💰 Financial Performance

Revenue Growth by Segment

In FY25, total revenue reached INR 806.3 Cr, an 11.0% YoY increase. The Chemical segment contributed INR 422.51 Cr (52.4% of revenue) and the Fertilizer segment INR 383.77 Cr (47.6% of revenue). In Q2 FY26, revenue grew 45.2% YoY to INR 255 Cr, with Fertilizers growing 50.6% YoY to INR 124 Cr and Chemicals growing 40% YoY to INR 132 Cr.

Geographic Revenue Split

The company is expanding into the Asia-Pacific and African regions to capture rising demand for specialty chemicals and fertilizers. While specific regional percentages are not disclosed, management noted that the majority of Dye Stuff sales are directed toward export markets rather than domestic consumption.

Profitability Margins

Gross Profit Margin for FY25 was 36.8% (up from 33.8% in FY24). Net Profit Margin improved to 7.27% in FY25 from 5.10% in FY24. For Q2 FY26, the PAT margin stood at 7.1%, reflecting stable profitability despite seasonal moderation in the fertilizer segment.

EBITDA Margin

EBITDA for FY25 was INR 83.9 Cr, a 38.2% YoY increase, with margins improving to 10.4% from 8.4% in FY24. In Q2 FY26, EBITDA was INR 26.2 Cr with a margin of 10.3%, driven by operational efficiency and a favorable product mix.

Capital Expenditure

The company has historically deployed approximately INR 400 Cr into capex. It has announced a new expansion project at Meghnagar (Unit 8) with an investment outlay of INR 350 Cr to add 3 lakh MTPA fertilizer capacity by FY28. Ongoing projects include Unit 5 and Unit 6 at Ratnagiri and 11.1 MW DC of solar capacity.

Credit Rating & Borrowing

The company maintains a strong credit profile with an Interest Coverage Ratio of 41.09x as of March 2025 (up from 10.64x YoY). The Debt-Equity ratio remains low at 0.19, indicating minimal reliance on external debt for its expansion plans.

⚙️ Operational Drivers

Raw Materials

Key raw materials include Rock Phosphate for the fertilizer division and various chemical intermediates for the dyes division. Rock Phosphate procurement is managed through long-term contracts and supplier diversification to mitigate price volatility.

Capacity Expansion

Current expansion includes Unit 5 and Unit 6 at Ratnagiri. Planned expansion at Meghnagar Unit 8 will add 3,00,000 MTPA of fertilizer capacity by FY28. Additionally, 72,000 MTPA of chemical capacity and 11.1 MW DC of solar power are being added to enhance integration and reduce energy costs.

Raw Material Costs

Cost of Materials Consumed was INR 557.4 Cr in FY25, representing approximately 69% of revenue. The company uses proactive procurement and supplier diversification to manage global supply chain disruptions and price volatility.

Manufacturing Efficiency

In Q2 FY26, capacity utilization stood at 65% for the Chemicals segment and 70% for the Fertilizer segment. Operational efficiency is further supported by a motivated workforce of 570 employees.

📈 Strategic Growth

Expected Growth Rate

24%

Growth Strategy

Growth will be achieved through a massive capacity expansion (Unit 5, 6, and 8), targeting a revenue of INR 2,500-3,000 Cr by FY29. The company also incorporated Dyecol Color Technologies Private Limited in September 2025 as a marketing arm to enhance market reach for its Dyes and Dye Intermediates business.

Products & Services

The company sells Dyes, Dye Intermediates, and Fertilizers (including Single Super Phosphate/SSP).

New Products/Services

The company is focusing on specialty chemicals and green fertilizers to align with global sustainability shifts, though specific revenue contribution percentages for new products are not yet detailed.

Market Expansion

Expansion plans target the Asia-Pacific and African regions, where demand for fertilizers and specialty chemicals is projected to rise significantly.

🌍 External Factors

Industry Trends

The industry is shifting toward green agriculture and sustainable manufacturing. Shree Pushkar is positioning itself by investing in solar power and sustainable practices to enhance long-term value.

Competitive Landscape

The company faces competition in the dyes and intermediates market, which can lead to price undercutting and margin compression in export markets.

Competitive Moat

The company's moat is built on 'full integration' (producing intermediates for its own dyes) and a strong balance sheet with high liquidity (INR 162 Cr cash surplus), allowing for self-funded growth without high interest burdens.

Macro Economic Sensitivity

The fertilizer business is highly sensitive to the health of the rural economy and monsoon performance, which directly dictates seasonal demand cycles.

Consumer Behavior

Agricultural demand is shifting toward more sustainable and efficient fertilizer use, prompting the company to focus on green agriculture initiatives.

Geopolitical Risks

Geopolitical conditions are cited as a primary factor for export headwinds in the dye stuff business, which are managed through a stable and integrated business model.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to government policies regarding fertilizer subsidies and nutrient-based pricing structures, which can significantly influence market dynamics and realization levels.

Environmental Compliance

The company is committed to green energy and sustainable practices, including solar investments, to align with global sustainability priorities and regulatory expectations.

Taxation Policy Impact

Total tax expense for FY25 was INR 11.1 Cr on a PBT of INR 69.7 Cr, implying an effective tax rate of approximately 15.9%.

⚠️ Risk Analysis

Key Uncertainties

Key risks include unpredictable rainfall (monsoon) impacting fertilizer demand and changes in government subsidy policies which could affect segment profitability by 10-15% depending on the scale of policy shift.

Geographic Concentration Risk

While expanding, the company currently has a significant concentration of manufacturing facilities in India (Ratnagiri and Meghnagar).

Third Party Dependencies

Dependency exists on suppliers for Rock Phosphate; however, this is mitigated through long-term contracts and diversification.

Technology Obsolescence Risk

The company is mitigating technology risks by leveraging ERP systems for operational oversight and investing in modern, integrated manufacturing units.

Credit & Counterparty Risk

Debtors turnover ratio of 4.84 times suggests healthy collections, though the company monitors credit exposure through regular internal audits.