JKB Financial Services Ltd.

As on : 25-Aug-2025

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25-Aug-2025 13:39

India Ratings affirms ratings of Coromandel International at 'AAA/Stable' '

The agency has also affirmed the company's short-term rating at 'IND A1+'.

India Ratings & Research stated that the affirmation reflects CIL's strong business profile as India's second-largest phosphatic fertilizer player and largest single super phosphate (SSP) player.

Its EBITDA margins remain resilient due to backward integration for sourcing of fertilizer raw material, improving proportion of non-subsidy revenue and healthy contribution from unique formulations.

CIL's strong credit metrics are driven by a healthy EBITDA generation and capex funded through internal accruals.

The liquidity position of the company is adequate, backed by healthy cash balances, liquid investments, and inter-corporate deposits.

However, factors like deterioration in the operating profitability or any adverse regulatory policy movement and/or the consolidated net leverage exceeding 1.0x on a sustained basis could lead to a negative rating action.

Coromandel International, a flagship company of the Murugappa Group, operates in two segments: crop protection chemicals (CPC) and nutrients and allied business (NAB). The NAB segment comprises of phosphatic fertilisers (di-ammonium phosphate, complexes, single super phosphate, muriate of potash); specialty nutrients and organic fertilisers (G-sulphur, water soluble fertilisers, organic manure); and the retail stores business that provides agri inputs and agri services. The CPC segment comprises technical materials, formulations and biopesticides. Its facilities are spread across India but are largely concentrated in south India.

The company's consolidated net profit jumped 62.40% to Rs 505.01 crore on a 48.92% increase in revenue to Rs 7,042.30 crore in Q1 FY26 as compared with Q1 FY25.

The scrip shed 0.60% to currently trade at Rs 2407 on the BSE.

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