Synopsis: The agro chemical stock fell nearly 10% after Q3 results showed a sharp revenue contraction, over 90% decline in operating profit, and a steep sequential profit drop, signalling operational slowdown.
The small-cap company that is engaged in manufacturing, trading and marketing of chemical fertilizers and fertilizer products, is in stoplight as its share price falls by 10 percent after announcing Q3 Results.
With a market capitalization of Rs. 1,083.41 crore, the shares of Zuari Agro Chemicals Limited were trading at Rs. 257.6, down by 8.38 percent from its previous day’s closing price of Rs. 281.15. The stock has touched an intraday low of Rs. 251.15, implying 10.67 percent decline from previous day’s closing price.
Q3FY26 Results
In Q3FY26, revenue declined sharply to Rs. 344 crore compared with Rs. 1,264 crore in Q3FY25, marking a steep YoY contraction of about 72.8 percent. On a sequential basis, revenue also fell significantly by around 75.8 percent from Rs. 1,423 crore in Q2FY26, indicating a pronounced slowdown both annually and quarter-on-quarter.
EBITDA dropped to Rs. 9 crore in Q3FY26 from Rs. 117 crore in Q3FY25, translating into a YoY decline of approximately 92.3 percent. Compared with Rs. 174 crore in Q2FY26, EBITDA contracted by about 94.8 percent QoQ, reflecting severe pressure on operating profitability.
Profit for Q3FY26 stood at Rs. 40 crore versus Rs. 81 crore in Q3FY25, implying a YoY decline of nearly 50.6 percent. On a QoQ basis, profit fell sharply by around 95.2 percent from the exceptionally high Rs. 840 crore reported in Q2FY26, highlighting a sharp sequential normalization.
Reason for major revenue loss
The company exited Mangalore Chemicals & Fertilisers Limited after transferring its 2.90 crore equity shares at Rs. 144 per share, receiving Rs. 418.13 crore, and losing control of the subsidiary from September 26, 2025. MCFL was merged into Paradeep Phosphates Limited, in exchange for which the company received 6.54 crore shares of PPL. As MCFL is no longer its subsidiary, its revenues have been removed from the company’s financials, impacting reported consolidated revenue, while a fair value loss of Rs. 204.87 crore on the PPL investment was recorded under other comprehensive income.
Zuari Agro Chemicals Limited is an Indian agri-inputs company engaged in the manufacturing, trading, and marketing of fertilizers and related products, including urea, DAP, MOP, complex and specialty fertilizers, along with seeds and pesticides. Founded in 1967 and headquartered in Sancoale, India, the company operates under the Jai Kisaan brand and was renamed from Zuari Holdings Limited in 2012.
Over the past five years, the company has demonstrated strong growth, achieving a revenue CAGR of 8 percent, a profit CAGR of 17 percent and a price CAGR of 23 percent, reflecting both its operational performance and market confidence.
A return on equity (ROE) of about 9.06 percent and a return on capital employed (ROCE) of about 12.7 percent, and debt to equity ratio at 0.24 demonstrate the company’s financial position. The stock is currently trading at a P/E of 3.25x lower as compared to industry P/E of 18.7x.
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