Krishana Phoschem Ltd

Good afternoon, ladies and gentlemen. A very warm welcome to the Q3 and 9 months FY26 Earnings Conference Call of Krishana Phoschem Limited.

As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “*” then “0” on your touch-tone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Pukhraj Kanther. Thank you and over to you, Mr. Kanther.

We welcome you everybody for this Earnings call of Krishana Phoschem Ltd.

Before we begin the Earnings Call, I would like to mention that some of the statements made during today’s call might be forward-looking in nature and it may involve risk and uncertainties, including those related to the future financial and operating performance. Please bear with us if there is a call drop during the course of the conference call, we would ensure the call is reconnected the soonest.

I would now hand over the conference to Mr. Pankaj Ostwal– Promoter Director. Over to Pankaj.

Good afternoon, everyone and thank you for joining the Earnings Call of Krishana Phoschem Ltd. for the quarter ended December 2025.

We are pleased to share the details of our record-breaking quarterly performance. The milestone quarter was driven by new strategic initiatives, specifically the expansion of in-house capacity utilization beyond core functions. With demand visibility significantly stronger over year-to-year, we successfully leveraged enhanced operating efficiencies and a robust

Page 2 of 10 expansion of our distribution network, to capture greater market share and ensuring sustainable growth.

The Company's performance was supported by a favorable agricultural landscape and supportive government policies in India.

Reservoir storage levels across the country remain higher than last year and above long-term averages, supporting irrigation availability and crop productivity, particularly in Central, Northern, and Western India.

Promoting balanced nutrient use remains a strategic priority. Government initiatives— including the expansion of Soil Health Cards, the promotion of organic, bio, and nano-fertilizers, and advisory-led interventions—are actively shaping long-term agricultural consumption patterns.

The Indian phosphatic fertilizer industry continues to undergo a significant evolution, characterized by a notable shift from traditional DAP use toward balanced NPK and SSP blends.

This dynamic creates a distinct opportunity for agile, integrated manufacturers like Krishana to capitalize on evolving farmer preferences by consistently delivering both quality products and timely supply.

The raw material landscape for India’s phosphatic fertilizer sector remained stable during the quarter. While rock phosphate availability was consistent, phosphoric acid prices saw a

Page 3 of 10 demand-driven upward trend. Conversely, comfortable supply levels led to softer pricing for sulphur and sulphuric acid. Manageable input costs, coupled with robust government subsidy support including the ₹37,952 crore allocated for the Rabi 2025–26 season provided strong operating and cash-flow visibility. As an integrated producer, we remain uniquely positioned to mitigate cost risks and absorb short-term market fluctuations.

In parallel, the industry offered additional opportunities, and Krishana Phoschem strategically expanded its operations and enhanced distributions, leveraging these opportunities to complement fertilizer’s volumes and positively contribute to revenue and profit growth

These expansions are expected to strengthen our operating performance and enhance long- term growth visibility. In parallel with our current projects, we are actively evaluating new strategic opportunities to diversify our portfolio and further scale our integrated growth operations.

As we enter the final quarters of FY26, our outlook remains robust. Our confidence is anchored by a synergy of favorable macro-agricultural tailwinds and strong operational and financial execution at the company level, positioning us well to deliver outstanding long-term value for our shareholders.

The company's strong performance was driven by a substantial increase in fertilizer demand and volume expansion. •

Page 4 of 10 • Highest-ever fertilizer production volumes of 1,13,155 MT • NPK/DAP operations at an all-time high, with 98% utilisation • SSP plant utilisation at 107%

On the nine-month front, Company’s best-ever performance is reflected in new records across all key financial metrics • Revenue was highest-Ever at ₹1,663 crore, up 88%, driven by strong fertilizer demand and higher sales volumes enabled by improved plant utilisation. • EBITDA was also Highest-Ever at ₹209 crore, up 65%, supported by operating leverage from higher volumes and operational efficiencies. • PAT Doubled to ₹97 crore from ₹54 crore, up by 80.8% • EPS also Doubled to ₹15.7 from ₹8.7, up 81%, driven by higher profitability. So, let me thank you for your continuous support and interest in Krishana Phoschem Ltd.

We are now open to the floor for questions and answer session.

Thank you, sir. We will now begin the question-and-answer session. The first questions come from the line of Vighnesh Iyer with Sequent Investments. Please go ahead.

Sir my first question is more on the overall industry as such, from point of view of DAP, so can you help us understand how is the inventory situation when it comes to DAP for the Rabi season and how are setup for the upcoming Kharif season? In terms of requirement of DAP versus availability of DAP?

Firstly, you need to understand what the fertilizer requirement of a farmer is in terms of nutrients. DAP is one of the quality fertilizers available in the country and across the world, containing nutrients of 18% nitrogen and 46% phosphorus. However, what has evolved is that the usage of DAP across the world is going down, and different grades of NPKs are coming up.

Now, it is not an issue of DAP availability or the quantity available in the country. The issue is what nutrients are required for the soil, for different types of crops, and at what stage. So, coming to your question, DAP availability or DAP stocks in the country will not make much difference because farmers are now preferring various types of NPKs. As far as productivity is concerned, different variants of NPKs available in the country will ensure higher crop productivity rather than just DAP availability.

I think as far as the deficit is concerned, since phosphatic fertilizer supply from domestic players is less than the demand, we will obviously have to resort to imports. With all the initiatives the government is taking, and the steps we are also taking, including imports to meet the deficit, I hope we will be able to meet the demand.

Page 5 of 10 Okay, because the reason I was asking this is because FAI had earlier stated that in the first 8 or 9 months of FY26, we had seen 55-60% increase in import of DAP. So at some point of time, and at a point of time, there would be a situation where the demand is more than what we are able to manufacture domestically. So that is why I was asking how is the situation because that in turn would mean that NPK would be selling higher if the farmers decide to choose NPK over DAP.

That is exactly the intention of the government. DAP is a generic product, whereas NPK is soil- and crop-specific. A generic product cannot be used for all crops, soils, and environments across the country. DAP is essentially one form of NPK fertilizer with a fixed nutrient composition, whereas NPK fertilizers are available in multiple compositions tailored to specific soil and crop requirements.

Right. Got it. So in view of this situation, how do you see our EBITDA per ton for NPK panning out for Q4 and the upcoming Kharif season? If there is a difference between demand and supply of this magnitude, would we see that some improvement in realization coming and some improvement in EBITDA as well going forward?

We are operating in a competitive environment, notwithstanding that domestic production is less than demand. At the same time, we are dependent on government subsidies and must keep the interest of farmers in mind, along with the interests of our stakeholders and the Company. Considering all these factors, we continue to earn an EBITDA of around 14–15% on our manufactured products. We do not intend to encash any demand-supply gap by increasing MRP to boost profits. This has never been our intention, and we will not do so.

Right, but then the cost of sulfur and sulfuric acid is also putting up some pressure on our raw material cost, right? I mean, on that part, if you could give us some understanding.

That is why I am saying that we will maintain an EBITDA margin of 14–15% by taking care of increases in sulfur costs, other raw material costs, and input costs. We will maintain the 14– 15% margin. If it requires changes to our marketing policy, we will make those changes.

Right, so perfect. So, considering the situation of increasing raw material, we will be taking adequate price rise to maintain our EBITDA. Perfect. Yes.

Okay. Sir, just one last question from my side. Can you share pricing per ton when it comes to sulfur and sulfuric acid for Q3 and what is the price right now in the month of January?

Page 6 of 10 If we look at sulfur prices from April to December, in April they were around Rs. 28,000–29,000 per ton. By October–November, prices increased to around Rs. 35,000 per ton, and in December they rose further to around Rs. 45,000 per ton.

Rs. 35,000 from Rs. 28,000 is that what you are saying, right?

From Rs. 28,000 to around Rs. 35,000 in October, and from October to December, prices moved to around Rs. 45,000 per ton. And Sulfuric Acid?

Sulfuric acid was around Rs. 8,000 per ton in April. It increased to around Rs. 9,500 in October, and in December it went up to around Rs. 12,000. However, this depends on the Company’s policy, how suppliers are managed, contractual positions in the industry, and inventory levels within the Company and among suppliers. Therefore, these figures may differ from company to company. These are our numbers at present.

Thank You. The next question comes from the line of Disha with Sapphire Capital. Please go ahead.

Hello, so just a couple of questions. So, what was the proportion of trading revenue for this quarter?

Rs. 245 crores are import and Rs. 413 crores are manufacturing.

Why we resort to import is also a vital question. We are operating at almost 100% capacity for SSP as well as DAP-NPK, and we are producing only one variant of NPK. Demand is huge, including demand for other variants. To make all types of products available at one shelf from our side, we import other variants and make them available to farmers. That is why we resort to imports, despite the fact that profitability in imports is very low.

Right. So, that is why I think the margins have tapered down to around 10.6%. Yes, that is the reason. Any other reason sir?

No, nothing. This is the purely one reason where trading profitability is less. And one additional factor is that due to logistics issues, some dispatches in the last week of December spilled over into the first week of January. To that extent, manufacturing turnover was impacted, but it will be made good in the current quarter. Otherwise, the margin compression is mainly due to trading.

Page 7 of 10 Okay. So, going ahead in the next quarter, how do we see margins panning out? And also, what sort of revenue are we targeting overall for FY26?

As far as manufacturing is concerned, we will continue to maintain an EBITDA margin of 14% to 15%, and sometimes even around 16%. As for imports, depending on opportunities and orders received from wholesalers and cooperative federations, we may resort to imports. For manufacturing, we will maintain profitability.

Okay, but then, do we expect some improvement quarter on quarter going ahead? I can only assure we will maintain it.

Okay. And what sort of revenue are we building in for the entire year, since now we are in the last quarter?

You can analyze it from the trends. But yes, it will be more than the proportion what we have achieved in nine months. That much I can tell you. Nine months average is coming at about Rs.570 crores. And this quarter, it will be more than that.

Okay. And for the new plant that we are expecting to commission in March, what sort of revenue potential do we see at optimum utilization level?

The plant has the capacity to add almost Rs. 1,000 crores of revenue. Since the plant will start from April, there may be teething issues, and in the first year we are expecting around 60% capacity utilization. Based on that, you can calculate the incremental revenue.

Yes. So, what did you say, sir? Rs.1000 crores revenue potential, right?

It has a capacity of adding Rs.1000 crores turnover. Okay. Okay.

Okay All right. And first year we are targeting 60%? Yes. Okay, that’s it from my side, thank you.

Thank you. The next question is from the line of Keshav Sharma, an individual investor. Please go ahead.

Hi, sir. Good evening, sir. Can you update on DAP, NPK, and Sulfuric acid expansion at Megh Nagar? Is there any diversion in timeline of commissioning by March ‘26?

Page 8 of 10 That is what we are targeting. All machinery orders have been placed, civil work is almost complete, and all machinery and plant equipment will be in place by March. We will have trial production, and we hope to start commercial production in April. The project includes DAP, NPK, and sulfuric acid capacities. Okay, thank you sir.

Thank you. The next question comes from the line of Nirav from Sunidhi Securities, please go ahead.

So, my first question is on, sir, what are the expansion plans for the Company beyond March ’26 and how does the Company intend to fund the future incremental CAPEX?

The Company has been earning substantial cash profits, and whatever plans we have are under implementation. Once the current plant is implemented successfully, and as we have done in the past using cash accruals, we will explore further possibilities. At present, there are no plans in the pipeline. Once the year closes and numbers are finalized, we will examine potential additions.

Sure. We'll keep updated to the shareholders as and when we finalize the plan.

Sure, sir. The second question was on the CAPEX at Megh Nagar. Do we intend to add any newer variants of NPK because you said that we only manufacture one variant of NPK at present? So, do we intend to add any new variant of NPK fertilizers?

We have the capacity to add new variants, but even for the single variant we currently manufacture, we are unable to meet demand. Therefore, there is no point in switching to other variants at this stage. To meet market demand for other variants, we are importing them. This also helps ensure that farmers, customers, and wholesalers recognize us as a supplier of multiple variants.

Sure so, the new plant would add new variants?

It depends on market demand, opportunity, profitability, and even we may add some new geographical area also. So, so many factors are there. The management will take a call when we start the production and when we see the inflow of orders and inflow of the variants.

Sure sir. Purdue, our corporate tax rate is high at around 40%. So, why is that happening?

Currently we are under MAT, and you would already be aware that for the calculation of deferred tax, we need to consider the rate applicable to the Company. The Company falls under the tax slab of 30% plus surcharge and cess. That is why the overall tax liability you are seeing is around 40%. Whenever we move out of MAT, we will switch to the lower tax alternative of

Page 9 of 10 22%, and in that particular year you will see a significant reduction in tax liability, which will also impact EPS. This is more of a regulatory and income-tax requirement rather than a preference of the Company, as income tax regulations require computation at the 30% rate structure.

Thank you. The next question comes from the line of Bhagyawant an Individual Investor. Please go ahead.

Yes, hello. Good evening, sir. Congratulations on a good side. Just had one question. For Q4 and going into the next fiscal, what kind of proportions do we expect to maintain between trading and manufacturing?

As far as our manufacturing production is concerned, we are operating almost at 100% capacity, so that is fixed. As for trading, which includes the import portion, it will depend on market demand and orders from wholesalers and cooperative federations. That will keep changing. It is difficult at this moment to predict how much import we will undertake in Q4 and the next year.

Thank you. The next question comes from the line of Keshav Sharma an Individual Investor. Please go ahead.

Sir, is there any plan for listing the Company on BSE, given that such a listing could enhance shareholder value?

As of now, this is not being discussed at the Board or Company level. Since you have raised this question, we will examine it and explore the possibility of listing on BSE.

The next question is from the line of Bhaskar with Three Head Capital. Please go ahead.

Sir, I am new for this industry. Can give you overview on seasonality, which time is peak, demand is high or when seasonal drop? Can you give a brief overview?

I believe what you are asking has already been covered by our director in his opening remarks, how the industry functions, demand-supply dynamics, nutrient usage patterns, how farmer preferences are shifting from one product to another, and the role of government support. If you have any specific questions, we will be happy to address them.

Okay, I joined late. I will listen to the audio.

Thank You. The next question comes from the line of Gaurav Gandhi an Individual Investor. Please go ahead.

Sir, we have taken the shareholder approval in the AGM regarding the issuance of shared debentures CTC. Is there any future plan for that, in the near future?

As of now, no. Our cash accruals and expansion plans are well synchronized, and currently we do not require additional capital. This approval is an enabling provision that we keep in place to avoid any last-minute rush, if required.

Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments.

Thank you all the participants. Thank you very much. Thank you once again for joining in this Concall. Still, if you have any questions, please do not hesitate to reach out to our investor relation team. We will respond to you through email. Thank you and have a great day.

Thank you. On behalf of Krishana Phoschem Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.