Zuari Agro Chemicals Reports Strong Financial Performance Amid Inventory Management Challenges

Zuari Agro Chemicals has recently undergone a financial trend adjustment, reflecting its robust performance metrics for the quarter ending September 2025. The company has reported impressive figures, with operating cash flow reaching Rs 511.47 crore, and net sales hitting Rs 1,422.63 crore. Additionally, the operating profit to interest ratio stands at 5.43 times, indicating strong profitability relative to its interest obligations. The company also achieved a notable PBT less other income of Rs 217.73 crore and a PAT of Rs 145.56 crore, showcasing its effective cost management and operational efficiency.
However, not all aspects are performing optimally. The inventory turnover ratio is at its lowest, recorded at 1.99 times, alongside a debtor's turnover ratio of 1.88 times, suggesting potential challenges in inventory management and receivables collection.

In terms of market performance, Zuari Agro Chemicals has shown resilience, particularly over the long term. The stock has delivered a 17.70% return over the past year, significantly outperforming the Sensex, which returned 4.62% in the same period. Over five years, the stock has surged by 208.78%, compared to the Sensex's 98.64%, highlighting its strong market position within the fertilizers industry.