Shree Pushkar Chemicals & Fertilisers Ltd (SHREEPUSHK) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Shree Pushkar Chemicals and Fertilizers Limited Q2 Q2 H1 '27 Results Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Pankaj Manjani, the Company Secretary from Shree Pushkar Chemicals and Fertilizers Limited. Thank you, and over to you, sir.
Pankaj Manjani (Shree Pushkar Chemicals & Fertilisers Ltd): Good afternoon, everyone, and welcome to Shree Pushkar Chemicals & Fertilisers Limited's Q2 and H1 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. I now hand over the call to Mr. Punit Makharia for his opening remarks. Over to you, sir.
Punit Makharia (Shree Pushkar Chemicals & Fertilisers Ltd): Thank you, Pankaj. A very good afternoon to all friends and everyone, and thank you for joining us for Shree Pushkar Chemicals and Fertilizers Limited Q2 and H1 FY '27 earnings call. I trust you all have had an opportunity to go through the company's financial results and earnings presentation for the quarter and half year ended 30th September 2026. I will begin with sharing an overview on the company's performance and key developments during the quarter, following which, our CFO will take you through the financial and operational performance on a much greater detail. We are pleased to report a strong performance during the second quarter of FY '27, with significant growth in revenue and profitability across the company's chemical and fertilizer business. The performance reflects sustained demand, improved business performance, and our continued focus on operational efficiency and disciplined execution. During Q2 FY '27, our consolidated revenue from operations stood at Rs. 403.5 crores, registering a robust year-on-year growth of 58.2%. On a sequential basis, revenue increased by 44.1% compared to Rs. 280.1 crores in Q1 FY '27. For the first half of FY '27, consolidated revenue from operations reached at Rs. 683.60 crores, registering a growth of 34.1% year-on-year basis over Rs. 509.6 crores in corresponding year of the previous year. Moving to our segmental performance, the chemical business recorded sales volume of Rs. 245 crores during the quarter, representing a growth of 85.6% on a year-on-year basis. The fertilizer business recorded sales volume of Rs. 158 crores, registering growth of 27.5% on year-on-year. In terms of sales volume, the chemical business recorded 14,368 metric tons, while the fertilizer business recorded 79,277 metric tons during the quarter. The overall consolidation sales volume stood at 93,645 metric tons, registering a growth of 4.3% on year-on-year basis. The performance of both our business reflects, reflects improved realization, a favorable product mix, and sustained demand, supporting the growth in revenue during the quarter. Friends, coming to the profitability, the company delivered a significant improvement in earning. Consolidated EBITDA increased by 87.7% year-on-year to 49.2 crores, with an EBITDA margin of 12.2%. Profit after the tax increased by 96.1% year-on-year to Rs. 35.7 crores, with a PAT margin of 8.9%. For H1 FY '27, consolidated EBITDA stood at Rs. 81.2 crores, registering a growth of 46.7%
Punit Makharia (Shree Pushkar Chemicals & Fertilisers Ltd): profit after tax stood at 58.6 crores representing a growth of 49.7% on year-on-year basis. This performance demonstrates our ability to deliver profitable growth while continuing to invest in our manufacturing capabilities and capacities. Moving to our operational developments, we are pleased to share that commercial production at Unit 5 of our company commenced during this quarter, strengthening our dyes manufacturing capacity by approximately 6,000 metric ton per annum. This is an important milestone in our in our capacity expansion roadmap and will support to our efforts to cater to growing customer requirements. Additionally, our 10-megawatt DC solar project at Nanded, Maharashtra commenced operation during this quarter. With the addition, the company's total installed solar capacity on a consolidated basis has has increased to 20.6 megawatt on DC basis. The development further strengthens our focus on renewable energy and sustainable manufacturing practices. Alongside these developments, the expansion of Madhya Bharat Phosphates Private Limited, our wholly-owned subsidiary at Meghnagar, Jhabua, Madhya Pradesh, continued to progress as planned. The initiatives remains an important part of our long-term strategy to expand our manufacturing footprints, enhancing integration, and improve operational efficiencies. As on date as on 31st 30th of September, company has invested Rs. 92 crore in the capex ongoing project, which has been totally funded by the internal accruals of the company. In lines with our growth strategy, the board has also approved a capital expenditure of Rs. 70 crores for establishing a new chemical plant at Unit 5, Lote Parshuram, with a capacity of addition of 3,000 metric ton per annum. The project is expected to be commissioned by March 2028 and is aimed at and is aimed at catering to the growth demand for our customers. The proposed investment will be funded through a combination of internal accruals and a preferential issue of fully convertible warrant to the promoter, subject to the requisite shareholder and other applicable approvals. In regards, the board has approved issuance of 8,54,060 fully convertible warrants to Mr. Punit Gopikishan Makharia, promoter and Chairman, Managing Director of the company, at an issue price of 526.90 per warrant, aggregating up to 45 crores. This proposed fund raising is intended to support the company's expansion plan and reflects the promoter's continued commitment towards the company's long-term growth objectives. Overall, Q2 and H 127 has been encouraging for Shree Pushkar Chemicals with a strong growth in revenue and profitability, commencement of commercial production at Unit 5, the addition of renewable energy capacity, and continued progress on our expansion initiatives. Our focus for the for the remainder of FY '27 will remain beyond the strengthening our chemical and fertilizer business, improving operational efficiencies, maintaining financial discipline, and executing our ongoing planned capacities addition in measured and disciplined manner. We remain committed to building a larger, more integrated, and sustainable manufacturing platform while creating long-term value for our shareholders. With what I now will hand over the call to Mr. Deepak to take you through the detailed financial and operational performance for the quarter and half year. Over to you, Deepak.
Deepak Beriwala (Shree Pushkar Chemicals & Fertilisers Ltd): 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 Pushkar Chemicals & Fertilisers Limited for Q2 and H1 FY '27. Started with the consolidated top line, revenue from operations for Q2 FY '27 stood at Rs. 403.5 crores, registering a year-on-growth of 58% and sequential growth of 44% compared with the 280 crores in Q1 FY '27. For the first half of FY '27, revenue from operations stood at 683 crores, representing growth of 34% over Rs. 509 crores in H1 FY '26. Coming to the segment performance, the chemical business recorded sales volume of Rs. 245 crores during Q2 FY '27, registering growth of 85% year-on-year. For HY '27, sales value stood at Rs. 383 crores, representing growth of 53%. The fertilizer business recorded
Deepak Beriwala (Shree Pushkar Chemicals & Fertilisers Ltd): year on year. For H1 FY '27, sales values stood at Rs. 300 crores, representing growth of 15%. In terms of sales volume, the chemical business recorded 14,340 metric tons while the fertilizer business recorded 80,000 metric tons during Q2 FY '27. The total consolidated sales volume stood at 93,500 metric tons, representing growth of 4.3% year on year. For HY FY '27, the chemical business recorded sales volume of 23,500 metric tons while the fertilizer business recorded 1,45,000 metric tons. Moving to the profitability, the company delivered a strong improvement in earnings during the quarter. Gross profit stood at Rs. 120 crores, registering a growth of 42% year on year with the gross margin of 30%. EBITDA increased by 88% year on year to Rs. 50 crores with an EBITDA margin of 12.2%, compared with the Rs. 26 crores and a margin of 10% in Q2 FY '26. Profit before tax increased by 97% year on year to Rs. 43 crores, while profit after tax increased by 97% to Rs. 35 crores, translating into a PAT margin of 8.9%. On a sequential basis, EBITDA increased by 55% compared with Q1 FY '27 while the PAT increased by 56%, resulting reflecting the strong operating performance during the quarter. For the first half of FY '27, gross profit stood at Rs. 210 crores, registering growth of 25% year on year. EBITDA increased by 47% to Rs. 81 crores while profit before tax increased by 49% to Rs. 71 crores. Profit after tax increased by 50% to Rs. 59 crores. The EBITDA margin for HY FY '27 stood at 12% compared with 11% in the corresponding period of the previous year, while the PAT margin improved to 8.6% from 7.7%. From a liquidity perspective, the company continues to maintain a comfortable financial position with a nominal deposit of Rs. 1.4-- Rs. 142 crores. as of 30th September 2026. This provides the financial flexibility to the support our ongoing capital expenditure program and planned investments. Overall, Q2 and HY FY '27 reflect a strong financial performance with significant growth in the revenue, EBITDA, and profitability. Going forward, our focus will remain on maintaining financial discipline, managing costs, working capital efficiency, and deploying capital prudently towards our ongoing and planned expansion initiatives. With that, I conclude my remarks and hand the call back to the moderator for question and answer session. Thank you.
Punit Makharia (Shree Pushkar Chemicals & Fertilisers Ltd): Thank you, Deepak.
Moderator: Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press "*" and "1" on their touchtone telephone. If you wish to remove yourself from the question queue, you may press "*" and "2". Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Ronak Bajpai from Wealthmine Advisory Service. Please go ahead.
Ronak Bajpai (Wealthmine Advisory Service): Hello, sir. First of all, congratulation on such a strong set of results. I actually wanted to understand in Q1, our volumes declined, but our realization increased. And in Q2, we have done 43% QoQ growth and we also improved our margins by 100 basis points. So what is the reason for that, is it realization only or combination of both volume and realization? And also, what is the impact on volumes currently? And are we seeing any impact going further in terms of the global conflict?
Punit Makharia (Shree Pushkar Chemicals & Fertilisers Ltd): Mr. Vajpayee, first of all, thank you. I would like to address this question in a manner that, you know, basically it's a mixture of the volumes as well as the margins. First of all, as far as the chemical space is concerned, you know, the margins have improved mainly because of the China concept. In China, there is a huge shortage going on in terms of dyes and intermediate, you know, these mediates mainly because of the various compliances in terms of the environment and safety norms into the China. So first of all, the margins have improved because of the good demand from, you know, this China in all these products. Secondly, being this was, you know, the Kharif seasons peak was in this particular quarter, so mainly because of this
Punit Makharia (Shree Pushkar Chemicals & Fertilisers Ltd): So the company has been able to build a better volumes, so it is a mixture of volumes as well as the market realization its pricing also. And going forward, I see that you know being this quarter 3 mainly because of the bit poor season in terms of the fertilizers may remain bit subdued, but as a overall pure, you know, this entire annual performance, I believe whatever we have said and you know given a visibility of this year performance, we'll be able to achieve so in my opinion, if you ask me, you know, we should be able to achieve at least 1,250 crores of the total sales, and profitability should be in three digits. This is my visibility.
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