Yesterday, we released Q1 FY 26 earnings update on Shree Pushkar Chemicals for our Alpha/Alpha + members.
Below, we have shared the same for your reference.
We initiated the stock recommendation on Shree Pushkar Chemicals in Jan’21 and have not closed it yet. You can read the initiation report at the following link – Click HERE
Before that: Here’s the list of new recommendations released in last few weeks:
- On 1st Sep’25, we released a new Special situation opportunity for our Alpha + members. It’s based on buy-back with upside potential of around 20% from our recommended levels (assuming full acceptance). You can read about it by clicking HERE
- On 30th Jul’25, we released a new long term stock recommendation for our Alpha/Alpha + members. It’s a chemical company trading at deep valuation discount and Promoter recently bought shares from open market. You can read about it by clicking HERE
Shree Pushkar Chemicals Q1 FY 26 earnings update
Key Highlights (YoY Q1 FY26 vs. Q1 FY25):
- Revenue: Rs 254.5 crore (up 31% from Rs 194 crore)
- Gross Profit: Rs 83.9 crore (up 25.7% from Rs 66.8 crore)
- Gross Profit Margin: 33% (down from 34.4%)
- EBITDA: Rs 29 crore (up 65% from Rs 17.7 crore)
- EBITDA Margin: 4% (up from 9.1%)
- Profit Before Tax (PBT): Rs 25.8 crore (up 71% from Rs 15.1 crore)
Business Segment Performance
Fertilizers:
- Volumes: 76,288 MT (↑9.4% YoY, ↑27.1% QoQ)
- Revenue: Rs 137 crore (↑33.4% YoY, ↑46.8% QoQ)
- Commentary: As per the management, strong demand in the agriculture sector and favorable government policies drove this growth
Chemicals:
- Volumes: 14,837 MT (↓6.9% YoY, but ↑48% QoQ)
- Revenue: Rs 118 crore (↑28.4% YoY, ↓6.8% QoQ)
- Commentary: Chemicals volume is not the right metric to gauge in case of Shree Pushkar as the same also includes acid sales which is an extremely low value product
Operational and Strategic Updates
- Capacity Utilization:
- Key subsidiaries (KPPL and MPPL): ~70% utilization in Q1
- Major Capex:
- Q1 FY26 Capex: Rs 13 crore, mainly for expansion in chemicals and fertilizers divisions
- Unit-5 Expansion (Ratnagiri, MAH): Capex of Rs 34 crore; trial runs ongoing; commercial production expected post electricity load enhancement (expected by Sep 2025)
- Unit-6 Update: Trials to begin by December 2025; full ramp-up expected in FY27
- Solar Power Investments:
- Initiated 1.1 MW DC solar plant at Kisan Phosphates (Hisar facility, Haryana)
- Combined existing and upcoming solar capacity at Ratnagiri units to reach 19.52 MW DC
- Marketing Subsidiary:
- Board approved the formation of Dyecol Color Technologies Pvt Ltd as a 100% sub to focus solely on marketing Dyes and Dyes Intermediates. This aims to boost market reach, operational agility, and penetration in domestic/international markets
Financial Position
- Maintains a net cash positive balance sheet
- Non-lien cash deposits: Rs 112 crore
- Future Capex to continue to be funded by internal accruals and promoter equity infusion
Guidance
- FY26 Revenue: Rs 950-1,000 crore (management internal target may be slightly higher)
- PAT Margin: Likely to be in the 8.5%-9% range if current trends sustain
- Sustainability of Performance: Management indicated Q1’s strong Fertilizer performance is sustainable; domestic manufacturing will benefit from sector tailwinds and import substitution
- Fertilizer Demand: Remains robust due to reduction in imports, domestic self-reliance initiatives
- Chemicals Outlook: Expected to improve as global markets stabilize
- As per the management, Unit 5 and Unit 6 could additionally contribute 500-700 crore sales in FY 27 as the new capacities get commercialized
Our assessment – Previously, the management had guided for around Rs 1000 crore sales in FY 26 with Rs 80-85 crore PAT. Looking at the Q1 numbers, the guidance seems very much achievable.
Further, the company will be completing Rs 85 crore CAPEX for expansion of Unit 5, Unit 6 and set up of 10 MW DC power plant. The full ramp up of Unit 5 and Unit 6 will happen in FY 27 and as per the management, the additional sales can be the tune of Rs 500-700 crore.
We like the execution capabilities of the management, their focus on cash flows and debt free balance sheet. The company has also created capacities for growth in both the chemicals and the fertilizers divisions.
The current market cap of the company is around Rs 1,060 crore and is trading around 12.5 times FY 26 (E) earnings of Rs 85 crore.
Considering the growth outlook (based on Unit 5, Unit 6 expansion) and reasonable valuations, we have a Positive rating on the stock.
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Disclaimer: This is not a recommendation to buy/sell any of the stocks mentioned above. The securities quoted are for illustration only and are not recommendatory. I have personal investment in Shree Pushkar Chemicals and have recommended the stocks to Alpha and Alpha + members.
Best Regards,
Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.
Rating Interpretation
Positive – Expected return of ~15% + on annualized basis in medium to long term for investment recommendations and in short term for Special situations
Neutral – Expected Absolute return in the range of +/- 15%
Negative – Expected Absolute return of over -15%
Coverage closure – No further update on the stock
% weightage – This is based on our 20-25 stocks investment philosophy. Members are free to make allocation of their choice (if you invest) or consult their Investment Advisor for the same
Short term – Less than 1 year
Medium term – Greater than 1 year and less than 3 years
Long term – Greater than 3 years
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Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
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Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – Yes, in Shree Pushkar Chemicals
Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No
Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No
Whether it or its associates have received any compensation from the subject company in the past twelve months – No
Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No
Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No
Whether the research analyst has served as an officer, director or employee of the subject company – No
Whether the research analyst or research entity has been engaged in market making activity for the subject company – No