Shree Pushkar Chemicals & Fertilisers Limited (SHREEPUSHK) Earnings Call Transcript
November 10, 2025
Earnings Call Speaker Segments
Ladies and gentlemen, good day, and welcome to Shree Pushkar Chemicals & Fertilisers Q2 and H1 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Pankaj Manjani, Company Secretary and Compliance Officer, for opening remarks. Thank you, and over to you, sir.
Good afternoon, everyone, and we welcome all the participants to Shree Pushkar Chemicals & Fertilisers Limited Q2 and H1 FY '26 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 will hand over the call to Mr. Punit Makharia for his opening remarks. Over to you, sir.
Hello, friends. A very good afternoon to everyone, and welcome to Shree Pushkar Chemicals & Fertilisers Limited Q2 FY '26 Earnings Call. I hope you had a opportunity to review our financial results and investor presentation, which are available on the stock exchange and the company website also. Friends joining me today from the management team is Mr. Deepak Beriwala, our CFO; and Mr. Pankaj Manjani, our Compliance Officer. In continuation of the growth momentum witnessed in the previous quarter, I'm pleased to share that Shree Pushkar has delivered a strong performance across both the Fertilizers as well as Chemical segments during Q2 FY '26. Revenue from operation was INR 255 crores, registering a growth of 45.2% on a year-on-year basis. The growth was supported by higher realization and steady demand across both business segments. On the profitability front, EBITDA was INR 26.2 crores with a margin of 10.3%, reflecting a growth of 37.5% on year-on-year basis, while PAT was INR 18.2 crores with a margin of 7.1%, up by 36.7% on a year-on-year basis. On the operational front, in addition to the ongoing capacity expansion plans at Ratnagiri at Unit 5 and Unit 6, the Board of Directors have approved a new expansion project at Meghnagar, adding capacity of 3 lakh metric tons per annum. This facility will cater to Fertilizer division with a investment outlay of INR 350 crores and is targeted for commissioning by FY '28. Similar to our ongoing projects, the expansion will be funded through a mix of internal accruals and preferential allotment to the promoter. At Shree Pushkar, we continue to emphasize sustainable growth through our circular manufacturing, complete integration and renewable energy adoption. As a zero waste company, our sustainability-driven initiative remains a core part of our strategy. We currently operate a solar capacity of 9-point megawatt DC with 2 additional installations underway, our total capacity will reach to 20.6 megawatt DC. These initiatives strengthen energy self-reliance, reduce carbon emissions and reinforce our commitment to long-term environment sustainability. During the quarter, we also achieved an important milestone with the incorporation of Dyecol Color Technologies Private Limited on 3rd of September 2025 as a wholly owned subsidiary of our company. DCTPL incorporated in Mumbai, Maharashtra will serve as a marketing arm of our Dyes and Dyes Intermediates business, enhancing our market reach and our operational efficiency and strategic focus within this segment. With these strategic growth initiatives backed by strong integration and sustainability-focused operation, Shree Pushkar remains well positioned to sustain growth momentum, enhance profitability and create long-term values for all our stakeholders. Friends, now I will hand over the call to Mr. Deepak Beriwala, our Chief Financial Officer, to take you through the detailed financial performance for the quarter. 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 performance of the Shree Pushkar Chemicals & Fertilisers Limited for the second quarter FY '26. Starting with the top line, revenue from operations for Q2 FY '26 was INR 254 crores, reflecting a growth of 45.2% year-on-year and remaining broadly stable sequentially. This strong performance was driven by the high realization and steady demand across both our business segments. In the Fertilizer segment, revenue increased by 50.6% year-on-year to INR 124 crores, supported by the strong demand from the agricultural sector. However, on the sequential basis, revenue declined by 9% due to the seasonal moderation in the September quarter. In terms of the volume, the segment achieved sales of 72,526 metric tons, up 19.2% year-on-year, though lower by 4.9% compared to Q1 FY '26. In the Chemicals segment, revenue was INR 132 crores, a growth of 40% year-on-year and 11.8% on quarter-on-quarter basis driven by the improved realization and recovery in the end-use demand. Sales volume for the segment was 17,266 metric tons, marking an increase of 11.3% year-on-year and 16.4% sequentially, reflecting continued stability in the chemical markets. Moving to the profitability. Gross profit for the quarter was INR 84.6 crores, higher by 25% year-on-year with a gross margin of 33.2%. EBITDA came in at INR 26.2 crores, a growth of 37.5% year-on-year with a margin of 10.3%. This improvement was supported by the enhanced operational efficiency and favorable product mix. PBT was INR 21.9 crores, up 37.4% year-on-year, while profit after tax was INR 18.2 crores, up 36.7% year-on-year. The PAT margin for the quarter was 7.1%. For the first half of FY '26, revenue from operation was recorded at INR 509 crores, a 37% increase year-on-year. EBITDA was INR 55.3 crores, up by 56.6% and the PAT was INR 39.2 crores, up 14.7% compared to H1 FY '25, reflecting sustained momentum across both business segments. The company continued to maintain a strong financial performance supported by the strong internal accruals. As of 30th September 2025, non-linked deposits amounting to INR 160 crores, providing ample liquidity to the fund ongoing and upcoming expansion plan without external borrowings. To summarize, Q2 FY '26 was another strong quarter for Shree Pushkar with consistent growth across both revenue and profitability, underpinned by the operational efficiency, disciplined financial management and a strong balance sheet. We remain confident of sustaining our growth momentum while continuing to strengthen our integrated and sustainable business model. With what I will now open the floor for questions. Thank you.
[Operator Instructions] The first question is from the line of Prit Nagersheth from Wealth Finvisor.
Excellent number, Punit ji, wonderful performance once again. Small question, yes, sir. [Foreign Language]
[Foreign Language] which are not in our control, honestly speaking [Foreign Language] what you rightly said [Foreign Language]. So definitely monsoon is an issue into that. Secondly, availability of the electricity. [Foreign Language] local feeder [Foreign Language], which provides electricity, they are short of additional supply of electricity. They are in the process of installing a new transformer, which is expected to be installed, this is what they say is that in the month of February 2026. Though we are pushing from our end and we have presented to the higher authorities also even to the [ Maitri ], this portal also, we are quite hopeful [Foreign Language]. And electricity availability or monsoon [Foreign Language]. [Foreign Language] it is almost completed. We are ready to start with the trials, but because of the -- mainly because of this electricity availability, we see that there would be some delays. So we are still pushing it up with concerned authorities for the immediate availability of electricity. But let us see how it happens. We are still pursuing this matter to the highest authority of the department.
Sir, internally at least [Foreign Language]...
[Foreign Language].
So sir, [Foreign Language] Unit 6 [Foreign Language], which has been pushed to February...
No, Unit 5, the additional tower will have the same issue.
[Foreign Language], February '26?
[Foreign Language] Then everything is ready. We were already being electricity by them. We are still waiting for the additional load.
Right. [Foreign Language] FY '26 [Foreign Language], any inputs on that, sir?
[Foreign Language] but after having a result of H1 I believe [Foreign Language].
[Foreign Language].
[Foreign Language].
[Foreign Language].
[Foreign Language].
So sir, [Foreign Language] turnover expect [Foreign Language]?
[Foreign Language].
EBITDA margin similar [Foreign Language], right?
[Foreign Language], because whatever further CapExs we are doing, we would be doing, we would be trying to control our cash flows, as the company has been doing into the past [Foreign Language]. Additional working capital [Foreign Language] internal accrual [Foreign Language] bank funding almost in a similar line [Foreign Language]. [Foreign Language], sir? [Foreign Language]
[Foreign Language].
[Foreign Language] because of our -- some other issues which are not in our control [Foreign Language] conservative figure [Foreign Language]
[Foreign Language]. [Foreign Language] EBITDA margin [Foreign Language] quarter 2 [Foreign Language] versus 11.4% in quarter 1, but gross margin largely similar [Foreign Language]. [Foreign Language] we were expecting far better quarter 2 because of more SSP sale [Foreign Language], how the quarter went Fertilizer [Foreign Language]...
[Foreign Language].
[Foreign Language] '24, '25 [Foreign Language] expenses [Foreign Language], March [Foreign Language].
[Foreign Language] will the [indiscernible] also Q3, Q4 because last time [Foreign Language].
[Foreign Language], right, we will try to complete this in a well-controlled. This is what we can do, Prit bhai.
The next question is from the line of Darshil Pandya from Finterest Capital.
Congratulations, sir, on this good set of numbers. Sir, my first question is with regards to the capacity that you have been talking earlier. So once this -- apart from the new facility Unit 8 that will come in March '28, other [Foreign Language]. How will this help us? [Foreign Language] how will we save on the power cost? [Foreign Language] how will we do in the number front [Foreign Language]?
Solar [Foreign Language] that would be helping us in the bottom line. Additional 11.10 megawatt DC [Foreign Language] that will not give you any kind of on the sales part, but definitely, it will give you a great improvement in terms of the electricity consumption. Just to tell you a bit [Foreign Language]. [Foreign Language] the commissioning of Unit 5, this part expansion as well as Unit 6, I see that the '26-'27 should be close to INR 1,500 crores or so and subject to if we get a full year production of Unit 6, which I presume should be there available with us. But I'm not too sure [Foreign Language] I'm not very this confident. The reason being is that we are expecting electricity connection, full load electricity connection somewhere by February. This is what it has been communicated to us by the department. [Foreign Language] probably 12 months [Foreign Language]. Sir, these are the certain issue which we're still into a stage of a question. [Foreign Language]
Understood, sir. [Foreign Language]
[Foreign Language], but still we are taking a preferential allotment from the promoter of INR 30 crores into this. And the majority of the funding would be done through the internal accruals by all our subsidiaries as well as the parent company.
[Foreign Language] Sir, last question is on the tax rate. [Foreign Language]
[Foreign Language] already carry-forward losses [Foreign Language] as we took it over from NCLT. [Foreign Language]
The next question is from the line of Harshil Solanki from Equitree Capital.
[Foreign Language]
Sir, [Foreign Language], which we believe that we should not get any kind of surprises based upon our earlier experiences and our expert team with us [Foreign Language]. So if everything goes well and smooth, it should be almost 1.5 months.
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
So existing capacity will take care of that 3 lakh and 1.5...
[Foreign Language]. That will be putting a fresh new capacity.
[Foreign Language] that includes your raw material backward integration only?
Right. That will be a completely integrated facility and greenfield project with a backward integration route cast.
Okay. Understood. [Foreign Language]
[Foreign Language]
[Operator Instructions] The next question is from the line of from [ Disha ] from Sapphire Capital.
Sir, my question was on the Chemical business. So like previous quarters, we've seen that there was a bit of volatility in the Chemical segment and we've seen volumes also, they were not growing by much. But this quarter, we've made quite a progress. So can you just like give your understanding on the market conditions for this Chemical segment going ahead?
Disha, volatility is a part of business and we can't expect that the growth will be always there. As far as the volumes are concerned, let me see [Foreign Language]
[Foreign Language]
She is asking about Chemicals.
6 months or 3 months.
[Foreign Language]. It's better why don't you explain that?
Q2...
You understand her question?
[Foreign Language]
Disha, can you repeat the question? Deepak would address your question.
Yes. So I was just asking on the Chemical segment side because you've seen a lot of volatility in the past and you've seen a slight degrowth in terms of volumes. So what is the market scenario? How do you see the market scenario going ahead for this segment?
I see there is a increase in the Chemical segment also. I'm surprised why you are saying degrowth. If I look at that chart and the PPT, what we have presented that -- [Foreign Language], Deepak?
[Foreign Language]
In the 3 months, we -- this Q2 FY '25, we did 15,000 tons of chemicals. In Q1 FY '26, we did 14,000. And in Q2 FY '26, we did 17,266 tons. So if you compare it from Q1 of this year with Q2 of this financial year, there is a growth of approximately 2,500 tons or maybe around -- this is more than 10% growth, Disha, I can see as well as if you go on a 6-month basis, comparative to H1 of FY '25, yes, right, it is a growth of around 20%. [Foreign Language] where did you got it from? This is in terms of the volumes. Now if you go in terms of the revenue, in terms of the value also, same there is again growth of 34.2% in 6 months. And in 3 months, there is a 40% growth. If you look at the Page #6 and 7 of our PPT, which has been posted on the website as well as on the stock exchange, it is visible to you.
All right. So we don't see any headwinds going ahead also?
Headwinds will be always there, Disha, let us not expect and let us not just commit ourselves with the wrong picture. We are into a manufacturing business. There are many other issues, factors also impacting the business. There is a geopolitical situation, there is a demand and supply situation. So we can't expect there will be no any kind of headwinds. But looking at the past trend since the company is doing pretty well, company is going growth and we have to meet the various challenges when it comes. And let me tell you that the company is quite capable. And the whole business model of the company is completely stable and sustainable. So we are able to meet whatever the headwinds comes there.
All right. And sir, can you just help me with the utilization levels for the Chemicals and Fertiliser segment for this quarter?
65% and Fertiliser 70%.
Chemical 65% and the Fertiliser is 70%.
The next question is from the line of Varun Sharma from [ Corporate Investment ].
Congrats on the numbers. Sir, my first question is that as we have seen the U.S. tariff...
Speak a bit loud, please.
Yes, sir. Yes, sir. Sir, as we have seen the U.S. tariffs being and textile companies are suffering, those who export to Europe. So they would be looking at new markets like Europe because America tariffs are there. So are we seeing any impact due to this?
It will impact definitely directly, indirectly in a different proportion. I won't say that there will not be any impact and there has not been any impact. [Foreign Language] And depends on the company's business model, that impact can be diluted or may be concentrated. So that impact is definitely there. And let me tell you that whatever the dye stuffs we sell from the company, majority of our sales is for the export business, not for the domestic business. And domestic [Foreign Language] we always try to mitigate all the risk and we try to handle them. And in future also, if it comes, we will handle it the way we -- as per our capability and capacity. Until now, we have been issuing and handling all those headwinds also. And in future also, we'll be able to handle it because these all are the decisions made on the behalf of the geopolitical conditions, which are out of our control. We have to perform the best out of our capability in the present circumstances, which we are doing, sir.
Okay, sir. Sir, [Foreign Language]...
[Foreign Language]
[Foreign Language]
[Foreign Language] Okay. Okay. Okay.
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language] And I do appreciate your question. Definitely I appreciate it. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language] along with my team, right, as our team is doing the best in this present circumstances. Sir, you must look at a few things that company practically [Foreign Language] surplus cash [Foreign Language], right? Company is able to manage this debt, is able to manage it inventory, manage its -- this cash flow in a most efficient manner what it could. Company has deployed its own funds close to INR 400 crores into the CapEx till now. Further company also plans to put up a CapEx of [Foreign Language] Further company is also given its cash as a working capital margin and the additional working capital required because of the increase into the turnover. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
Any doubt [Foreign Language]
[Foreign Language]
The next question is from the line of Aditya Sen from -- [Operator Instructions]
Sir, this is a small question. Since we are doing such a big CapEx INR 350 crores, so will we see some of the cost line items in the EBITDA also? Like EBITDA [Foreign Language]?
[Foreign Language] right now also, we are prevailing somewhere close to 7.5% to quarter 2 8% also. In my opinion, this will keep on improving by decimal to decimal and we have a [indiscernible] reaching around 10% also. Sir, as the situation is improving, demand and supply situation is slowly and gradually improving. All the kind of bad faces or the depression faces into the industry, I said before also and I'm still confident into that are on the verge of passing by. So situation will improve in terms of the performance, in terms of this profitability, in terms of [Foreign Language]
Correct. Correct. Truly that reflects that [Foreign Language]
Yes. Yes. Obviously, sir. [Foreign Language] we should be around 8% or so approximately, please don't catch my words. This should be around 8% of the PAT level. This is, I think so. Yet we need to go through quarter 3, quarter 4 also. And next year would be much better than this also. This is, I believe so.
Understood. Understood. And one more question on the new CapEx. I can be wrong with the question also. I just want to know [Foreign Language] its price fluctuates. So is it possible for us to set up a phosphoric acid plant for the new CapEx?
It is already there, sir. It is already proposed for that.
So the entire like 100% in-house [Foreign Language] phosphoric acid?
100%.
[Operator Instructions] The next question is from the line of Pratik Patel from CCIL.
I understand that we have announced INR 350 crores CapEx for Unit 3 or 3,000 MTA. And in Unit 6, we have committed [indiscernible] INR 110 crores, which also includes 66,000 of acid complex. So can you just highlight how this number means matching up because in both the units, we are coming with complex fertilisers?
[Foreign Language] Unit 6 [Foreign Language], we are putting up a smaller acid plant because we have [ existingly ] our 2 acid plants into the same area. You got my point?
Okay.
So if you look at acid complex of 66,000 tons of the capacity, wherein this new facility, we would be building up a acid complex, wait, of 240,000 tons. [Foreign Language] because the reason being is that we already have a lot of existing capacity of the sulfuric acid in this [indiscernible] area.
Understand, sir. But [Foreign Language] question actually complex fertilisers [Foreign Language] I think you would be needed something around INR 175 crores of CapEx in Unit 6 for the same fertiliser, if I'm not thinking wrong. So [Foreign Language]
Sir, [Foreign Language] We are building up bit additional capacity also in this new facility, which will be ease of operation. You got my point? Plus certain things what we have learned from our Unit 6, we have improved in this plant.
Okay. So asset to turnover would be same in both Unit 6 and Unit 8 for the fertiliser?
No, [Foreign Language]. It cannot be the same. And product would be also more specialized into this new facility.
The next question is from the line of [ Saket Kapoor ] from Kapoor & Company.
Congratulations on a very good set of numbers and delivering what has been envisaged earlier. And sir, also -- congratulations again, sir, for the CapEx, new CapEx, a larger one of INR 350 crores size and again, giving us a clear road map of how that will be funded through. So clarity on all front. Sir, for H2, [Foreign Language] 1.2x [Foreign Language] in terms of what have we execute for H1. So taking that into the account in normal business environment [Foreign Language] INR 80 crores, INR 85 crores [Foreign Language] we are on track to achieve those numbers? [Foreign Language]?
[Foreign Language] I am a bit conservative guy. Trust me, [Foreign Language] And I have been always saying [Foreign Language] And H1 basis [Foreign Language] we did INR 510 crores, theoretically if you will say that definitely we should cross around 1,100 tons or so. [Foreign Language] But still I would like to convey that you guys are the investors [Foreign Language] we should be able to achieve with a profitability of around 7.5% to 8% [Foreign Language] This is what I can tell you. If you ask me post Q3, then I would be able to give you more [indiscernible] on this.
[Foreign Language]?
[Foreign Language] This is what the company has been performing for the last few quarters.
[Foreign Language]
Government is -- government has controlled all these hiccups in a much better way. [Foreign Language] because of the supply chain disturbance in the beginning of the year and all this global war [Foreign Language] situation [Foreign Language] or whatever it is, now the situation is quite under control. Government has managed ample of urea, which is available now for coming this season. So I don't think there will be major impact of shortage of fertiliser. If you talk about DAP is also there, urea is also there, sir. Prices have also come to a great level to a stabilization phase. [Indiscernible].
[Foreign Language] going forward the impact.
[Foreign Language]
Sir, [Foreign Language] subsidy incorporate [Foreign Language] in terms of beginners opportunity [Foreign Language]
Sir, [Foreign Language], because whenever we go to our international customers when they see a name of Shree Pushkar Chemicals & Fertilisers Limited [Foreign Language]. And whenever the name of -- this name comes, therefore, for the better marketing and better visibility of and better giving an understanding what we are doing into the dyes and chemicals, we have incorporated this company. This company has been incorporated based upon our suggestions from our various sales network people and our dealers across globe.
[Foreign Language] depending upon generally [Foreign Language] exit of the year [Foreign Language]...
[Foreign Language] what I have learned and seen from a past experience that almost [Foreign Language]. But I will add there are many other issues also like electricity failure [Foreign Language]. So in my opinion 75% capacity should be achieved, can be achieved and I can try that it will be achieved also. But [Foreign Language]
[Foreign Language]
As of now [Foreign Language] we are doing in Shree Pushkar. 1.10 megawatt we are doing in Kisan Phosphates. So as of now this is what we are doing. [Foreign Language], then we will take a call at that time.
As a percentage [Foreign Language]?
Sir, [Foreign Language]. So we can get back to you, the IR team probably they will get this reply of this question from our team and give you.
///The next question is from the line of Prit from Wealth Finvisor.
[Foreign Language] which is very good. [Foreign Language]
Sir, [Foreign Language] there is a still opportunity or this is much better. [Foreign Language], so definitely it will be more improved. Let me tell you, sir, we are 100% sure that what visibility we have and what the future market outlook we had, sure that this will get on improvements this quarter-on-quarter. [Foreign Language] I personally don't see any such major hiccups. If anything, it could be there some situations which are totally out of our control, then after all, we are also helpless into that. Like the way [Foreign Language] in terms of the currency, of the geopolitical situation, [Foreign Language]. Yes, we are definitely trying to do and to maximize...
That was the last question for the day. I would now like to hand the conference over to Mr. Pankaj Manjani for his closing comments. Over to you, sir.
Thank you, everyone, for joining Q2 and H1 FY '26 earnings call. If you have any further questions, please feel free to connect with our Investor Relations adviser, Churchgate Partners, and we will be happy to address your queries. Thank you.
Thank you. On behalf of Shree Pushkar Chemicals & Fertilisers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Read the full transcript via the API
You're viewing the first half of this call. Get the complete Shree Pushkar Chemicals & Fertilisers Limited transcript - plus 252,000+ transcripts from 12,000+ companies, speaker segments and full-text search - through the EarningsAPI REST API or hosted MCP server.
Get an API key View API docs →For developers and AI pipelines
Programmatic access to Shree Pushkar Chemicals & Fertilisers Limited earnings transcripts and 252,000+ others is available through the
EarningsAPI REST API and the hosted MCP server.
Quarterly plans from $105 - full transcripts, speaker segments, full-text search,
and the /api/v1/transcripts/recent polling endpoint for ETL pipelines.