NACL Soars 120% in a Month as Coromandel Acquires 53% Stake

NACL Industries share price soared 5% in Tuesday’s intra-day trade, hitting a new high of ₹149.10 on the BSE. The stock has been on an impressive rally, locked in the upper circuit for 6 consecutive trading days, gaining 52% during this period. Over the past month, it has surged by 112%, significantly outperforming the BSE Sensex, which fell by 1% in the same period.

At 11:03 AM, around 258,000 shares were traded, with buy orders pending for nearly 1.5 million shares on both the NSE and BSE.

Coromandel’s Acquisition of NACL

On March 12, 2025, Coromandel International, a Murugappa Group company, announced its plan to acquire a 53% stake in NACL for ₹820 crore. The transaction is expected to be completed by the first half of fiscal 2026, subject to regulatory approvals.

This acquisition will improve NACL’s business and financial position by enhancing sourcing efficiency, consolidating research and development (R&D) efforts, and leveraging Coromandel’s strong management and financial reputation.

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About NACL Industries

NACL Industries is a crop protection company with a strong presence in the Indian market. It manufactures branded agrochemical formulations for domestic use and exports technical-grade pesticides to key global markets. The company is also involved in contract manufacturing for multinational agrochemical firms.

Impact on Coromandel International

Coromandel sees this acquisition as a strategic move to strengthen its position in India’s crop protection industry. The deal will help the company:

• Expand its technical-grade agrochemical portfolio 
• Strengthen its domestic formulation business 
• Scale up operations and enter contract manufacturing 
• Speed up new product development and commercialisation 

Coromandel’s management believes this move will boost its presence in both domestic and export markets. The company plans to leverage its expertise, sourcing capabilities, and global reach to enhance NACL’s performance and create more value for shareholders.

Coromandel’s Stock Performance

Coromandel International share price gained 4% to ₹2,055 on the BSE during intra-day trading. The stock hit a 52-week high of ₹2,125 on April 3, 2025. Since March 2025, Coromandel’s stock has rallied 19%.

Financial and Operational Impact

According to Crisil Ratings:

• NACL’s operating profitability was weak in fiscal 2024 and 2025 due to lower realisations and provisions for bad debts. 
• However, this acquisition is not expected to significantly impact Coromandel’s near-term performance, as NACL will contribute around 10% of the combined entity’s revenue and profits. 
• Coromandel remains India’s largest single-super phosphate producer, holding a 15% market share in fiscal 2024. It is also the second-largest player in complex phosphatic fertilisers (DAP + NPK), with a 15% market share. 
• Coromandel has a strong financial position with a net cash surplus as of December 2024. 

Government Support and Future Outlook

The Indian government has provided significant financial support to the fertiliser sector, allocating ₹1.67 trillion in subsidies for fiscal 2026. This should help companies like Coromandel maintain a strong financial position.

Crisil Ratings expects Coromandel’s EBITDA per tonne to remain above ₹5,000, supported by adequate Nutrient-Based Subsidy (NBS) rates aligned with raw material prices. However, any major change in NBS rates or delays in subsidy payouts could impact profitability and will be closely monitored.

Conclusion

With Coromandel’s acquisition, NACL is set for significant business growth and stronger financial stability. The deal will help expand Coromandel’s agrochemical business, boost contract manufacturing, and improve its product portfolio. Meanwhile, government subsidies and Coromandel’s solid financial standing ensure a stable outlook for the company.

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