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Release
August 2026 · rev 1
Opportunities PMS · Published
As at 31 Aug 2026 · IST₹ · ₹ cr · BSE 500 TRI
Present
Internal working platform. Published figures are extracted from the August 2026 source package and reviewed; reference prices and fundamentals are unlicensed working data, not for redistribution. Past performance is not indicative of future returns.
Company Atlas/Chemicals/Chambal Fertilisers
NSE: CHAMBLFERT· ChemicalsNot in Aug top-30Small cap

Chambal Fertilisers

10x P/E urea + TAN

Last close
₹413.55
29 Sept 2026 · reference
1D · 1M
−1.2% · −1.9%
price-only
Weight
0.9%
31 Jul 2026 · Aug rank —
Thesis review
8 Sep 2026
Why We Own, p65
Coverage owner: Research (per book); latest results Q Jun-26Buoyant AIF I Top 30 Holdings - Aug 2026.pdf · p1Buoyant_Why_We_Own_What_We_Own_Sep2026.pdf (portfolio as of 31 July 2026) · p65Screener ↗Tijori ↗NSE ↗
OverviewBusiness & segmentsChartsFinancialsValuationThesisRisks & catalystsCompetitorsResearch & documents
What the company does

Chambal Fertilisers · Agricultural Inputs

Chambal Fertilisers and Chemicals Limited is a key player in the production and supply of Urea and fertilisers in India. The company has strengthened its market presence by launching the Gadepan III plant.

Full profile (Yahoo)

Chambal Fertilisers and Chemicals Limited, together with its subsidiaries, produces and sells fertilizers primarily in India. The company operates through Own Manufactured Fertilisers; Complex Fertilisers; Crop Protection Chemicals and Speciality Nutrients and Seeds; and Others segments. It offers urea; di-ammonium phosphate, muriate of potash, and triple super phosphate; NPK fertilizers; and crop protection chemicals (CPC), speciality nutrients (SN), and agricultural biologicals under the Uttam brand. Chambal Fertilisers and Chemicals Limited was incorporated in 1985 and is based in New Delhi, India.

Sector (Yahoo)
Basic Materials
Industry (Yahoo)
Agricultural Inputs
Employees
1,201
Website
chambalfertilisers.com

Key people: Mr. Abhay Baijal B.E., P.G.D.M. (MD & Director) · Mr. Anuj Jain (Chief Financial Officer) · Mr. Tridib Kumar Barat (VP of Legal, Company Secretary & Compliance Officer) · Mr. Rajnish Chaba (Vice President of Technical Services & Strategic Projects) · Mr. Vishal Mathur (Assistant Vice President of Human Resources & Administration) · Mr. Ashish Kumar Srivastava (Vice President of Sales & Marketing)

Who are the competitors of Chambal Fer. & Chem.?

Chambal Fer. & Chem. major competitors are Paradeep Phosphates, Deepak Fert & Petro, GNFC, MP Bharat Agro Prod., GSFC, Rashtriya Chemicals, Krishana Phoschem. Market Cap of Chambal Fer. & Chem. is ₹16,621 Crs. While the median market cap of its peers are ₹7,509 Crs.

Is Chambal Fer. & Chem. financially stable compared to its competitors?

Chambal Fer. & Chem. seems to be financially stable compared to its competitors.The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.

Snapshot and what to watch · Tijori · 23 Sep 2026
  • Chambal Fertilisers makes urea at its three Gadepan plants, plus complex fertilisers and speciality nutrients and seeds, on consolidated revenue of ~₹20,794cr in FY26. Urea was ~57% of latest-quarter revenue and complex fertiliser ~35%.
  • Its speciality nutrients and seeds business grew from ₹212cr of revenue in FY23 to ₹1,426cr in FY25, shifting the mix toward higher-margin products.
  • Urea anchors earnings, bringing ~₹2,856cr despite Q1FY27 shutdowns at two of three plants. The new ammonium nitrate products are still too small to move profit.
  • Per management, co-locating a planned fourth urea plant offsets the NUP-2026 urea policy's lower returns through shared fixed costs and ammonia sourcing.
  • A ~₹10,000cr fourth urea plant is in advanced planning, pending Board approval. Its IMACID phosphoric-acid joint venture in Morocco is expanding from 500kt to 700kt.
  • Q1FY27 EBITDA rose 12% despite lower revenue, helped by a complex fertiliser margin gain from advance purchases. Management expects the margin to normalise.
  • Working capital remains heavy: ₹3,300cr of receivables at 30 Jun 2026, including ₹2,460cr of government fertiliser subsidy.
  • Near-term earnings hinge on the new ammonium nitrate ramp. Management has indicated 75–80% FY27 utilisation, with a product mix target for end-December 2026.
  • Promoter-group entities have disclosed 30 open-market purchases since May, with no selling, but some purchase sequences do not reconcile with prior disclosures.

Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026

Segments

Revenue mix and market share

Product Wise Break-Up
  • Urea57.0%
  • Complex-Fertilisers34.0%
  • Crop Protection Chemicals (CPC) and Specialty Nutrients (SN)9.0%
Location Wise Break-Up
  • India100.0%

Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.

Operating metrics

Company-reported KPIs (Tijori) · latest quarter

As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.

MOP Sales Volume - Quarterly0.01 Million Tonnes 2026-06
DAP Sales Volume - Quarterly0.03 Million Tonnes 2026-06
Realization/Tonne - Urea Fertilizers46,885.25 Rs/MT 2026-06
Annualized Sales Volume - Fertilizers35,60,000 Tonnes 2026-06
Quarterly Sales Volume - Urea Fertilizers6,10,000 Tonnes 2026-06
Capacity Utilization - Urea Fertilizers98.44 % 2023-03
Quarterly Sales Volume - NPK2,42,000 Tonnes 2026-06
Manufacturing Capacity - Urea Fertilizers34,00,000 MTPA 2022-03
Business model

How the company earns

Chambal Fertilisers (K.K. Birla group) is India's largest private-sector urea producer with three gas-based plants at Gadepan, Rajasthan, and also trades/markets DAP, MOP and complex fertilisers plus a fast-growing crop-protection, specialty-nutrient, seeds and biologicals business (17 launches in FY26, 3 mn acres under biologicals). It commissioned a Rs 1,645 cr, 2.4 lakh tpa Technical Ammonium Nitrate plant (with 2.1 lakh tpa weak nitric acid) on 20-Aug-2026 using surplus ammonia, entering the mining-explosives market.

Economics and valuation note (book)

8.7x TTM PE and 1.6x P/B (price 418 / BV 260) with 20% ROE and 25% ROCE; stock is down ~24% over one year (screener) despite FY26 PAT +18% - de-rated on Hormuz gas/subsidy fears; 10-yr profit CAGR 22%. EV/EBITDA n.m.; dividend yield 2.6%.

Competitive position · why this and not peers
Coromandel InternationalCoromandel trades at 31.3x TTM PE / 4.7x P/B with ROE 16% and Q1FY27 PAT -24% on DAP import-cost pressure; Chambal at 8.7x / 1.6x with 20% ROE is a much cheaper way to own fertiliser + crop-protection.
GNFCGNFC is similarly cheap (8.5x, 0.96x P/B, 3.5% yield) but ROE is only 9% and it took a 60%-of-contract gas cut during the Hormuz crisis; Chambal's 20% ROE, TAN upside and private-sector execution justify the small premium.
National Fertilizers (NFL)NFL is a PSU with 7.5% ROE, Rs 3,964 cr debt, FY26 PAT of only Rs 211 cr on Rs 21,519 cr revenue and Q1FY27 sales -21%; Chambal earns ~9x NFL's profit on similar revenue.
Segment economics

Reported revenue mix

Product Wise Break-Up

share of revenue, %
  • Urea
    57.0%
  • Complex-Fertilisers
    34.0%
  • Crop Protection Chemicals (CPC) and Specialty Nutrients (SN)
    9.0%
  • Di-ammonium Phosphate
    0.0%
  • Phosphatic and Potassic (P&K)
    0.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Location Wise Break-Up

share of revenue, %
  • India
    100.0%
  • Rest of the World
    0.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Industry cycle

Chemicals chapter

Chemicals — 1.5%: two cyclicals with very different drivers

Our two chemical positions are both small, both Cyclical, and owned for company-specific reasons rather than a sector call. Chambal Fertilisers is India's largest private urea producer, a 20% ROE business at under 10x earnings, whose economics are protected by the subsidy regime (retail urea is fixed at ₹267/bag; the government pays the difference) — the FY27 subsidy budget of ₹1.71 lakh crore was 58% spent by August and will likely be raised after the West Asia gas shock spiked urea from $447/t to $947/t. Its new TAN (technical ammonium nitrate) plant adds a non-subsidy, mining-linked profit pool. Archean is India's largest bromine and industrial-salt producer, with a cost position (solar-evaporation brine at Hajipir) that is second only to Israel and Jordan; bromine prices spiked on the Hormuz disruption and are now normalising ($4,453/t CIF India in July), and the company is adding bromine derivatives and a silicon-carbide fab venture (SiCSem, Odisha). Both are bought below mid-cycle earnings.

Datapoints the team can quote
  • FY27 fertiliser subsidy budget ₹1.71 lakh cr (−8% YoY); ₹99,000 cr (58%) spent by 19-Aug-2026; imported-urea line 92% used; bill may rise by ₹70,000 cr — Department of Fertilisers; press
  • Urea FOB spiked from $447/t (Feb-26) to $947/t (May-26) on the West Asia crisis before returning to $447/t in July; LNG ≈ 80% of urea cost — Industry data
  • Retail urea ₹267/45 kg and DAP ₹1,350/50 kg unchanged; kharif-2026 requirement 390 lakh t — Government
  • Bromine India CIF $4,989/t (Jun-26) → $4,453/t (Jul-26) as Hormuz disruption eased; China FOB $4,347/t — Trade data
What we deliberately do not own

We own no specialty-chemical compounder (PI, SRF, Navin, Deepak) at 40–60x — the China-plus-one story has been priced for three years while Chinese dumping and agrochemical destocking hit earnings. Coromandel is the quality fertiliser name but at 25x prices its phosphates diversification. Tata Chemicals is a soda-ash cycle we do not want.

Market position

Market share (where tracked)

DAP - Market share10 %as of Mar 20
Urea Sales Volume - Market Share9.50 %as of Dec 21
Sector datapoints

From the one-pager

  • Union Budget FY27 fertiliser subsidy Rs 1.71 lakh crore (urea Rs 1.168 lakh crore: Rs 0.91 lakh cr domestic + Rs 0.32 lakh cr imports; NBS Rs 54,000 cr)…
  • India urea demand ~40 mn t (CY25), domestic production 30-31 mn t, imports 6-10 mn t; the Strait of Hormuz region supplies 20-30% of India's urea, 30% of DAP, ~80% of ammonia and ~50% of LNG (Qatar alone 44% of LNG imports).
  • Hormuz disruption (from late Feb/Mar-2026) curtailed Indian urea output by ~25% in March 2026; government guaranteed 70% gas to urea plants and raised supply from 32 to 39.3 mmscmd, lifting daily output from 54,500 t to 67,000 t…
  • Import prices: urea rose from USD 482.5/t to USD 720/t (Mar-2026) and USD 935-959/t by Apr-2026; ammonia +24% to USD 600/t; sulphur +50% to USD 630/t CFR.