Shree Pushkar Chemicals & Fertilisers Limited (SHREEPUSHK) Earnings Call Transcript
August 13, 2026
Earnings Call Speaker Segments
Ladies and gentlemen, good day, and welcome to Shree Pushkar Chemicals & Fertilisers Limited Q1 FY '27 Earnings Conference Call hosted by Churchgate Partners. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Pankaj Manjani from Company Secretary and Compliance Officer. Thank you, and over to you, sir.
Good afternoon, everyone, and we welcome all the participants to Shree Pushkar Chemicals & Fertilisers Limited Q1 FY '27 earnings call. Joining us today from the management side, we have Mr. Punit Makharia, Chairman and Managing Director; Mr. Deepak Beriwala, Chief Financial Officer. Now I hand over the call to Mr. Punit Makharia for his opening remarks. Over to you, sir.
Thank you, Pankaj. Very good evening to all the friends and very good afternoon, sorry. Very good afternoon to everyone, and thank you for joining us on Shree Pushkar Chemicals & Fertilisers Limited Q1 FY '27 earnings call. I trust you have had an opportunity to go through the financial results and earnings presentation available on the stock exchange as well as on the company's website. Joining me on this call today is Mr. Deepak Beriwala, our CFO I will begin with sharing an overview of the company's performance and key developments during the quarter, following which Mr. Deepak will take you through the financial and operational performance in greater details. Friends rends as we begin FY '27, Shree Pushkar continues to make steady progress across the chemical as well as fertilizer business, supported by the company's integrated manufacturing capabilities and continued focus on operational execution. We have commenced the year on a positive note. The revenue from the operation grew by 10% year-on-year basis to INR 280.10 crores during Q1 FY '27. The performance was achieved despite continued challenges around global supply chain and elevated raw material prices. Against the backdrop, sales volume across both the business were lower during the quarter. The fertilizer business recorded a sales volume of 66,527 metric tons compared to 76,288 metric tons in Q1 FY '26, while volumes in the Chemical business were 9,113 metric tons compared to 14,837 metric tons in the corresponding period. However, improved realization across both the businesses helped offset the impact of lower volume and supported growth in the sales volume. The Fertilizer business recorded sales value of INR 142 crores, representing growth of 4% year-on-year basis, while the Chemical business reported sales value of INR 138 crores, grown by 17.10% on a year-on-year basis. Two businesses contributed 51% and 49%, respectively, to the sales volume during the quarter. Friends, moving to the profitability. The company reported improved earnings during the quarter. EBITDA increased by 9.7% year-on-year to INR 31.9 crores with a margin of 11.4%, while profit after tax grew by 9.4% to 22.9% with a margin of 8.2%. The performance reflects the company's continued focus on operating discipline while managing the prevailing cost and supply environment. Beyond the quarterly performance, the company continues to make progress on its ongoing expansion initiatives as Ratnagiri, Unit 5 and Unit 6 are at the advanced stage of completion, given the continued volatility in raw material prices and availability. The company is taking a measured approach towards commencement of the operation. At the same time, work on the Meghnagar expansion continues to progress as part of the company's long-term growth plans. Together, these projects are expected to add 450,000 metric tons per annum of fertilizer capacity and 72,000 metric ton per annum of the chemical capacity additionally. Significantly expanding the company's manufacturing base. Importantly, these additions will also strengthen our integration across the operations, supporting greater scale and better resources utilization and operating efficiencies across the chemical and the fertilizer business. Friends, as we progress with these capacities addition, we are also creating a necessary infrastructure to support the future growth requirements. During the quarter, the company acquired approximately 30,000 square meters of additional land at Lote Parshuram for INR 9.33 crores located near the existing Unit 1. The additional land provides further headroom for expansion at established manufacturing location and supports the company's long-term capacity plans. Alongside the expansion of our manufacturing capabilities, we continue to invest in renewable energy as an important part of our integration and sustainable operating model. A 10-megawatt DC solar power project at Nanded is nearing completion. And once commissioned, we will take the company's total installed solar capacity to 20.6 megawatts on DC basis. As these projects progress, the company is moving towards a significantly large manufacturing base, particularly in the field of fertilizer business with simultaneously expanding chemical capacities and strengthen integration across operations. This combined scale and integration remains central at the Shree Pushkar strategy, enabling better utilization of resources and byproduct across the value chain. The focus for FY '27 remains on executing these investments in a disciplined manner and translating the additional capacities into the sustainable operating and financial performance. Friends, now I will hand over the call to Mr. Deepak to take you through the detailed financial and operational performance. Over to you, Deepak.
Thank you, sir. Good afternoon, everyone, and thank you for joining us today. I will now take you through the financial and operational performance of the Shree Tushar Chemicals and Fertilisers Limited for the first quarter of 2. Starting with the top line, revenue from operations for Q1 FY '27 was INR 281.1 crores, registering a growth of 10% year-on-year and 28.4% sequentially. The growth was supported by higher sales volume across both the Chemicals and Fertilizers businesses driven by the improved realization during the quarter. Coming to the segmental performance, the Fertilizer business recorded sales volume of 6,527 metric tons during the quarter, while the Chemical business recorded sales volume of 9,113 metric tons. The Fertilizer business reported sales value of INR 142 crores, growing by 4% on a year-on-year basis, while the Chemical business recorded sales value of INR 138 crores, registering growth of 17.1% year-on-year basis. The 2 businesses contributed 51% and 49%, respectively, to the total sales value during the quarter. Improved realization across both businesses support the increase in sales value and overall revenue growth during the quarter. Additionally disciplined cost management helped sustain profit during the quarter. Gross profit was INR 89.2 crores, registering a growth of 6.3% year-on-year with the margin of 31.9%. EBITDA increased by 9.7% year-on-year to INR 31 crores with a margin of 11.4%. Profit grew by 7.8% to INR 27.8 crores. Profit after tax increased by 9% year-on-year to INR 22.9 crores trans to the PAT margin of 8.2%. Moving to our capital expenditure program, we incurred approximately INR 20 crores during Q1 FY '27 across ongoing expense initiatives. With this company CapEx incurred to INR 09 crores as of June 30, 2026, against the total planned CapEx of INR 512 crores. During the quarter, company also invested INR 9.3 crores towards the acquisition of approximately 30,000 square meters of land to Unit 1 at Lote Parshuram, creating additional space for future expansion. The balance investment will be deployed obviously as the project advance with the overall program being funded through the internal accruals and proceeds from the preferential issue. From a liquidity perspective, the company continues to maintain a comfortable position with INR 125 crores in nonlinked deposits as on June 30, 2026. This provides adequate financial flexibility to support the ongoing capital expenditure program while maintaining a disciplined approach towards funding and capital allocation. Overall, Q1 FY '27 reflects a steady financial performance with the growth in revenue and profitability while the company continues to invest in expansion plans. Going forward, our focus will remain on maintaining financial discipline, managing cost and working capital efficiency and deploying capital in a manner as the ongoing project progress. With that, I conclude my remarks and hand over the call back to the moderator of the question-and-answer session. Thank you.
[Operator Instructions] The first question is from the line of Saket Kapoor from Kapoor and Company.
[Foreign Language]
In my opinion, if you see that during the Q1 '26-'27 in spite of low volumes, we have done a better value realization. Sir, the most important part in the whole business, what I understand is that adding the values to the business and making money for the company and for the shareholders. We have been doing on that aspect. If you remember during my last con call, I had said that we have literally stopped all the dispatches in the mid of March because we expected that the price will go high because of this West Asia conflict. And the similar thing also is reflected into the financials of Q1 also. So in my opinion, I personally believe that I see this particular financial year '26, '27 as a very -- I am having a lot of this expectation in this financial year. [Foreign Language] current financial year optimistic because the kind of market intelligence we get and we gather from the various industry sources and including the global situation also, I believe that this particular financial year will be much better than the last 2, 3 financial years of the company. [Foreign Language] Now in the past 3 years, we went down almost to 5.5%. Now slowly and gradually, we are improving our margins. In this particular quarter, we have crossed 8%. I personally believe looking at the next 3 quarters, I think we should be somewhere back to the original volumes and the profitability what we saw. And the kind of visibility I gave in my last con call that in this particular financial year, the company would be achieving close to INR 1,250 crores turnover with PAT levels of around near to the 9% or so. I feel it is quite feasible to achieve these targets. Maybe we can have something better than this. This future -- this quarter will only give us a performance. But yes, I'm actively positive on this.
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[Foreign Language] During the COVID times we went down to almost 5%, 5.5%. Now slowly and gradually [Foreign Language]
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[Foreign Language] We are able to fetch the better pricing what we expected. [Foreign Language] 1 being the first year of the financial year, and that was just the beginning of this conflict in West Asia, people were a bit slow in purchasing because people want to wait and see that how the things are behaving. Slowly and gradually, whatever the increase into the raw material prices are there, the customer has absorbed and certain customers are starting to absorb those increased pricing into their whole business chemistry. [Foreign Language]
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Because of the higher realization that we are experiencing.
Obviously, because of higher realization as well as better profit margins for the company.
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The next question is from the line of Varun Sharma from Oracle Investment Management.
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[Foreign Language] Now the things are much better, clear to us. Whatever the raw material numbers were before those numbers have already reset. [Foreign Language] We do not expect that the prices will again come back. Now I personally believe that the availability of the raw material is much better than what it was 2, 3 months back. So we are planning to restart our Unit 6 [Foreign Language] ammonia is a major raw material into that, sulfur is a major raw material into that. And suddenly, there was acute shortage of these 2 raw materials because of the closure of the Hormuz. Still Hormuz is closed, but then too also, the material is coming from the other various regions also. So now we believe that the things have come to a normal even the customer has also absorbed the pricing of the increased raw material. [Foreign Language]
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[Foreign Language] We are fully confident of our business strategy, we have full faith in our business, then why we should wait for this when we have a good team of people who are technically well qualified, when our marketing team is well qualified we know their capability and capacity, why we should waste the time and wait for this utilization.
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[Foreign Language] when the company is having cash reserve for a future strategy and the growth plan. [Foreign Language]
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[Operator Instructions] The next question is from the line of Harshit Solanki from Equitree Capital.
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[Foreign Language] This shift is happening.
[Foreign Language] Whatever the phosphoric we will be producing as a integration that we will be using into the finished product.
[Operator Instructions] The next question is from the line of Saket Kapoor from Kapoor and Company.
[Foreign Language]
[Foreign Language] And because of the global scenario and atmosphere, but prime objective is to get a better value for the product. And that is what we are working upon slowly and gradually the volumes are also getting built up.
[Operator Instructions] The next question is from the line of Saket Kapoor from Kapoor and Company.
[Foreign Language]
The next question is from the line of Amit from RoboCapital.
Sir, once the Unit 6 is on stream, what can be our peak revenue for all units put together?
Amit, sorry, can you please come again with your question?
Yes, sir. I was asking once our Unit 6 is live, it starts commissioning from next month, what can be our peak revenue for all units put together at current prices?
[Foreign Language] But I believe once Unit 6 comes in operation then 1,700 or so will not be a difficult task for us.
[Foreign Language]
[Foreign Language] Unit 6 we will be starting in the second season of the fertilizer. [Foreign Language]
The next question is from the line of Riddhesh Ram Gandhi from Discovery Capital.
You had indicated in the last call that some of your orders from Q4, you would actually held back because the prices were going up in the first quarter. Yet the numbers and the results do not seem to be reflecting any upside of some amount of movement from Q4 to Q1 and the increased spreads because we were -- because we had on a lower RM. So just wanted to understand the reason behind that.
Mr. Gandhi, in my opinion, looking at the low volumes and high values, still you don't see that the numbers are reflecting.
I mean we would expect it to be -- because if you look at it, our revenues are roughly about the same that we did last year in this quarter. EBITDA is also roughly the same. We did INR 29 crores...
Listen, Mr. Gandhi. We are almost 10% above than what we did in Q1 FY '26. What we did in Q1 FY '27 is 10% higher than the last year-on-year quarter. As far as the profitability is concerned, that is also almost 10% better. In spite of the 10% better than the previous year-on-year quarter, still that is also done in spite of the low volumes. So when the low volumes were there, in spite of low volumes, still we have achieved a better result in terms of the revenue as well as profitability. The spike in the prices is clearly visible.
I'm saying that at the end of the day, we had some amount of orders which had slipped from Q4 of last year into Q1 of this year. And those orders were supposed to be the reason we deliberately held it back because prices were going up, right? Now we did about INR 255 crores, which actually last year were INR 280...
Sir, most of the orders which we rejected in the Q4 last year. Those orders practically don't carry for the next quarter. If you are a consumer, if you are buying something for your plant for your consumption, if you're not getting into a practical this quarter, you are not going to wait for the next quarter for buying the same product from the same company.
But I'm saying we had some excess in the country, which we expected to liquidate in the first quarter, right, which we expected would move at a higher price. So I mean INR 29 crores has become a INR 32 crores of EBITDA, right? And the profit is up slightly. But at the end of the day, it's not appearing to reflect what are like commentary was actually in Q4, which was that the reason why Q4 was weak is because we have slipped orders into Q1.
Sir, in my opinion, there is a better result of around 10% improvement into the EBITDA also, 10% improvement into the PAT also, 10% -- almost close to 10% improvement into the revenues also. I fail to understand where you don't see a recovery.
Okay. So this was what was expected because of the movement from Q4 to Q1. So if we look at Q2 now, then would we expect it to be flat towards Q2 of last year?
Better than Q2 of last year. Last year Q2... Just check what was the last year Q2?
Q2 was about INR 255 crores of revenue in...
110% much better than last year Q2.
The next question is from the line of from Prit Nagersheth from Wealth Finvisor.
I'm joining very late. I just wanted to understand a couple of small things. [Foreign Language]
[Foreign Language] We are in advance stage of negotiations and the long-term contract with our raw material suppliers. And everything is done and we are ready to... [Foreign Language] We should go on trials in Unit 6 as well as in Unit 5 also [Foreign Language] First we will start with dry trials then we will start with the load trials. [Foreign Language]
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[Foreign Language] It doesn't make a business sense out of the business strategy we decided to go on a low load for the acid plants. [Foreign Language] Like we stopped in sulfur, like we stopped in ammonia. Now the things are getting back to the stream, like the people have forgotten Russia-Ukraine, slowly and gradually. [Foreign Language]
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[Foreign Language] We have got plenty of enquiries for K acid to China, for H acid to China, for Vinyl Sulphone to China. Things are changing quite rapidly, sir. [Foreign Language]
[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to Pankaj sir for closing comments.
Thank you, everyone, for joining our Q1 FY '27 earnings call. If you have any further questions, please feel free to connect with our Investor Relations advisers, Churchgate Partners, and we will be happy to address your queries. Thank you.
Thank you, sir. On behalf of Shree Pushkar Chemicals & Fertilisers Limited, that concludes this conference call. Thank you all for joining us, and you may now disconnect your lines. Thank you.
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