The Indian fertiliser industry is set to grow at a CAGR of 4.2%, as per various research reports. It is expected to reach a size of ₹1.38 lakh crore by 2032. In 2023, the market was valued at ₹94,210 crore, driven by rising agricultural demand and government policies.
India is the second-largest producer of fruits and vegetables globally, supporting sector growth. Government initiatives like PM-KISAN and PM-Garib Kalyan Yojana boost farmer liquidity, and the focus on self-sufficiency has reduced fertiliser imports. The country is a leader in nano-fertilisers and organic farming.
Despite challenges like climate change, initiatives like the National Mission for Sustainable Agriculture aim to ensure agricultural sustainability.
| Company | 5Y Profit Var (%) | Debt/Equity |
| Coromandel International | 10.9 | 0.07 |
| Chambal Fertilisers | 11.59 | 0.01 |
| Mangalore Chemicals | 35.26 | 0.79 |
| Nova Agritech | 42.08 | 0.28 |
| Aries Agro | 18.79 | 0.13 |
Coromandel International Ltd is a leading agri-solutions provider in India, offering fertilisers, crop protection, bio-pesticides, and specialty nutrients. It holds a dominant market share in phosphatic and organic fertilisers, with strong retail and export presence. The company operates 18 manufacturing facilities and is expanding via backward integration, new product launches, and acquisitions like Dhaksha (drone tech). It’s also diversifying into specialty chemicals and CDMO opportunities.
Key Metrics:
Chambal Fertilisers & Chemicals Ltd is a leading Urea producer in India, with ~13% market share. It also trades in other fertilisers and agri-inputs and operates a phosphoric acid JV in Morocco. The company is expanding into technical ammonium nitrate and strengthening its crop protection portfolio.
Key Metrics:
Mangalore Chemicals and Fertilizers Ltd a Zuari Fertilisers subsidiary, manufactures and sells Urea, DAP, SSP, and plant protection products. Its revenue is almost evenly split between Urea and non-Urea products. A merger with Paradeep Phosphates is underway to create a top fertiliser companies in India.
Key Metrics:
Nova Agri Tech Ltd, incorporated in 2007, is an agri-input company offering crop nutrition, soil health, and protection products. It sells through ~6,200 active dealers across 16 Indian states and Nepal. The firm also leverages agri-tech innovations like drones and soil scanners for precision farming support.
Key Metrics:
Aries Agro Ltd, incorporated in 1969, is a market leader in chelated micronutrients and customised plant and animal nutrition. It is one of the best fertiliser manufacturing companies in India. With 134 brands and a vast distribution network, it operates domestically and exports to multiple countries. It uses technology, organic products, and expansion strategies to fuel growth.
Key Metrics:
Working capital days (WC days) represent the number of days a company takes to turn its working capital into revenue. This metric is essential for assessing the liquidity and operational efficiency of a business. Below are the top fertilizer companies ranked by their working capital days:
| Company | WC Days |
| Coromandel International | 43.7 |
| Chambal Fertilisers | 14.26 |
| Mangalore Chemicals | 61.66 |
| Nova Agritech | 208.57 |
| Aries Agro | 129.94 |
The Price-to-Earnings (P/E) ratio is a key financial metric used to evaluate a company’s valuation. A high P/E ratio typically indicates that a company’s stock is overvalued. Conversely, a low P/E ratio may suggest that the company is undervalued or experiencing lower growth expectations.
Here is a ranking of the top fertilizer companies based on their P/E ratios:
| Company | P/E |
| Coromandel International | 36.41 |
| Chambal Fertilisers | 17.14 |
| Mangalore Chemicals | 20.44 |
| Nova Agritech | 14.45 |
| Aries Agro | 12.31 |
India’s fertiliser sector is expanding rapidly, driven by rising demand, policy support, and innovation. Companies like Coromandel, Chambal, and Nova Agri Tech show strong financials and growth potential, making them attractive picks for long-term investors. Metrics like CAGR, ROE, and P/E help assess their investment worthiness.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: May 5, 2025, 3:36 PM IST
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