Coromandel International Ltd Management Discussions

Global economy

The global economy in 2025 demonstrated moderate resilience amid a complex and evolving macroeconomic landscape. The economy grew by 2.7% (World Bank), supported by factors such as inventory build-up, strong financialmarket sentiment and increased investment in Artificial Intelligence (AI). However, growth remained uneven across regions, reflecting persistent geopolitical tensions and the lagged impact of tight monetary policies.

Global trade dynamics underwent notable shifts during the year, with the United States adopting a more protectionist stance. The imposition of reciprocal and additional tariffs on key trading partners, including India, signaled a recalibration of global trade relationships and introduced uncertainty ined by external factorsinfluenc export markets. These developments accelerated the ongoing trend towards supply chain diversification and regionalization.

Monetary policy across advanced economies remained a key influence banks, led by the Federal Reserve, maintained a cautious approach to policy normalization. Elevated interest rates for a of the year continued to impact global liquidity, capital flows and currency stability, particularly in emerging markets.

The rapid advancement and adoption of Artificial Intelligence (AI) emerged as a defining global trend, with far-reaching implications across industries. Technology companiessignificantly increased investments in AI infrastructure, while businesses across sectors accelerated the integration of AI-driven solutions to enhance productivity, optimize operations and drive innovation.

Commodity markets exhibited mixed trends during the year. Prices remained largely soft to stable across most segments, reflecting moderate demand conditions and improved supply availability. However, fertiliser inputs and precious metals diverged from this trend, witnessing relatively firm price movements due to tighter supply conditions and strategic demand. Towards the later part of the year, escalating geopolitical tensions led to upward pressure on broader commodity prices, contributing to increased volatility in energy markets and shipping routes and impacting global logistics and input costs.

Entering into FY27, the situation remains uncertain as tensions in the Middle East continue to weigh on global growth. Energy and freight volatility are expected to keep cost pressures elevated, across Asia due to high import particularly impacting inflation dependence. This may delay monetary easing and moderate consumption-led growth in the region.

Indian economic environment

Despite external uncertainties, India continued to demonstrate strong macroeconomic resilience, extending the momentum built in the post-pandemic period. Economic growth remained robust, with strong performance reported across the quarters. Monetary policy turned supportive during the year, with the Central Bank reducing interest rates and easing liquidity conditions. consolidation On the path while supporting consumption and investment. Indias improving macroeconomic fundamentals were recognized globally, with sovereign credit rating upgrades by multiple agencies during the year.

The external environment, however, presented challenges. Trade relations with the United States saw unexpected developments, with the imposition of reciprocal and additional tariffs on Indian exports during the year. While these measures initially led to downward revisions in growth forecasts, the domestic economy demonstrated resilience.

A series of structural reforms and policy initiatives provided further impetus to growth. These included a comprehensive overhaul of the Goods and Services Tax framework, liberalization measures such as opening up of the nuclear power sector to private participation and allowing 100% foreign direct investment in insurance, progress on implementation of labour codes and rationalization of environmental compliance norms. As a result, growth strengthened over the course of the year, with

India achieving real GDP growth of 7.7%, sustaining its position as one of the fastest-growing major economies globally.

Despite Indias strong macroeconomic fundamentals, including robust growth and improving fiscal metrics, the currency remained as elevated US interest rates, geopolitical uncertainties and volatility in global commodity markets.

On the sustainability front, momentum around clean energy transition. While inflationary strengthenedpressures further. began Under toinitiativesease, Central such as the National Green Hydrogen Mission and similar global programs, investments in green hydrogen and green ammonia gained traction,part with implications for the long-term evolution of the fertiliser industry.

Global Agriculture

The global agriculture sector in 2025 26 remained stable, supported by adequate supply, while continuing to face evolving geopolitical, climate and sustainability challenges. Global cereal availability improved during the year, with the stocks-to-use ratio rising to 31% the highest level since 2017 18 providing a cushion against short-term supply disruptions and moderating price volatility. The medium-term outlook for global agriculture remains structurally positive, albeit with moderating growth. According to the OECD FAO Agricultural Outlook 2025 2034, global demand for agricultural commodities is expected to grow at a slower pace over the next decade, primarily due to moderating population and income growth, as well as saturation of food demand in developed economies. However, emerging markets- particularly in Asia and Africa - are expected to remain the primary drivers of incremental demand, supported by urbanization, rising incomes and changing dietary patterns, including higher consumption of livestock and protein-based products.

Climate change and sustainability considerations continue to shape the sectors trajectory, with increasing pressure on natural resources such as soil and water. This has accelerated the need for productivity enhancements through advanced genetics, improved crop intensity, precision agriculture and mechanization. At the same time, the adoption of biological solutions is gaining momentum globally, with the market expected to scale up significantly, reflecting a shift towards environmentally sustainable crop inputs.

The growing importance of biofuels has emerged as a key structural driver, with increasing diversion of crops such as corn, sugarcane and oilseeds towards ethanol and biodiesel production. This trend is strengthening the linkage between agriculture and energy markets, influencing demand balances and adding a new dimension of volatility to agri-commodity prices.

Going ahead, agri-commodity prices in FY27 are expected to be sensitive to external developments, particularly the ongoing

Middle East conflict, which could influence energy and markets, thereby impacting farm input costs and overall agricultural economics. Weather-related uncertainties remain a critical monitorable, with a transition to El Ni?o conditions, potentially leading to drier conditions across key agricultural regions and affecting crop yields.

Indian Agriculture

The Indian agriculture sector in FY26 witnessed moderate growth, with Agri GDP expanding by 3%, reflecting the impact of uneven climatic conditions and softening food commodity prices. The southwest monsoon was above normal at 108% of the

Long Period Average (LPA); however, its erratic distribution and delayed withdrawal affected crop cycles and rural consumption, particularly during the October November period. Encouragingly, water availability remained strong throughout the year, supporting improved sowing activity. Kharif acreage increased to 112 million hectares (+1%), while Rabi sowing rose to 68 million hectares (+2%), culminating in record foodgrain production of 377 million tons (+5%).

Policy support remained a key pillar for the sector, with the Union Budget continuing its focus on agriculture through schemes such as crop insurance, interest subvention, PM-AASHA for price support and PM-KISAN for direct income assistance. Structural investments in irrigation infrastructure are also gaining momentum, with major projects such as the Godavari Krishna linkage and Polavaram in

Andhra Pradesh and the Wainganga linkage in Madhya Pradesh, expected to enhance water availability and support higher cropping intensity, particularly for water-intensive crops like paddy.

The sector is also witnessing a strategic shift towards diversification and value addition. Horticulture continues to gain prominence, with initiatives such as the Global Horticulture Hub at Rayalaseema aiming to significantly expand cultivation area by 2030. At the same time, Indias focus on achieving self-sufficiency in oilseeds and pulses is intensifying, driven by rising per capita consumption of edible oils and the need to reduce reliance on imports, which currently meet over half of domestic demand. During the year, Self-Reliance in Pulses Mission was launched with an outlay of

11,000 crore to reduce import dependency.

Technological advancements are further transforming the sector, with government approval of gene editing technologies in rice marking a significant step in biotechnology adoption. Digital initiatives such as Agri-Stack, which integrates farmer databases with land and crop records, along with AI-led farm advisory and drone-based imaging, are enhancing precision agriculture and decision-making at the farm level.

Rising rural labour costs are accelerating the shift towards mechanization, with overall mechanization levels estimated at around 45%. The growing adoption of shared and service-based models is improving access for small and marginal farmers, enabling timely and efficient farm operations. In parallel, drone adoption is gaining strong momentum, supported by government incentives and the emergence of drone-as-a-service models. Drones are increasingly being deployed for precision spraying, crop monitoring and real-time farm advisory, enhancing operational efficiency, reducing labour dependence and enabling data-driven farming practices.

Business Performance Summary

Coromandel delivered a resilient performance in FY26, driven by growth across its nutrient, crop protection and retail ecting a strongbusinesses. The Company reported a 26% increase in total income, with

EBITDA and profit after tax growing by 17% and 4% respectively, reflecting strong volume growth, improved product mix and croppingpatterns,tightening supply- operating leverage.

The Fertiliser business registered record sales volumes of 4.3 million tons of phosphatic fertilisers, driven by market expansion in North and Central India. Plants operated at optimal capacity, with increased throughput of fertilisers and intermediates. The Companys rock mining project stabilized operations and emerged as the largest exporter of rock phosphate from Senegal. During the year, the Company, through its wholly owned subsidiary, formed a joint venture, Stuccoedge India Private Limited, for the manufacture and sale of phospho-gypsum-based products.

The Crop Protection business emerged as a key growth driver, delivering strong performance across domestic and export markets, supported by higher demand for key molecules, portfolio expansion and capacity augmentation. The Retail business continued its rapid expansion, strengthening the direct-to-farmer engagement model. The network grew to 1,200 outlets, enabling deeper market penetration and improved last-mile connectivity.

The Speciality Nutrients business delivered its highest-ever revenue, led by strong traction in sulphur and micronutrients. The business expanded into new geographies, scaled farmer outreach to over 1.3 million farmers and strengthened manufacturing capabilities for key products.

The Company strengthened its manufacturing infrastructure, with capital expenditure of Rs. 1,300 crore during the year. Key backward integration projects, including sulphuric and phosphoric acid plants at Kakinada were commissioned, enhancing supply security and reducing dependence on imports. The Company is on track to commission a 7.5 lakh ton NPK granulation plant at Kakinada, which will establish it as one of the largest integrated phosphatics complexes in the country. Ongoing investments in crop protection, speciality nutrients, water-soluble fertilisers and new product development are expected to support future growth and margin expansion.

During the year, the Company completed the acquisition of a 53% stake in NACL Industries Limited, strengthening its crop protection portfolio, manufacturing capabilities and market reach. It also successfully completed a rights issue, with proceeds being utilised to retire high-cost debt and for general corporate purposes. Its credit rating was upgraded to CRISIL AA/Stable. Innovation remained a key focus area, with the Company introducing 19 new products across businesses. It advanced its pipeline of new molecules and formulations in crop protection, while increasing its focus on biologicals and sustainable agri-input solutions.

The Company made significant progress in its digital transformation journey by strengthening analytics, AI, enterprise applications and IT infrastructure. Business dashboards were rolled out across functions and multiple high-impact AI/ML use cases were identified to drive data-led decision-making. Migration of legacy SAP systems from SAP HANA to SAP Rise progressed well, alongside increased adoption of Salesforce platforms, including CRM and Marketing Cloud, to enhance customer engagement.

The Company enhanced its sustainability agenda through the rollout of its Sustainability 2.0 framework, focusing on reducing environmental impact and enhancing process safety. The Total

Recordable Injury Rate (TRIR) stood at 0.25, reflecting a strong commitment to safety and continuous improvement. Progress was also made on Responsible Care certification, climate risk assessment and initiation of Scope 3 emissions inventory across the value chain.

The Company continued to invest in leadership development and people capability building through structured initiatives across levels. It also advanced its Business Excellence journey, with the

Fertiliser business achieving Platinum recognition in external assessment, of continuous improvement and operational excellence.

Overall, the Companys performance reflects a clear focus on consolidating its core strengths across businesses, operations and capabilities, while building a strong foundation for future growth.

With strategic investments, enhanced operational efficiencies and continued emphasis on innovation and sustainability, Coromandel is well positioned to accelerate growth in the coming years, in line with its overarching theme of "Consolidate to Accelerate."

Fertiliser

Global fertilizer scenario: FY 2025 26 witnessed a volatile global fertiliser environment shaped by geopolitical disruptions, evolving trade partnerships and new tariffs and sanctions, leading to significant realignment of trade flows. Supply disruptions from key regions such as the

Middle East and China, along with unplanned outages and logistics bottlenecks, tightened availability of critical inputs including ammonia, urea, sulphur and phosphates. Shipping disruptions, particularly in the Strait of Hormuz and Red Sea, continued to pose risks, keeping global supply chains under pressure.

Demand recovery continued across major importing regions including Brazil, India, Europe, and the United States, following the affordability-driven contraction of 2022 and 2023. Global fertiliser consumption (N + P O + K O) rebounded to a record 207.4 million tonnes, with Asia accounting for nearly half of total demand.

Table: Global Fertiliser consumption (000 ton Nutrient basis)

	2021/22	2022/23	2023/24	2024/25
N	1,09,171	1,10,045	1,14,858	1,17,789
P2O5	48,064	44,432	47,135	48,892
K2O	38,424	34,294	37,457	40,919
Total	1,95,658	1,88,771	1,99,450	2,07,600

Source: International Fertilizer Association

However, growth across regions remained moderate, constrained by lower crop realisations, high interest rates, currency pressures, adverse weather conditions and policy interventions.

Phosphate markets stayed tight amid Chinas export restrictions and high input costs, while potash prices firmed up on supply constraints and geopolitical risks. Nitrogen markets remained volatile, influenced by fluctuations in natural gas prices, seasonal demand in Europe, and intermittent supply from China.

From a sustainability perspective, mixed signals on decarbonisation pathways added to industry uncertainty. Delays in the International

Maritime Organizations net-zero framework and a phased, uneven rollout of carbon border adjustment mechanisms (CBAM) led to deferment or reassessment of certain low-carbon fertiliser projects. Nevertheless, the medium- to long-term outlook remains constructive, with project pipelines expected to accelerate post-2027, driven by structural demand growth and the need to replace aging production capacities.

In the near term, global fertiliser markets are expected to remain tight and volatile, with prices supported primarily by supply-side constraints.

Ongoing geopolitical risks, logistics uncertainties, elevated energy costs, and plant outages are likely to keep key nutrients supply-constrained.

Demand is expected to remain selective, with buyers prioritising supply security and flexible contracting, keeping markets range-bound but highly sensitive to disruptions and policy changes.

Indian Fertiliser scenario: The Indian fertiliser industry demonstrated resilience and steady growth during FY 2025 26, supported by robust agricultural activity, favourable monsoon conditions and continued policy support. Fertiliser demand remained strong across key nutrients, driven by sustained cropping intensity, stable sowing patterns and the Governments focus on enhancing farm productivity and soil health.

India remains one of the largest consumers of fertilisers globally, with demand supported by structural factors such as food security requirements and a large agrarian economy. Despite global volatility, domestic availability was largely ensured through a combination of indigenous production and strategic imports, reflecting strong supply chain management and policy intervention.

Table: Indian Fertiliser statistics (Million tonnes)

		PRODUCTION				IMPORT			CONSUMPTION (POS)
	FY 23	FY 24	FY 25	FY 26	FY 23	FY 24	FY 25	FY 26	FY 23	FY 24	FY 25	FY 26
UREA	28.5	31.4	30.6	29.3	7.6	7.0	5.6	10.3	35.7	35.8	38.8	39.7
DAP	4.3	4.3	3.8	3.9	6.6	5.6	4.6	6.2	10.4	10.8	9.3	9.4
NPK	9.3	9.6	11.3	12.0	2.8	2.2	2.3	3.7	10.1	11.1	14.2	14.1
SSP	5.7	4.5	5.2	5.7					5.0	4.5	4.9	5.5
MOP					1.9	2.9	3.5	2.9	1.6	1.6	2.2	2.3
TOTAL	47.8	49.7	51.0	50.9	18.8	17.6	16.0	23.1	62.9	63.8	69.4	71.0

Source: Fertiliser Association of India

Aligned with the Governments Atmanirbhar Bharat vision, the sector is making steady progress in capacity creation and revival of domestic manufacturing. Investments in new and brownfield expansions, particularly in urea and complex fertilisers, are strengthening self-sufficiency, with emphasis on domestic production, energy efficiency and securing long-term raw material linkages.

Looking ahead, sustainability and energy transition are emerging as key priorities for the sector. The development of green ammonia and adoption of low-carbon technologies are gaining traction, supported by policy direction and pilot initiatives. During the year, phosphatic industry players signed off-take agreements for 7.24 lakh tonnes of green ammonia. These efforts are expected to play a crucial role in reducing the carbon footprint of fertiliser production while aligning with Indias long-term climate commitments.

Coromandel Fertilisers - Business Performance

For over six decades, Coromandel has been a trusted partner of Indian farmers, guided by its commitment to balanced plant nutrition and farm prosperity. As the countrys leading private sector manufacturer and marketer of phosphatic fertilisers with a strong portfolio of differentiated NPK grades, the Company delivered a strong performance in FY 2025-26, registering its highest ever sales, production and outreach to farmers. The company further affirmed its status as the preferred choice among farmers nationwide by achieving the leadership position in POS consumption. In the SSP segment, Coromandel remained as the market leader in both primary and POS sales.

Strengthening Raw Material Security for Long-Term Growth:

During the year, company strengthened its raw material security through strengthening long-term tie-ups and diversification of sourcing arrangements. Companys rock phosphate project at Senegal, Baobab Mining and Chemicals Corporation (BMCC), delivered a strong operational turnaround during FY 2025-26, recording its highest-ever production and exports of rock phosphate from, supported by improved mining efficiency and process stabilization. During the year, Coromandel increased its equity stake in BMCC to 71.5%, strengthening strategic control and securing long-term access to critical raw materials. Smart sourcing strategies, proactive risk management and agile procurement actions have collectively enabled strong raw material security and availability, effectively insulating plant operations from global supply disruptions and geopolitical challenges.

Sustainable and Technology-Driven Manufacturing Excellence:

Coromandel continued to build a future-ready organization through strategic capacity expansions and accelerated digital advancements, with strong focus on environment, safety and quality standards.

The business achieved record production of Phosphatics fertilisers (35.3 LMT) along with Phosphoric Acid volumes. Coromandel demonstrated best-in-class safety and environmental practices as recognized by the International Fertilizer Association benchmarking study. With a Zero Reportable Incident record and an industry leading TRIR below 0.2, safety continued to remain the highest priority. Its Kakinada unit received the prestigious "Sword of

Honour" award from the British Safety Council signifying global excellence in safety management.

During the year, company successfully commissioned a 2000 TPD Sulfuric Acid plant and a 650 TPD Phosphoric Acid plant at Kakinada, strengthening its backward integration capabilities. The new phosphoric acid plant is based on DAHF technology which is designed to deliver higher efficiency and superior gypsum quality while the Sulfuric Acid plant is built to operate at significantly low emission standards.

In line with its sustainability agenda, the company enhanced its focus on resource efficiency through the commissioning of an additional desalination unit at Vizag, increasing reliance on non-conventional water sources from 40% to 60%, thereby improving water security and environmental stewardship.

The company also made significant progress in its digital transformation journey leveraging ML-driven digital twins, advanced analytics and predictive models to optimize plant performance and cost efficiency. The deployment of IIoT-enabled systems improved plant and engineering availability, enabling higher reliability and operational excellence across manufacturing units.

Driving Sustainable Agriculture: Coromandel achieved its highest ever fertiliser sales during the year with DAP and NPK volumes reaching 42.8 LMT. SSP also registered its highest ever sales at 8.4 LMT with differentiated grades like GroPlus and GroAlpha contributing close to 50% volumes. Overall, the Company set a significant milestone by achieving its highest ever total fertiliser sales of 74.5 LMT reflecting robust demand and effective market execution. It continued to expand its footprint across North and Central India markets by active channel engagement and farmer connect initiatives.

Table: Coromandel Sales Volume (in lakh tons)

	Complex	DAP	Complex + DAP	SSP
FY20	26.1	5.4	31.5	5.7
FY21	28.1	5.4	33.5	6.7
FY22	28.3	4.9	33.2	7.6
FY23	31.2	5.3	36.5	8.1
FY24	30.3	5.1	35.4	6.5
FY25	33.8	6.0	39.9	7.7
FY26	36.2	6.6	42.8	8.4

Soil and leaf testing services were delivered through 53 NutriClinics promoting balanced nutrient management practices. In alignment with government initiatives, the Company actively participated in PMKSK programs across key markets conducting around six large scale events and strengthening last mile farmer connect. During the year the Company partnered with 450 FPOs, seed companies and contract farming entities to provide balanced nutrients solutions. These collaborations are focused on promoting sustainable agricultural practices while delivering cost-effective and impactful solutions directly to farmers.

The Company has strengthened its commitment to precision agriculture through the establishment of a Central Soil and Leaf Testing Laboratory at Kakinada aimed at enhancing the accuracy, reliability and efficiency of soil and plant analysis services for farmers. It partnered with ICAR - NBSS&LUP to develop soil test based nutrient advisory services for farmers in Maharashtra, with a focus on the Vidarbha and Marathwada regions. This is providing valuable data driven insights, that will serve as a foundation for improving nutrient management practices and enhancing farm productivity in the region. Companys drone based spraying initiative

Gromor Drive expanded its footprint significantly across southern, western and northern regions. Along with Retail, Coromandel has expanded its drone spraying service to 2.9 lakh acres in FY26 highlighting strong farmer adoption and the Companys focus on delivering efficient cost-effective farm solutions.

Gromor Gram - Model Village Concept : During the year, business introduced Gromor Gram farmer outreach initiative aimed at delivering integrated agricultural solutions through a cluster-based approach. Anchored on the vision of "Samriddh Kisan, Samarth Gaon", the model brings together all key services under a single hub to ensure seamless farmer engagement and improved accessibility to crop nutrition products and agronomic support. The initiative adopts a "One Hub - Four Touchpoints" framework combining product availability through branded retail networks, agri-services such as NutriClinics, drone applications and soil diagnostics along with expert-led agronomic advisory and strong institutional linkages with FPOs and extension bodies. Through this holistic approach, Gromor Gram is positioned to enhance farm productivity, strengthen last mile connect and drive sustainable agricultural development.

Embracing Digital Transformation: During the year, Coromandel advanced its digital transformation journey through targeted technology platforms across its agricultural value chain. The Gromor NutriConnect farmer application crossed 65000+ active users and achieved over 1 lakh downloads. On the sales intelligence front, Coromandels SIGMA application, which provides field teams with real time visibility, recorded over 90% adoption rate. Digital enablement has also been extended to drone operations with end-to-end app integration, streamlining drone-based agricultural services across the value chain.

Speciality Nutrients

The Specialty Nutrients business continues to play a pivotal role in Coromandels strategy to promote sustainable and precision agriculture by enhancing nutrient use efficiency, improving crop productivity and promoting soil health. The business offers a comprehensive portfolio of water-soluble fertilisers, secondary and micronutrients, organic inputs and value-added products, catering to diverse crop segments including horticulture, plantations and field crops.

During the year, the business delivered a strong performance, supported by focused market development and farmer engagement initiatives. Strategic programs such as "Virasat for

Generations" continued to create awareness on the importance of organic inputs and long-term soil health. Market presence was further strengthened through improved channel engagement and expansion into new geographies. Digital platforms, including YouTube with a subscriber base exceeding one million, along with influencer-led initiatives, were effectively leveraged to deepen farmer connect, enhance product visibility and drive adoption. The business also scaled up its farm-level initiatives through soil testing, field demonstrations and customised agronomic advisory services, enabling adoption of balanced nutrient management practices.

During the year, the portfolio was further strengthened of the businesss with the introduction of five differentiated products across organic and specialty segments, offering crop-specific and performance-enhancing solutions.

Capacity augmentation in key products, including sulphur, improved supply reliability and enabled the business to meet growing demand. In addition, the Company is setting up a water-soluble fertiliser plant in India, which is expected to strengthen domestic manufacturing capabilities, reduce import dependence and support growth in the high-value specialty nutrients segment.

Going forward, the business will focus on accelerating growth through portfolio expansion, deeper market penetration and continued investments in innovation and digital capabilities, while promoting balanced nutrient application and sustainable agricultural practices.

Crop Protection

Crop Protection - Business Scenario

FY 2025 26 presented a broadly constructive operating environment for the global crop protection industry. After two consecutive years of destocking and demand suppression driven by inflated post-pandemic inventories, channel inventory levels showed signs of normalising across major geographies by mid-year. This rebalancing created a more supportive backdrop for volume recovery, particularly in the second half. While there was growth in demand in the broad-spectrum fungicide segment, insecticide pressures remained low, impacting off take and pricing. The broader trade-policy environment, particularly US tariff actions and evolving bilateral arrangements, introduced uncertainty around ation procurement and export strategies, requiring proactive channel and sourcing management. From Indias perspective, policy support, a competitive rupee and growing recognition of Indian manufacturers as reliable alternate-source suppliers contributed to a firming of export enquiries and registrations across regulated and semi-regulated markets.

The Indian agrochemical market experienced a recovery year in the first half with a near-normal monsoon, healthy kharif sowing and translated into stronger field-level demand compared to the prior year. Rabi demand however was muted due to late withdrawal of monsoon, leading to lower liquidations than expected.

The regulatory environment continued to evolve with ongoing scrutiny of certain older molecules and an emphasis on integrated pest management (IPM). The draft Pesticide Management Bill, introduced during the year for public consultation, aims to strengthen regulatory oversight, enhance safety standards and promote sustainable usage practices. Once implemented, it is expected to further shape the industrys compliance requirements and product development landscape.

Coromandels diversified portfolio across fungicides, insecticides, and herbicides, combined with its bio-products range, positions the business well to navigate this shift. The steady increase in herbicide penetration in Indias paddy and row-crop segments represents a structural growth vector that the business continues to develop.

Crop Protection Business Performance

The Crop Protection Chemicals (CPC) business delivered a year of record progress, achieving healthy growth in both revenue and profitability. demand, a recovery in export volumes, new product introductions and disciplined cost management. The business demonstrated resilience in navigating an environment that, while improving, retained pockets of pricing and competitive intensity.

Revenue growth was broad-based, reflecting improved realisation across the domestic B2C channel, a volume growth in the export business, supported by pricing improvements. EBIT margins expanded year-on-year, reflecting operating leverage on improved volumes, better mix and the ongoing benefits manufacturing cost optimisation programmes.

Domestic B2C Business: The domestic branded business recorded strong growth during the year, outperforming the broader industry recovery. This was underpinned by deeper market penetration under established brands, the successful commercial launch of new products and an expandedfield force presence in high-potential geographies. The launch of new herbicide and insecticide products, including patented-in-licensed molecule, enriched the portfolio. The business continued to build its presence in rice, fruits and vegetables and cereals segments where Coromandel has been systematically investing in technical agronomy support, demonstration plots, and farmer connect programmes. Domestic B2B Business: The domestic institutional business grew strongly across the portfolio during the year, marking aggressive portfolio growth by Coromandel customers, validating the business strategy of building trust-driven business relationships and agility in sourcing and production. The business continues to focus on these relationships and aims to expand portfolio presence with them. Exports Business: The Export business registered a strong volume growth during FY 2025 26, reflecting both the global inventory rebalancing cycle and targeted business development efforts by Coromandel in key geographies. The business registered multiple new product registrations in regulated and semi-regulated export markets during the year, further building out its dossier pipeline. Technical sales, formulation products and co-marketing arrangements with established international distribution partners contributed to volume growth. The business deepened engagements with long-standing buyers while also attracting new diversificaway from China. customersseekingsupply-chain

Manufacturing & Supply Chain: Manufacturing operations delivered improved throughput and capacity utilisation across Coromandels production network. Capital investments made in prior periods in expanded formulation capacity and new manufacturing lines contributed to cost efficiency gains. The supply chain organisation enhanced its agility improving raw material procurement lead times, managing vendor concentration risk and building buffer inventory in strategically important intermediates. Quality continued to be a non-negotiable priority. The business sustained its focus on Total Recordable Injury Rate (TRIR) reduction and maintained exemplary standards in its environmental, health, and safety (EHS) protocols. External audits and customer quality assessments returned consistently strong outcomes, reinforcing Coromandels positioning as a supplier of choice in demanding regulated markets.

Product development activity during the year was directed at both enriching the near-term pipeline and building longer-term platform capabilities. Technology validation, partner identification, investment case development progressed significantly during the year.

Going forward, the business will remain focused on driving accelerated and profitable growth through a balanced emphasis on market expansion, portfolio enhancement and operational excellence. Strategic priorities include strengthening its presence across domestic and international markets, advancing initiatives in differentiated product segments and progressing key capability-building platforms, while continuing to enhance execution capabilities and maintain financial was supported by strong domestic environment.

NACL Industries Limited: During the year, Coromandel completed the acquisition of a 53% stake in NACL Industries Limited. The acquisition of NACL represents a strategic step in strengthening the Companys crop protection business and expanding its capabilities across the agrochemical value chain. NACL provides access to established formulations, strong technical capabilities and a wider product portfolio, along with a deeper presence in key domestic markets. It also enhances manufacturing footprint and supply chain capabilities, enabling improved cost efficiencies and faster go-to-market. By leveraging synergies across product development, distribution and sourcing, the acquisition is expected to accelerate growth and strengthen the Companys position as a leading integrated player in the crop protection segment.

During the year, NACL delivered strong performance with revenue moving up by 28% and business returning to profitability.

Bioproducts

The Bio Products business of the Company continues to strengthen its position as a differentiated, innovation-led growth platform, offering a comprehensive portfolio of biopesticides based on Azadirachtin, plant-derived bio-stimulants, anti-transpirants and non-ionic spreaders. Its state-of-the-art Azadirachtin manufacturing facility at Cuddalore stands among the largest globally, underscoring the Companys leadership in this segment.

During the year, focused efficiency improvement initiatives enabled the production of high-purity, best-in-class Azadirachtin meeting stringent global standards. In line with its strategy to deepen value chain integration, the business has in-housed neem processing, including oil and cake production, alongside extraction capabilities. Expanding beyond plant extracts, the Company has also built fermentation and microbial processing capabilities to diversify its biologicals portfolio. The launch of five bio-pesticides and three bio-fertilisers has strengthened its innovation pipeline, with new products gaining good traction in the domestic market. Further, the business is advancing registrations across key international markets, including the US, EU and Latin America, paving the way for global scale and accelerated growth.

Retail

Established in 2008, Coromandels Retail business serves as a key interface between the organization and the farming community, reaching over 5 million farmers through a robust network of 1200 retail stores. Supported by a team of more than 4,000 members, these stores provide integrated agricultural solutions aimed at improving farm productivity and sustainability.

During the year, the business expanded its footprint with the addition of over 300 new stores across Andhra Pradesh,

Telangana and Karnataka, while also entering new markets such as Maharashtra and Tamil Nadu. This expansion included the launch of Megastores and Agchem focused Corocare outlets, alongside entry into the plantation business segment.

The Retail business continued to leverage technology-driven solutions, including precision advisory, e-commerce, drone-based spraying covering 2 lakh acres, and last-mile delivery services. Through its Direct Door Delivery initiative, nearly 6 lakh bags and were delivered directly to farmers this year. The adoption of digital payment systems further improved transaction efficiency and transparency.

With a continued focus on improving soil health and advancing integrated nutrient management, the Retail business marketed around half a million tons of organic fertiliser during the year. One of its in-house organic brands, Bhoo Aushadh, crossed the 100 crore milestone, reflecting strong farmer acceptance and growing demand for sustainable agri-inputs. As part of its farm engagement initiatives, the Business strengthened farmer connect through digital platforms, including podcasts and expert-led discussions ondisciplineinadynamicoperating its YouTube channel, which has surpassed 1.2 million subscribers, significantly expanding its outreach and knowledge dissemination among the farming community.

During the year, business established CORAL Retail Training Academy, which delivers a standardized and consistent training experience focused on developing high-caliber, performance-driven store managers. These managers, in turn, ensure a uniform and superior experience for farmers across our retail network. To date, the academy has trained over 600 participants. With a strong focus on customer centricity, Coromandel Retail continues to provide customized, crop-specific advisory services, enabling farmers to enhance productivity and profitability. Its diversified portfolio and integrated approach reinforce its position as a leading rural retail network, committed to driving sustainable agricultural growth.

Nano products

Since its launch in 2024, Coromandels nano fertilisers have seen strong acceptance among the farming community. These polymer-encapsulated, nano-sized particles with high surface area enable efficient absorption through plant leaves, improving nutrient use efficiency. With India being among the first countries to adopt nano applications for plant nutrition, supported by strong policy push, these products hold significant potential to partially substitute conventional fertilisers such as urea and DAP, particularly during vegetative stages.

Coromandel is among the pioneers in this space, supported by its state-of-the-art manufacturing facility at Kakinada and dedicated nano research labs in Mumbai and Coimbatore. During the year, the Company continued to demonstrate product efficacy through extensive field trials, scientific studies, and farmer outreach programs including training sessions, seminars, and panel discussions. As a result, it has emerged as a leader in the Nano

DAP segment with around 50% market share in India, while also expanding its presence in international markets through ongoing trials and registrations.

Opportunities

- Continued focus on balanced nutrient application expected to drive demand for NPK fertilisers, speciality nutrients and organic inputs

- Expansion in irrigation coverage expected to support higher cropping intensity and sustained demand for agri-inputs

Increasing emphasis on resource use efficiency and precision farming driving adoption of water-soluble fertilisers, liquid nutrients and specialty products

- Commissioning of new capacities, including NPK granulation and backward integration projects, expected to strengthen presence in existing markets and enable expansion into new geographies.

- Strong capabilities in phosphate chemistry, supported by integrated operations, providing opportunities to expand into value-added and industrial applications.

Low per capita agrochemical consumption in India, coupled with rising farm productivity needs,offerssignificant growth potential for crop protection business.

Acquisition of stake in NACL Industries Limited offers synergistic opportunities across sourcing, manufacturing and marketing

- Global supply chain realignment trends provide opportunities to scale up in agrochemicals, CDMO and exports.

Increasing adoption of sustainable farming practices driving demand for biologicals, organic inputs and integrated pest management (IPM) solutions.

- Growing use of digital tools, drones and precision agriculture technologies creating opportunities to enhance farm-level productivity and expand service offerings.

- Expansion of agri-retail network and high rural digital penetration enabling deeper farmer engagement, improved market access and delivery of integrated agri-solutions

Strengths

- Strong corporate governance framework promoting transparency, accountability and ethical business conduct.

- Leading manufacturer and marketer of phosphatic fertilisers in India, with a wide portfolio and capability to produce multiple NPK grades.

Integrated presence across the fertiliser value chain, including rock mining, intermediates production, fertiliser manufacturing and distribution, ensuring supply security and cost efficiency.

- Established technical manufacturing capabilities in crop protection, with a diversified portfolio of molecules; further strengthened through acquisition of stake in NACL Industries, enhancing scale, product portfolio and market reach.

- Extensive agri-retail network ( 1,200 outlets), acting as a one-stop solution for farmers and enabling strong direct engagement and last-mile connectivity.

- Strong presence in speciality nutrients and biologicals, supported by an integrated farm solutions approach and growing farmer adoption.

- Strategically located manufacturing facilities in key consumption markets, providing logistical advantages and faster market access.

- Well-established Gromor brand with strong recall, driving customer loyalty and long-term farmer relationships.

- Robust R&D ecosystem with multiple research facilities, supporting new product development, portfolio expansion and collaboration with global partners and institutions.

- Capabilities in emerging areas such as drone technology diversificinto precisionthrough subsidiary, enabling agriculture and allied segments.

Financial Review

The Company registered a strong performance in FY 2025-26. Standalone revenue stood at Rs.30,531 crores compared to Rs.24,064 crores in the previous year. The Companys PBT was at

Rs.2,743 crores compared to Rs.2,585 crores in the previous year. PAT was at Rs.2,009 crores compared to Rs.1,941 crores in the previous year. Net cash from operating activities before working capital changes is Rs.3,214 crores compared to Rs.2,741 crores in the previous year. Return on net worth for FY25-26 stood at

17.11% reflecting a healthy balance of strong profit generation, effective capital utilization, and sustainable shareholder value creation.

Ratio	UOM	31 March 2026	31 March 2025
Debtors Turnover ratio	No of Days	43	48
Inventory turnover	No of Days	90	95
Debt Service		10.79	11.47
coverage ratio
Current Ratio		1.58	1.96
Debt-Equity ratio		0.02	0.00
Operating Profit	%	10.16	11.04
Margin (EBITDA)
Net Profit Margin	%	6.58	8.07
Return on Equity	%	17.11	19.03

Risk Management & Internal Control

This is covered under the section Risk Management of the

Integrated Report.

Human Resources

In todays dynamic and people-centric business environment,

Coromandel recognises human capital as a critical enabler of sustainable value creation. During FY 25 26, the Companys people agenda remained focused on strengthening the leadership talent pipeline, driving key organisational restructuring initiatives and partnering closely with the business to advance strategic people priorities across the enterprise.

Strategic HR: In alignment with the long-term strategy of business, an organization restructuring exercise was carried out with a review of internal roles and external benchmarking to the industry. Aimed at creating greater role clarity, bringing in faster career growth and building a scalable structure aligned with business growth, this was executed in partnership with global consultant Korn Ferry. Job bands and grades were redefined responsibilities and spans of control.

Building a Future-fit FY 25-26 witnessed a strong push on capability building. 6.12 man-days of learning per employee were recorded, totalling 38548 learning man-days across the organisation marking a 7.6% increase as compared to FY 24-25. This covered functional, behavioural, quality, and safety training, with a combination of methodologies classroom training, virtual and blended.

These initiatives included location-specific programmes as well as organisation-wide themes focussed primarily on Leadership Development and Functional capability building. While the

Transformational Leadership Programme (TLP) with Ivy league universities for senior leadership professionals focussed on grooming potential CXOs/Business Heads, the Emerging Leaders

Programme with IIM Bangalore focussed on honing high potentials in middle management for senior leadership opportunities. The

Front-Line Managers Program (BLAZE) with Great Lakes Institute of Management, Chennai developed people management skills while key personnel in Sales and Marketing were groomed on

Leading High-Performance Teams with IIM Raipur.

YOLO (Your Own Learning Orbit) e-learning platform currently includes a curated blend of modules covering a wide range of functional skills, current business competencies and future ready skills, including courses on Artificial Intelligence. Over 5000 learning paths were successfully completed by employees. Strengthening the workforce: 1612 employees were onboarded during FY26 with the spike in recruitment primarily due to the new workforce deployed at the Fertilizer plant expansions in Kakinada and opening of new Retail stores. Middle management was strengthened with an infusion of 39 management and engineer trainees based on business requirements, from premier institutes such as IITs, NITs, IIMs and other campuses across Sales & Marketing, Manufacturing, Finance, HR, IT, and General

Management functions. These graduates were onboarded through a structured year-long training program to enable smooth transition into the corporate environment and build a strong internal talent pipeline.

Engaging our Workforce: An organization wide engagement survey conducted by Great Place to Work (GPTW) in 2026 recorded an 8% improvement in overall engagement scores, rising to 83% from 75% in the last survey. Key dimensions such as credibility, respect, fairness, and pride sawimprovementsof8 10%,affirming space aims to nurture internal the effectiveness of actions taken post the last survey. Notably, 88% of employees expressed that Coromandel is a Great Place to Work as compared to 80% last survey.

During the year, the organisation brought employees together through a variety of engagement activities from vibrant festival celebrations and sports leagues to annual gatherings and family picnics helping build stronger connections and a sense of community.

Employee Relations and Compliance: Industrial relations remained harmonious across all Coromandel plants during FY25

26. Long-Term Settlements (LTS) for Wages and Production

Incentives were successfully concluded at the Hospet and

Vishakhapatnam plants. Contract Labour Agreement were signed with Bagging Contract labour and their contractors at Kakinada. Compliance audits were systematically conducted across all sites for the second year to ensure adherence to statutory requirements. Contract Labour Management System has been upgraded across all plants to improve monitoring mechanism and meet Compliance requirements as per new Labour Codes. ISO 30408 surveillance audits were successfully completed towards process governance and certifications. An Internal Perception survey was launched in the past FY to seek employee feedback on HR initiatives and was successfully run for all four quarters with actions being taken basis feedback.

Enabling women to thrive at work: Towards strengthening gender rolesdiversity, new policies have been introduced such as the Womenand centric policy offering women employees benefits such as upgraded lodging eligibility to ensure safe stays while on official travel, post maternity benefits such as Work from Home as an alternative to

returnity, creche and nanny care reimbursements towards easing childcare. Women employees have been sponsored for leadership development initiativesandawomenspecificEmployee Resource

Group has been introduced to act as channel of communication with women employees.

Wellbeing at Work: Coromandel fosters an environment where employees can bring their best selves to work, supported by annual medical check-ups, health camps, and access to counselling through Employee Assistance Program. Health camps were extended to employee family members too at some units and via CSR outreach to surrounding communities. The Bloom wellness program was strengthened through structured and theme-based interventions focused on employees physical, mental, and social well-being. Key initiatives included orientation sessions to drive mobile app adoption, employee wellness sessions on nutrition, desk and breathing exercises to address workplace stress. A flagship 22-day "BLOOMathon" step challenge (target

8,000 steps/day) saw 75% employee participation, with over 60% consistently active, reflecting strong behavioural adoption.

Ensuring safe workplaces: Safety of employees continues to be a cornerstone of Coromandel culture with a TRIR of 0.25. Proactive risk assessment, coupled with continuous training empowers employees to identify and address potential hazards, cultivating a culture of empowerment and shared responsibility. In the past year, safety trainings included the innovative use of Virtual Reality (VR) Safety Modules and the Safety & Fire Dojo (a simulation space equipped with demo PPE and safety setups, providing immersive, hands-on learning experiences) in the Fertilizer plants, BE SAFE (an inhouse behavioural based safety program) at SSP plants, defensive driving training for sales and marketing personnel across the company, and behaviour based safety and PSMS training at manufacturing units.

Driving Innovation and Business Excellence: During the year, Coromandel embarked on a transformative innovation journey with the launch of its innovation initiative, iSphere, towards achieving the organisations strategic objectives and positioning innovation as a key lever for sustainable growth, competitiveness, and long-term value creation. iSphere, represents Coromandels innovation sphere - a unified a culture of curiosity, collaboration and experimentation designed to cultivate bold ideas and accelerate new business opportunities. Two programs have already been conducted and cross-functional teams formed to work on ideation projects in partnership with a global consultancy specialising in innovation. Towards strengthening process approach and enabling sustainable business performance, Coromandel has adopted the EFQM

Business Excellence framework and subjected itself to CIIs external assessment on the same. The Fertilizers business unit received a Platinum recognition and the special Jury Commendation award underscoring the organizations commitment to business excellence.

Award-winning Practices: Coromandel is proud to hold the

Platinum title in the Mint Iconic Workplaces survey conducted by HT Media in partnership with Deloitte. Three levels of AI driven assessment - an employee survey, AI interviews and people practices were evaluated by Deloitte and additionally by a jury to award this certification. In the course of the last FY Coromandels

HR initiatives were also feted with the Golden Peacock award for HR Excellence from the Institute of Directors-India, Gold Star Award for Learning and Development from FTCCI, Best Leadership

Development Program (Silver) in the Business World People L&D Excellence Awards 2026, Best Leadership Acceleration Program (Silver) at People Matters LLC awards. Also awarded for Leading

Practices in Employee Relations (IR) and Technology Deployment in HR by People First and recognized as a "Best Organization to Work 2025" in the Manufacturing sector by Economic Times Edge. Employee Volunteering: This year, employees have set a new benchmark in compassion and service. Over 3,700 employees volunteered more than 7,500-man hours, surpassing previous years volunteering initiatives showing a strong desire to serve the community.

Corporate Social Responsibility (CSR) Initiatives:

Touching Lives, Transforming Communities: Rooted in the foundation of inclusivity, empowerment, and sustainable development, Coromandels Corporate Social Responsibility ("CSR") initiatives extend far beyond philanthropy. These initiatives reflect a deep, enduring bond between the Company, its people and the plants it operates, turning local aspirations into tangible achievements. To better describe its CSR initiatives, the Company has rebranded its CSR focus areas into four distinct pillars, namely,

CORO Arogya Healthcare initiative, CORO Vidya Education initiative, CORO Vikas Community Development and women empowerment initiative, and CORO Bhoomi - Environmental

Sustainability Initiatives.

CORO Arogya - Healthcare initiative remained the key flagship program for the organization. Believing that access to health services is a basic human right, the company operates three Coromandel Medical Centres ("CMC") delivering consultations across specialties like gynaecology, paediatrics, dental care, orthopaedics and physiotherapy at a nominal fee. During the FY 2025-26, CMC Ennore was relocated to a new place with enhanced medical services and a Mobile Medical van facility. At Kakinada, the major expansion project of Coromandel Hospital was completed.

The newly developed facility now offers In-patient facility with

70 beds, 3 Operation theatres and best in class advanced medical services such as Helium free Magnetic Resonance Imaging ("MRI") Machine, Paediatrics unit with Neonatal Intensive Care Unit ("NICU"), and emergency care. The In-Patient block of Coromandel

Hospital was inaugurated in the month of January 2026, setting a new standard of medical care for East Godavari district and other nearby areas. With this expansion, Coromandel expects the hospital to support up to 2,000 patients per day across OPD, IPD, diagnostics and emergency care, serving approximately 5 lakh patients in a year.

Through CORO Vidya the company is revitalizing rural education by building critical infrastructure such as additional classrooms, libraries, science labs, toilet blocks, Reverse Osmosis ("RO") water plants while also delivering programs that enrich young minds and brighten futures. The company has also developed a state-of-the-art Coromandel Skill Development Centre at Kakinada. The centre will facilitate more than 300 students annually to receive quality training and earn a decent livelihood in coming years.

Companys CORO Vikas - Community development and Women empowerment initiatives continues focussing on creating common community spaces like community halls, community parks, etc. These common spaces are successfully creating an ecosystem for community gatherings, along with skill building programs for youth and women. A dedicated Jute bag manufacturing unit was established in Vishakhapatnam (Andhra Pradesh) to create livelihood opportunities for rural women.

Environment conservation is the companys topmost priority under CORO Bhoomi initiative. During the year, Project Haritha Margam and Sugama were implemented in Kakinada (Andhra Pradesh) with focus on green corridor development and conversion of legacy waste dumping site into a community park area.

The impact of Companys commitment towards the society has been recognised nationally and locally, earning prestigious accolades such as winner of 11th Greentech CSR India Award, Model

Corporate Citizen Award by Rotary Club of Madras, Samajikam CSR award by Rotary Club for Basic education & Literacy 2025 at Vishakhapatnam, 2 Public Relations Society of India ("PRSI")

National Award (2nd place for promoting medical and health and 2nd runner up for best private sector organization implementing

CSR), and Institutional Honor by Times Foundation. The Andhra

Pradesh State Government also acknowledged Companys CSR initiatives during Swarnandhra @ 2047 ceremony.

In FY 2025-26, Coromandel committed INR 49 crores to various CSR initiatives. A third-party impact assessment study was conducted for several projects which were acknowledged and recognized by the assessment agency for meeting its stated objectives.