Best Fertilizer Stocks in India

As we entered into 2026, India, an agrarian economy fertiliser industry continues to be a cornerstone of the nation’s strategic food security, having almost 1.5 billion. India is also the world’s 2nd largest consumer of fertiliser after China. India now consumes almost 70 million tons (MT) annually, from around 60 MT in FY24. The increasing demand is being led by favourable monsoons, huge populations, better standard of living, and intensive farming. Although India does produce fertilisers domestically (~53 MT), it's still import dependent on various key nutrients-like MOP-Potash (100% import); DAP (55%); Urea (16%); and NKP/Complex (10%).

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Overall, India’s import dependency on key fertilisers/nutrients is around 30% on a weighted average basis, led by potash & phosphorus, which is significant strategically-after considering today’s increasing geo-political fragmentations. India was importing its fertiliser needs from Ukraine and China mainly, but after the Ukraine war broke out in early 2022, it diversified to Russia; but now, under U.S. pressure, it’s reducing its imports from Russia and also China and increasing from various Middle East countries led by Saudi Arabia, Morocco, Oman, Qatar, Jordan, UAE and even Canada. India also exports some fertilisers to Nepal, Brazil, the USA, UAE, and Malaysia (surplus/specialty products).

The Indian government is now focusing on higher domestic production by providing targeted fiscal stimulus (subsidies ~2.0 trillion in FY26, Nano-urea, bio-fertilisers production, long-term push for balanced nutrition (NPKS), new plants (production), and various other policies to reduce the import dependency. The market and also ICRA are now expecting around 2% production volume growth for domestic fertiliser producers in FY26, and a stable EBITDA margin led by higher Nutrient-Based Subsidy (NBS) for phosphorus and Sulphur.

Also, the Indian government continues to provide targeted fiscal stimulus (subsidies) for Rabi crops (farmers) at around INR 0.38 Trillion-ensuring they can afford them despite potentially higher fertiliser prices due to rising RM (raw materials) cost. In brief, despite various ongoing/legacy challenges like heavy reliance on imports, global price volatility, geopolitical fragmentations, and monsoon dependency, the outlook for India’s fertiliser sector remains robust amid increasing domestic production, continuing targeted fiscal & monetary stimulus and resilient demand tied to population growth/improvement in standard of living, and increasing thrust on horticulture with diversification to organic farming (policy tailwinds).

Overview of Key Fertiliser Stocks to watch for 2026

1) Coromandel International Ltd

• Coromandel, a subsidiary of the Murugappa group, is a leading private producer of phosphatic fertiliser with a diversified portfolio like crop protection (pesticides & bio-products) and speciality nutrients (Nano & organic-fertilisers).
• It has a robust rural distribution network & supply chain management and benefits from government subsidies like an elevated NBS rate.
• Apart from fertiliser & pesticide product-related business, it is also active in various value-added services for India’s farming community. This includes drone spraying of pesticides, fertilisers, and others; soil testing; crop diagnostics; weather analysis/outlook; and a digital platform for advisory services and direct ordering.
• This ensures farmers take data-driven decisions rather than speculations and is in line with India’s push for digital & precision agriculture.
• Also, its operational integration (both upstream & downstream) and focus on innovation for sustainable nutrients make it one of the top watches despite some key structural (sectoral) challenges like RM costs volatility (global) and often erratic monsoon in India.

2) Fertilisers and Chemicals Travancore Ltd:

• FACT is a PSU major and also a turnaround success story with a focus on Urea and NKP/Complex, straight, organic, and imported fertilisers
• It has also petrochemicals operations (downstream/byproducts)- caprolactam (used in nylon tyre cords, filament yarns, and engineering plastics for textile and automobile industries); with by-products like anhydrous ammonia, cyclohexanone, soda ash, gypsum, sulphuric acid, and carbon dioxide.
• Additionally, FACT provides engineering consultancy, design, fabrication, and erection of industrial equipment.
• FACT also provides various types of agro service centres, marketing networks, Prime PM Krishi Samridhi Kendras, soil testing and health cards, field demonstrations, mobile-based fertiliser management systems, and drone technology for precision application.
• PSU FACT aligns with India’s national goals like urea self-sufficiency and balanced & nutrition.
• Investments in capacity upgrades, energy efficiency, and bio-fertilisers enhance sustainability.
• FACT’s southern dominance (~lead supplier in Kerala) and diversified petrochemical revenue provide resilience.
• Overall, FACT remains a vital & versatile PSU player in fertilisers, blending with petrochemicals and farmer services.

3) Chambal Fertilisers:

• One of the largest fertiliser manufacturers in India, contributing almost 14% of Urea production by India’s private sector; it’s a part of the Birla group and based in Rajasthan
• Chambal functions in three primary segments: Fertilisers manufacturing (primarily Urea)
• Markets imported complex fertilisers: DAP- di-ammonium phosphate, MOP- Muriate of potash; TSP: triple super phosphate, and NPK
• Markets crop protection chemicals & nutrients: insecticides, fungicides, herbicides) under the Uttam brand
• Chambal serves farmers across northern, central, and western India, holding leadership in states like Rajasthan, Madhya Pradesh, Punjab, and Haryana, with a vast network of dealers and outlets.
• Substantial CAPEX for capacity expansion and specialty products diversification will boost both top & bottom line; low debt and efficiency provide a buffer for sustainable growth.

4) Deepak Fertilisers & Petrochemicals Ltd: DFPL

• DFPL is a Pune-based company- involved in multiple sectors
• Manufacturing of Bulk Fertilisers -nitro phosphate, Muriate of potash, diammonium phosphate, ammonium sulphate, NPK mixtures, single super phosphate, sulphur, micronutrients, and bio-fertilisers
• Marketing of Industrial Chemicals - ammonia, methanol, nitric acids, iso-propyl alcohol, propane, and technical ammonium nitrate (TAN)
• Consultancy services to mining companies, engages in agricultural produce, brand management,
• Digital platform development, and real estate projects such as design centres, shopping malls, and retailing outlets.
• Its integrated operations and focus on specialty chemicals position it as a resilient player in both agricultural and industrial sectors.
• Focuses on capacity expansions in high-margin areas like TAN and specialty fertilisers, alongside cost optimisation and sustainability.
• Its diversification reduces dependency on fertiliser subsidies while capitalising on mining/infrastructure demand and agri-growth
• The company is poised for margin expansion from specialty products and industrial chemicals.
• Government support for balanced nutrition and mining activity provides tailwinds.
• In summary, DFPL exemplifies diversification in India's agri-chemical space, blending fertilisers with industrial chemicals for robust long-term growth potential.

5) Gujarat State Fertilizers & Chemicals Ltd:

• GSFC is a diversified PSU, produces fertilisers alongside chemicals like caprolactam; it's promoted by the Gujarat state government, and based in Vadodara.
• Operates through two core segments: Fertiliser and Industrial Chemical Products, manufacturing a wide array of agri-inputs and chemicals while emphasising sustainability and farmer support.
• It offers an extensive portfolio, including water-soluble fertilisers, sulphur-based products, plant tissue culture, micronutrients, plant growth promoters, soil conditioners, organic products, and seeds.
• Also provides agro services, trades agro-inputs, offers port and logistics services, and engages in wastewater treatment.
• Maintains a near debt-free status and focuses on cost optimisation amid raw material volatility.
• It aligns with national priorities like sustainable agriculture and self-reliance, investing in bio-fertilisers, water-soluble nutrients, and green technologies. Its leadership in caprolactam (used in nylon for automotive and textiles) and diversified industrial products provides resilience against fertilizer subsidy dependencies.
• In summary, GSFC offers value through low valuations, dividends, and diversification, making it a stable mid-tier PSU play tied to India's agri and industrial growth

Conclusions

In brief, all the above companies align with India’s agri & fertiliser sector growth and a big beneficiaries of stable demand in Urea & other fertilisers; government subsidies and self-reliance pushes. But some challenges include raw material (RM) price volatility and subsidy dependencies.