Chemical company Coromandel International delivered mixed results for the June quarter of financial year 2027 (Q1FY27). According to reports from CNBC TV18, Business Standard, and Capital Market News, the company's consolidated net profit declined 24.59% year-on-year to ₹381.56 crore in Q1FY27, compared with ₹501.59 crore in the corresponding quarter of the previous financial year. Despite the profit decline, the company demonstrated strong revenue growth with topline rising 15.94% YoY to ₹8,164.77 crore, up from ₹7,042.30 crore in Q1FY26. The contrasting performance suggests that while sales remained robust, higher costs and pressure on profitability weighed on the bottom line. Profit before tax (PBT) also fell 24.15% to ₹513.68 crore from ₹677.28 crore in the year-ago period. The company's board approved these results on July 23, 2026, with the Audit Committee recommending the unaudited financial statements at the same meeting.
The company's operating metrics faced significant pressure during the quarter. As reported by CNBC TV18, Business Standard, and Capital Market News, total expenses rose 19.42% YoY to ₹7,700.90 crore from ₹6,448.72 crore in the year-ago period. The cost of raw materials and packing materials consumed stood at ₹4,615.19 crore, up 29.39% YoY, while finance costs increased to ₹89.02 crore, up 30.99% YoY during the period under review. The EBITDA declined 3.4% to ₹756 crore from ₹782 crore in the year-ago period, with the EBITDA margin narrowing to 9.26%, down from 11.11% recorded in Q1FY26. A lower EBITDA margin means the company earned less operating profit from every rupee of revenue than it did a year ago, reflecting pressure on operating efficiency.
According to Capital Market News, Coromandel International demonstrated strong performance across both business segments during Q1FY27. Revenue from the nutrient and other allied business rose 9.44% year-on-year to ₹6,951.03 crore, while revenue from the crop protection segment surged 72.55% year-on-year to ₹1,250.76 crore. The company operates across two business segments — Nutrient and Other Allied Business and Crop Protection, with Coromandel International being one of India's leading agri-solutions providers offering fertilizers, crop protection, biopesticides, specialty nutrients, and organic fertilizers across the farming value chain. On a standalone basis, revenue from operations stood at ₹7,743.55 crore with segment profit before tax of ₹505.34 crore.
Domestic brokerage firm Systematix has initiated coverage on Coromandel International with a Buy rating and a 12-month target price of ₹2,510, implying approximately 26% upside from current levels. As reported by NDTV Profit, the brokerage believes Coromandel deserves to trade at a premium to the broader agrochemical and fertiliser peer group, supported by its market leadership in phosphatic fertilizers, rapidly scaling crop protection franchise, increasing contribution from high-margin specialty nutrients, and improving backward integration. The company's strong balance sheet, healthy free cash flow generation, disciplined capital allocation and consistent return ratios provide further comfort on the sustainability of earnings growth. Systematix believes the current valuation does not fully capture the long-term benefits of its capacity expansion, portfolio diversification and increasing share of value-added businesses, offering an attractive risk-reward opportunity for investors with a medium- to long-term investment horizon.
