Synopsis: In a set of audited full-year results declared on April 8, 2026, Krishana Phoschem reported FY26 revenue of Rs. 2,418 crore, up 78 percent year-on-year and net profit of Rs. 180 crore, more than double the prior year’s Rs. 87 crore; the board also recommended a final dividend of Rs. 0.50 per share; however, a sharp working capital blowout drove operating cash flows deeply negative even as reported profits surged.
A Bhilwara-based phosphatic fertiliser manufacturer came into focus after its board convened on April 8, 2026 to approve audited financial results for Q4 and the full year ended March 31, 2026, alongside a final dividend recommendation. On numbers alone, FY26 represents a transformational year but the cash flow picture warrants closer attention before the earnings trajectory is taken at face value.
With a market capitalisation of Rs. 3,672.25 crore, the shares of Krishana Phoschem Limited were trading at Rs. 593.95 per share, down approximately 0.83 percent from its previous closing price of Rs. 598.95. At trailing earnings, it is trading at a P/E of approximately 28.5.
Q4 FY26 (January–March 2026) revenue from operations stood at Rs. 755.49 crore against Rs. 472.88 crore in Q4 FY25, a 59.7 percent year-on-year increase. Net profit for the quarter came in at Rs. 83.08 crore versus Rs. 32.86 crore,a 152.8 percent jump.
One item requires flagging: Q4 PAT was materially inflated by a deferred tax credit of Rs. 23.27 crore arising from the company’s re-measurement of deferred tax assets and liabilities in compliance with Ind AS 12. Stripping this out, normalised Q4 PAT is closer to Rs. 59.81 crore, still strong, but a more accurate baseline for quarterly run-rate analysis.
For the full year, consolidated revenue was Rs. 2,418 crore (FY25: Rs. 1,358 crore, up 78 percent) and net profit was Rs. 180.15 crore (FY25: Rs. 86.54 crore, up 108 percent). Basic EPS for FY26 came in at Rs. 29.14 versus Rs. 14.00 in FY25.
The board recommended a final dividend of Rs. 0.50 per equity share of face value Rs. 10, a 5 percent payout for FY26, subject to shareholder approval at the forthcoming annual general meeting. At the current share price, this translates to a dividend yield of approximately 0.09 percent. The company has maintained a modest but consistent dividend track record over recent years.
The profit numbers are real, but the cash flows tell a more complicated story. Operating cash flow for FY26 was negative Rs. 191.41 crore, a sharp reversal from positive Rs. 154.30 crore in FY25. The reason is a working capital blowout of approximately Rs. 458 crore.
Trade receivables ballooned from Rs. 378.44 crore to Rs. 715.21 crore, and inventories jumped from Rs. 149.02 crore to Rs. 310.53 crore. The company funded this gap primarily through a near-tripling of short-term borrowings from Rs. 241.84 crore to Rs. 578.17 crore.
Beyond the P&L, two recent developments add context to the growth trajectory. Commercial production commenced on March 31, 2026 at the expanded DAP/NPK plant at Meghnagar, bringing capacity to 4.95 lakh MTPA, a 50 percent increase. The Rs. 142 crore project also added a sulphuric acid line, which tightens backward integration.
Additionally, in late March 2026, the company signed a 10-year Green Ammonia Supply Agreement with SECI for 70,000 MT per year of green ammonia, with supply expected to begin from year three. Management has indicated projected cost savings of approximately Rs. 3,700 crore over the agreement’s tenure, a strategic hedge against imported raw material volatility rather than a near-term revenue catalyst.
Business Overview
Incorporated in 2004 and listed on NSE (KRISHANA), Krishana Phoschem is part of the Ostwal Group and holds a position as India’s second-largest SSP and fourth-largest phosphatic fertiliser producer. Its six plants in Meghnagar, Madhya Pradesh, produce SSP, DAP, NPK, sulphuric acid, phosphoric acid, and allied chemicals under the Annadata and Bharat brands. ROCE for FY25 stood at 21.7 percent and ROE at 25.3 percent.
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