Microcap fertiliser stock zooms 55% in 3 days, hits 7-yr high. Do you own?

Business Standard

2 days ago

Zuari Agro Chemicals share price today
Shares of Zuari Agro Chemicals hit a seven-year high of ₹339, as they surged 18 per cent on the BSE in Thursday's intra-day trade on the back of heavy volumes after the company reported strong earnings for the June 2025 quarter (Q1FY26). The stock was trading at its highest level since August 2018.
In the past three days, the stock price of Zuari Agro Chemicals zoomed 55 per cent from a level of ₹219.15 on Monday, July 28, 2025.
At 02:57 PM; the stock was trading 17 per cent higher at ₹335.20, as compared to 0.03 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped over seven-fold. A combined 21.62 million equity shares or 42 per cent of total equity of Zuari Agro Chemicals changed hands on the NSE and BSE. Currently, the company's market capitalisation stood at ₹1,417 crore.
Q1 results – Zuari Agro Chemicals
In the April to June 2025 quarter (Q1FY26), Zuari Agro Chemicals reported a four-fold jump in its consolidated profit after tax (PAT) at ₹127.38 crore. The company posted PAT of ₹29.37 crore in Q1FY25.
The company's revenue from operations grew 13.6 per cent to ₹1,246 crore from ₹1,097 crore in a year ago quarter.
Outlook/Opportunities
Agrochemicals companies, domestic-dependent as well as exports-driven, are likely to see healthy volume growth. Domestic branded companies' top-line growth would be driven by robust placement, due to expectations of normal Monsoon driving healthy agrochemicals demand. If the timing and distribution of Monsoon is favorable, the industry is likely to see sharp consumption growth at the farm level. On the exports side, with destocking largely over globally, fresh demand is driving growth in the international business for our coverage universe, analysts at Elara Capital said in a sector report.
The Government of India (GoI) has revised the nutrient-based subsidy (NBS) rates for kharif FY2026. There has been an increase in the subsidy of phosphorus to ₹43,600/MT from ₹30,800/MT, while that of sulphur has also been escalated. This is expected to improve the contribution margins of diammonium phosphate (DAP) as well as other NPK (nitrogen phosphorus potassium) grades.
The GoI has made a budgetary allocation of ₹1.68 trillion towards fertiliser subsidy for FY26; including ₹1.19 trillion for urea and ₹0.49 trillion as NBS, which is likely to face a minor shortfall, however, ICRA expects the Government to make additional allocations. The overall subsidy pay-outs have remained timely, keeping the working capital intensity of the industry under check.
Meanwhile, GoI's initiative of 'Make in India' is expected to help Single Super Phosphate (SSP) industries to prosper in near future as this is expected to be a more receptive policy. We have a strong brand of Jaikisaan Super 16 in the company's core marketing area of Maharashtra and Northern Karnataka along with wide market network to develop this business.
Large number of small players in the unorganized sector leads to pricing pressure and lower quality products from such players. Moreover, the government has announced that from April 2025 onwards, manufacturers producing SSP of 0.5 lakh ton and above would be eligible for product subsidy. Also, certain other measures planned like production of fortified new grades & automation in raw material mixing for better product quality & low-cost sourcing of raw material is further expected to lead to better prospects for Zuari Agro Chemicals, the company said in FY24 annual report.
About Zuari Agro Chemicals
Zuari Agro Chemicals, currently is in business of manufacturing and marketing of Single Super Phosphate (SSP) fertilizers from its manufacturing facility of 200,000 MT Granulated SSP at MIDC, Mahad, in the state of Maharashtra. The company caters to the demand of the farmers, through its 'Jai Kisaan' brand of fertilizers.