By FMTeam India’s fertiliser industry plays a critical role in food production and agricultural productivity. Demand is supported by India’s large farming population, rising crop output and the need to improve soil nutrients.
The industry is also heavily influenced by government policy. For the Kharif 2026 season, the government approved an estimated ₹41,533.81 crore under the Nutrient-Based Subsidy scheme for phosphatic and potassic fertilisers. This was approximately ₹4,317 crore higher than the allocation for the previous Kharif season.
However, fertiliser stocks do not all follow the same business model. Some companies mainly produce urea, while others manufacture DAP, NPK fertilisers, specialty nutrients, crop-protection products and industrial chemicals.
The following companies were selected based on their FY26 financial performance, manufacturing scale, product mix, backward integration and long-term growth potential.
| Company | Business Profile | FY26 Revenue or Income | Main Growth Catalyst | Investment Profile |
| Coromandel International | Phosphatic fertilisers and crop protection | ₹31,827 crore | Backward integration and specialty products | Integrated industry leader |
| Chambal Fertilisers | Urea and agricultural inputs | ₹20,793.66 crore | Technical ammonium nitrate project | Profitable large-scale producer |
| Paradeep Phosphates | DAP, NPK and urea | ₹21,826 crore | Phosphoric acid expansion | High-growth phosphatic play |
| Deepak Fertilisers | NPK, specialty nutrients and chemicals | ₹11,506 crore | Premium crop-nutrition products | Diversified higher-risk opportunity |
| Gujarat State Fertilizers & Chemicals | Fertilisers and industrial chemicals | ₹10,827 crore | Capacity expansion and integration | Established value-oriented play |
1. Coromandel International
Best for: Broad exposure across fertilisers, crop protection and agricultural services
- FY26 total income: ₹31,827 crore
- FY26 EBITDA: ₹3,232 crore
- FY26 profit after tax: ₹1,898 crore
- Phosphatic fertiliser sales:3 million tonnes
- Agri-retail network: More than 1,200 centres
Coromandel International is one of India’s largest integrated agricultural-input companies. It manufactures phosphatic fertilisers, specialty nutrients, organic products, biological products and crop-protection chemicals.
The company is India’s second-largest manufacturer and marketer of phosphatic fertilisers. Its large retail network also provides farmers with seeds, crop advice, soil testing and mechanisation services.
Coromandel’s FY26 total income grew by 30%, while EBITDA increased by 23%. Profit before exceptional items increased by 13%. Reported profit after tax declined because of exceptional items and the high base created by gains reported in the previous year.
Key Growth Catalyst: Backward Integration
Coromandel commissioned a 2,000-tonne-per-day sulphuric acid plant and a 650-tonne-per-day phosphoric acid plant at Kakinada during FY26.
These facilities should reduce dependence on imported intermediate materials and improve supply security. A fertiliser-granulation capacity expansion at Kakinada is also expected to be completed during FY27.
Advantage: A diversified product portfolio and wide distribution network reduce dependence on a single fertiliser category.
Limitation: Profitability remains exposed to imported raw-material prices, foreign-exchange movements and subsidy policies.
2. Chambal Fertilisers and Chemicals
Best for: Large-scale urea production and strong profitability
- FY26 revenue from operations: ₹20,793.66 crore
- FY26 profit before tax: ₹2,574.69 crore
- FY26 profit after tax: ₹1,949.67 crore
- Annual urea production capacity: More than 3.4 million tonnes
- Manufacturing plants: Three urea units at Gadepan
Chambal Fertilisers is one of India’s largest private-sector urea producers. Its three plants are located at Gadepan in Rajasthan and together have annual production capacity exceeding 3.4 million tonnes.
The company also sells DAP, NPK fertilisers, crop-protection chemicals, seeds and specialty plant nutrients under the Uttam brand.
FY26 revenue increased by nearly 25%, supported by a sharp rise in complex-fertiliser sales. Profit after tax increased from ₹1,656.79 crore to ₹1,949.67 crore.
Key Growth Catalyst: New Technical Ammonium Nitrate Business
Chambal is commissioning a technical ammonium nitrate facility at its Gadepan complex. Technical ammonium nitrate is used mainly by the mining and infrastructure industries.
The project could create an additional revenue stream outside the regulated agricultural fertiliser business. It may also allow Chambal to use ammonia produced at its existing manufacturing complex more efficiently.
Advantage: Efficient urea facilities, a strong balance sheet and established distribution provide relatively stable operating performance.
Limitation: Urea prices and profitability are closely linked to government reimbursement policies and natural-gas costs.
3. Paradeep Phosphates
Best for: Direct exposure to DAP and value-added NPK fertilisers
- FY26 revenue from operations: ₹21,826 crore
- FY26 EBITDA: ₹2,259 crore
- FY26 profit after tax: ₹1,000 crore
- Fertiliser production:66 lakh tonnes
- Fertiliser sales:10 lakh tonnes
Paradeep Phosphates is one of India’s largest phosphatic fertiliser producers. It operates manufacturing facilities at Paradeep, Goa and Mangalore and sells products under the Jai Kisaan Navratna and Jai Kisaan Mangala brands.
Its portfolio covers DAP, urea and several NPK grades. The company serves more than 15 million farmers through over one lakh retailers across 18 states.
FY26 revenue increased by 29%, EBITDA rose by 33%, and profit after tax grew by 52%. Production reached almost 100% of its existing annual capacity.
Key Growth Catalyst: Phosphoric Acid Expansion
Paradeep Phosphates commissioned sulphuric acid plants with a combined annual capacity of 600,000 tonnes during FY26.
The company also plans to double its phosphoric acid capacity from 500,000 tonnes to one million tonnes annually. The first phase, which will increase capacity to 700,000 tonnes, is expected to be commissioned during FY27.
Advantage: Strong NPK growth, high plant utilisation and increasing backward integration can improve earnings quality.
Limitation: The company remains exposed to imported rock phosphate, ammonia, sulphur and currency volatility.
4. Deepak Fertilisers and Petrochemicals Corporation
Best for: Specialty crop nutrition and diversified chemical exposure
- FY26 operating revenue: ₹11,506 crore
- FY26 operating EBITDA: ₹1,684 crore
- FY26 net profit: ₹739 crore
- Revenue growth: 12%
- Core fertiliser brand: Mahadhan
Deepak Fertilisers operates across crop nutrition, industrial chemicals and technical ammonium nitrate. Its agricultural portfolio includes NPK fertilisers, water-soluble fertilisers, specialty nutrients and crop-specific products.
The company’s Mahadhan business is gradually moving from bulk commodity fertilisers towards differentiated crop-nutrition products such as Croptek.
FY26 revenue grew by 12%. However, EBITDA declined by 13% and net profit fell by 22% because of higher raw-material costs, delayed cost pass-through and insufficient subsidy support in the fertiliser business.
Key Growth Catalyst: Premium Crop-Nutrition Products
Specialty and Croptek products accounted for approximately 33% of fertiliser revenue during the fourth quarter, compared with 30% in the preceding quarter.
Premium products can provide better margins than conventional commodity fertilisers. They also help farmers apply nutrients according to specific crops and soil requirements.
Advantage: Diversification across fertilisers, mining chemicals and industrial chemicals reduces dependence on one market.
Limitation: Deepak Fertilisers is not a pure fertiliser company, and its margins can be affected by energy prices and chemical-market cycles.
5. Gujarat State Fertilizers & Chemicals
Best for: Established fertiliser operations with chemical-business diversification
- FY26 operating revenue: ₹10,827 crore
- FY26 operating EBITDA: ₹781 crore
- FY26 profit after tax: ₹652 crore
- Fertiliser production:59 lakh tonnes
- Fertiliser sales:31 lakh tonnes
Gujarat State Fertilizers & Chemicals, commonly known as GSFC, manufactures urea, ammonium sulphate, ammonium phosphate sulphate, DAP and NPK fertilisers.
The company also manufactures industrial products such as caprolactam, melamine, nylon and technical-grade urea. These chemical operations provide diversification but can also add commodity-cycle risk.
FY26 operating revenue increased by 15%, while EBITDA grew by 24% and profit after tax rose by 14%. Fertiliser sales volumes increased by 12%, and production reached its highest level in five years.
Key Growth Catalyst: New Acid and Fertiliser Capacity
GSFC is developing a phosphoric acid and sulphuric acid project at its Sikka facility. It is also modifying an existing production train to manufacture additional ammonium phosphate sulphate.
Greater backward integration could improve control over raw-material availability and support future fertiliser production.
Advantage: Established manufacturing facilities, a broad product portfolio and relatively conservative financial positioning.
Limitation: Fertiliser margins remain vulnerable to raw-material inflation, while the industrial-chemical division can experience sharp pricing cycles.
Key Risks for Investors
Fertiliser stocks face several important risks:
- Government policy: Subsidy rates and reimbursement timing directly influence revenue and cash flow.
- Raw-material dependence: India imports significant quantities of phosphoric acid, potash, ammonia, sulphur and rock phosphate.
- Natural-gas costs: Gas is an important feedstock for urea and ammonia production.
- Currency fluctuations: A weaker rupee increases the cost of imported materials.
- Monsoon conditions: Weak rainfall may reduce fertiliser demand in rain-dependent agricultural regions.
- Working-capital pressure: Delayed subsidy payments can increase borrowing requirements.
- Environmental compliance: Fertiliser and chemical facilities must meet strict safety and pollution-control requirements.
Coromandel International provides the broadest agricultural-input exposure. Chambal Fertilisers offers large-scale and profitable urea production. Paradeep Phosphates provides strong growth in phosphatic and NPK fertilisers. Deepak Fertilisers offers specialty-nutrition and chemical diversification, while GSFC represents a more established and value-oriented opportunity.
Investors should compare valuations, debt, subsidy receivables, raw-material integration and profit margins before purchasing any fertiliser stock. This article is for informational purposes and should not be treated as investment advice.