Chambal Fertilisers & Chemicals Ltd
Chambal Fertilisers & Chemicals Ltd
CommoditiesChambal Fertilisers & Chemicals Ltd is engaged in production of Urea from its own manufacturing plants. It also markets/ deals in other fertilisers and agri-inputs. It also has a Joint Venture for manufacture of Phospohric Acid in Morocco. The company was also engaged in Software business, However, in FY21, it sold assets and transferred certain liabilities of the business to cease the operations of the software business.[1]
Chambal Fertilisers trades at an attractive PE of 9.9x with consistent ROE of 19-20% over 3-5 years and strong TTM profit growth of 23%. While sales growth has been tepid at 10% CAGR over 5 years, the valuation provides adequate margin of safety with 67% analyst buy ratings.
Key Fundamentals
SmallcapFertilizersChemicalsTechnical Indicators
Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 20.0%
Weaknesses
2- The company has delivered a poor sales growth of 10.3% over past five years.
- Debtor days have increased from 16.1 to 36.4 days.
Growth Rate
AI Analysis — Bull vs Bear
Chambal Fertilisers trades at an attractive PE of 9.9x with consistent ROE of 19-20% over 3-5 years and strong TTM profit growth of 23%. While sales growth has been tepid at 10% CAGR over 5 years, the valuation provides adequate margin of safety with 67% analyst buy ratings.
- Attractive valuation at PE of 9.9x, significantly below market average, offering value entry point for a consistent compounder
- Consistent ROE of 19-20% over 3-5 years demonstrates efficient capital allocation and strong return generation
- Compounded profit growth of 25% over 3 years shows improving earnings trajectory
- TTM sales growth of 25% indicates strong recent demand recovery and pricing power
- 10-year stock CAGR of 22% demonstrates long-term wealth creation track record
- 67% analyst buy ratings with zero sell ratings reflects positive Street consensus
- Healthy dividend payout of 20% with 1.04% yield provides income cushion during market volatility
- 10-year compounded profit growth of 22% shows secular earnings compounding ability
- Poor 5-year sales CAGR of just 10% and negative 3-year sales CAGR of -9% raises top-line sustainability concerns
- Stock has declined 12% over the past 1 year, underperforming broader market indices
- Debtor days have increased from 16.1 to 36.4 days, signalling deteriorating working capital efficiency
- Price-to-book of 1.86x is moderate for a commodity business with cyclical earnings
- Fertiliser sector is heavily regulated with government subsidy dependence, limiting pricing freedom
- 3-year sales CAGR of -9% indicates revenue contraction despite profit growth, suggesting margin tailwinds may not sustain
- Only 3 analysts cover the stock, indicating limited institutional interest and potential liquidity risk
- Commodity sector exposure makes earnings vulnerable to global urea price swings and input cost volatility
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Nitric Acid production begins Jun 1
Chambal Fertilisers commenced Weak Nitric Acid production at its Gadepan plant in Rajasthan as part of its Technical Ammonium Nitrate project. Ammonium Nitrate Solution and prilled High Density Ammonium Nitrate production to follow sequentially.
- Promoter group buys 30,000 shares May 26
Promoter group acquired 30,000 shares via open market purchase on May 22, 2026, signaling confidence in the company's valuation.
- No encumbrance on promoter shares Jun 4
Birla Real Estate confirmed no new encumbrances on Chambal Fertilisers shares in FY26, disclosed to stock exchanges.
TL;DR: Chambal Fertilisers is executing well on its diversification strategy with the commencement of Weak Nitric Acid production at Gadepan, moving beyond pure-play fertilisers into industrial chemicals. Promoter buying adds a modest confidence signal. No material headwinds emerged in the recent news cycle. The near-term outlook hinges on successful sequential commissioning of the full Ammonium Nitrate facility.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,599 | 5,589 | 5,386 | 4,349 | 2,643 | 4,933 | 4,346 | 4,918 | 2,449 | 5,698 | 6,413 | 5,898 | 2,785 |
| Expenses | 3,491 | 4,956 | 4,771 | 3,720 | 2,477 | 4,181 | 3,556 | 4,140 | 2,285 | 4,937 | 5,571 | 5,078 | 2,530 |
| Operating Profit | 108 | 633 | 615 | 628 | 166 | 752 | 790 | 778 | 163 | 761 | 842 | 821 | 255 |
| OPM % | 3% | 11% | 11% | 14% | 6% | 15% | 18% | 16% | 7% | 13% | 13% | 14% | 9% |
| Other Income | 41 | 14 | 90 | 151 | 73 | 86 | 80 | 95 | 86 | 79 | 88 | 36 | 53 |
| Interest | 67 | 55 | 46 | 36 | 36 | 40 | 1 | 7 | 0 | 2 | 1 | 1 | 3 |
| Depreciation | 76 | 77 | 78 | 79 | 78 | 82 | 83 | 83 | 82 | 84 | 87 | 88 | 90 |
| PBT | 6 | 516 | 581 | 664 | 126 | 716 | 786 | 783 | 168 | 754 | 842 | 768 | 215 |
| Tax % | -1371% | 34% | 34% | 31% | 23% | 37% | 32% | 32% | 22% | 27% | 23% | 24% | 21% |
| Net Profit | 94 | 339 | 381 | 459 | 97 | 448 | 536 | 534 | 130 | 549 | 649 | 586 | 169 |
| EPS in Rs | 2.26 | 8.14 | 9.15 | 11.04 | 2.42 | 11.19 | 13.39 | 13.34 | 3.25 | 13.7 | 16.19 | 14.64 | 4.22 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 9,733 | 9,008 | 7,553 | 7,541 | 10,095 | 12,206 | 12,719 | 16,069 | 27,773 | 17,966 | 16,646 | 20,794 |
| Expenses | 8,996 | 8,354 | 6,795 | 6,730 | 8,894 | 10,281 | 10,249 | 13,804 | 25,951 | 15,919 | 14,145 | 18,115 |
| Operating Profit | 737 | 654 | 759 | 811 | 1,200 | 1,925 | 2,470 | 2,265 | 1,822 | 2,047 | 2,501 | 2,678 |
| OPM % | 8% | 7% | 10% | 11% | 12% | 16% | 19% | 14% | 7% | 11% | 15% | 13% |
| Other Income | 103 | 32 | 133 | 172 | -2 | 192 | 470 | 374 | 222 | 326 | 329 | 256 |
| Interest | 164 | 267 | 255 | 157 | 247 | 504 | 291 | 109 | 320 | 173 | 48 | 7 |
| Depreciation | 216 | 111 | 92 | 85 | 119 | 287 | 289 | 300 | 308 | 313 | 330 | 349 |
| PBT | 459 | 308 | 544 | 740 | 832 | 1,327 | 2,360 | 2,231 | 1,416 | 1,887 | 2,452 | 2,578 |
| Tax % | 39% | 52% | 34% | 33% | 30% | 8% | 26% | 30% | 27% | 32% | 33% | 24% |
| Net Profit | 280 | 147 | 359 | 495 | 585 | 1,226 | 1,748 | 1,566 | 1,034 | 1,276 | 1,649 | 1,953 |
| EPS in Rs | 7.08 | 5.31 | 8.7 | 11.99 | 14.18 | 29.46 | 39.76 | 37.62 | 24.85 | 31.84 | 41.17 | 48.76 |
| Div. Payout % | 27% | 36% | 22% | 16% | 14% | 14% | 19% | 20% | 30% | 24% | 24% | 12% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 414 | 416 | 416 | 416 | 416 | 416 | 416 | 416 | 416 | 401 | 401 | 401 |
| Reserves | 1,837 | 1,451 | 1,707 | 2,089 | 2,467 | 3,123 | 4,833 | 5,983 | 6,652 | 6,873 | 8,327 | 10,007 |
| Borrowings | 4,089 | 5,317 | 4,619 | 6,079 | 9,045 | 10,113 | 3,936 | 4,337 | 3,358 | 1,874 | 99 | 1,068 |
| Other Liabilities | 1,298 | 939 | 1,315 | 877 | 1,997 | 880 | 1,062 | 2,553 | 2,344 | 2,361 | 2,580 | 2,927 |
| Total Liabilities | 7,638 | 8,123 | 8,057 | 9,462 | 13,925 | 14,533 | 10,247 | 13,289 | 12,770 | 11,509 | 11,407 | 14,402 |
| Fixed Assets | 2,948 | 1,793 | 1,162 | 1,234 | 6,905 | 6,701 | 6,480 | 6,358 | 6,262 | 6,423 | 6,221 | 6,110 |
| CWIP | 119 | 639 | 1,712 | 4,135 | 121 | 85 | 161 | 157 | 103 | 184 | 650 | 1,389 |
| Investments | 30 | 211 | 174 | 207 | 300 | 217 | 298 | 559 | 2,377 | 2,431 | 1,372 | 1,081 |
| Other Assets | 4,541 | 5,480 | 5,009 | 3,886 | 6,598 | 7,529 | 3,308 | 6,215 | 4,028 | 2,471 | 3,164 | 5,823 |
| Total Assets | 7,638 | 8,123 | 8,057 | 9,462 | 13,925 | 14,533 | 10,247 | 13,289 | 12,770 | 11,509 | 11,407 | 14,402 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 1,064 | -27 | 1,280 | 1,172 | -1,130 | 827 | 6,944 | -24 | 3,239 | 3,327 | 1,394 | 138 |
| Investing | -149 | -348 | -703 | -1,784 | -1,132 | -462 | -195 | -119 | -1,872 | -382 | 739 | -482 |
| Financing | -937 | 362 | -500 | 564 | 2,263 | -283 | -6,007 | -213 | -1,862 | -2,871 | -2,135 | 543 |
| Net Cash Flow | -22 | -12 | 76 | -49 | 2 | 82 | 742 | -356 | -495 | 73 | -2 | 199 |
| Free Cash Flow | 878 | -665 | 400 | -1,250 | -2,334 | 177 | 6,708 | -188 | 3,045 | 2,718 | 824 | -754 |
| CFO/OP | 159 | 17 | 191 | 170 | -76 | 56 | 295 | 14 | 193 | 179 | 71 | 32 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 119 | 156 | 147 | 123 | 175 | 166 | 34 | 49 | 23 | 4 | 8 | 36 |
| Inventory Days | 48 | 55 | 65 | 63 | 79 | 60 | 39 | 119 | 25 | 42 | 71 | 63 |
| Days Payable | 23 | 28 | 18 | 24 | 59 | 29 | 19 | 57 | 22 | 27 | 25 | 26 |
| Cash Conversion Cycle | 144 | 183 | 193 | 161 | 195 | 198 | 54 | 111 | 26 | 19 | 54 | 73 |
| Working Capital Days | 4 | 8 | 17 | 19 | -5 | 14 | 21 | 39 | 8 | 0 | 30 | 50 |
| ROCE % | 9% | 10% | 11% | 12% | 12% | 14% | 20% | 23% | 16% | 20% | 27% | 26% |
Documents
Frequently Asked Questions about Chambal Fertilisers & Chemicals Ltd
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Company Information
Chambal Fertilisers & Chemicals Ltd is engaged in production of Urea from its own manufacturing plants. It also markets/ deals in other fertilisers and agri-inputs. It also has a Joint Venture for manufacture of Phospohric Acid in Morocco. The company was also engaged in Software business, However, in FY21, it sold assets and transferred certain liabilities of the business to cease the operations of the software business.[1]