Motilal Oswal has issued a buy rating on Coromandel International with a target price of ₹2800 in its research report dated February 02, 2026. According to the brokerage's analysis, the company continues to deliver healthy operating performance with EBITDA up 11% YoY in Q3FY26, supported by strong traction in crop protection segment. The company's crop protection division showed particularly strong performance with EBIT up 47% YoY in Q3FY26, as reported by Motilal Oswal. Despite this operational strength, Motilal Oswal has cut its FY26 earnings estimate by 7% due to lower-than-expected earnings in Q3FY26.
Coromandel International has demonstrated robust financial growth with consolidated net sales reaching ₹8,779.45 crore in December 2025, representing a 26.59% year-on-year increase. The company's standalone performance also showed strong momentum with net sales of ₹8,457.33 crore, up 22.11% YoY. This growth trajectory is supported by the company's diversified business model across fertilizers, specialty nutrients, and crop protection segments. The company's recent quarterly performance showcased significant operational resilience, particularly within its crop protection division, which saw earnings before interest and taxes (EBIT) climb by 74% year-over-year.
Coromandel International currently trades at a Price-to-Earnings (P/E) ratio in the range of 27.5 to 31.87, notably higher than many of its peers in the Indian agrochemical sector such as Chambal Fertilisers (P/E ~9.3) and Paradeep Phosphates (P/E ~13.9). The premium valuation comes even as Motilal Oswal reduced its FY26 earnings per share estimate by 7% to reflect lower-than-anticipated third-quarter results. The firm's target price of ₹2,800 is based on a valuation multiple of approximately 25 times projected FY28 earnings per share. Analysts expect that normalizing sulphur prices and benefits from ongoing backward integration projects, such as for sulfuric acid and phosphoric acid, will cushion fertilizer margins.
The prevailing analyst sentiment for Coromandel International leans positive, with a consensus 'Buy' rating derived from multiple reports. The average 12-month price target from various analysts hovers around ₹2,600-₹2,678, suggesting an potential upside of 13-19% from recent trading levels. These targets are premised on the expectation of continued growth, particularly in exports, which have seen a moderate recovery projected for FY2025. In contrast, MarketsMOJO downgraded its rating for Coromandel International from 'Buy' to 'Hold' in January 2026, citing a shift in financial performance and emerging risks, signaling a divergence in outlook among market watchers.
The broader Indian agrochemical industry faces headwinds, including muted domestic demand due to protracted monsoons and global price competition intensified by US tariffs on Chinese products, which could keep industry margins subdued in FY2026. However, the company's strong performance in its specialty nutrient and crop protection segments, coupled with expanding retail presence with 1,113 stores, provides some offset. The company's recent third-quarter performance showcased significant operational resilience, particularly within its crop protection division, which saw earnings before interest and taxes (EBIT) climb by 74% year-over-year. Despite these challenges, the company's diversified portfolio and strong financial metrics continue to attract positive analyst sentiment.
