Best Fertilizer Stocks For March 2025 – Based on 5Y CAGR: Deepak Fertilisers, Coromandel International & More

The Indian fertilizer industry is on a growth path, projected to reach ₹1.38 lakh crore (US$ 16.58 billion) by 2032, with a CAGR of 4.2% from 2024 to 2032. In 2023, the market stood at ₹94,210 crore (US$ 11.32 billion), driven by rising agricultural demand and strategic government policies. In this article, check the best fertilizer stocks in India for March 2025 based on 5yr CAGR and other parameters like debt-to-equity ratio and net profit margin.

Best Fertilizer Stocks in March 2025 in India – 5yr CAGR Basis

Note: The best fertilizer stocks in India listed here as of February 27, 2025. The stocks are picked from a market cap of over ₹2,000 crore, with positive 1-yr returns and are sorted based on 5yr CAGR.

Overview of Best Fertilizer Stocks in March 2025 in India

1. Madhya Bharat Agro Products Ltd

Madhya Bharat Agro Products Ltd is a part of Ostwal Group. The company is involved in the business of manufacturing fertilizer and chemical products. In Q3 FY 2025, the company’s revenue rose by 16.4% YoY to ₹283.7 crore, while profit after tax (PAT) surged 1,276.9% YoY to ₹17.9 crore.

Key metrics: 

• Return on equity (ROE): 7.31%
• Return on Capital Employed (ROCE): 17.33%

2. Deepak Fertilisers and Petrochemicals Corp Ltd

Deepak Fertilisers and Petrochemicals Corporation Ltd is involved in the business of fertilisers, agri services, bulk chemicals, mining chemicals and real estate. In Q3 FY 2025, the company’s consolidated revenues rose 39% YoY to ₹2,579 crore, while net profit surged 318% YoY to ₹253 crore.

Key metrics: 

• ROE: 8.32%
• ROCE: 12.32%

3. Chambal Fertilisers and Chemicals Ltd

Chambal Fertilisers & Chemicals Ltd manufactures urea at its own plants and also markets other fertilizers and agri-inputs. Additionally, it has a joint venture in Morocco for phosphoric acid production. For Q3 FY 2025, the company’s standalone revenue increased by 13% YoY to ₹4,918 crore. PAT also showed growth of 25% YoY, reaching ₹505 crore.

Key metrics: 

• ROE: 17.63%
• ROCE: 21.75%

4. Coromandel International Ltd

Coromandel International Ltd, a leading agri-solutions provider in India, offers a wide range of products and services across the farming value chain, specializing in fertilizers, crop protection, biopesticides, specialty nutrients, and organic fertilizers. In Q3, the company reported a total income of ₹7,038 crore, up 28% from ₹5,510 crore in the same quarter last year. PAT for Q3 stood at ₹525 crore, marking a 116% growth from ₹243 crore in the corresponding period.

Key metrics: 

• ROE: 18.93%
• ROCE: 23.79%

5. Dhanuka Agritech Ltd

Dhanuka Agritech manufactures a diverse range of agrochemicals, including herbicides, insecticides, fungicides, and plant growth regulators, available in liquid, dust, powder, and granular forms. In Q3, the company’s revenue from operations increased 10.4% YoY to ₹445.27 crore, while net profit rose 21.3% YoY to ₹55.04 crore.

Key metrics: 

• ROE: 20.64%
• ROCE: 24.75%

Best Fertilizer Stocks in March 2025 in India – Debt to Equity Basis

Note: The best fertilizer stocks in India listed here are as of February 27, 2025. The stocks are picked from a market cap of over ₹2,000 crore and are sorted based on low debt-to-equity ratio.

Best Fertilizer Stocks in March 2025 in India – Net Profit Margin Basis

Note: The best fertilizer stocks in India listed here are as of February 27, 2025. The stocks are picked from a market cap of over ₹2,000 crore and are sorted based on net profit margin.

Fertilizer Sector Growth in India

The fertilizer sector in India plays a crucial role in supporting the country’s agricultural growth and food security. The Indian fertilizer industry is expected to reach ₹1.38 lakh crore by 2032, with a CAGR of 4.2% from 2024 to 2032. The sector is driven by rising agricultural demand and strategic government policies.

Fertilizer production in FY24 reached 45.2 million tonnes, reflecting the success of these initiatives. As the world’s second-largest producer of fruits and vegetables, India benefits from schemes like PM-KISAN and PM-Garib Kalyan Yojana, which boost farmer liquidity and fertilizer investment, with support from the United Nations Development Programme for food security efforts.

Pros of Investing in Fertilizer Stocks in India

• Essential Industry: The fertilizer sector is crucial for India’s agriculture-driven economy, ensuring consistent demand.
• Government Support: Subsidies, policies like PM-KISAN, and self-sufficiency initiatives (Atmanirbhar Bharat) can provide financial stability.
• Growing Agricultural Demand: Rising population and food security concerns drive increased fertilizer consumption.
• Diversification Benefits: Fertilizer stocks provide exposure to the agriculture sector, balancing portfolios during market volatility.

Cons of Investing in Fertilizer Stocks in India

• Regulatory Risks: Price controls, subsidy delays, and policy changes can impact profitability.
• Commodity Price Fluctuations: Dependency on raw materials like natural gas and phosphoric acid leads to cost volatility.
• Cyclic Nature: Seasonal variations in demand can affect revenue and stock performance.
• Environmental Concerns: Stricter regulations on chemical fertilizers and the rise of organic alternatives could impact long-term growth.

Conclusion

Investors should weigh the pros and cons before investing in fertilizer stocks, considering both short-term gains and long-term industry prospects. Before investing in fertilizer stocks you should make sure it aligns with your investment objectives and risk appetite.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.