Chambal Fertilisers & Chemicals, India's largest private-sector urea producer with 3.4 MMTPA of capacity at Gadepan, Rajasthan, reports Q2 FY 2026-2027 results into a quarter shaped by a delayed monsoon, sharply higher sulphur and phosphatic raw-material costs, and the first full quarter of its newly commissioned Technical Ammonium Nitrate (TAN) plant. The print will speak most directly to two things: how much of Q1's complex-fertiliser margin strength reverses as advance NPK inventory averages out, and the early ramp economics of TAN against a budgeted price of Rs 37,000-38,000 per ton.
| Results date | November 03, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 5,000 crores (-12% YoY) |
| Previous quarter PAT | Rs. 703 crores (+10% YoY) |
| Previous quarter EBITDA margin | 17% (expanded from 13%) |
| Net debt (latest quarter) | Net borrowings of Rs. 200 crores as of June 30, 2026 |
| Market cap | Rs. 14,651.85 Cr |
| CMP | Rs. 365.7 |
The board meeting was intimated for November 3, 2026 (Ref. CFCL/SE/2026-27/55) to approve the standalone and consolidated unaudited results for the quarter and six months ended September 30, 2026, and to consider the declaration of interim dividend, if any. The trading window for designated persons is shut till November 5, 2026 (inclusive).
The Q2/H1-FY27 earnings conference call is scheduled for November 4, 2026, 11:00 AM IST (Ref. CFCL/SE/2026-27/56). Management attendees include MD Abhay Baijal, CFO Anuj Jain, Business Head-Manufacturing Narinder Goyal, VP Sales & Marketing Ashish Srivastava, VP Legal & CS Tridib Barat, and Business Head-TAN Vivek Misra.
The quarter's central test is whether Chambal converts July's strong post-monsoon demand pickup — 380,000 tons of urea and 92,000-93,000 tons of NPK offtake, a daily run-rate of 19,000-20,000 tons — into Q2 volumes, against official industry fertiliser sales that fell 13% in July and 10.33% in August on a deficient monsoon. Urea margins should stay cushioned by the cost-plus pass-through even as notified domestic gas rose from $8.73/MMBtu in July to $11.22 for October, with the rupee's 1.2% July-September slide a tailwind to realizations under the formula; the cash cycle, with subsidy receivables at Rs. 2,460 crores as of June 30, is where gas costs will show up. Complex fertilisers face the sharpest headwind: sulphur landed around $1,050-1,100/t (August global average +262% YoY) and phosphoric acid up 17.95% to $1,360/t, just as management guided that Q1's +67% complex segment EBIT, built on advance NPK purchases, would mean-revert as inventory costs average out — making Q2 segment EBIT% against Q2 FY26's 4.56% a key read. TAN adds a new earnings stream, with ANS production live from July 31, 2026 and commercial prilled HDAN from August 20, 2026, against a budgeted price of Rs 37,000-38,000 per ton, guided FY27 output of 160,000-170,000 tons on a nine-month window, and management's statement that TAN EBITDA margins should exceed budgeted figures. The call, with the TAN business head on the panel, is expected to cover the ramp-up economics, the subsidy cash cycle, and the uncertain post-expiry policy framework for Gadepan-III, on which management has said it has no handle on the government's decision.
Performance vs Guidance Tracking: Status of management's stated goals as of the Q2 FY27 call:
Q2 demand recovery and complex-fertiliser margins
TAN ramp-up economics: Narrative shifts from commissioning to ramp-up economics on the TAN plant:
Gadepan-III policy and gas costs
Management has said TAN EBITDA margins are expected to exceed budgeted figures, but has not provided a numeric margin range despite being asked twice. The budgeted price assumption is Rs 37,000-38,000 per ton, and specific revenue guidance was declined due to high TAN price volatility.
Management targets 75%-80% plus capacity utilization in FY27 and approximately 160,000-170,000 tons of output assuming a nine-month operational window. The MD has said he does not see any showstoppers to reaching healthy utilization, with market absorption the key variable.
Q1 FY27 standalone revenue fell 12% YoY to Rs. 5,000 crores, primarily due to lower production and sales in the urea and complex fertiliser segments. However, EBITDA rose 12% YoY to Rs. 851 crores with margins expanding to 17% from 13%, and FY26 revenue had grown 25% YoY to Rs 20,794 crores.
Preparatory activities are progressing, with financial bids expected by mid-October 2026, subject to Board approval, which management indicated could come 'in FY26, '27 kind of time frame'. The National Investment Policy for Urea (NUP-2026) provides a supportive framework, with no gain-sharing on efficiency gains for up to eight years.