Coromandel International reported a sharp 69% year-on-year decline in consolidated net profit for Q4 FY26 to Rs 114.64 crore from Rs 578.46 crore — a collapse that looks alarming at first glance but is significantly distorted by exceptional items and seasonality, with the full year and operating metrics telling a considerably better story.

The Q4 FY26 numbers

Metric Q4 FY26 Q4 FY25 YoY
Revenue from Operations Rs 6,003.66 Cr Rs 4,988.39 Cr +20.4%
Total Income Rs 6,068.16 Cr Rs 5,114.34 Cr +18.7%
EBITDA Rs 487 Cr Rs 426 Cr +14.3%
EBITDA Margin 8.12% 8.54% -42 bps
Profit before exceptional items Rs 298.23 Cr Rs 384.05 Cr -22.4%
Exceptional loss Rs 70.56 Cr Rs 346.77 Cr gain Swing
Net Profit (attributable to owners) Rs 139.93 Cr Rs 579.67 Cr -75.9%

What is actually happening — the exceptional item swing

The 69% profit collapse is almost entirely driven by an exceptional item swing. In Q4 FY25, Coromandel reported an exceptional gain of Rs 346.77 crore — a one-time credit that dramatically inflated last year’s base. In Q4 FY26, an exceptional loss of Rs 70.56 crore was recorded instead. The combined swing of approximately Rs 417 crore in exceptional items accounts for virtually the entire year-on-year profit decline. Stripping out exceptional items, profit before tax fell a more moderate 22.4% — still a decline, but far less dramatic than the headline 69% figure.

Revenue actually grew strongly — up 20.4% year-on-year to Rs 6,003.66 crore on the consolidated basis. EBITDA rose 14.3% to Rs 487 crore. EBITDA margin contracted just 42 basis points to 8.12% from 8.54% — a manageable compression given input cost pressures across the agrichemicals and fertiliser sector.

The full year FY26 — solid performance

Metric FY26 FY25 YoY
Revenue from Operations Rs 31,479.54 Cr Rs 24,085.24 Cr +30.7%
Total Income Rs 31,827.45 Cr Rs 24,443.96 Cr +30.2%
Profit before exceptional items Rs 2,687.70 Cr Rs 2,380.78 Cr +12.9%
Net Profit (attributable to owners) Rs 1,956.15 Cr Rs 2,066.46 Cr -5.3%

Full year revenue surged 30.7% to Rs 31,479.54 crore — a substantial topline expansion driven by higher fertiliser volumes and crop protection business growth. Profit before exceptional items grew 12.9% — indicating the underlying business compounded healthily. Net profit attributable to owners fell 5.3% to Rs 1,956.15 crore, again primarily due to exceptional item timing differences between the two years.

The Q4 seasonality context

Q4 is traditionally the weakest quarter for Coromandel — fertiliser demand in India is heavily concentrated in the Kharif season (Q1-Q2) and Rabi season (Q3), with March quarter volumes typically the lowest of the year. The sequential decline from Rs 505.88 crore in Q3 to Rs 139.93 crore in Q4 reflects normal seasonal patterns rather than any deterioration in business fundamentals.

In the meantime, Coromandel International shares fall sharply by over 3% after Q4 results.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making investment decisions.