Fastest Growing Fertilizer Stocks in India

In 2024, the size of the Indian fertiliser market was placed at Rs 982 billion (bn), according to estimates from the IMARC group.

The market is expected to grow at a compound annual growth rate (CAGR) of 4% from 2025 to 2033, reaching Rs 1,401 bn.

The expanding population, fast urbanisation, rising food demand, improvements in agricultural technology, and supportive government programs like subsidies and financial aid for farmers are all factors contributing to the market's expansion.

Some companies are growing at a pace faster than that of the industry. We have highlighted some of these below.

A Look at Some of the Fastest Growing Fertilizer Stocks in India

Before we get into the list, we wish to clarify a few things. The list is based on CAGR sales growth of the last three years. It does not take into account other parameters like profitability, market cap etc.

We have solely based the same from the Equitymaster screener. The article is not a fundamental analysis and is not a stock recommendation of any kind. The list is not exhaustive either and may include companies that are diversified.

Let's take a look at some of the details below.

Now let's consider three of the biggest ones in the fertilizer space in terms of market capitalisation based on the list above.

#1 Paradeep Phosphates

First on our list is Pradeep Phosphates.

Paradeep Phosphates stands as a prominent player in India's phosphatic fertilizer industry, with a total production capacity of 3 million metric tonnes (MT).

This includes 2.6 million MT of phosphate-based fertilizers and 0.4 million MT of urea. The company operates two manufacturing facilities located in Paradeep, Odisha, with a capacity of 1.8 million MT, and Zuarinagar, Goa, with 1.2 million MT.

The company's diverse product portfolio includes fertilizers like DAP and various NPK grades, along with urea. Serving more than 9 million farmers across 15 states, the company reaches its customers through a vast network of 70,000 retail outlets.

Additionally, the company offers industrial products such as gypsum, HFSA, sulfuric acid, and ammonia.

Paradeep Phosphates Financial Snapshot (FY23 to FY25)

Source: Equitymaster

Paradeep Phosphates has seen a CAGR in sales growth in last 3 years of 20.7%. The solid jump in sales has come in FY23.

FY25 was a good year for the company. Paradeep Phosphates saw production volumes gain from 2.3 MMTPA to 2.63 MMTPA, with capacity utilisation improving from 76% to an impressive 87%. On the sales front, volumes surged from 2.52 MMTPA to 3.03 MMTPA, increasing the company's national market share in the phosphatic fertiliser segment from 12.6% to 14.4%.

For Q1 FY26, the company reported revenues of Rs 37,541 m, which was a sharp jump over Rs 23,774 m in the corresponding period of last year. The net profits of the company surged to Rs 2,564 m in Q1 FY26, from just Rs 63 m YoY.

Moving ahead, the ongoing merger of Mangalore Chemicals & Fertilizers will help the company expand its installed capacity by around 23% to 3.7 million tonnes and open high-potential southern markets to its portfolio. Regulatory approvals are well advanced, and the company management anticipates closure in the months ahead.

Paradeep Phosphates is also undertaking a backward integration. The construction of a new sulphuric-acid plant at Paradeep will lift the company's capacity from 1.4 to approximately 2 MMTPA. Parallel expansion will raise phosphoric-acid output from 0.5 to 0.7 MMTPA by September, 2026. These projects will materially derisk input volatility and uplift long-term margins.

These strategic moves position the company well as a leading player poised to capitalise on the growing demand.

To know more check the Paradeep Phosphates fact sheet and latest quarterly results.

#2 Kothari Industrial Corporation

Second on our list is Kothari Industrial Corporation.

Kothari Industrial Corporation operates across a diverse set of sectors: fertilizers, footwear, food services, and publishing.

Kothari Industrial Corporation Financial Snapshot (FY23 to FY25)

Source: Equitymaster

Kothari Industrial has seen a CAGR in sales growth in last 3 years of 109.2%. The real jump in sales has come only in FY25.

The company has been making losses in the last few years.

For Q1 FY26, the Kothari Industrial reported revenues of Rs 392 m, which was a sharp jump over Rs 134 m in the corresponding period of last year. The company has reported losses for the period.

Moving forward, the company says that the outlook for the fertilizer division remains positive, supported by favourable government policies, stable demand, and opportunities in organic and specialty fertilizers. The company is exploring backward integration and agro-input diversification.

On the other hand, footwear business is expected to gain from retail expansion and digital brand building. Kothari Industrial Corporation has acquired 30% equity in Phoenix Kothari Footwear Limited.

Phoenix Kothari Footwear is a leading contract manufacturer for global brands like Nike, Crocs, and Adidas.

The company has also acquired Parveen Roadways, a sole proprietorship founded in 1994 for Rs 240.3 m. The entity operates in the logistics sector, specialising in railway related services. It also owns a fleet of over 100 vehicles.

Last year, Kothari Industrial Corporation ventured into branding business by signing 30 years licence with France's Group Royer. This a major initiative and entry into branding space.

The diversification strategy of the company could mitigate risks, taps multiple high-potential industries, and may support future growth.

To know more check the Kothari Industrial Corporation fact sheet and latest quarterly results.

#3 Southern Petrochemical Industries

Southern Petrochemical Industries Corporation (SPIC) is a prominent fertiliser manufacturing company. It is a joint venture founded by Dr. M A Chidambaram and Tamil Nadu Industrial Development Corporation Limited (TIDCO), a state-owned industrial development organisation, formed the joint venture.

SPIC is one of the earliest units set up in the country to produce high quality fertilizers to improve the agricultural output of the country. SPIC's large fertilizer complex is capable of producing 6.2 lakh tons of Neem Coated Urea.

SPIC Financial Snapshot (FY23 to FY25)

Source: Equitymaster

SPIC has seen a CAGR in sales growth in last 3 years of 18.1%. The solid jump in sales has come in FY25.

For Q1 FY26, SPIC reported revenues of Rs 7,806 m, which was an increase over Rs 7,543 m in the corresponding period of last year. Net profits of the company were Rs 550 m against Rs 505 m YoY, a growth of near 10%.

Moving ahead, the company sees higher demand for urea. According to the management, to meet anticipated higher demand, domestic urea production is expected to reach approximately 33 m tonnes, thereby reducing reliance on imports.

This will be supported by ongoing greenfield and brownfield projects, and through substitution of 20-25 lakh tonnes of conventional urea with Nano Liquid Urea during top dressing.

The company has partnered with Tamil Nadu Agricultural University to conduct field trials comparing the efficacy and phytotoxicity of Nano Urea versus SPIC Prilled Urea, specifically in paddy cultivation. These studies will also evaluate economic viability and inform strategies for deploying Nano Technology in nutrient delivery systems.

SPIC's prospects look positive, driven by good monsoon, sustainable production initiatives, geographic diversification, and financial robustness, reinforcing its role as a key player in India's fertilizer industry.

To know more check the SPIC financial fact sheet and latest quarterly results.

Conclusion

The future prospects of the fertilizer industry in India are promising, driven by several factors related to agricultural growth, government support, and evolving farming practices.

Key drivers include government schemes like nutrient-based subsidy reforms, Pradhan Mantri Krishi Sinchayee Yojana, and policies encouraging balanced nutrient management and adoption of bio-fertilizers.

Advances in precision farming, technology integration (digital soil health cards, micro-dosing), and rising environmental awareness are boosting demand for eco-friendly and specialty fertilizers. The industry also benefits from increased private sector investments and international collaborations.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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