Shree Pushkar Chemicals & Fertilizers LtdQ1 FY27
Shree Pushkar Chemicals & Fertilizers Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹452P/E: 17.2Market Cap: ₹1.2K Cr
Management growth scorecard
Revenue
Category 3
Margin
Category 2
Fundraise
N/A
Order
N/A
Capex
Yes
1 of 3 growth signals are positive — mixed outlook.
Full analysisRevenue guidance
Category 3- →The company expects financial year 2026-27 revenues close to Rs. 1,250 crores, potentially reaching Rs. 1,350-1,400 crores due to improved realizations and profitability.
- →Unit 6 is expected to start operations mid-season this year, contributing ~4-5 months of sales; next year with full-year operation, revenue could rise to Rs. 1,700-1,750 crores.
- →Unit 5 dyes plant and 10 MW solar project capitalization completed; Unit 6 trials expected within 1 to 1.5 months.
- →Volumes were down in Q1 due to raw material cost and supply volatility but are expected to recover 100% in Q2 and beyond.
- →Increased product prices (e.g., K-acid from Rs. 550 to Rs. 700+) may reduce volumes but improve value realization.
- →Ongoing expansions in Ratnagiri (Units 5 and 6) and Meghnagar will add significant fertilizer and chemical capacity, supporting long-term growth.
- →Management is optimistic about improved profitability margins (8.5%-9%) and volume recovery over the next three quarters.
Margin guidance
Category 2- →The company expects FY27 revenue around Rs. 1,250 crores, with potential to reach Rs. 1,350-1,400 crores due to better realizations and commissioning of Units 5 and 6.
- →Profit After Tax (PAT) margin is anticipated at around 8.5%-9% for FY27, up from around 5.5% during COVID times, showing margin recovery.
- →Earnings and profitability improved by ~10% year-on-year in Q1 FY27 despite lower volumes, indicating operational strength.
- →With full-year operation of Unit 6 expected next year, revenue could cross Rs. 1,700-1,750 crores with improved margins.
- →EBITDA margin for Q1 FY27 was 11.4%, reflecting disciplined cost management and improved realization.
- →Management is optimistic for better value realization and volume growth in subsequent quarters, expecting sustained earnings improvement and EPS growth aligned with higher turnover and margins.
Fundraise plans
- →The company’s ongoing capital expenditure program (total planned capex of Rs. 512 crores) is being funded through internal accruals and proceeds from a preferential equity issue.
- →There is no mention of new debt fundraising during the call.
- →The company maintains a comfortable liquidity position with Rs. 125 crores in non-lien deposits as of June 30, 2026, providing financial flexibility.
- →Capital allocation and funding are being managed in a disciplined manner to support expansion projects without stressing working capital.
- →No explicit plans for additional equity or debt issuance beyond the mentioned preferential issue and internal accruals were discussed.
Order book
- →No specific numeric details on the current order book or pending orders were disclosed in the call.
- →It was mentioned that some orders were held back/slipped from Q4 FY26 into Q1 FY27 due to rising prices.
- →Management indicated that such slipped orders do not carry over beyond the immediate next quarter as customers generally do not delay purchases that long.
- →There is optimism about growing inquiries, especially for products like K-acid, H-acid, and Vinyl Sulphone due to strong demand from China.
- →The company is cautious but expects revenue for FY27 to be around Rs. 1,250 crores, possibly increasing to Rs. 1,350-1,400 crores with better realizations and full operation of new units.
- →For Q2 FY27, the company expects better performance than Q2 of the previous year.
- →Demand is gradually recovering from earlier raw material price shocks, improving order absorption.
Capex plans
Yes- →Ongoing expansion initiatives with a total planned capex of Rs. 512 crores; Rs. 209 crores incurred as of June 30, 2026, including Rs. 20 crores in Q1 FY27.
- →Completion of Unit 5 dyes plant and 10 MW solar project capitalization to be announced soon; Unit 6 plant is complete and expected to start trials by end of August or September, with 4-5 months operation expected this year.
- →Acquisition of approximately 30,000 square meters of land adjacent to Unit 1 for Rs. 9.3 crores to create space for future expansion.
- →Expansion at Meghnagar progressing as part of long-term growth plans.
- →Capacity additions expected: 4,50,000 metric tons per annum fertilizer and 72,000 metric tons per annum chemical capacity, enhancing integration and efficiencies.
- →Investment in renewable energy: 10 MW DC solar power project at Nanded nearing completion, total installed solar capacity to reach 20.6 MW DC.
- →Funding through internal accruals and preferential issue, maintaining financial discipline.
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Margin guidance
Category 2- →The company expects FY27 revenue around Rs. 1,250 crores, with potential to reach Rs. 1,350-1,400 crores due to better realizations and commissioning of Units 5 and 6.
- →Profit After Tax (PAT) margin is anticipated at around 8.5%-9% for FY27, up from around 5.5% during COVID times, showing margin recovery.
- →Earnings and profitability improved by ~10% year-on-year in Q1 FY27 despite lower volumes, indicating operational strength.
- →With full-year operation of Unit 6 expected next year, revenue could cross Rs. 1,700-1,750 crores with improved margins.
- →EBITDA margin for Q1 FY27 was 11.4%, reflecting disciplined cost management and improved realization.
- →Management is optimistic for better value realization and volume growth in subsequent quarters, expecting sustained earnings improvement and EPS growth aligned with higher turnover and margins.
Order book
- →No specific numeric details on the current order book or pending orders were disclosed in the call.
- →It was mentioned that some orders were held back/slipped from Q4 FY26 into Q1 FY27 due to rising prices.
- →Management indicated that such slipped orders do not carry over beyond the immediate next quarter as customers generally do not delay purchases that long.
- →There is optimism about growing inquiries, especially for products like K-acid, H-acid, and Vinyl Sulphone due to strong demand from China.
- →The company is cautious but expects revenue for FY27 to be around Rs. 1,250 crores, possibly increasing to Rs. 1,350-1,400 crores with better realizations and full operation of new units.
- →For Q2 FY27, the company expects better performance than Q2 of the previous year.
- →Demand is gradually recovering from earlier raw material price shocks, improving order absorption.
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