Ladies and gentlemen, we will now begin with the question -and-answer session. The first question is from the line of Ahmed Madha from Unifier Capital. Please go ahead.

Yes, thanks for the opportunity. I have a few questions. Firstly, if I compare the consolidated P&L and standalone P&L, there is a gap. Obviously, NACL does not have incremental loss. I am assuming that this is coming from the mining entity BMCC and even the depreciation numbers are much higher compared to last year. So, if you can expand on how is BMCC as an entity placed in terms of financials, and also explain how the depreciation, amortization of the mining asset moves forward in next year and thereafter and how do you see the profitability trends of the BMCC entity?

The amortization expense reflected in the financials is more of an accounting treatment where the mining costs are also getting amortized. In terms of the financial health and performance of BMCC, it has turned profitable now. With the increased volume of operations, better absorption of fixed costs, improved efficiencies and market linked price, it turns profitable and it will improve its margin going forward with increased volume of production. When you do the consolidation accounting involving subsidiary, there are certain amount of the intangibles which get amortized over the period and that has gone into the accounts. While operationally standalone Nagarjuna has turned profitable at EBITDA level, but on a consolidated level, we need to have some amortization of certain expenses. It is more of a accounting between the acquisition value versus the holding value that gets amortized over the period. That way you see the change in the depreciation compared to standalone numbers.

Sure, makes sense. Secondly, on the margins of the fertilizer business for the upcoming season, how should one look at it considering the very nominal increase in the subsidy numbers about 10% while the raw material prices have gone up materially ? So how do you see government response coming in, whether there can be another sort of a price increase rather subsidy increase, which sort of happened in FY23 ? We were going through similar phase where raw material prices went up materially and govern ment again revised the subsid y. So how do you see the current situation and what is your broad sense of how you will be compensated for the higher raw material costs? Because I am assuming current subsidy and the MRPs are not sufficient for it.

You are right. Of course, industry has some benefit of the carryover inventory in the first one or two months. Farmers also will be able to have access to the opening stock of finished fertilizers, but the replacement cost is very high. One is the availability, another is the price. As I mentioned in my opening remarks, the prices of Ammonia, Sulphur have gone up exorbitantly higher and it definitely calls for additional compensation of subsidies, which we have taken up with the government. It is under discussion stage and they have positively looked at it and hopefully we should get the pass - through on these costs. Basic objective is to see that how best we can secure first and produce finished fertilizers and then try and see how we can maintain the price to the farmers at more or less same level. After additional subsidy if any gap still remains, we may have to correct the prices . These discussions are in early stages and in these extraordinary times, we do not want to put any number. We do not expect this scenario also to remain for a long time. We hope the normalcy gets restored once the supply side improves, we do expect things to be back to normal. Having said that, it is very critical for additional subsidies to come in beyond what has been notified as these rates are based on early rates. On MRP, industry has also taken some corrections in the last one or two months. As far as DAP is concerned, government given a pass -through last year and hopefully the same should continue now.

Sure. My third question was on the crop protection business. If you look at the performance in terms of standalone has been pretty good in terms of margin improvement. So, can you just elaborate how do you see overall opportunity with the NACL acquisition done now? The entity has been consolidated for about two and a half quarters. So, how do you see the opportunity in terms of export side, in terms of scale up of your agrochemical business? And Nagarjuna ’s NACL margins, how do you see the trend changing? A nd lastly, the standalone crop protection had low growth about 2%, 2.5%. Were there any factors that led to that? And how do you see the growth moving forward?

The standalone has grown well. We have grown to INR 3,053 crores.

Standalone crop protection, I mean.

Yes, I was also referring to crop protection. It is 15.8% if I am right. Revenue has grown significantly.

No, I meant for Q4.

Q4 is the off-season. I was talking about the full year.

Yes. Overall, as I said initially, that you have done well. So I meant just for Q4.

But in terms of the profitability it has gone up. O verall, on the crop protection business, we have done extremely well on all segments, whether it is global exports of active ingredients . For our key molecule Mancozeb, we have got a better volume growth as well as better realization. Our additional capacity, which came up in Dahej during the year, was quite helpful to meet the additional demand. In the domestic B2C market, we added territories and increased the volume. Our formulation business overall has grown by 15%-20%. We could have done much better, but for the challenges we faced in the rabi season, which is true for the entire industry. In Domestic B2B segment, where we do sell active ingredients to other institutional customers , w e have broadened the portfolio beyond Mancozeb and have scaled up well. Prices of most of the molecules also improved during the year, and that has resulted in improved margins. On a standalone basis , crop protection business has reached the record turnover and record profitability. As you ca n see, it is close to 19 % EBITDA margin and a revenue of INR 3,000 crores. This includes bio business as well, where the neem based bio products have recorded good export volume. We started our own channel in bio for domestic sale and have expanded the product portfolio with microbials and plant-extract products. On the NACL side, as I mentioned in my opening remark, overall turnover has grown by 28% and profitability has improved operationally. This has not added significantly to the bottom line, mainly because of alignment of major accounting policies in line with Coromandel, which has resulted in provisioning, which has reduced the net profit on a standalone basis. But capacity utilization of the technical plants have improved significantly. We are also looking at additional intermediate and technical capacities in the Dahej plant, which is currently operating at low level. Coromandel and NACL team s are working together for leveraging synergy benefits and cross-selling products across various markets, depending on the strength of each company. So, overall, on a consolidated basis, we have reached INR 4,000 crores. Margin of NACL has improved to 6% to 7%, and that is what we indicated in the beginning, and going forward next year with the change in product portfolio, that should stabilize around 9% to 10%. We need some time to introduce new products, register new products, introduce 9(3) formulations to significantly improve EBITDA in line with Coromandel. It would be difficult for NACL on a standalone basis to increase the margins unless new active ingredients and new formulations are introduced, which will take some time. So, currently, we can say we can restore the margins, what it was 7% to 8% percent, beyond that, it requires investment, which we will take a view at appropriate time.

Sure, sir. Thank you so much.

The next question is from the line of Ankur from Axis Capital. Please go ahead.

Hi, sir. Good afternoon. Thanks for the opportunity. First, if you can give the EBITDA breakup for the full year in terms of subsidy and non -subsidy? And the revenue breakup for crop protection in terms of B2B, B2C, and export and domestic.

Sorry. Come again. First one, what is it?

The non-subsidy EBITDA share for the full year, if you can share that, as well as the breakup for the crop protection business, breakup between export domestic as well as B2B, B2C revenues there for the full year?

Subsidy business share for Q4 is 57%. It is 66% for the year as a whole.

Sure, sir. And the breakup between export, domestic and B2B, B2C for crop protection?

You need this for the full year or for the quarter?

Full year, sir.

Coromandel crop protection business, right?

Yes.

The exports will be INR 1,450 crores, domestic B2B will be INR 700 crores and formulation will be INR 900 crores.

Sure, sir. That is helpful. So, as you rightly highlighted in terms of the growth that we have seen for the non-subsidy business as well as the strong operating profits, the margin expansion as well for the full year. Given the macro, one, is there any concern from an RM availability perspective for the crop protection business or even from a pricing perspective? And second, how do you look at the growth going ahead? You did allude towards NACL sort of cross-selling opportunity being there, but let us say on Coromandel’s own portfolio basis, what sort of growth are you looking at and sustainable margins there?

As far as raw material supply chain is concerned on crop protection, we are quite comfortable and we are fairly covered. I do not see any challenge. It continues to be available. And whatever input cost increase has happened because of global phenomenon, w e are able to pass -through. So, we do not see any impact on margin due to input cost. So, crop protection business is fairly comfortable. In terms of the growth opportunities, it is driven by active ingredient volumes - With Mancozeb’s additional capacity coming up during the year , that will be the major volume kicker for active ingredient. On the domestic formulation business, we are planning to grow aggressively by another 20%-25% because of the new registrations and will be launching six new products. We are increasing our import of active ingredients from China and also introducing new products in India. Overall, we can see a revenue growth of 20%-25% besides the capacity-driven growth in active ingredients which were mainly for the export market.

Sure, sir. And on the margins, do we think we will be sustaining let us say 19 -ish% non-NACL EBITDA margin for our business or -?

I do not see any challenge. And also, we should note that the currency depr eciation is helping this business with significant share of exports happening.

Sure, sir. That is very helpful. And just lastly, you did cover up in your opening comments on the raw material inflation on the fertilizer side, and our expectation that probably there could be another round of maybe an increase in subsidy from the government side. My question here was, one, given that Q1 is fairly there, but Q2, there could be RM inflation which could hit us. And what if the government is not increasing or maybe there is a delay in terms of increase in subsidy from the government side? Are we looking to increase the finished goods prices there as aggressively, because that will have an implication on your overall margins as well, so, how should one look at that part?

These are all very abnormal situations, very difficult to predict how long it will take. But it is very important both for the sector health as well as for the farmer benefit, that government response favorably. They are looking into it. For the production to continue and fertilizer to be made available to the farmers, we hope to have a early resolution through additional compensation to ensure that any further price increase on NPKs are reasonable for the farming community to absorb.

Sure, sir. Okay. That is helpful. I will get back into the queue if I have many more questions. Thank you and all the best.

The next question is from the line of Riju from Antique Stock Broking. Please go ahead.

Hi, sir. Thanks for the opportunity. Sir, the domestic and export revenue share that you have mentioned for the CP business, that was the standalone business or including NACL?

That is for the standalone business, they asked for the standalone business.

So, if you could mention like including NACL number for the Q4 for export revenue, that will be helpful?

I need to get back to you on export revenue. Overall revenue is INR 1,584 crores for the full year and INR 361 crores for Q4, but I need to just get back to you on domestic and export breakup. We will pass this on later.

Understood, sir. In terms of the fertilizer business, could you please elaborate in terms of the finished goods inventory that you have as on March ‘26?

It may be close to 5.5 lakh tons roughly of finished fertilizers.

This is entirely the manufacturing volume or including trading ones?

Trading is not much, probably 60,000-70,000 may be trading.

Understood, sir. And if I look at in terms of the Coromandel standalone CP business, so the growth was 2%. So, that was mainly because of this poor growth in the domestic market or it is mainly on account of both domestic and exports?

Sorry, come again. What you are saying?

If I have a look at Coromandel CP business for the standalone ones, the growth was 2% , 2.5% for the quarter. So, the primary reason was the poor domestic business growth or it is a mix of domestic and export, both have not performed well?

No, actually it is off -season in domestic market - but there also at least there is a volume increase. On exports, we have moderated the sale in fourth quarter as we have opportunities to sell during season time in April -May. So, it is a temporary slowdown in fourth quarter that will come back in first quarter. And form ulation business, anyway has grown well by 14% in spite of being an off - season period. Domestic B2B is more of a function of demand requirement and that can always be made up in first quarter. So, I do not see any major issue per se in any particular segment. The area where we have marginally de-grown compared to last year is in bio-product category, where we did exports in the fourth quarter of last year and we have executed this export order earlier in December, hence it is showing a de-growth in the current year. So, that is why overall CPC is looking marginal at 2%. Otherwise, overall for the year growth is 16% and that sort of a growth we do expect to sustain.

Understood, sir. One last thing so, if were to look at in terms of the global industry, specifically in the LATAM market, so LATAM market is struggling with the inventory issue. So, how do you see that market for your growth? And second part is that if I look at Mancozeb prices for the last maybe one or two months, so the prices have gone up roughly by 30% to 40% in the range. So, how do you assess that in terms of your Q1 performance? And second is that if you could share the unique grade contribution number in the fertilizer business?

I think our understanding is that de-stocking has already happened in Latin America market. We are not facing any challenge. And for Mancozeb per se, our cost increase is getting passed on. Also, our dependency is not only in Latin America. We have a widespread reach across various continents. So, to this extent, we are very comfortable and are awaiting for the new capacity to come up to increase our volumes and revenues in the coming quarters. I do not see any challenge in improving our margins or performance or sustaining the same in the first quarter.

Understood, sir. And the unique grades contribution for this quarter?

More or less remains the same. It remains at 35% on an annualized basis for the year.

Understood. Thanks for answering all my questions.

The next question is from the line of Somaiah V from Avendus Spark. Please go ahead.

Yes, thanks for the opportunity, sir. Sir, my first question is on Phos Acid price for the quarter. Has it been decided? That is one. And in the international market, if you were to procure Sulphur and Ammonia, what is the current pricing?

Phosphoric Acid price was fixed at USD 1,360 as against the previous of USD 1,290. The spread of Ammonia has gone up significantly. There are deals which are happening around $840, $850 range. That is where last we heard. And Sulphur is also around the same level, $800 price.

In terms of this backward integrated capacity that we have added last quarter, so, for the first half of this year, do we see any challenges in terms of raw material availability to run this at the fullest? And also, in terms of margin contribution, do we see to be accretive given where let us say Sulphur price is occurring?

These are very extraordinary times. Very difficult to look at margins at this point of time. It does not make sense even to look at either product margin or Phos Acid value gap. If you take current quarter Phosphoric acid price and try to project next quarter value gap, obviously it will be negative because this price increase of Sulphur and other input prices will come in the next quarter. There may be one or two challenging quarters, but it should get normalized and structurally the value gap what we originally envisaged will come through. I do not see any challenge in availability per se for running the plant because we have a good coverage of rock phosphate and with Senegal mines operating in full stream, and we are getting rock phosphate from there. For Sulphur, we have taken a lot of efforts. There is a visibility up to first quarter and as I mentioned going forward with things easing out, we should be able to secure raw material for second quarter as well. We have to wait and see how this Middle East crisis is playing out.

Understood, Sir. In terms of between Q1 and Q2, I think we should be having a fair idea of at least how things stand today in terms of our inventory that is there in the system, NPK subsidy that is being given and pricing that is happening. So, it would be fair to say Q1 i s kind of still manageable and Q2 is where definitely the subsidy support should come in or is it like in Q1 itself we need this incremental subsidy support?

Every day is a new day, we are not able to predict anything. This time it is a little uncomfortable for us to put any number on the table. Let us wait for things to play out before we can come to any fair understanding. It is bit challenging. Right now, we are focusing more on securing raw materials and having the production, ensuring fertilizer availability for the system. We are looking at support from Government, price corrections – situation is fluid at this stage I would say.

We will take the next question from the line of Akash Mehta from Canara HSBC Life.

Hi, sir, thank you for having the call. So, my first question is on the sourcing bit only. You said on the Sulphur front it is slightly challenging as of now. I mean obviously we have visibility of Q1 but going into Q2 it is a bit difficult. So, can you just help us with the current sourcing? I mean it was earlier with the Middle East so from where you are kind of man aging the sourcing for Sulphur and the raw materials, if there is any change? So, that is my first question.

We used to source predominantly from Middle East. Now we have diversified our sources, wherever Sulphur is available we are buying, and we have been getting some shipments from Canada as well. We are trying some domestic sources also. So, we are getting something from South Asian countries, Japan. So, we are looking at all the opportunities. It is quite fortunate that we have got our new Sulphuric acid plant in Kakinada in Q4. Sulphuric acid prices have gone significantly higher and hence it comes handy to have our own Sulphuric acid which in turn can generate steam and produce power. So, we have multiple sources. Right now it is more of a spot transaction which we are doing. Otherwise, the major source used to be Qatar Energy and Saudi.

Sure, sir. As of now there is no shortfall as such. It is available at a higher price. That is about it, right?

We have visibility up to June. We have to keep covering. So, hopefully situation should ease out. The major challenge is the bottleneck of the ships to cross. It is not Sulphur is not available. Sulphur is available in plenty. It is the movement of ship through the Strait of Hormuz which is making it difficult for us to predict anything. We are hoping things normalize and sailing time is not much between Middle East to India. So, for July, it is too early to predict whether it will happen or not. In a logical sense, it looks like it will happen.

Sure sir. My second question is, by any chance if you can just highlight on the subsidy front , again you cannot give a clear timeline when it will come through, but given the raw material price increase, any number you can just help us out with in terms of the implied increase in subsidy or the price on the last number and on peak percentage terms?

We have to wait and see. For the Rabi season, NBS rate formula will kick in and probably will get updated. What we are talking about is the intervening period of June to September where the raw material prices have gone up very sharply. So, it may be a cos t-to-cost reimbursement - so that we can cushion the sudden spurt in prices to a great extent while we arrive at the final price to the farmer. Very difficult to predict how much they will do. Like a pass-through in DAP, we are trying whether there can be a pass-through in NPK as well. We need to wait and see how it is going to happen.

Sure sir. That is it from my side. Thank you.

The next question is from the line of Darshita from DSP Asset Managers. Please go ahead.

Hi, sir. Thank you for the opportunity. I just had one question. Is there any key intermediate for Mancozeb that we import from Middle East countries where we may be facing any constraint for importing it?

Fortunately not. We are able to get everything from other countries. It is the only comfort we have in this raw material. Of course, we have some products but we have alternate sources. So, we are quite okay with it.

And we have been able to pass on the price increase even in the last two months , fourth quarter, of course, we can see that , but over the last two months also, we have been able to pass on the price increase.

Yes. And to some extent, the currency depreciation also has aided this to absorb some increase.

Got it. Okay. And not facing any shortage for sourcing the intermediate?

Yes. We had some small disruption in the month of April , but we have now looked at the alternate sourcing. Unlike nutrients, the import of these raw materials from China is quite okay. So, it takes time but it comes. We are fairly covered.

Okay. Got it. Yes. That is all. Thank you.

We will take the next question from the line of Vipul Kumar Shah from Sumangal Investments. Please go ahead.

Hi, thanks for the opportunity. So, in view of the raw material inflation, what should be our margin guidance as far as EBITDA per ton is concerned for the whole year?

Very difficult to predict at this point of time. Let us see how it goes because it is a function of what government is going to compensate and how much we are going to look at price corrections. It is very fluid. I do not want to put any number now. So, let us wait for things to get normalized. Once the situation improves and supply chain gets normalized, prices should come back.

Okay, sir. Thank you.

The next question is from the line of Sheel Kumar Shah from Sameeksha Capital. Please go ahead.

Thank you for the opportunity. My first question is what is our manufacturing EBITDA on fertilizer side, I mean per ton for 4Q and for the full year?

Last year, it was around INR 5,000 plus that we have mentioned and fourth quarter was compressed; it was less than INR 3,500 for fourth quarter.

Okay. And what about on the trading side, if you can share margins or EBITDA per ton?

It is too difficult to make. It depends on the grades, the timing of purchase, and there is a pass-through on DAP. So, different set of numbers are there.

But on an average, what type of margin would we be making on our trading?

You can take roughly 4% to 5% sort of a number.

Okay. And how do you see trading volume for FY27 on high days of FY26?

We have a challenge in availability, especially on DAP. So, we need to see how things improve. We doubt doing the same volume. And there can be a potential reduction in the first quarter because of non-availability, especially major imports coming through from Saudi may not happen. We also want to be conscious on working capital liquidity. So, we may not be pushing unless it is absolutely essential to meet the demand. But second half, I think, should get normalized. If things improve, the volume should come back. So, it is a function of availability in a quarter and our risk appetite.

Understood. And my last question is what would be the revenue for Nano DAP?

We marketed 45 lakhs bottles. I will come back to you on the revenue. I do not have it readily available.

Sure. Thank you.

The next question is from the line of Bharat Sheth from Quest Investment Advisors Private Limited. Please go ahead.

Hi, thanks for the opportunity. My question is related to th is Dahej capacity that which w e are expanding. So, how much additional revenue or asset turn if you can give, do we expect and what kind of I mean portfolio diversification it will have?

We expanded our capacity by 10,000 tons of Mancozeb. I will get back to you on the revenue on Dahej. But the payback will be much faster, less than one year. So, the investment what we have made in debottlenecking the facility gets paid off less than one year. In fact, we are expanding another 20,000 tons at Sarigam. That project is underway, and should come through by middle of this year. Hopefully, there also I think margins are pretty good and we should have a payback in a shorter timeframe of less than two years.

Earlier, we were evaluating in foraying into CRDMO. So, what stage we are in CDMO? I mean, how is the opportunity that we look forward, any further progress?

The CDMO takes long time, two, three years. And MNCs have responded favorably. They looked at the facility. They moved to the next stage. They take quite a long time. Two, three European entities have shown interest. And with the combined strength of Nagarjuna, we are able to fast track some of the intermediate manufacturing. We are looking at fluorination chemistry very seriously. While Nagarjuna has got the capability and we are going to invest on fluorination chemistry in the coming quarters to showcase it to the potential CDMO players. We are quite happy with this. Some of the Japanese collaborators are also keen to work with us. Things are progressing well. While it is not materially impacting the revenue in the current year, but I am sure two years down the line, we will have significant play in this space. We are trying to do it organically and we will scale up. We are not looking for big -ticket investment immediately . Looking at the current market situation , we wanted to focus on current investments what we have made, re alize the value out of it before we make any fresh investments on a large scale on CDMO space. But we are doing well organically. At this point of time, I am not able to put out the parties name, but things are progressing very well.

But could we see revenue from FY28?

It may go into the year after that also, because once they get the proof-of-concept ready and they start listing the product and then agree to the costing, margins. But we will start creating some capacities of smaller scale this year and that will go into production next year. So, some revenues will come in, but significant can come in a year after.

Now, with this price increase substantially in this fertilizer, how should we think that adoption of Nano DAP, I mean, going ahead, say, post-harvesting?

Ideally, this is a great opportunity. Like in COVID, many things have happened. I wish farmers ’ adoption increases. We are trying to do and promote balanced nutrition. But as long as you have urea and DAP available at an highly subsidized price, this situation may be difficult. So, unless there is a major policy correction that restricts the availability in terms of actual need for the marginal farmers, this adoption will be slow and steady . We are also not in a hurry to push through - the product is working well and it can replace shortage situations and be a boon to the farmers. That is all I can say.

Last question with your permission, Any update on Dhaksha?

A good question. Thank you for raising this point because we have taken the diminution in the value of investment relating to D haksha. As you know, we have got a large order which is pending for execution and we have fixed all the technical -related gaps and we are awaiting for the execution of orders. We have made significant progress on introducing new products, a lot of projects have been identified, a lot of partnerships have been identified , and we are seeing good traction coming from the defence segment after the usage of drones in various warfare. Besides that, in Agri, Coromandel and Dhaksha have been working very closely. We have come up with new products . We are going through type certification. In Agriculture, drone response has been extremely good from the farming community and we will be scaling up volume . We are participating in the institutional tenders. We are also looking at drones for various institutional applications and trying to develop the complete ecosystem for Dhaksha by tie-ing up with the various component manufacturers, whether it is for batteries or cameras or various other electronics components and software development. Dhaksha will be moving to a larger place, and hopefully this facility should be ready by May. A lot of progress is happening and I think we are in a good recovery mode. After we execute the first order during this year, that will give us the confidence to have repeat orders across various segments of defen ce. Meanwhile, we are also strengthening the R&D and are going to introduce new products over the next six to nine months. We will try and realize the value of investment what we have made. We are a bit ahead of time, but it is going to make a difference in the next two years.

Thank you very much, sir, and all the best.

Thank you.

Ladies and gentlemen, we will take that as the last question for today. I would now like to hand the conference over to the management for closing comments. Thank you and over to you, sir.

Thank you very much. Thank you for the insightful questions and I know it is a challenging time and definitely I am sure we will do our best to serve the farming community. Thank you for your continued support.

Thank you, members of the management. On behalf of Elara Securities, that concludes this conference. We thank you for joining us and you may now disconnect your lines.