💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew 29.2% YoY to INR 1,064.9 Cr in FY2025 from INR 823.9 Cr in FY2024. Segment-wise split is not disclosed as the company operates as a single integrated fertilizer business, but growth was primarily driven by higher NPK/DAP sales volumes.

Geographic Revenue Split

Not explicitly disclosed in percentages; however, the company has a strong presence in Madhya Pradesh (Sagar plant) and is expanding into Maharashtra with a new plant in Dhule to capture western markets.

Profitability Margins

Operating Profit Margin improved to 11.59% in FY2025 from 9.61% in FY2024 (a 20.6% increase) due to higher government subsidies. Net Profit Margin rose to 5.43% from 3.04% (a 78.62% increase) driven by higher absolute profits.

EBITDA Margin

OPBDIT/OI margin was 14.4% in FY2025, up from 12.6% in FY2024. This improvement reflects better capacity utilization and the benefits of backward integration into phosphoric and sulphuric acid.

Capital Expenditure

MBAPL is planning a total capex of INR 800 Cr for setting up a new DAP/NPK and SSP plant in Dhule, Maharashtra, and expanding the Madhya Pradesh plant. INR 600-650 Cr is planned over the next three fiscals, funded in a 1:1 debt-to-equity ratio.

Credit Rating & Borrowing

Crisil A/Stable/Crisil A1 (factoring in parent OPIL linkages). Interest coverage ratio improved 46.15% to 4.37 in FY2025 due to higher profitability.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Rock Phosphate, Sulphuric Acid, and Phosphoric Acid. The company is backward integrated for Sulphuric Acid (165,000 MTPA) and Phosphoric Acid (69,000 MTPA), which reduces external cost dependency.

Import Sources

Rock Phosphate is primarily imported from Jordan and Egypt through long-term supply arrangements.

Key Suppliers

Not disclosed by specific company names, but sourced through a common procurement platform for the Ostwal Group from Jordan and Egypt.

Capacity Expansion

DAP/NPK capacity: 240,000 MTPA; SSP capacity: 240,000 MTPA. Phosphoric Acid capacity was increased 130% to 69,000 MTPA on March 30, 2025. A new Sulphuric Acid plant is expected by March 2026, and the Dhule plant is set for October 2026.

Raw Material Costs

Raw material costs are optimized through backward integration and common group sourcing. Operating margins increased 20.6% partly due to these efficiencies and favorable subsidy adjustments.

Manufacturing Efficiency

Revenue growth of 29% was driven by improved capacity utilization of phosphatic fertilizer plants. All units are ISO 9001:2015 certified with NABL-accredited labs.

Logistics & Distribution

The company utilizes a distribution network of 1,400 wholesalers and 15,000 dealers/retailers under the 'Annadata' brand.

📈 Strategic Growth

Expected Growth Rate

58%

Growth Strategy

Growth will be achieved through a massive INR 800 Cr capacity expansion, including the new Dhule plant (Oct 2026) to enter Maharashtra markets, and a marketing agreement with National Fertilisers Ltd (NFL) to expand distribution reach.

Products & Services

Single Super Phosphate (SSP), Diammonium Phosphate (DAP), NPK fertilizers, Beneficiated Rock Phosphate (BRP), Sulphuric Acid, and Phosphoric Acid.

Brand Portfolio

Annadata

New Products/Services

Expansion into DAP/NPK import substitution is expected to be a major revenue contributor as new capacities in Dhule become operational.

Market Expansion

Targeting the Maharashtra market through the Dhule project and increasing national reach via the NFL marketing tie-up.

Market Share & Ranking

Ostwal Group (including MBAPL) is the 2nd largest SSP manufacturer in India with a ~9% national market share.

Strategic Alliances

Marketing agreement with National Fertilisers Ltd (NFL) to leverage their established distribution network.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward NPK fertilizers and import substitution for DAP. While organic and nano-fertilizers are emerging, they currently pose only a long-term threat to traditional offtake.

Competitive Landscape

Competes with other large SSP and NPK manufacturers; market dynamics are heavily influenced by government subsidy policies.

Competitive Moat

Durable competitive advantage through being the only private Indian group with complete backward integration (BRP to Phosphoric Acid), providing significant cost leadership and a 9% SSP market share.

Macro Economic Sensitivity

Highly sensitive to agricultural sector health and monsoon patterns, which dictate fertilizer offtake.

Consumer Behavior

Farmers are increasingly adopting NPK over traditional fertilizers, a trend MBAPL is capturing through its 240,000 MTPA DAP/NPK capacity.

Geopolitical Risks

Trade barriers or instability in the Middle East (Jordan/Egypt) could disrupt the supply of critical rock phosphate.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Nutrient Based Subsidy (NBS) policy and government regulations on fertilizer pricing and subsidy disbursement.

Environmental Compliance

Focuses on reducing water, power, and raw material usage; all units are ISO certified for quality management.

Taxation Policy Impact

Not explicitly disclosed; however, fiscal policies regarding fertilizer subsidies are the primary regulatory driver.

Legal Contingencies

The company reported no pending litigations that would impact its financial position as of the 2024-25 Annual Report.

⚠️ Risk Analysis

Key Uncertainties

Project execution risk for the INR 800 Cr capex program; delays in commissioning the Dhule plant (Oct 2026) could moderate credit metrics longer than expected.

Geographic Concentration Risk

Currently concentrated in Madhya Pradesh, but the Dhule project will diversify operations into Maharashtra.

Third Party Dependencies

High dependency on the Government of India for timely subsidy payments (INR 127.3 Cr pending) and on Middle Eastern suppliers for rock phosphate.

Technology Obsolescence Risk

Long-term risk from technological breakthroughs in organic or nano-fertilizers that could offer better productivity than traditional phosphatic fertilizers.

Credit & Counterparty Risk

Receivables quality is generally high as a large portion is government subsidy, though realization timing is a risk (Debtors turnover improved 43.75% to 5.52).