The Indian fertilizer market plays a crucial role in supporting the country’s large agricultural sector and ensuring food security. In 2023, the market was valued at Rs. 1,046.85 billion and is projected to grow at a CAGR of 5.7 percent, reaching approximately Rs. 1,543.15 billion by 2030. The market includes nitrogenous, phosphatic, potassium, and organic fertilizers designed to meet the diverse needs of different soils and crops.
India’s fertilizer industry is one of the largest in the world, driven by rising agricultural demand, government support, and advances in technology. Both domestic production and imports contribute to meeting the country’s fertilizer needs. Investors seeking stable growth opportunities can consider fertilizer stocks backed by strong industry fundamentals and demand.
Here are a few Fertilizer Stocks to buy with an upside potential of up to 24 percent.
Chambal Fertilisers and Chemicals Limited
With a market capitalization of Rs. 22,568.74 crore, the shares of Chambal Fertilisers and Chemicals Limited were currently trading at Rs. 563.25 per equity share, down nearly 0.35 percent from its previous day’s close price of Rs. 565.25.
TradeBrains has recommended a “Buy” call on Chambal Fertilisers and Chemicals Limited with a target price of Rs. 680 per share, indicating an upside potential of 20.73 percent.
Rationale: Chambal Fertilisers delivered a strong performance in FY25, with urea sales of 34.71 lakh MT and a PAT of Rs. 1,649 crore on revenue of Rs. 16,646 crore. The company is ramping up its Technical Ammonium Nitrate (TAN) project, aiming for 80-90 percent utilization after commercialization in early 2026.
The company plans to spend Rs. 1,200 crore in FY26, including the remaining Rs. 250 crore for TAN, which has a capacity of 2.4 lakh MT. This project is expected to start contributing revenue from early 2026. Along with this, the company is expanding its phosphoric acid production capacity from 5 lakh MT to 7 lakh MT by 2027 to meet growing demand.
For the upcoming Kharif season, Chambal plans to import 1.3 lakh MT of di-ammonium phosphate (DAP) and triple its nitrogen, phosphorus, and potassium (NPK) portfolio by 2.5 times in FY26. This shows the company’s commitment to strengthening its product range and supporting farmers with better fertilizers.
Margins for TAN are expected to remain steady, while CPC-SN margins will benefit from volume growth, new product launches, and strategic partnerships. The company feels confident about the Kharif season due to early stocking and favorable pricing, indicating a positive outlook for the coming year.
Coming into financial highlights, Chambal Fertilisers and Chemicals Limited’s revenue has decreased from Rs. 2,643 crore in Q4 FY24 to Rs. 2,449 crore in Q4 FY25, which is a drop of 7.34 percent. The net profit has grown by 34.02 percent, from Rs. 97 crore in Q4 FY24 to Rs. 130 crore in Q4 FY25.
Gujarat State Fertilizers and Chemicals Limited
With a market capitalization of Rs. 8,533.40 crore, the shares of Gujarat State Fertilizers and Chemicals Limited were currently trading at Rs. 213.35 per equity share, rising nearly 0.80 percent from its previous day’s close price of Rs. 211.65.
TradeBrains has recommended a “Buy” call on Gujarat State Fertilizers and Chemicals Limited with a target price of Rs. 265 per share, indicating an upside potential of 24.21 percent.
Rationale: Gujarat State Fertilizers and Chemicals Limited expects an EBITDA of Rs 3,000 per metric ton for its fertilizer segment in FY26. The company is optimistic about Q1FY26 due to a favorable monsoon forecast and timely policy support from the Department of Fertilizers.
The company recently commissioned a 15 MW solar power project at Charanka Patan, and its Urea-II revamp is operating at full capacity. The Phosphoric Acid (PA) and Sulphuric Acid (SA) projects at Sikka are progressing well, with the SA V unit expected to be commissioned in the first half of FY26.
Regarding capital expenditure, Gujarat State Fertilizers plans to spend around Rs 600 crore on urea, Rs 453 crore on phosphoric acid, and Rs 300 crore on the SA V project over the next six months, reflecting strong investment in capacity expansion and modernization.
Coming into financial highlights, Gujarat State Fertilizers and Chemicals Limited’s revenue has decreased from Rs. 1,965 crore in Q4 FY24 to Rs. 1,922 crore in Q4 FY25, which is a drop of 2.19 percent. The net profit has also grown by 300 percent, from Rs. 24 crore in Q4 FY24 to Rs. 72 crore in Q4 FY25.
Written by – Nikhil Naik
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