1. At a Glance
Khaitan Chemicals is India’s SSP (Single Super Phosphate) poster child — but lately, it’s been more “Single Super Problems.” After bouncing back with a ₹21 Cr Q1 profit, one has to ask: is this a real recovery or just a rain-fed miracle? Also, what’s up with the -54% operating margins last year? Drama much?
2. Introduction with Hook
If Khaitan Chemicals were a movie, it’d be a Bhojpuri thriller: occasional fireworks, confusing plot, and a surprise solar twist. Once boasting 36% ROCE, now struggling at 2.47%, this fertilizer giant’s financial health has more ups and downs than your WiFi during a monsoon.
- Q1 FY26 Net Profit: ₹21.4 Cr (up from ₹-17 Cr YoY)
- TTM EPS: ₹4.07, P/E: 27.3x — because why not?
3. Business Model (WTF Do They Even Do?)
They sell fertilizer. But wait — they make it look complicated.
- Core Products: Single Super Phosphate (SSP), Sulphuric Acid, and some sidekick chemicals.
- Brand Names: “Khaitan SSP” and “Utsav SSP.” Sounds like a wedding brand, but it’s all phosphates.
- Distribution Muscle: 3,000+ dealers, mostly operating in Western MP, Chhattisgarh, and UP.
Basically, they shovel sulphur, sell phosphate, and pray for monsoon.
4. Financials Overview
Let’s put the microscope on this soil sample:
| Metric | FY25 |
|---|---|
| Revenue (TTM) | ₹824 Cr |
| EBITDA | ₹62 Cr |
| Net Profit | ₹40 Cr |
| EPS | ₹4.07 |
| ROCE | 2.47% |
| ROE | 0.63% |
Margins recently started growing again — like crops after a drought. But FY24 was a certified financial crop failure.
5. Valuation
Is a fertilizer stock really worth 27x earnings? Asking for a farmer friend.
Fair Value Range:
| Method | Fair Value |
|---|---|
| P/E (15–18x) | ₹61 – ₹73 |
| EV/EBITDA (6–8x) | ₹72 – ₹96 |
With CMP at ₹111, it’s already priced like it’s growing organic rocket fuel.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 profit bounce: From losses to ₹21 Cr — fertilizer finally fertilizing?
- Acquisition Alert: Bought 26% of KRSKA Solar for ₹38 lakh. Strategic? Maybe. Or maybe just “green” PR.
- Motilal Oswal Analyst Meet: When big brokers call, small caps wake up.
- Volatility Special: OPM has been everything from -54% to 14% in just one year.
This stock has more plot swings than a Karan Johar film.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity | ₹10 Cr |
| Reserves | ₹213 Cr |
| Borrowings | ₹318 Cr |
| Total Liabilities | ₹620 Cr |
| Net Worth | ₹223 Cr |
Debt is… let’s say enthusiastic. D/E at 1.43x means they’re growing aggressively or recklessly — choose your adjective.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | -₹88 Cr | -₹22 Cr | ₹63 Cr | -₹47 Cr |
| FY24 | -₹55 Cr | ₹2 Cr | ₹54 Cr | ₹0 Cr |
| FY25 | ₹44 Cr | -₹17 Cr | -₹27 Cr | ₹0 Cr |
Cash from operations is back in green, but free cash flow is still looking like a teenager’s wallet — always short.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 2.47% |
| ROE | 0.63% |
| D/E | 1.43x |
| PAT Margin | 4.8% |
| P/E | 27.3x |
ROE is flatter than a UP highway. But D/E is rising like fertilizer demand in election years.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹888 Cr | ₹78 Cr | ₹42 Cr |
| FY24 | ₹536 Cr | ₹-30 Cr | ₹-70 Cr |
| FY25 | ₹720 Cr | ₹23 Cr | ₹1 Cr |
FY25 was a “barely breathing” year. FY26 Q1 has started on a high, but it’ll take more than one good quarter to call this a comeback.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E | ROCE |
|---|---|---|---|---|
| Coromandel | ₹24,085 | ₹1,720 | 40x | 23.2% |
| Chambal | ₹16,646 | ₹1,649 | 13.6x | 27.9% |
| Paradeep | ₹13,820 | ₹552 | 29.6x | 13.9% |
| Khaitan Chem | ₹824 | ₹40 | 27.3x | 2.5% |
Khaitan looks like the last bench student who somehow made it to the Ivy League fee structure.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2024 | Jun 2025 |
|---|---|---|
| Promoters | 72.52% | 72.55% |
| FIIs | 0.08% | 0.48% |
| Public | 27.4% | 26.97% |
Promoters are holding tight. FIIs poked in slightly. Public’s still wondering if this is a turnaround or trap.
13. EduInvesting Verdict™
Khaitan Chemicals is a tale of two years — FY24 was a car crash, FY26 Q1 looks like recovery. But one quarter doesn’t make a trend. And paying 27x for a commoditized fertilizer business with 2% ROCE? That’s rich.
Sprouting again, but let’s wait to see if it bears fruit or weeds.
Metadata:
Written by EduInvesting Team | July 23, 2025
Tags: Khaitan Chemicals, Fertilizer Stocks, SSP, Q1 FY26, EduInvesting Premium
