Chambal's Profit Soars Over 200% Sequentially Despite Lower Sales
Profit surged 209% from a weak Q4, while net profit margin improved year-on-year despite an 11.8% drop in revenue.
Chambal Fertilisers reported a strong sequential recovery in Q1 FY27, with profit jumping over 200%. While revenue was down year-on-year, profitability improved, lifting the net profit margin to 10.4%.
Chambal Fertilisers has posted a powerful sequential recovery in the first quarter of FY27, with profit more than tripling from the previous quarter. This impressive bounce-back comes even as revenue remains below the level seen in the same period last year, highlighting a significant improvement in profitability.
The company's profit for Q1 FY27 stood at ₹523.6 crore, a massive 209.4% jump from the ₹169.24 crore reported in Q4 FY26. Revenue for the quarter was ₹5,027 crore, up 80.5% sequentially but down 11.8% compared to Q1 FY26. This divergence between top-line and bottom-line performance led to a net profit margin of 10.4%, an improvement of 80 basis points year-on-year and a strong recovery from the 6.1% margin in the preceding quarter.
A look at the last five quarters shows the volatile nature of the business, with Q1 FY27 marking a return to form after a notably weak Q4.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Quarter ended June 2026 | Quarter ended March 2026 | Quarter ended June 2025 |
| Revenue (₹ Cr) | 5,027.02YoY -12% | 2,785.03 | 5,697.61 |
| Profit (₹ Cr) | 523.60YoY -4.6% | 169.24 | 548.89 |
| Net Profit Margin (%) | 10.4YoY +8.3% | 6.1 | 9.6 |
Key Points
- The company maintains a robust balance sheet with a very low debt-to-equity ratio of 0.1 and a high interest coverage ratio of 379.6.
- Return on equity (RoE) remains healthy at 20.4%.
- The stock trades at a trailing P/E of 8.7, a significant discount to the industry average P/E of 25.1.
While the stock is down 19.2% over the past year, it has delivered strong three-year returns with a CAGR of 19.1%. The key question for investors is whether this quarter's margin recovery can be sustained as the company navigates the cyclical commodity environment.
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· CHAMBLFERT
(BSE)
ISIN: INE085A01013
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