Chambal Fertilizers & Chemicals Limited (CHAMBLFERT)
📢 Recent Corporate Announcements
Chambal Fertilisers & Chemicals Limited announced that CRISIL Ratings has re-affirmed its credit ratings on the company's bank loan facilities. Long-term bank loan facilities of Rs. 2,050 Crore (revised up from Rs. 2,000 Crore) and proposed long-term facilities of Rs. 4,323.56 Crore were re-affirmed at 'CRISIL AA+/Positive'. Short-term bank loan facilities of Rs. 3,920 Crore (revised up from Rs. 3,720 Crore) were re-affirmed at 'CRISIL A1+'. Total rated bank facilities across categories remain unchanged at Rs. 10,293.56 Crore.
- CRISIL re-affirmed 'Crisil AA+/Positive' on long-term bank loan facilities revised to Rs. 2,050 Crore from Rs. 2,000 Crore
- CRISIL re-affirmed 'Crisil A1+' on short-term bank loan facilities revised to Rs. 3,920 Crore from Rs. 3,720 Crore
- Proposed long-term bank loan facilities rating re-affirmed at 'Crisil AA+/Positive' on Rs. 4,323.56 Crore (earlier Rs. 4,573.56 Crore)
- Total bank loan facilities rated stand at Rs. 10,293.56 Crore
Chambal Fertilisers and Chemicals Limited announced that shareholders approved the continuation of Mrs. Rita Menon as Independent Director at the 41st AGM on September 1, 2026. The special resolution allows her to continue serving beyond the age of 75 years until the completion of her tenure on September 9, 2030. Mrs. Menon is a retired IAS officer (1975 batch) and former CMD of ITPO. This is a routine governance approval in line with SEBI LODR requirements with no direct financial impact.
- Shareholders approved continuation of Mrs. Rita Menon (DIN: 00064714) as Independent Director at the 41st AGM on September 1, 2026
- Approval granted for serving after attaining the age of 75 years, up to tenure completion on September 9, 2030
- Mrs. Menon has served in the Indian Administrative Service since 1975 and retired in 2015 as CMD of India Trade Promotion Organisation
- The 41st AGM was held on September 1, 2026, commencing at 10:30 AM IST and concluding at 11:40 AM IST
Chambal Fertilisers and Chemicals Limited concluded its 41st Annual General Meeting on September 1, 2026. Shareholders approved all agenda items with the requisite majority, including the adoption of FY26 financial statements and a final dividend of ₹6 per equity share (60% on face value of ₹10). Other approved resolutions included the re-appointment of director Mr. Chandra Shekhar Nopany and the continuation of Mrs. Rita Menon as an Independent Director until September 9, 2030.
- Concluded 41st Annual General Meeting on September 1, 2026 via video conferencing
- Approved final dividend of ₹6 per equity share of face value ₹10 (60%) for FY26
- Approved continuation of Independent Director Mrs. Rita Menon beyond 75 years of age until September 9, 2030
- All ordinary and special business resolutions passed with requisite majority
Chambal Fertilisers and Chemicals Limited concluded its 41st Annual General Meeting on September 1, 2026, with all ordinary and special resolutions approved by shareholders with the requisite majority. Key approvals included the adoption of FY26 financial statements and declaration of a final dividend of ₹6.00 per equity share (60% on face value of ₹10). Shareholders also approved the re-appointment of Director Chandra Shekhar Nopany and the continuation of Independent Director Rita Menon beyond age 75 until September 9, 2030.
- Final dividend of ₹6 per equity share of ₹10 (60%) approved for FY26
- All 5 resolutions passed with requisite majority at the 41st AGM
- Continuation of Mrs. Rita Menon as Independent Director approved up to September 9, 2030
- Remote e-voting conducted from August 28 to August 31, 2026
Chambal Fertilisers & Chemicals Limited has informed the exchanges about its participation in the 'Ashwamedh - Elara India Dialogue 2026' investor conference. The group interactions are scheduled for Wednesday, September 2, 2026, in Mumbai. The company confirmed that no Unpublished Price Sensitive Information (UPSI) will be shared during the meetings. This is a standard regulatory intimation pursuant to Regulation 30 of SEBI LODR Regulations.
- Scheduled meeting date: September 2, 2026
- Conference name: Ashwamedh - Elara India Dialogue 2026
- Meeting format and location: Group Interactions in Mumbai
- Compliance: No Unpublished Price Sensitive Information (UPSI) to be discussed
Chambal Fertilisers & Chemicals Limited has commenced commercial production of Technical Ammonium Nitrate (prilled High Density Ammonium Nitrate / HDAN) at its existing site in Gadepan, Rajasthan, effective August 20, 2026. The integrated project also includes a manufacturing unit for Weak Nitric Acid. This commercialization marks the entry into high-margin industrial chemicals aimed at the domestic coal mining sector, supporting the company's strategic goal to diversify away from regulated urea subsidies.
- Commercial production of Technical Ammonium Nitrate (HDAN) commenced w.e.f. August 20, 2026.
- Integrated project includes a facility to manufacture Weak Nitric Acid at Gadepan, District Kota (Rajasthan).
- Operationalizes the company's key organic growth capex aimed at domestic industrial and coal mining segments.
Chambal Fertilizers has announced its participation in the 'Emkay Confluence 2026' investor conference in Mumbai on August 13, 2026. The event involves group interactions with institutional investors to discuss the company's business environment. This comes as the company manages a TTM revenue of ‹20,794 Cr and prepares for the commercialization of its Technical Ammonium Nitrate (TAN) plant in Q4 FY26. No unpublished price-sensitive information is expected to be disclosed during these sessions.
- Investor interaction scheduled for August 13, 2026, at Emkay Confluence 2026 in Mumbai.
- Company reported TTM revenue of ‹20,793.63 Cr and PAT of ‹1,953.03 Cr as of FY26.
- Current Urea installed capacity stands at 3.30 million metric tonnes, the largest in India's private sector.
- Upcoming 0.24 MTPA TAN plant is on track for completion by the end of FY26.
- Promoter holding remains stable at 61.25% as per latest March 2026 filings.
The Commissioner of Income-tax (Appeals) has upheld a penalty of ₹96.86 lakh against Chambal Fertilizers & Chemicals Limited. The penalty, originally levied in March 2026, relates to the disallowance of provisions for investment value diminution and specific construction expenses. Given the company's TTM PAT of ₹1,953 crore, this penalty is financially immaterial at approximately 0.05% of annual profits. The company has stated it will challenge this order before the appropriate higher authority.
- Penalty of ₹96,86,205 upheld by the Commissioner of Income-tax (Appeals) on August 7, 2026.
- The penalty relates to an original assessment order dated March 9, 2026.
- Dispute involves disallowance of provision for loss of diminution in value of investments.
- Penalty amount represents less than 0.05% of the company's TTM PAT of ₹1,953 crore.
- Company intends to further challenge the order, citing a good case on merits.
Chambal Fertilisers reported a 10% YoY growth in PAT to Rs 703 Cr for Q1 FY27, despite a 12% revenue decline to Rs 5,000 Cr. The company is evaluating a massive new urea plant (Gadepan IV) with a potential investment of ~Rs 10,000 Cr, representing approximately 54% of its current market cap. The Technical Ammonium Nitrate (TAN) project has commenced trial production, with current sales being used to decapitalize project costs rather than hitting the P&L. Management expects to receive financial bids for the new urea plant by mid-October 2026.
- EBITDA margins expanded by 350 basis points YoY to 17% in Q1 FY27 despite lower volumes.
- Potential investment of approximately Rs 10,000 Cr for a fourth urea plant under the National Investment Policy 2026.
- Subsidy receivables stood at Rs 2,460 Cr out of total receivables of Rs 3,300 Cr as of June 30, 2026.
- Launched 7 new products in the crop protection segment, achieving a segment EBIT margin of 25%.
- TAN project progressed with Weak Nitric Acid production; full P&L impact expected post-commissioning.
Chambal Fertilizers has filed its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26, reporting a total turnover of ₹20,793.67 Cr. The company's revenue remains heavily concentrated in Urea manufacturing (57.89%) and the trading of DAP and NPK fertilizers (30.16% combined). It operates three plants at a single location in Gadepan, Rajasthan, serving 13 states and 1 union territory. The report highlights a workforce of 710 permanent employees and 1,882 contract workers, with a specific focus on managing safety risks related to ammonia handling.
- Urea manufacturing remains the core business, accounting for 57.89% of the ₹20,793.67 Cr turnover in FY26.
- Trading activities, including DAP and NPK fertilizers, contributed 39.57% of the total business turnover.
- The company reported 274 shareholder complaints during the year, with 3 pending resolution at year-end.
- Workforce composition includes 710 permanent employees and a significant contract worker base of 1,882 individuals.
- Gender diversity remains low at the leadership level, with 12.5% female representation on the Board and 0% in Key Management Personnel.
Chambal Fertilisers has issued a notice for its 41st Annual General Meeting (AGM) to be held on September 1, 2026. The meeting will cover the adoption of FY26 financial statements, where the company reported a TTM revenue of Rs 20,794 Cr and PAT of Rs 1,953 Cr. Key resolutions include the declaration of a final dividend and the re-appointment of Mr. Chandra Shekhar Nopany as Director. Additionally, a special resolution is proposed for Mrs. Rita Menon to continue as an Independent Director beyond the age of 75.
- AGM scheduled for September 1, 2026, at 10:30 AM IST via video conferencing
- Special resolution proposed for Mrs. Rita Menon to continue as Independent Director until September 9, 2030
- Mr. Chandra Shekhar Nopany, holding 2,80,192 direct equity shares, is up for re-appointment
- Cost Auditor remuneration for FY27 proposed at Rs 1,55,000 plus applicable taxes
- Company reported FY26 annual revenue of Rs 20,793.63 Cr and EPS of Rs 48.75
Chambal Fertilisers has officially commenced production of Technical Ammonium Nitrate - Ammonium Nitrate Solution (ANS) at its Gadepan site as of July 31, 2026. This marks a critical milestone in the company's 0.24 MTPA TAN project, which aims to diversify its revenue mix toward non-subsidy industrial chemicals. The company intends to increase its non-subsidy profitability share from the current level of less than 10% to a target of 25%. While ANS production has started, the production of prilled High Density Ammonium Nitrate (HDAN) is expected to follow in due course.
- Commencement of Technical Ammonium Nitrate - Ammonium Nitrate Solution (ANS) production effective July 31, 2026.
- Part of a 0.24 MTPA (2.4 lakh metric tonnes per annum) capacity expansion project.
- Strategic shift to increase non-subsidy profitability from <10% to a target of 25%.
- Project targets the domestic coal mining industry, which utilizes TAN for explosives.
- Company maintains its position as the largest private urea manufacturer with 3.30 million tonnes capacity.
Chambal Fertilisers has published the audio recording of its investor conference call held on July 31, 2026, regarding the financial results for the quarter ended June 30, 2026. The company, which reported a TTM revenue of ₹20,794 Cr and a PAT of ₹1,953 Cr, is currently focusing on its 0.24 MTPA Technical Ammonium Nitrate (TAN) plant expansion. With a low Debt-to-Equity ratio of 0.10 and a ROCE of 26%, the management commentary in this call is critical for understanding the progress of its non-subsidy business segments.
- Audio recording of the July 31, 2026, investor call is now publicly available via the company website.
- The call discussed financial performance for the quarter ended June 30, 2026 (Q1 FY27).
- Company maintains the largest private sector urea capacity in India at 3.30 million tonnes.
- FY26 annual revenue was reported at ₹20,793.63 Cr with an operating margin of 12.88%.
- Focus remains on the upcoming 0.24 MTPA TAN plant scheduled for completion by the end of FY26.
Chambal Fertilisers reported Q1 FY27 revenue of Rs 5,027 Cr with a PAT margin of 10.42%, showing improvement over the FY26 average of 9.39%. The company is actively diversifying into high-margin Technical Ammonium Nitrate (TAN) with a Rs 1,645 Cr investment (9.1% of market cap), where Weak Nitric Acid production has already commenced. Management is also evaluating a major new Urea plant under the National Investment Policy 2026, which could make its Gadepan site the 2nd largest in the world. The non-subsidy business is scaling with 7 new product launches in Q1 FY27.
- Q1 FY27 Revenue reached Rs 5,027 Cr with a PAT of Rs 523.6 Cr.
- Rs 1,645 Cr total project cost for the 2.4 Lakh MTPA Technical Ammonium Nitrate (TAN) plant.
- EBITDA margin expanded to 16.92% in Q1 FY27 from 12.88% in FY26.
- Launched 7 new products in Crop Protection and Biologicals during Q1 FY27 out of 14 planned for the year.
- Net Debt to Equity remains exceptionally low at 0.01x as of FY26.
Chambal Fertilizers & Chemicals Limited received a notice from the National Stock Exchange (NSE) for a one-day delay in filing its shareholding pattern for the quarter ended March 31, 2026. The company was fined a nominal amount of Rs 2,000 plus GST, which it contested via a waiver application on May 20, 2026. The company clarified the delay was due to a misunderstanding of the API-based filing system, having filed correctly on the BSE portal but missing the NSE portal. On July 8, 2026, NSE favorably considered the waiver request, and the Board has since reviewed the matter to ensure future compliance.
- Delay of 1 day in submission of shareholding pattern for the quarter ended March 31, 2026
- Initial fine levied by NSE was Rs 2,000 plus 18% GST, totaling Rs 2,360
- Waiver application filed on May 20, 2026, was accepted by NSE on July 8, 2026
- Company confirmed the filing was completed on BSE within the stipulated timeline
- Board of Directors reviewed the incident on July 30, 2026, to prevent recurrence
Financial Performance
Revenue Growth by Segment
Consolidated revenue for H1 FY26 grew 30.5% YoY to INR 12,110 Cr from INR 9,279 Cr. Crop Protection Chemicals (CPC) revenue grew 19% to INR 887 Cr in 9M FY25. Urea sales volumes increased 6.6% to 34.71 Lakh MT in FY25, while total sales including other agri-inputs decreased 7.2% to INR 16,646.12 Cr due to lower natural gas prices.
Geographic Revenue Split
The company maintains a dominant market share in North India through its 'Uttam Vir' brand. International operations via the Moroccan joint venture (IMACID) contributed INR 3,773.99 Cr (MAD 4,466.26 Million) in revenue for FY25, representing a 29.3% increase from INR 2,918.24 Cr in FY24.
Profitability Margins
Net profit margin improved as PAT grew 18% YoY to INR 1,240 Cr in H1 FY26. Crop Protection margins reached a record 30% in recent quarters, significantly higher than the sustainable historical range of 18-20%, driven by a fresh portfolio of 22 new product introductions.
EBITDA Margin
EBITDA for H1 FY26 was INR 1,812 Cr, a 2% increase YoY. 9M FY25 EBITDA margin for the CPC segment was 23%, up from 20% YoY. Operating profit for FY25 was INR 2,837.59 Cr, benefiting from lower finance costs and higher volumes of own-manufactured urea.
Capital Expenditure
The company is investing in a Technical Ammonium Nitrate (TAN) plant with a capacity of 240,000 metric tonnes per annum, expected to be commercialized by January 2026. This project is being funded primarily through internal accruals, supported by a net cash surplus of INR 2,985 Cr as of December 2024.
Credit Rating & Borrowing
CRISIL reaffirmed 'CRISIL AA+/Stable' for long-term and 'CRISIL A1+' for short-term facilities. The company achieved a zero-debt status as of March 31, 2025, after prepaying the entire term debt for the Gadepan-III plant. Interest coverage ratio is strong at over 10 times.
Operational Drivers
Raw Materials
Natural Gas (feedstock for Urea), Ammonia (feedstock for TAN), and Phosphates/Potash (for DAP/NPK trading). Natural gas price fluctuations directly impact turnover, with a 7% decrease in FY25 revenue attributed partly to lower gas prices.
Import Sources
Phosphatic and Potassic (P&K) fertilizers are imported to supplement domestic trading. Specific sourcing includes Morocco through the IMACID joint venture for phosphoric acid.
Key Suppliers
Suppliers include global phosphoric acid producers like OCP (via IMACID JV) and domestic/international natural gas suppliers for the Gadepan manufacturing complex.
Capacity Expansion
Current Urea capacity is 3.30 million metric tonnes (MT), the largest in India's private sector. Expansion includes a 0.24 MTPA Technical Ammonium Nitrate (TAN) plant scheduled for completion by the end of FY26.
Raw Material Costs
Raw material costs are largely mitigated in the Urea segment as the government compensates for natural gas price increases through subsidy receipts. Traded segment margins are more sensitive, with DAP procurement prices rising from $650 to $850 per ton in 2024.
Manufacturing Efficiency
Urea plants consistently operate at over 100% capacity utilization. Gadepan-III is one of the most energy-efficient plants globally, operating significantly below normative energy consumption levels.
Logistics & Distribution
The company utilizes an extensive distribution network in North India to support its 'Uttam Vir' brand, ensuring high market penetration for both manufactured urea and traded products.
Strategic Growth
Expected Growth Rate
18%
Growth Strategy
Growth will be driven by the commercialization of the TAN plant in Q4 FY26, targeting the coal mining segment. Additionally, the company is scaling its Crop Protection business through 22 new product launches and entering the seeds market to diversify revenue away from the subsidy-heavy urea segment.
Products & Services
Manufactured Urea, traded Di-Ammonium Phosphate (DAP), Muriate of Potash (MOP), NPK fertilizers, Crop Protection Chemicals (insecticides, fungicides, herbicides), Specialty Nutrients, Seeds, and upcoming Technical Ammonium Nitrate (TAN).
Brand Portfolio
Uttam Vir (Urea and fertilizers).
New Products/Services
Introduced 22 new products in the Crop Protection segment and recently entered the seeds business. TAN is expected to provide a 'four-to-five digit' margin per ton upon commercialization.
Market Expansion
Focusing on increasing the share of non-subsidy profitability to 25% from the current <10%. Target markets for TAN include the domestic coal mining industry.
Market Share & Ranking
Largest private sector urea manufacturer in India with a 3.30 million tonne installed capacity.
Strategic Alliances
IMACID (Joint Venture in Morocco) for phosphoric acid supply and ISGN India (subsidiary).
External Factors
Industry Trends
The industry is shifting toward 'non-subsidy' diversification. Chambal is positioning itself by moving into Technical Ammonium Nitrate and high-margin Agrochemicals to mitigate the impact of tightening government energy norms and subsidy delays.
Competitive Landscape
Competes with other private and public sector fertilizer manufacturers in India. Differentiation is achieved through a 30% margin in the traded agrochemical segment versus the industry standard of 18-20%.
Competitive Moat
Durable competitive advantage through the 'Uttam Vir' brand, massive scale (3.30 MTPA Urea), and superior energy efficiency at Gadepan-III. These factors provide a cost leadership position in a regulated market.
Macro Economic Sensitivity
Highly sensitive to the Union Budget's subsidy allocation (INR 1.91 lakh crore for FY26) and monsoon performance which dictates pan-India fertilizer demand.
Consumer Behavior
Farmer demand is shifting toward specialty nutrients and crop protection, evidenced by the company's double-digit growth in the agrochemical portfolio despite heavy rainfall.
Geopolitical Risks
Exposure to global fertilizer price volatility (e.g., DAP price spikes to $850/ton) and potential trade barriers affecting raw material imports from regions like Morocco.
Regulatory & Governance
Industry Regulations
Subject to New Urea Policy (NUP) and Nutrient Based Subsidy (NBS) rates. Regulatory risk includes potential tightening of energy efficiency norms for Gadepan I, II, and III plants.
Environmental Compliance
Investing in eco-friendly technologies and maintaining a dense green belt at the Gadepan campus. ESG commitment is high to maintain access to capital markets for borrowings.
Legal Contingencies
No pending proceedings under the Insolvency and Bankruptcy Code, 2016. Internal financial controls are reported as adequate and operating effectively by the Board.
Risk Analysis
Key Uncertainties
Regulatory changes in subsidy calculations or energy norms could impact operating performance. Monsoon dependency remains a 10-15% swing factor for annual demand.
Geographic Concentration Risk
High concentration in North India for urea distribution; however, the Moroccan JV provides geographic diversification for raw material sourcing.
Third Party Dependencies
High dependency on the Government of India for timely subsidy payments to maintain the current net-cash positive position.
Technology Obsolescence Risk
Mitigated by Gadepan-III being one of the most modern and energy-efficient urea plants globally. Investing in TAN to stay ahead of industrial chemical demand.
Credit & Counterparty Risk
Strong receivables quality due to the sovereign nature of urea subsidies, though the timing of receipts remains a monitorable factor.
