Revenue and Profitability Trends
Chambal Fertilizers’ net sales have experienced notable volatility, peaking in the fiscal year ending March 2023 before retreating in subsequent years. The highest recorded net sales stood at over ₹27,700 crores in 2023, followed by a decline to approximately ₹16,600 crores by March 2025. This sharp fluctuation reflects the cyclical nature of the fertiliser industry and market demand dynamics.
Despite the revenue swings, the company maintained a relatively stable operating profit margin, which stood near 15% in the latest fiscal year, improving from a low of around 6.5% in 2023. Operating profit (PBDIT) excluding other income rose to nearly ₹2,500 crores in 2025, signalling improved operational efficiency. Profit after tax (PAT) also showed resilience, with consolidated net profit reaching approximately ₹1,650 crores in 2025, up from ₹590 crores in 2019, indicating a strong recovery and growth trajectory over the medium term.
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Cost Structure and Margins
The company’s expenditure profile reveals significant raw material and finished goods costs, which together constitute the bulk of total operating expenses. Raw material costs increased from around ₹2,785 crores in 2019 to over ₹6,400 crores in 2025, while purchases of finished goods also rose substantially. Other expenses have similarly escalated, reflecting inflationary pressures and operational scale.
Despite these rising costs, Chambal Fertilizers managed to sustain a gross profit margin of nearly 16% in 2025, a marked improvement from 8.4% in 2019. The PAT margin, however, has seen some compression from a high of nearly 14% in 2021 to just under 10% in 2025, indicating some margin pressures but overall profitability remains robust.
Balance Sheet and Financial Position
On the balance sheet front, shareholder’s funds have grown steadily from approximately ₹3,540 crores in 2020 to over ₹8,700 crores in 2025, reflecting retained earnings and capital accumulation. The company has significantly reduced its long-term borrowings, from over ₹5,000 crores in 2020 to just above ₹80 crores in 2025, signalling a strong deleveraging trend and improved financial health.
Current liabilities have also decreased markedly, with short-term borrowings eliminated by 2025, enhancing liquidity and reducing financial risk. Total liabilities have contracted from a peak of over ₹14,400 crores in 2020 to around ₹11,400 crores in 2025, underscoring the company’s focus on strengthening its balance sheet.
Cash Flow Dynamics
Cash flow from operating activities has fluctuated over the years, with a notable dip in 2022 but a recovery to ₹1,393 crores in 2025. Investing activities have generally been cash outflows, consistent with capital expenditure and expansion efforts. Financing activities have seen significant outflows in recent years, reflecting debt repayments and capital restructuring.
Overall, the company’s net cash position has remained relatively stable, with closing cash and cash equivalents around ₹107 crores in 2025, maintaining adequate liquidity for operational needs.
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Summary and Outlook
Chambal Fertilizers’ historical performance reflects a company that has navigated market volatility with a focus on profitability and balance sheet strength. While revenues have seen significant ups and downs, the firm has improved its operating margins and reduced debt substantially, positioning itself well for future growth. Earnings per share have more than doubled since 2019, and book value per share has increased steadily, signalling value creation for shareholders.
Investors should note the company’s ability to manage costs and maintain profitability despite cyclical pressures in the fertiliser sector. The ongoing reduction in borrowings and stable cash flows further enhance its financial stability. These factors collectively suggest a resilient business model with potential for sustained performance in the coming years.
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