Ladies and gentlemen, good day , and welcome to Shree Pushkar Chemicals & Fertilisers Limited Q1 FY27 Earnings Conference Call . As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch -tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pankaj Manjani , Company Secretary and Compliance Officer. Thank you and over to you, sir.

Good afternoon, everyone, and we welcome all the participants to Shree Pushkar Chemicals & Fertilisers Limited’s Q1 FY27 earnings call. Joining us today from the management side, we have Mr. Punit Makharia , Chairman and Managing Director; Mr. Deepak Beriwala, Chief Financial Officer. Now I'll hand over the call to Mr. Punit Makharia for his opening remarks. Over to you, sir.

Thank you, Pankaj. Very good afternoon to everyone, and t hank you for joining us on Shree Pushkar Chemicals & Fertilisers Limited Q1 FY27 earnings call. I trust you have had an opportunity to go through the financial results and earnings presentation available on the stock exchange as well as on the company's website. Joining me on this call today i s Mr. Deepak Beriwala, our CFO. I will begin with sharing an overview of the company's performance and key developments during the quarter, following which Mr. Deepak will take you through the financial and operational performance in greater details. Friends, as we begin FY27, Shree Pushkar continues to make steady progress across the chemical as well as fertilizer business, supported by the company's integrated manufacturing capabilities and continued focus on operational execution. We have commenced the year on a positive note. The revenue from the operation grew by 10% year-on-year basis to Rs. 280.10 crores during Q1 FY27. The performance was achieved despite continued challenges around global supply chain and elevated raw material prices. Against the backdrop, sales volume across both the business were lower during the quarter. The fertilizer business recorded the sales volume of 66,527 metric tons compared to 76,288 metric tons in Q1 FY26, while volumes in the chemical business were 9,113 metric tons compared to 14,837 metric tons in the corresponding period. However, improved realization across bo th the businesses helped offset the impact of lower volume and supported growth in the sales value. The fertilizer business recorded sales value of Rs. 142 crores, representing growth of 4% year -on-year basis, while the chemical business reported sales value of Rs. 138 crores, grown by 17.10% on year-on-year basis. Two businesses contributed 51% and 49%, respectively, to the sales value during the quarter. Friends, moving to the profitability . The company reported improved earning s during the quarter. EBITDA increased by 9.7% year -on-year to Rs. 31.9 crores with a margin of 11.4%, while profit after tax grew by 9.4% to Rs. 22.9 crores with a margin of 8.2%. The performance

reflects the company's continued focus on operating discipline while managing the prevailing cost and supply environment. Beyond the quarterly performance, the company continued to make progress on its ongoing expansion initiative. At Ratnagiri, Unit 5 an d Unit 6 are at the advanced stage of completion , given the continued volatility in raw material prices and availability . The company is taking a measured approach towards commencement of the operation. At the same time, work on the Meghnagar expansion co ntinues to progress as part of the company's long-term growth plans. Together, these projects are expected to add 4,50,000 metric tons per annum of fertilizer capacity and 72,000 metric tons per annum of the chemical capacity additionally, significantly expanding the company's manufacturing base. Importantly, these additions will also strengthen our integration across the operations, supporting greater scale and better resources utilization and operating efficiencies across the chemical and the fertilizer b usiness. Friends, as we progress with these capacities addition, we are also creating a necessary infrastructure to support the future growth requirements. During the quarter, the company acquired approximately 30,000 square meters of additional land at Lote Parshuram for Rs. 9.33 crores, located near the existing Unit 1. The additional land provides further headroom for expansion at established manufacturing location and supports the company's long-term capacity plans. Alongside the expansion of our manufacturing capabilities, we continue to invest in renewable energy as an important part of our integration and sustainable operating model. The 10 megawatt DC solar power project at Nanded is nearing completion and once co mmissioned, we will take the company's total installed solar capacity to 20.6 megawatt on DC basis. As these projects progress, the company is moving towards a significantly large manufacturing base, particularly in the field of fertilizer business, with simultaneously expanding chemical capacities and strengthen integration across operations. This combined scale and integration remains central at the Shree Pushkar strategy, enabling better utilization of resources and byproduct across the value chain. The focus for FY27 remains on executing these investments in a disciplined manner and translating the additional capacities into the sustainable operating and financial performance. Friends, now I will hand over the call to Mr. Deepak to take you through the detailed financial and operational performances. Over to you, Deepak.

Thank you, sir. Good afternoon, everyone, and thank you for joining us today. I will now take you through the financial and operational performance of the Shree Pushkar Chemicals & Fertilisers Limited for the first quarter of FY27. Starting with the top line, revenue from operation for Q1 FY27 was Rs. 281.1 crores, registering a growth of 10% year -on-year and 28.4% sequentially. The growth was supported by higher sales volume across both the chemicals and fertilizers businesses, driven by the improved realization during the quarter.

Coming to the segmental performance, the fertilizer business recorded sales volume of 66,527 metric tons during the quarter, while the c hemical business recorded sales volume of 9,113 metric tons. The fertilizer business reported sales value of Rs. 142 crores, growing by 4% on year-on-year basis, while the chemical business recorded sales value of Rs. 138 crores, registering growth of 17.10% year-on-year basis. The two businesses contributed 51% and 49% , respectively, to the total sales value during the quarter. Improved realization across both businesses supported the increase in sales value and overall revenue growth during the quarter. Additionally, disciplined cost management helped sustain profitability during the quarter. Gross profit was Rs. 89.2 crores, registering a growth of 6.3% year -on-year with the margin of 31.9%. EBITDA increased by 9.7% year -on-year to Rs. 31 crores with the margin of 11.4%. Profit before tax grew by 7.80% to Rs. 27.8 crores. Profit after tax increased by 9% year-on-year to Rs. 22.9 crores, translating into the PAT margin of 8.2%. Moving to our capital expenditure program, we incurred approximately Rs. 20 crores during Q1 FY27 across ongoing expansion initiatives. With this, cumulative capex incurred stands at Rs. 209 crores as of June 30, 2026, against the total planned capex of Rs. 512 crores. During the quarter, the company also invested Rs. 9.3 crores towards the acquisition of approximately 30,000 square meters of land adjacent to Unit 1 at Lote Parshuram, creating additional space for future expansion. The balance investment will be deployed progressively as the projects advance, with the overall program being funded through the internal accruals and proceeds from the preferential issue. From a liquidity perspective, the company continues to maintain a comfortable position with Rs. 125 crores in non-lien deposits as on June 30, 2026. This provides adequate financial flexibility to support the ongoing capital expenditure program while maintaining a disciplined approach towards funding and capital allocation. Overall, Q1 FY27 reflects a steady financial performance with the growth in revenue and profitability while the company continues to invest in expansion plans. Going forward, our focus will remain on maintaining financial discipline, managing cost and working capital efficiency, and deploying capital in a disciplined manner as the ongoing projects progress. With that, I conclude my remarks and hand over the call back to the moderator for the question- and-answer session. Thank you.

The first question is from the line of Saket Kapoor from Kapoor and Company. Please proceed with your question.

Greetings, Punit. Thank you for the opportunity. You provided details on the last quarter in your opening remarks, but how is the current business environment, especially regarding the lower tonnage we have seen in the fertilizer and chemical segments? What is the outlook for the current year?

In my opinion, if you see that during Q1 FY2026-FY2027, in spite of low volumes, we have done a better value realization. The most important part in the whole business, what I understand, is adding the values to the business and making money for the company and for the shareholders. We have been doing on that aspect. If you remember during my last concall, I had said that we have literally stopped all the dispatches in the mid of March because we expected that the price will go high because of this West Asia conflict. And the similar things also are reflected into the financials of Q1 also. So, in my opinion, I personally believe, I see this particular fina ncial year 2026-2027, I am having a lot of expectations in this financial year. I am quite optimistic about this current financial year because of the kind of market intelligence we gather from various industry sources, including the global situation. I believe this year will be much better than the last two or three financial years for the company. If you look back, we were around 9.5% to 10.0% in PAT. In the past three years, we went down almost to 5.5%. Now, slowly and gradually, we are im proving our margins. In this particular quarter, we have crossed 8%. I personally believe looking at the next three quarters, I think we should be back to the original volumes and profitability what we saw. And the kind of visibility I gave in my last concall that in this particular financial year, the company would be achieving close to Rs. 1,250 crores turnover with the PAT levels of around near to the 9% or so. I feel it is quite feasible to achieve these targets, maybe we can have something better th an this. This quarter will only give us a performance. But I am, yes, I am actually positive on this.

Okay, sir. And since we are speaking on August 14, you have another 40 days of data which reinforces your experience and what you are saying. Since we are already halfway into the second quarter, is it correct to say you are seeing these things on the ground?

Sir, I am speaking to you after seeing those 40 days of data.

Right. And regarding the historical margins the company used to post three or four years ago, we are now inching back toward that. That is what investors should understand.

That is visible to us. During the COVID times, we went down to almos t 5% to 5.5%. Now, slowly and gradually, we have come above 8%.

Sir, if I may ask one more point. When our volumes were lower in the first quarter compared to last year, what factors or trends are you seeing that make you expect to meet those volume targets and see that profitability? The market vagaries in terms of raw materials and other are still continuing.

Saket, my personal experience is that whenever there is a conflict like what we are seeing in West Asia and prices suddenly go high, any consumer pauses for a moment. They don't take sudden decisions. Gradually, that demand comes back to the market. If you look at our Q1 results of Rs. 280 crores, that revenue is better than Q4 and also better than Q1 FY 2026. If you look at the profitability, it is also better than previous quarters, even though volumes are lower.

So, we are gradually able to fetch bett er pricing what we expected . In Q2, the demand is becoming even more apparent. Also, Q1 being the start of the financial year and the beginning of the conflict, people were a bit slow in purchasing as they wanted to wait and see how things behaved. Slowly and gradually, whatever the increase into the raw material prices are there, now the customers have absorbed and certain customers are starting to absorb, those increased prices into their business chemistry. So, I believe Q2 will be even better than Q1.

And the decline in volume you mentioned, you see that mitigating now?

I believe volumes should 100% be met, but along with that, getting the right value is very important.

Yes sir. Most importantly, as you mentioned, the interest of the company and shareholders is protected by profitability. We should take all decisions to serve that objective. So that is what it is. Regarding the capex you outlined, you mentioned being proactive in commissioning Ratnagiri Units 5 and 6 because of this factor . Are we factoring in revenue from them this season? What is the outlook here? Yes, I am on the line. As I said before, I wasn't factoring in Unit 5 and 6 in terms of volume for this season. However, going ahead if we…

Sir still now, If I look at my visibility of Rs. 1,250 crores, that was in account with Units 5 and 6. I wouldn't be surprised if that figure moves toward Rs. 1,350 crores or Rs. 1,400 crores.

Because of the higher realizations we are experiencing?

Obviously, because of higher realizations as well as better profit margins for the company.

Okay, sir. I will come back in the queue after I move to a better reception area.

Thank you, sir. The next question is from the line of Varun Sharma from Oracle Investment Management. Please proceed with your question.

Hello?

Yes, sir. Please proceed with your question.

Good evening, sir. Am I audible sir?

Yes, sir.

Sir, my first question is that in the last quarter, you were saying there are a lot of raw material problems in the fertilizer sector. Are we getting raw materials now, even with crude being high? And congratulations on the good numbers.

Thank you, Mr. Varun.

Sir we are talking about the raw material cost when we were talking about that at the beginning of the war. At that time, things weren't very clear. Now, things are much clearer to us. Whatever the raw material numbers were before, those numbers have already reset. In today's date, there is very little hope of raw material prices on the old pricing. Specifically, if I talk about sulphur, sulphur, which used to be in the range of USD250-USD300, in today's date, only sulphur is in the range of USD1,100. We do not expect that these prices will again come back. Now, I personally believe that the availability of the raw material is much better than what it was 2 months-3 months back. So, we are planning to restart our unit 6, because at that time the raw material situation was not clear. Like ammonia is a major raw material into that, sulphur is a major raw material into that, and suddenly there was acute shortage of these two raw materials because of the closure of the Hormuz. Still Hormuz is closed, but then too also the material is coming from the other various origins also. So, now we believe that the things have come to a bit normal and even the customer has also absorbed the pricing of the increased raw material. So, I don't think that there is any such problem or such things are visible to me.

Okay sir. Sir, my second question is that I have been tracking the company for the past 5-7 years. Sir, I want to know, like we are expanding in fertilizer and chemical, shouldn't we first take the utilization of the present project up to 90% and then expand it?

Like which project are you talking about? Unit 6?

Unit 5, Unit 6 yes sir.

Sir, we had started unit 5 earlie r. This is an additional plant of d yes in Unit 5, which is a small vertical, which is only an investment of Rs. 37 crores. We have also completed that. If I talk about Unit 6, that plant is also almost complete. So, sir, we don't have much to do in capex. Along with this, we have also taken the expansion of Madhya Bharat in our hands. By June, the company has also invested Rs. 60 crores there. Sir, it is such that the company has money, then what do we do with the funds? When we are fully confident of our business strategy, we have full faith in our business, then sir, why should we wait for this? When we have a good team of people who are technically well qualified, when our marketing team is well qualified, we know their capability and capacity. Why should we waste time and wait for this utilization?

Okay, sir. Sir, and the Rs. 9 crores land that you have given, around Unit 1, so sir, what will be the expansion there now?

Sir, I don't even know what we w ill do there now. It is correct. Now, let me talk to you very honestly. Now, what is this, sir? Basically, the land next to unit 1 was 30,000 square meters. It came in the auction. It came in the auction, so it was the land next to me. It is an adjoining plot. So, we took it for the future, sir.

If we don't do it today, we will do something tomorrow, we will not do it tomorrow, we will do something the day after. But if we get the land next to us, then why should we leave it? And that too was only Rs. 10 crores. Nobody is putting a lot of Rs. 100 crores. And when the company is having a cash reserve for a future strategy and the growth plan, if we are getting a next door plot, and whereas today there is a scarcity of land there. It alway s makes sense to buy an adjoining plot.

Sir, this means that this year we will reach the sale of around Rs. 1,300 crores- Rs. 1,350 crores and we can expect a PAT margin of 10%. Right, sir?

No, sir, you don't expect 10%. I did not say 10%. I said that we will come to the level of 8.5 %- 9%. I hope so.

Okay, sir. Okay. Thank you, sir. And congratulations for the numbers a nd best of luck for the future.

Thank you, sir.

Thank you, sir. The next question is from the line of Harshil Solanki from Equitree Capital . Please proceed with your question.

Hi, sir. Good afternoon. I wanted to ask about the fertilizer side. We are hearing that farmers are shifting back to DAP because DAP prices are fixed, while companies have taken price hikes in NPK. What is your take on this, and how long can this problem persist?

Is DAP even available, Harshil?

Well, that is a challenge.

Then why are you asking me this question when you aren't confident yourself?

I've heard this on other companies' calls too, that this shift is happening.

But check the data on DAP import prices, sale prices, and availability. If a product is available, a consumer will shift. But if DAP is available, who would pay more for NPK or SSP? If he gets DAP at a cheaper price, any consumer would shift.

I understand. My question is about availability. As the imports are down for other fertilizers, we have the capacity ready?

On one hand, you say imports are down, and on the other, you say farmers are shifting to DAP. Where is the product availability? As a common sense user, if I am a farmer and I get DAP, I won't buy other products at higher prices. I will only buy them if I don't get DAP.

Understood, sir. One more thing, we are still holding inventory in anticipation of higher prices, which we did last quarter as well.

Okay, so that strategy continues, and volumes will be seen going forward.

They should be seen in the second quarter.

Okay. Okay. And regarding battery-grade phosphoric acid. Have you thought about going into that line?

No, sir. As of now, very honestly sp eaking, we are totally focused towards our goal and objective. So regarding the battery-grade and other things are not on our agenda as of now. The primary and most important thing is that to start our current expansions which are going on. So once we stabilize these things, and then we will think of other things. Because whatever the phosphoric we will be producing as a integration that will be using into the finished products.

Got it, sir. That's all from my side. Thank you so much.

Thank you, sir. The next question is from the line of Saket Kapoor from Kapoor and Company. Please proceed with your question.

Sir, the Madhya Pradesh capex has a timeline of 2028. Are we keeping a higher proportion of fertilizers there as well. Going forward, how will the 50-50 mix of fertilizer and chemicals look?

In Madhya Pradesh, the capacity is double that of Unit 6. There is also an 800 -ton-per-day chemical plant there, but that will be used for backward integration into the finished NPK products.

So the mix will remain the same, but it will be an inter-transfer segment?

Yes, it is a fully integrated plant in Madhya Pradesh.

And sir, regarding dyes and chemicals, specifically dyes, what are our current utilization levels?

Look, utilization levels have definitely decreased a bit because of the global scenario and atmosphere. But the prime objective is to get a better value for the product. That is what we are working upon. Slowly and gradually, the volumes are also getting build up.

Sir, on the volume front…

Sorry?

Sorry to interrupt, Saket sir. Your voice is breaking. Sorry to interrupt, Saket sir. Can you please re-join the queue because your voice is breaking? Thank you sir. The next question is on the line of Saket Kapoor from Kapoor and Company. Please proceed with your question.

Yes, sir, can you hear me now?

Yes, we can hear you. Tell us, Mr. Kapoor.

Sorry, sir. Saket sir, your voice is breaking again.

Mr. Kapoor, if there is any such question , then you can call the Churchgate Partner separately later. They will address your question, sir.

Sorry, sir, your voice is breaking a lot.

Mr. Kapoor, your line is not clear. You can talk to the Churchgate Partner or our compliance officer later. They will address your question.

Thank you, sir. The next question is from the line of Amit from RoboC apital. Please proceed with your question.

Thank you. Sir, once Unit 6 is on stream, what can be our peak revenue for all units put together?

Amit, sorry, can you please come back again with your question?

Yes, sir. I was asking once our Unit 6 is live and starts commissioning from next month, what can be our peak revenue for all units put together at current prices?

If you look at a theoretical calculation, it would go somewhere to 2,000. But I believe once Unit 6 comes into operation, then 1,700 or so will not be a difficult task for us.

Right, sir. And I joined the call a bit late. I think for this year, o ur aspiration was around Rs. 1,200 crores. So for next year how are you looking at it? Do we expect 1,400 to 1,500?

The visibility of 1,250 we are seeing for '26-'27 is based on Unit 6 starting in the second fertilizer season. So when it starts in the second season, that visibility of 1,250 was there. But my personal belief is that this 1,250 crores visibility could potentially reach 1,300 to 1,400. Next year, we will have the full year for Unit 6, whereas this year we only have five or six months. So with a full 12 months, I see the possibility of crossing 1,700 to 1,750.

Okay, sir. Thank you very much.

Thank you, sir. The nex t question is from the line of R iddhesh Ram Gandhi from Discover Capital. Please proceed with your question.

Hi, sir. You had indicated in the last con call that some of your orders from Q4 were held back because prices were going up in the first quarter. Yet the numbers and the results don't seem to reflect an upside of some amount of the movement from Q4 to Q1 and the increased spread because we had on a lower RM. I just wanted to understand the reason behind that.

Mr. Gandhi, in my opinion, looking at the low volumes and high value s, still you don't you see that the numbers are reflecting?

Listen, Mr. Gandhi. We are almost 10% above than what we did in Q1 FY26. What we did in Q1 FY27 is 10% higher than the last year on year quarter. As far as the profitability is concerned, that is also almost 10% better. In spite of the 10% better than the previous year on year quarter, that is also done in spite of the low volumes. So when the low volumes were there, in spite of low volumes, still we have achieved a better result in terms of the revenue as well as profitability. The spike in the prices is clearly visible.

I am saying that at the end of the day, we had some amount of orders which had slipped from Q4 of last year into Q1 of this year. And those orders were supposed to be the reason we deliberately held it back was because prices were going up. Right? Now we did about 250 to 5 crores, which actually last year was about 280.

Sir, most of the orders which we retracted in the Q4 last year, those orders practically don't carry for the next quarter. If you are a consumer, if you are buying something for your plants or your consumption, if you are not getting into a practical this quarter, you are not going to wait for the next quarter for buying the same product from the same company.

Yes. But I am saying we had some excess in the entry which we expected to liquidate in the first quarter, right? Which we expected would move at a higher price. So I mean 29 crores has become 32 crores of EBITDA. And the profit is up slightly. But at the end of the day, it's not appearing to reflect what our commentary was actually in Q4, which was that the reason why Q4 was weak is because we had slipped orders into Q1.

Sir, in my opinion, there is a better result of around 10% improvement into the EBITDA a lso, 10% improvement into the PAT also, almost close to 10% improvement into the revenues also. I fail to understand where you don't see a recovery.

Okay, so this was what was expected because of the movement from Q4 to Q1. So if we look at Q2 now, then would we expect it to be flat towards Q2 of last year?

Better than Q2 of last year. Better than Q2 of last year. How much was Q2 last year? Just check what was the last year Q2?

Last year Q2 was about 250 to 5 crores of revenue.

110% much better than last year Q2.

Okay, all right. Thanks. That is all from me.

The next question is from the line of Prit Nagersheth from Wealth Finvisor. Please proceed with your question.

Yes, sure. Punit, sorry I'm joining very late. You must have told a lot of things. I just wanted to understand a couple of small things. I will know the rest after listening to the call. But I just wanted to know what is your plan for Unit 5 and Unit 6 to restart them?

Sir, we have made all the preparations for Unit 6. We are in the advanced stage of negotiation in a long -term contracts with our raw material suppliers. Everything is done and the expected

date is either by the end of August or by September. We should go on trials in Unit 6. As well as in Unit 5 also, we h ave almost commissioned. We haven't announced the capitalization yet, but we have done it. So, the Unit 5 dyes plant and the 10 -megawatt solar project capitalization will be announced very soon. Both plants are complete. Unit 6 is also complete. I expect that in the next month or month and a half, we should go on trials . So, you can assume that for this year, we will have four to five months of operation for Unit 6 and the Unit 5 dyes unit.

Okay, sir. My second question is about the high sulfur and sulfuric acid prices. How are we managing this in our business model?

Honestly speaking, after these sulfur rates came, we put our acid plants on low load. You will see th at the chemicals we did last quarter , 14,000-plus tons dropped to 9,000 -plus tons this quarter. The reason for this drop is that we have kept our acid plants on low load. There are two or three reasons for this. One is working capital stress. Secondly, 1 kg of sulfur makes 3 kg of acid. Today, sulfur requires advance payment, while acid is sold entirely on credit. If I am earning two cents, I will do it. When I am not earning those two cents, why should I block working capital? It doesn't make business sense. So as a business strategy, we decided to go on low load for the acid plants. Now, what happens when prices rise so much is that consumers pause, just like we stopped buying sulfur and ammonia. Now things are getting back to the stream. Peop le have forgotten the Russia-Ukraine situation, and slowly the industry is absorbing this West Asia conflict. The panic is gone.

Right. Now things are getting back. Recently, in the last 15-20 days, K-acid and Vinyl Sulphone prices have increased significantly because China is giving orders back to India. If you produce, will you be able to take advantage of it?

We are businessmen; wherever we get more money, we will do it. We have plenty of inquiries for K-acid, H-acid, and Vinyl Sulphone to China. Things are changing quite rapidly. I am very conservative with numbers, but where I used to talk about Rs. 1,200 crores to Rs. 1,250 crores, today I am talking about Rs. 1,350 crores to Rs. 1,400 crores. Times look good. Today, we are the largest manufacturer of K -acid in India. No one else is in K -acid. The price of the product has moved from Rs. 550 to Rs. 700-plus. When prices rise this much, volumes are bound to fall. When you get value, volume and value won't go together. First, you need value, then volume.

Perfect. Thank you so much. Wish you all the best.

Thank you everyone for joining our Q1 FY27 earnings call. If you have any further questions, please feel free to connect with our Investor Relations Advisors, Churchgate Partners, and we will be happy to address your queries. Thank you.

Thank you, sir. On behalf of Shree Pushkar Chemicals & Fertilisers Limited, that concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you.

1. This transcript has been edited for readability and does not purport to be a verbatim record of the proceedings. 2. Figures have been rounded off for convenience and ease of reference. 3. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Shree Pushkar Chemicals and Fertilisers Limited.