Coromandel International Limited, headquartered in Chennai, India, is a key player in the agricultural inputs sector, part of the Murugappa Group. The company operates primarily in two segments:
- Nutrient and Allied Business: Accounts for ~85% of revenue, focusing on fertilizers (e.g., phosphatic fertilizers, urea, single superphosphate) and specialty nutrients (e.g., water-soluble fertilizers, micronutrients, organic compost). It’s India’s second-largest phosphatic fertilizer producer with a ~15% market share and dominates in Andhra Pradesh and Telangana.
- Crop Protection: Contributes ~15% of revenue, offering insecticides, herbicides, fungicides, and bio-products under 60+ brands, sold domestically and internationally.
Coromandel operates 18 manufacturing facilities across India, with a strong distribution network including ~750 rural retail outlets (Mana Gromor Centers) in Andhra Pradesh, Telangana, and Karnataka, providing farm advisory services to over 3 million farmers. Its R&D centers in Chennai and elsewhere support innovation in fertilizers and crop protection.
Recent Financial Performance (Q3 FY25)
Coromandel’s Q3 FY25 (October-December 2024) results, released on January 30, 2025, reflect a challenging quarter:
- Revenue: Rs 5,510 crore, down 34% YoY from Rs 8,350 crore in Q3 FY24, due to lower fertilizer volumes and subsidy rate cuts.
- EBITDA: Rs 358 crore, a 54% YoY decline from Rs 781 crore, with margins dropping to 6.5% from 9.4%, impacted by rising raw material costs and a revised Nutrient-Based Subsidy (NBS) regime.
- Net Profit: Rs 243 crore, down 55% YoY from Rs 539 crore, reflecting industry-wide pressures like subpar monsoons and reduced crop sowing.
For the nine months ending December 31, 2024, revenue was Rs 18,281 crore (down 25% YoY), with EBITDA at Rs 2,132 crore (down 15%) and PAT at Rs 1,641 crore (down from Rs 2,013 crore in FY23-24). Despite the downturn, crop protection volumes grew 21% YoY, driven by exports and domestic demand.
Strategic Developments
- Acquisition: In March 2025, Coromandel announced an open offer to acquire up to 26% of NACL Industries’ voting share capital (5,24,62,320 shares) for Rs 820 crore, following a 53.13% stake purchase, aiming to bolster its crop protection portfolio. A corrigendum to the offer was issued on April 1, 2025.
- Innovation: Launched four new crop protection products in Q3 FY25 and is trialing drone-based spraying with specialty nutrients. It’s also developing specialty chemicals from existing plants.
- Regulatory: On April 2, 2025, the company received a customs order demanding Rs 21.99 lakh in differential duty over Zinc-EDTA classification, which it plans to contest based on prior rulings.
- Capacity Expansion: Progress continues on a sulfuric acid plant in Vizag and a multi-purpose crop protection facility, enhancing backward integration.
Stock Performance and Market Position
As of April 5, 2025:
- Share Price: Around Rs 1,879-2,049, with posts on X noting a peak at Rs 2,070 (all-time high) on April 1, 2025, before settling lower. The 52-week range is Rs 1,036.65 to Rs 2,044 (hit March 24, 2025).
- Market Cap: Approximately Rs 52,964-60,369 crore ($6.4-7.3 billion USD).
- Returns: Up 157% over three years (outpacing Nifty 100’s 34.55%) and 66.81% in the last 12 months as of March 2025, though recent U.S. tariff concerns (25% on foreign imports, March 2025) have caused volatility.
Shareholding Pattern (as of December 31, 2024)
- Promoters: 56.97%, led by the Murugappa Group (down from 57.33% in March 2024).
- FIIs: ~12-13%, stable but cautious amid global trade shifts.
- DIIs: ~14-15%, with mutual funds at 8-9%.
- Public: ~9-10%.
Coromandel faces headwinds from lower monsoon impacts, subsidy cuts, and rising input costs, with phosphatic fertilizer sales down 17% industry-wide in Q3. The U.S. tariff threat adds uncertainty, though exports are a smaller revenue slice. Positively, its diversified portfolio, market share gains, and investments in R&D and capacity position it for recovery. Analysts project a share price range of Rs 1,900-2,100 by mid-2025, contingent on monsoon recovery and subsidy stability.
Disclaimer: This article reflects data available as of April 6, 2025, updated through March 31, 2025, from stock exchange filings, company announcements, and verified sources. Financials and shareholding details may shift with new disclosures. This content is for informational purposes only and not investment advice; readers should consult official sources for decision-making.
