500 Crore from the previous Rs. 4,500 Crore. This rating indicates a very strong degree of safety regarding timely payment of financial obligations and carries the lowest credit risk. The reduction in the rated amount likely reflects a strategic shift in the company's short-term borrowing requirements or debt management.
- ICRA re-affirmed the [ICRA] A1+ credit rating for the company's Commercial Paper Programme.
- The rated amount for the facility has been reduced from Rs. 4,500 Crore to Rs. 2,500 Crore.
- The [ICRA] A1+ rating is the highest rating in the short-term category, signifying robust liquidity.
- The rating action was confirmed by ICRA via a letter dated January 29, 2026.
Chambal Fertilizers and Chemicals Limited has announced a delay in the completion of its Technical Ammonium Nitrate (TAN) and Weak Nitric Acid project at Gadepan, Rajasthan. The project completion date has been rescheduled to April 30, 2026, due to issues attributable to the EPC contractor. This project is a key part of the company's strategy to diversify its product portfolio into industrial chemicals. Investors should note that this delay will push back the expected revenue generation from this new facility.
- Project completion date for the TAN and Weak Nitric Acid plant rescheduled to April 30, 2026.
- The delay is attributed to performance or execution issues by the EPC contractor.
- The project is located at the company's existing manufacturing site in Gadepan, Kota, Rajasthan.
- This follows previous project updates provided in April 2023 and January 2025.
Chambal Fertilisers and Chemicals Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by its RTA Zuari Finserv Limited, covers the quarter ended December 31, 2025. It confirms that all share certificates received for dematerialization were processed, mutilated, and cancelled within the mandated 15-day period. This filing is a standard procedural requirement ensuring the company's adherence to share processing and depository regulations.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- RTA Zuari Finserv Limited confirmed processing of all dematerialization requests within 15 days.
- Securities comprised in the certificates are listed on the stock exchanges where earlier securities were listed.
- Physical share certificates were mutilated and cancelled after due verification by the depository participant.
Chambal Fertilisers and Chemicals Limited has officially changed its Registrar and Share Transfer Agent (RTA) from Zuari Finserv Limited to KFin Technologies Limited. This administrative transition became effective on January 1, 2026, following formal acknowledgments from both NSDL and CDSL. All future shareholder correspondence, including physical share transfers and registry queries, must now be directed to KFin's Hyderabad office. The company is currently finalizing the formal tripartite agreement required under SEBI regulations to complete the process.
- RTA changed from Zuari Finserv Limited to KFin Technologies Limited effective January 1, 2026
- Transition confirmed by NSDL on December 31, 2025, and CDSL on January 1, 2026
- New contact point for shareholders is KFin's Selenium Tower B in Gachibowli, Hyderabad
- Tripartite agreement between the company and both RTAs is currently under process for execution
Chambal Fertilizers & Chemicals Limited has announced the closure of its trading window effective January 1, 2026. This mandatory regulatory step is taken in anticipation of the financial results for the quarter ending December 31, 2025. The restriction applies to all designated persons and their immediate relatives under SEBI insider trading regulations. The trading window will remain closed until 48 hours after the official declaration of the quarterly results.
- Trading window closure begins on January 1, 2026
- Closure is related to the financial results for the quarter ending December 31, 2025
- Window will reopen 48 hours after the results are declared to the exchanges
- Applies to all Designated Persons and their immediate relatives as per SEBI norms
Chambal Fertilizers & Chemicals Limited has responded to a query from the National Stock Exchange regarding a recent significant increase in trading volume. The company officially stated that there is no undisclosed price-sensitive information or material announcements that need to be shared under SEBI Regulation 30. This clarification confirms that the recent volume spike was not driven by any internal corporate developments known to the management. The company maintains its commitment to transparency and regulatory compliance.
- NSE requested clarification on December 16, 2025, regarding a sudden spurt in trading volume.
- Company responded on December 17, 2025, denying any undisclosed material information.
- The response was filed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
- Management confirms all relevant investor information has been previously disclosed to the exchanges.
Financial Performance
Revenue Growth by Segment
Consolidated revenue for H1 FY26 grew 30.5% YoY to INR 12,110 Cr from INR 9,279 Cr. Crop Protection Chemicals (CPC) revenue grew 19% to INR 887 Cr in 9M FY25. Urea sales volumes increased 6.6% to 34.71 Lakh MT in FY25, while total sales including other agri-inputs decreased 7.2% to INR 16,646.12 Cr due to lower natural gas prices.
Geographic Revenue Split
The company maintains a dominant market share in North India through its 'Uttam Vir' brand. International operations via the Moroccan joint venture (IMACID) contributed INR 3,773.99 Cr (MAD 4,466.26 Million) in revenue for FY25, representing a 29.3% increase from INR 2,918.24 Cr in FY24.
Profitability Margins
Net profit margin improved as PAT grew 18% YoY to INR 1,240 Cr in H1 FY26. Crop Protection margins reached a record 30% in recent quarters, significantly higher than the sustainable historical range of 18-20%, driven by a fresh portfolio of 22 new product introductions.
EBITDA Margin
EBITDA for H1 FY26 was INR 1,812 Cr, a 2% increase YoY. 9M FY25 EBITDA margin for the CPC segment was 23%, up from 20% YoY. Operating profit for FY25 was INR 2,837.59 Cr, benefiting from lower finance costs and higher volumes of own-manufactured urea.
Capital Expenditure
The company is investing in a Technical Ammonium Nitrate (TAN) plant with a capacity of 240,000 metric tonnes per annum, expected to be commercialized by January 2026. This project is being funded primarily through internal accruals, supported by a net cash surplus of INR 2,985 Cr as of December 2024.
Credit Rating & Borrowing
CRISIL reaffirmed 'CRISIL AA+/Stable' for long-term and 'CRISIL A1+' for short-term facilities. The company achieved a zero-debt status as of March 31, 2025, after prepaying the entire term debt for the Gadepan-III plant. Interest coverage ratio is strong at over 10 times.
Operational Drivers
Raw Materials
Natural Gas (feedstock for Urea), Ammonia (feedstock for TAN), and Phosphates/Potash (for DAP/NPK trading). Natural gas price fluctuations directly impact turnover, with a 7% decrease in FY25 revenue attributed partly to lower gas prices.
Import Sources
Phosphatic and Potassic (P&K) fertilizers are imported to supplement domestic trading. Specific sourcing includes Morocco through the IMACID joint venture for phosphoric acid.
Key Suppliers
Suppliers include global phosphoric acid producers like OCP (via IMACID JV) and domestic/international natural gas suppliers for the Gadepan manufacturing complex.
Capacity Expansion
Current Urea capacity is 3.30 million metric tonnes (MT), the largest in India's private sector. Expansion includes a 0.24 MTPA Technical Ammonium Nitrate (TAN) plant scheduled for completion by the end of FY26.
Raw Material Costs
Raw material costs are largely mitigated in the Urea segment as the government compensates for natural gas price increases through subsidy receipts. Traded segment margins are more sensitive, with DAP procurement prices rising from $650 to $850 per ton in 2024.
Manufacturing Efficiency
Urea plants consistently operate at over 100% capacity utilization. Gadepan-III is one of the most energy-efficient plants globally, operating significantly below normative energy consumption levels.
Logistics & Distribution
The company utilizes an extensive distribution network in North India to support its 'Uttam Vir' brand, ensuring high market penetration for both manufactured urea and traded products.
Strategic Growth
Expected Growth Rate
18%
Growth Strategy
Growth will be driven by the commercialization of the TAN plant in Q4 FY26, targeting the coal mining segment. Additionally, the company is scaling its Crop Protection business through 22 new product launches and entering the seeds market to diversify revenue away from the subsidy-heavy urea segment.
Products & Services
Manufactured Urea, traded Di-Ammonium Phosphate (DAP), Muriate of Potash (MOP), NPK fertilizers, Crop Protection Chemicals (insecticides, fungicides, herbicides), Specialty Nutrients, Seeds, and upcoming Technical Ammonium Nitrate (TAN).
Brand Portfolio
Uttam Vir (Urea and fertilizers).
New Products/Services
Introduced 22 new products in the Crop Protection segment and recently entered the seeds business. TAN is expected to provide a 'four-to-five digit' margin per ton upon commercialization.
Market Expansion
Focusing on increasing the share of non-subsidy profitability to 25% from the current <10%. Target markets for TAN include the domestic coal mining industry.
Market Share & Ranking
Largest private sector urea manufacturer in India with a 3.30 million tonne installed capacity.
Strategic Alliances
IMACID (Joint Venture in Morocco) for phosphoric acid supply and ISGN India (subsidiary).
External Factors
Industry Trends
The industry is shifting toward 'non-subsidy' diversification. Chambal is positioning itself by moving into Technical Ammonium Nitrate and high-margin Agrochemicals to mitigate the impact of tightening government energy norms and subsidy delays.
Competitive Landscape
Competes with other private and public sector fertilizer manufacturers in India. Differentiation is achieved through a 30% margin in the traded agrochemical segment versus the industry standard of 18-20%.
Competitive Moat
Durable competitive advantage through the 'Uttam Vir' brand, massive scale (3.30 MTPA Urea), and superior energy efficiency at Gadepan-III. These factors provide a cost leadership position in a regulated market.
Macro Economic Sensitivity
Highly sensitive to the Union Budget's subsidy allocation (INR 1.91 lakh crore for FY26) and monsoon performance which dictates pan-India fertilizer demand.
Consumer Behavior
Farmer demand is shifting toward specialty nutrients and crop protection, evidenced by the company's double-digit growth in the agrochemical portfolio despite heavy rainfall.
Geopolitical Risks
Exposure to global fertilizer price volatility (e.g., DAP price spikes to $850/ton) and potential trade barriers affecting raw material imports from regions like Morocco.
Regulatory & Governance
Industry Regulations
Subject to New Urea Policy (NUP) and Nutrient Based Subsidy (NBS) rates. Regulatory risk includes potential tightening of energy efficiency norms for Gadepan I, II, and III plants.
Environmental Compliance
Investing in eco-friendly technologies and maintaining a dense green belt at the Gadepan campus. ESG commitment is high to maintain access to capital markets for borrowings.
Legal Contingencies
No pending proceedings under the Insolvency and Bankruptcy Code, 2016. Internal financial controls are reported as adequate and operating effectively by the Board.
Risk Analysis
Key Uncertainties
Regulatory changes in subsidy calculations or energy norms could impact operating performance. Monsoon dependency remains a 10-15% swing factor for annual demand.
Geographic Concentration Risk
High concentration in North India for urea distribution; however, the Moroccan JV provides geographic diversification for raw material sourcing.
Third Party Dependencies
High dependency on the Government of India for timely subsidy payments to maintain the current net-cash positive position.
Technology Obsolescence Risk
Mitigated by Gadepan-III being one of the most modern and energy-efficient urea plants globally. Investing in TAN to stay ahead of industrial chemical demand.
Credit & Counterparty Risk
Strong receivables quality due to the sovereign nature of urea subsidies, though the timing of receipts remains a monitorable factor.