Why did Krishana Phoschem shares fall 3% despite reporting 117% YoY rise in revenue?

SYNOPSIS: Krishana Phoschem delivered strong YoY revenue and profit growth in Q3 FY26, but muted sequential profit improvement may have disappointed investors, triggering a negative market reaction.

During Monday’s trading session, shares of India’s most extensively backwards-integrated fertiliser company tumbled over 3 percent on NSE, despite reporting Q3 FY26 results with a rise in revenue from operations by around 8 percent QoQ and 117 percent YoY.

At 12:30 p.m., shares of Krishana Phoschem Limited were trading in the red at Rs. 493 on NSE, down by around 2 percent, compared to its previous closing price of Rs. 502.1, with a market cap of Rs. 2,985 crores. The stock has delivered multibagger returns of over 172 percent in the last year, but has fallen by around 7 percent in the last one month.

Krishana Phoschem Limited announced the financial results for the third quarter of FY26 on Monday during market hours, as per the latest regulatory filings with the NSE.

For Q3 FY26, the company reported a net revenue from operations of Rs. 659 crores, reflecting a sequential growth of over 8 percent QoQ compared to Rs. 607.86 crores in Q2 FY26. On a year-on-year basis, revenue more than doubled, rising around 117 percent from Rs. 304 crores recorded in Q3 FY25.

During the same period, net profit stood at Rs. 33.3 crores, indicating a marginal increase of around 1 percent QoQ from Rs. 33 crores in Q2 FY26, but a significant growth on a year-on-year basis by more than 62 percent from Rs. 20.5 crores reported in Q3 FY25. 

Despite strong year-on-year growth, the limited sequential improvement in revenue and profits appears to have fallen short of investor expectations, likely weighing on sentiment and contributing to the stock’s decline.

Krishana Phoschem Limited is engaged in the business of manufacturing fertilisers and chemicals. It manufactures and markets fertilisers under the brands ‘Annadata’ (SSP) and ‘Bharat’ (NPK/DAP complex).

The company operates a manufacturing facility at Meghnagar, Madhya Pradesh, with installed capacities of 3,30,000 MT for NPK/DAP and 1,20,000 MT for SSP, supported by strong backward integration through Beneficiated Rock Phosphate (BRP) crushing, sulphuric acid, and phosphoric acid capacities. Strategically located near Bhopal Road (SH-18), the plant benefits from Madhya Pradesh’s position as one of India’s most fertile agricultural states.

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