Coromandel International shares tumbled 4.30% to ₹1,825.40 on the BSE on Friday after a sharp squeeze in operating profitability erased more than a third of its bottom line.
Net profit dropped 33.7% year-on-year to ₹534.2 crore for the second quarter, down from ₹805.3 crore in the corresponding period last fiscal year. The decline came even as top-line demand held firm, with revenue from operations expanding 6.7% to ₹10,294 crore from ₹9,651 crore a year ago. Higher input costs and pricing pressures took an immediate toll on operating earnings. Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 17.8% to ₹942 crore from ₹1,146 crore. Consequently, operating margin shrank by 270 basis points, dropping to 9.2% against 11.9% in the year-ago quarter.
| Metric | Q2 FY27 | Q2 FY26 | Change (YoY) |
|---|---|---|---|
| Revenue from Operations | ₹10,294 crore | ₹9,651 crore | +6.7% |
| EBITDA | ₹942 crore | ₹1,146 crore | -17.8% |
| EBITDA Margin | 9.2% | 11.9% | -270 bps |
| Net Profit | ₹534.2 crore | ₹805.3 crore | -33.7% |
| BSE Closing Price | ₹1,825.40 | — | -4.30% (-₹82.05) |
The margin compression triggered heavy afternoon selling. The stock shed ₹82.05 over the session.
Beyond the headline numbers, the board cleared a major capital restructuring across its overseas supply chain. Coromandel completed the conversion of a $9.70 million shareholder loan into equity in Baobab Mining and Chemicals Corporation SA (BMCC). The transaction—carried out at arm's length following Audit Committee and board clearances issued on July 23, 2026—entailed the issuance of 1,11,355 equity shares at $87.11 apiece.
Coromandel International holds a 71.51% controlling stake in BMCC through its wholly owned vehicle Coromandel Chemicals Ltd. The debt-to-equity move formalises long-term capital backing for the Senegalese rock phosphate supplier.
On the governance front, the board approved the reappointment of Sudarshan Venu as an Independent Director for a second consecutive five-year term running from February 3, 2027, through February 2, 2032. Venu, who serves as Chairman of TVS Motor Company and Managing Director of TVS Holdings Ltd, will face shareholder confirmation via an upcoming postal ballot special resolution.