KRISHANA - Krishana Phosch.

📊 NSE: KRISHANA 🏢 Fertilizers 📅 Last Updated: 12/14/2025 9:03

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 47.8% YoY to INR 1,366 Cr in FY25 from INR 924 Cr in FY24. In Q2 FY26, the trading segment's contribution to total revenue increased significantly to 20-22%, up from approximately 4.5% in previous periods.

Geographic Revenue Split

The company is expanding its national reach by entering new states and industrial zones, including a strategic expansion into Meghnagar, Madhya Pradesh, to mitigate seasonal demand fluctuations.

Profitability Margins

The company targets a consistent operating margin of 13-14%. Manufacturing margins are currently 11-12%, while trading margins are significantly lower at approximately 2%. PAT margins were exceptionally high at 20-21% in FY23.

EBITDA Margin

Q2 FY26 saw record EBITDA. For SSP, the EBITDA per tonne is approximately INR 1,900 to INR 2,000 on a realization of INR 17,000 (approx. 11.5%). For NPK, the EBITDA per tonne is over INR 6,000.

Capital Expenditure

The company has tied up debt for expansion projects and expects healthy cash accruals of over INR 80 Cr in FY26 and FY27 to fund capital expenditure and incremental working capital.

Credit Rating & Borrowing

The company maintains a healthy credit profile with a CRISIL A/Stable/CRISIL A1 rating. Fund-based limits were utilized at an average of 37% through March 2025.

⚙️ Operational Drivers

Raw Materials

Sulphur is a primary raw material, representing a significant portion of input costs and subject to high price volatility.

Import Sources

The company has imported and started trading certain grades of NPK to meet market demand and expand its product portfolio.

Key Suppliers

The company relies on well-established vendors and engineers for its 19-20 expansion and diversification projects, though specific supplier names are not disclosed.

Capacity Expansion

The company added DAP-NPK capacity in 2023 and is currently ramping up utilization of these phosphatic fertiliser plants. It is also expanding operations in Meghnagar, M.P.

Raw Material Costs

Raw material costs are managed through long-term supply deals and backward integration. Volatility in Sulphur prices is a key risk that the company mitigates through government subsidies and cost-regulation strategies.

Manufacturing Efficiency

The company is focused on operational excellence and ramping up capacity utilization of recently established DAP/NPK plants to drive growth.

Logistics & Distribution

The company is building new plants in industrial zones to reduce market concentration and increase national reach, optimizing its distribution network.

📈 Strategic Growth

Expected Growth Rate

9.80%

Growth Strategy

Growth will be achieved by targeting a revenue top-line of INR 1,500 Cr, driven by the ramp-up of the DAP/NPK manufacturing segment and increasing the trading turnover (currently 20-22% of revenue). The company is also expanding into new states and industrial zones.

Products & Services

Single Super Phosphate (SSP), NPK (Nitrogen, Phosphorus, Potassium) fertilizers, and specialty chemicals.

Brand Portfolio

Krishana Phoschem Limited, part of the Ostwal Group of Industries.

New Products/Services

Imported NPK grades for trading now contribute 20-22% of total revenue, up from 4.5%.

Market Expansion

Expansion into Meghnagar, M.P., and other new states to increase national reach and reduce geographical concentration risks.

Strategic Alliances

Strong operational and financial linkages with the parent company, Ostwal Phoschem India Ltd (OPIL).

🌍 External Factors

Industry Trends

The Indian fertilizer industry is moving toward self-sufficiency. KPL is positioning itself by shifting focus from DAP to NPK production to meet strong market demand.

Competitive Landscape

Faces aggressive competition from both imported and domestic fertilizer players.

Competitive Moat

The company's moat is built on backward integration, which regulates costs, and its established position in the SSP industry as part of the Ostwal Group.

Macro Economic Sensitivity

Highly sensitive to Indian government agricultural policies and the timely disbursement of fertilizer subsidies.

Consumer Behavior

Demand is highly seasonal, with sales predominantly occurring before the sowing seasons.

Geopolitical Risks

Global volatility in raw material prices (Sulphur) can lead to unprecedented cost hikes.

⚖️ Regulatory & Governance

Industry Regulations

The industry is highly controlled by the government due to its importance to food grain production; KPL is susceptible to regulatory changes in subsidy amounts and pricing.

Environmental Compliance

The company spent INR 94.56 Lakhs on CSR activities in FY25, exceeding the required INR 93.86 Lakhs.

Legal Contingencies

The independent auditor's report for FY25 issued a clean opinion, stating that internal financial controls were operating effectively as of March 31, 2025.