Synopsis: Coromandel International is moving beyond fertilizers by scaling crop protection, targeting Rs. 10,000 crore revenue in five years. Analysts estimate a ~15 percent revenue CAGR, with higher-margin products and integration expected to meaningfully improve earnings stability and growth.
Coromandel International is best known for its strong presence in fertilizers, which has been the backbone of its business for years. However, the company is now expanding beyond fertilizers into crop protection products and farm services. As farmers increasingly focus on improving yields and protecting crops, this segment could grow faster and offer better margins, gradually changing Coromandel’s earnings mix and making its business more diversified and stable.
Coromandel International Ltd, with a market capitalization of Rs. 68,315.04 crore, closed at Rs. 2,315.80 per equity share, up by 1.96 percent from its previous day’s close price of Rs. 2,271.20 per equity share.
About the Company
Coromandel International Limited, based in Chennai and a subsidiary of E.I.D.-Parry (India) Limited, provides agriculture solutions in India and abroad. Operating through Nutrient & Allied Business and Crop Protection segments, it offers fertilizers, bio-products, specialty nutrients, and crop protection products.
The company also provides value-added services like drone spraying, soil testing, crop diagnostics, weather insights, and an e-commerce platform for advisory and ordering. Founded in 1961, it was formerly Coromandel Fertilisers Ltd and adopted its current name in 2009.
Analyst View
Analysts at Nuvama have reaffirmed their ‘Buy’ rating on Coromandel International, citing a robust multi-year growth runway driven by diversification, backward integration, and scale expansion. They expect the company to deliver a revenue CAGR of ~15 percent over the next five years, supported by momentum in crop protection, enhanced chemistry capabilities, and a more balanced portfolio between fertilizers and crop protection.
Nuvama values the stock at 30x Q2FY28E EPS, maintaining a target price of Rs. 3,234 with an upside of 39.65 percent, reflecting confidence that the combined impact of scale, backward integration, and a diversified portfolio will drive meaningful re-rating and sustained profitability over the medium term.
How crop protection could change its earnings profile?
Crop Protection: The Growth Engine
Crop protection is emerging as the more dynamic driver of Coromandel’s growth. The company targets doubling its crop protection business, including the integration of NACL Industries, to Rs. 10,000 crore over the next five years. Momentum is being fueled by new molecule launches, faster in-licensing, and Japanese partnerships contributing 28 percent of revenues. Analysts note that the focus on a broader, higher-quality product mix reduces reliance on any single molecule, enhancing earnings resilience during fertilizer cycles.
Capacity Expansion and Integration
At the core of Coromandel’s strategy is expanding its fertilizer footprint. The company plans to increase phosphatic granulation capacity to 5 million tonnes from 3.6 million tonnes, add 1 million tonnes of Single Super Phosphate (SSP), and expand Monoammonium Phosphate (MAP) capacity by 25,000 tonnes. Innovative combinations such as urea–SSP are also being rolled out. Including trading, fertilizer sales could potentially reach 10 million tonnes. Nearly two-thirds of raw materials are expected to come from captive sources, pushing Ebitda per tonne from ~Rs. 4,500 today to ~Rs. 6,500 post-integration, providing a critical lever for margin expansion.
Retail Expansion and Global Footprint
To support crop protection growth, Coromandel plans to add 2,000–2,500 retail outlets over three years. This retail push is complemented by expansion in Latin America through distributor tie-ups, scaling up Mancozeb capacity by 30 percent, and building a Contract Development & Manufacturing Organization (CDMO) vertical expected to gain traction in two to three years. These initiatives are designed to create Rs. 100 crore-plus mega brands anchored in captive active ingredients, strengthening the company’s presence in high-margin segments.
Capex and Margin Sustainability
The Rs. 4,000–5,000 crore capex program underpins both fertilizer and crop protection expansion. Investments in phosphoric acid, sulphuric acid, and granulation capacities aim to lift margins and reduce earnings volatility. While H2FY26 may face short-term margin pressure due to higher input costs, analysts expect these headwinds to be transitory, with favorable rabi conditions and easing crop protection inventory supporting near-term performance.
Financial Performance
Coromandel International posted strong Q2FY26 results. Revenue rose to Rs. 9,654 cr, up 29.8 percent year-on-year from Rs. 7,433 cr in Q2FY25 and up 37.0 percent quarter-on-quarter from Rs. 7,042 cr in Q1FY26. EBITDA increased to Rs. 1,147 cr, up 19.2 percent YoY from Rs. 962 cr and 46.6 percent QoQ from Rs. 782 cr. Profit rose to Rs. 793 cr, up 20.3 percent YoY from Rs. 659 cr and 57.9 percent QoQ from Rs. 502 cr, reflecting strong growth across the business.
Over the past five years, the company has demonstrated strong growth, achieving a revenue CAGR of 13 percent, a profit CAGR of 10 percent and a share price CAGR of 23 percent, reflecting both its operational performance and market confidence.
A return on equity (ROE) of about 16.9 percent, a return on capital employed (ROCE) of about 23.2 percent and debt to equity ratio at 0.12, demonstrate the company’s financial position. At the moment, the company’s P/E ratio is xxx lower as compared to its industry P/E xxx.
As of September 2025, the company’s shareholding is led by promoters, who hold 56.88 percent of the company, followed by domestic institutional investors with a 15.88 percent stake and foreign institutional investors owning 14.45 percent. Public shareholders account for 12.7 percent, while others hold a marginal 0.1 percent.
Notably, foreign institutional investor interest has strengthened significantly over the past year, with FII holding nearly doubled from 7.79 percent in September 2024 to 14.45 percent in September 2025, reflecting rising global confidence in the company’s growth story.
While fertilizers will continue to form the foundation of Coromandel’s operations, crop protection is positioned to become the game-changer for the company’s earnings profile. By combining new molecules, retail expansion, exports, and backward integration, Coromandel is set to build a more resilient and higher-margin business. Execution of this strategy will be critical, but if successful, crop protection could redefine the company’s profitability and long-term trajectory, moving it beyond the cyclicality of fertilizers into a more stable, growth-oriented model.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Can Coromandel’s crop protection business boost its share price beyond ₹3,200? appeared first on Trade Brains.