Shree Pushkar Chemicals & Fertilisers Ltd. Q3 FY26 Earnings Call Summary

Summary

Shree Pushkar Chemicals & Fertilisers Ltd. - Q3 FY26 Earnings Call Summary Thursday, February 12, 2026, 4:00 PM

Event Participants

Executives 3 Deepak Beriwala (CFO), Punit Makharia (CMD), Pankaj Manjani (Company Secretary)

Analysts 6 Harshil Solanki, Niraj, Praveen Agarwal, Prit Nagersheth, Saket Kapoor, Varun Sharma

Financials & KPIs

Geographic & Segment Commentary

• Chemicals: Segment saw significant volume growth of 75.6% YoY. Management noted a structural shift where India is now exporting H-Acid to China (7,000-8,000 tons since June 2025) rather than importing.
• Fertilisers: Revenue declined due to a deliberate strategy to limit sales at low margins caused by high Sulphur and Sulphuric Acid costs. Volume was also impacted by the typical winter seasonal slowdown.
• International (Bangladesh): Incorporated “Dyecol Bangladesh Limited” to serve as a marketing office. Despite political instability, management maintains a long-term positive view as the local economy relies heavily on the textile industry.

Company-Specific & Strategic Commentary

• Capacity Expansion (Unit 5 & 6): Plant and machinery are 100% ready at Ratnagiri; commencement of trials is pending a 20.6 MW solar-linked electricity connection from MSEDCL, expected by March 2026.
• Greenfield Project (Unit 8): Commenced civil work and machinery placement at Meghnagar; 25% of preferential issue proceeds (₹30 crores from promoters) directed here.
• Backward Integration: The company consumes 70-75% of its manufactured Sulphuric Acid internally, mitigating some impact of volatile raw material prices.
• Energy Sustainability: Expanding solar capacity from 9.8 MW DC to 20.6 MW DC under the open access scheme to reduce carbon emissions and ensure energy self-reliance.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Margin Pressure & Sulphur Costs

• Question: Why did gross margins decline from 35.7% to 31.9%? (Prit Nagersheth)
• Answer: Primarily due to the spike in Sulphur prices. Acid costs rose from ₹9,000 to ₹18,000 per ton. Pass-through of costs to the fertilizer segment takes time (Punit Makharia).

Operational Readiness

• Question: What is the status of Unit 5 commissioning? (Prit Nagersheth)
• Answer: The plant is completely ready. We are waiting for MSEDCL to fulfill their promise of a transformer installation in February to start trial production (Punit Makharia).

China Market Dynamics

• Question: What is the impact of China removing VAT refunds for exporters? (Prit Nagersheth)
• Answer: It makes China non-competitive. India is now exporting 7k-8k tons of H-Acid to China, a total reversal of the previous trend where India was the importer (Punit Makharia).

Expansion Strategy

• Question: Why expand when current utilization is only 55-65%? (Yash Jhunjhunwala)
• Answer: New expansions focus on different products (NPKs, Phosphoric Acid, Dyes) within the same segments to offer a wider basket to existing dealers and improve scalability (Punit Makharia).

Financial Health

• Question: Is the company planning to demerge chemicals and fertilizers? (Niraj)
• Answer: Management is open to ideas that benefit shareholders but currently operates as an integrated, zero-waste, debt-free model (Punit Makharia).

Key Takeaway

Shree Pushkar Chemicals delivered steady Q3 FY26 results with revenue of ₹249 crores, up 14.6% YoY, despite facing significant margin pressure from doubled Sulphur costs. The chemical segment performed strongly with a 75.6% volume jump, offsetting seasonal and pricing-led weakness in fertilizers. Strategically, the company is on the cusp of a major capacity leap, with Units 5 and 6 awaiting only electricity connections to start trials. Management has guided for a ₹1,500 crore topline in FY27 and maintains a long-term target of ₹2,500-₹3,000 crores by 2029-2030, supported by a ₹347 crore Greenfield expansion at Unit 8 and increasing energy self-sufficiency via a 20.6 MW solar project. While raw material volatility remains a near-term margin risk, the company’s debt-free status and integrated “zero waste” model provide a resilient foundation for its aggressive growth roadmap.