Agro Phos (India) Limited

APIL’s TOI grew by ~15% y -o-y to ₹ 119.88 crore in FY25, driven by increase in government subsidy and sales volumes. Company derived ~91% of net sales from manufacturing segment and remaining from trading segment (FY24: ~90%). In the manufacturing segment, sales volume increased by ~5% whi le realisations improved by ~6%, whereas revenue from the trading segment remained largely stable on a y -o-y basis. The growth momentum continued in 9MFY26, with APIL reporting TOI of ₹ 115.84 crore, support

Over the years, APIL has established its distribution network consisting of over 200 dealers or distributors spread across va rious states viz. Maharashtra, Madhya Pradesh, Rajasthan, Uttar Pradesh, Chhattisgarh and Andhra Pradesh. 2 CARE Ratings Ltd. Press Release Comfortable capital structure and moderate debt coverage indicators APIL’s capital structure continues to remain comfortable marked by overall gearing at 0.65x as on March 31, 2025 (0.54x as on

Mr. Raj Kumar Gupta, Managing Director, holds experience of more than two decades in the fertilizer industry. He looks after the overall business of the company. Mr. Vishnu Kant Gupta, director, has around one decade of experience in the fertilizers industry and looks after production of the company. The directors are supported by tier II staff. Liquidity: Stretched The liquidity position of APIL remained stretched marked by negative cash flow from operation (CFO), almost full fund-based

The liquidity position of APIL remained stretched marked by negative cash flow from operation (CFO), almost full fund-based working capital utilization and elongated operating cycle. it is expected to report moderate GCA of ~₹9.5-10 crore as against negligible debt repayment obligations of ₹0.23 crore in FY26. Average fund based working capital utilization remained almost full for past 12 months ended February 2026. The operating cycle

Applicable criteria Definition of Default Liquidity Analysis of Non-financial sector entities Rating Outlook and Rating Watch Fertilizer Manufacturing Companies Financial Ratios – Non financial Sector

Total operating income 103.83 119.88 115.84 PBILDT* -5.75 13.97 14.77 Profit after tax (PAT) -7.68 5.26 7.16 Overall gearing (x) 0.54 0.65 NA Interest coverage (x) NM 3.65 4.69 A: Audited UA: Unaudited; NM: Not Meaningful; NA: Not Applicable; Note: these are latest available financial results *PBILDT: Profit before interest, lease rentals, depreciation and tax

APIL’s PBILDT margin remained fluctuating in the range of ~7-13% over past five years ended FY25 (except for FY24). APIL’s profit margins rebounded to 11.65% in FY25 as against operating losses in FY24 and the same momentum continued in 9MFY26 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release with PBILDT margin of 12.75%. Followed by increase in raw material prices, government increases s

The product portfolio of APIL consist of organic fertilizers & chemical fertilizers like single super phosphate (SSP), nitrogen phosphorus potassium (NPK), organic manure, calcium sulphate, zinc sulphate, potash derived from molasses (PDM), phosphate rich organic manure (PROM) etc. The product portfolio of APIL remained concentrated wherein it derived ~85-90% of sales from single superphosphate (SSP) in last three years ended FY25 which increased to 99% in 9MFY26.

The profitability of fertiliser manufacturers is influenced by the regulations, types of fertilisers, wherein, the government controls the fertiliser prices and provides subsidies. The quantum of subsidy receivables and delays associated with the receipt of the same inherently impacts the liquidity of the fertiliser industry, though differs with the type of fertilizer. Lower subsidy budget may result lead companies to resort to higher short-term borrowings to fund the extended subsidy

Major raw materials required for manufacturing of SSP, is rock phosphate and sulfuric acid. The procurement of rock phosphate is fulfilled by imports, majorly from Egypt and Jordan, while requirement of sulfuric acid is met by local vendors. The price s of rock phosphate are volatile due to its linkage with international markets along with India being an importer as it is not nat urally mined in the country. However, APIL is able to pass on some portion of price variation to customers with some

Moderate scale of operations APIL’s TOI grew by ~15% y -o-y to ₹ 119.88 crore in FY25, driven by increase in government subsidy and sales volumes. Company derived ~91% of net sales from manufacturing segment and remaining from trading segment (FY24: ~90%). In the manufacturing segment, sales volume increased by ~5% whi le realisations improved by ~6%, whereas revenue from the trading segment remained largely stable on a y -o-y basis.

Over the years, APIL has established its distribution network consisting of over 200 dealers or distributors spread across va rious states viz. Maharashtra, Madhya Pradesh, Rajasthan, Uttar Pradesh, Chhattisgarh and Andhra Pradesh. 2 CARE Ratings Ltd. Press Release Comfortable capital structure and moderate debt coverage indicators APIL’s capital structure continues to remain comfortable marked by overall gearing at 0.65x as on March 31, 2025 (0.54x as on