Revenue Surges 51% in H1 FY26
Khaitan Chemicals and Fertilizers Limited (KCFL) delivered strong financial performance in the first half of FY26.
The company recorded operational revenue of ₹5,429 million, a 51% increase year-on-year, and net profit of ₹429 million.
Moreover, PAT margins improved to 7.9%, demonstrating stronger cost efficiency.
EBITDA rose to ₹628 million with a margin of 11.6%, supported by higher fertilizer volumes and better realizations.
As a result, KCFL strengthened its profitability after posting a modest recovery in FY25, signaling a robust turnaround in FY26.
Fertilizer Segment Drives Growth
The fertilizer division remained the company’s main growth engine, contributing 84% of total revenue.
Meanwhile, the chemicals segment contributed 16%, ensuring a well-balanced revenue mix.
Fertilizer volumes rose 11%, reaching 2.58 lakh MT, while chemical volumes grew 18%.
The growth came primarily from the rising adoption of Single Super Phosphate (SSP) fertilizers.
Farmers increasingly chose SSP due to its affordability and efficiency, especially as DAP imports declined and prices increased.
Therefore, KCFL successfully captured new demand across key agricultural markets.
SSP: India’s Cost-Effective Alternative to DAP
With over 40 years of industry leadership, Khaitan Chemicals and Fertilizers continues to be India’s second-largest SSP producer, commanding nearly 10% of the national market.
Its six strategically located plants in Madhya Pradesh, Rajasthan, Uttar Pradesh, Chhattisgarh, and Gujarat ensure timely product availability for farmers.
Furthermore, the company’s SSP variants enriched with zinc, boron, and magnesium enhance soil health and boost crop productivity.
These fertilizers act as cost-effective and indigenous substitutes for DAP, aligning well with the Government of India’s push for balanced fertilization.
Recently, the Union Cabinet approved a ₹37,952 crore subsidy under the Nutrient-Based Subsidy (NBS) scheme for Rabi 2025-26.
This support, therefore, keeps SSP affordable and strengthens farmer adoption nationwide.
Strong Distribution and Market Reach
KCFL’s strong growth is also powered by its 3,000+ dealers and 30,000+ retail partners across 19 Indian states.
The company’s brands — Khaitan SSP and Utsav SSP — are highly trusted by farmers.
Consequently, the company enjoys deep market penetration and strong brand loyalty.
In addition, KCFL promotes balanced fertilization awareness through field campaigns and partnerships, ensuring that farmers gain knowledge about nutrient management and soil sustainability.
Financial Stability and Growth Vision
Under the visionary leadership of Mr. Shailesh Khaitan, Chairman and Managing Director, the company continues to expand strategically.
It maintains low long-term debt, ensuring financial flexibility for future investments.
Moreover, its backward integration through in-house production of sulphuric acid and oleum guarantees cost control and quality assurance.
KCFL also focuses on technology-driven efficiency, with automated plants and process optimization to enhance capacity utilization.
Therefore, the company remains well-positioned to sustain growth while ensuring operational excellence.
Innovation and Future Roadmap
Khaitan Chemicals plans to introduce new fertilizer formulations like Urea-SSP and value-added non-subsidized fertilizers.
Furthermore, it aims to expand into untapped regions and institutional sales channels to widen its customer base.
By leveraging its strong dealer network, KCFL seeks to boost high-margin product sales and promote sustainable farming practices.
Consequently, the company’s diversification strategy supports both revenue stability and long-term farmer welfare.
Industry Outlook and Market Position
India’s fertilizer sector continues to evolve with an increasing focus on sustainability, precision farming, and digital soil management.
The market is projected to reach USD 16.6 billion by 2032, driven by growing demand for specialty fertilizers.
In this landscape, Khaitan Chemicals and Fertilizers stands out as a resilient and future-ready enterprise.
After facing losses in FY24, it has delivered a remarkable turnaround with a ₹429 million profit in H1 FY26, reflecting strong management execution and market leadership.
Conclusion
Through consistent innovation, strong leadership, and a farmer-centric approach, Khaitan Chemicals and Fertilizers continues to strengthen its role in India’s agricultural growth story.
Its focus on Single Super Phosphate, cost-efficient production, and sustainable farming ensures that the company remains a trusted partner for Indian farmers.
As a result, KCFL is poised to continue delivering growth, stability, and value — season after season.
