Coromandel International Ltd., the Murugappa Group company, reported a significant decline in profitability during the December quarter, with EBITDA margins contracting to 9.1% from 10.4% in the same period last year. The company's total expenses surged to ₹8,209 crore at the end of the quarter, substantially higher than the ₹6,357 crore recorded in the previous year. This substantial increase in operational costs was a key factor in the narrowing of margins from the previous year's levels.
Despite the margin pressure, Coromandel International demonstrated resilience in its topline performance. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹799.8 crore, representing a growth of 10.8% from the previous year's figure of ₹722 crore. The company's revenue growth was particularly strong, with total revenue reaching ₹8,779.5 crore, marking a robust 26.6% increase from the year-ago quarter. This performance exceeded market expectations, with revenue surpassing the CNBC-TV18 poll estimate of ₹8,089 crore.
Net profit for the December quarter remained relatively stable at ₹506 crore, compared to ₹512 crore in the same quarter last year. The company's board has approved the payment of an interim dividend worth ₹9 per share, with the record date fixed as February 4, 2026. The dividend payment is scheduled to be made on or before February 18, 2026.
Coromandel International has indicated that it does not anticipate any significant impact from the new labour codes currently being implemented. However, the company stated it will continue to monitor the developing situation closely to assess any potential changes that may affect its operations in the future.
