NACL Industries Stock Hits Upper Circuit After CCI Approves Coromandel's Stake Acquisition in NACL

Mumbai, July 3, 2025: Shares of agrochemical firm NACL Industries Ltd continued their remarkable upward trajectory, hitting a new high of ₹252.77 in intra-day trade on Thursday. The stock was locked at a 5% upper circuit on the BSE for the seventh consecutive trading session, marking a 40% surge during this period.

Over the last five months, the small-cap stock has skyrocketed by an astounding 353%, rising from ₹55.72 to ₹252.77 as of July 3.

What’s Fueling the Rally?

The significant upward momentum in NACL Industries’ stock is predominantly driven by the Competition Commission of India’s (CCI) approval of Coromandel International’s proposal to acquire a 53% controlling stake in NACL for approximately ₹820 crore. This pivotal deal, initially announced on March 12, 2025, is anticipated to conclude in the first half of FY26, subject to final regulatory clearances and a mandatory open offer for an additional 26% stake as per SEBI regulations.

Strategic Gains for Coromandel

Coromandel International, a prominent entity within the Murugappa Group and a leading agri-solutions provider, views this acquisition as a strategic move to bolster its position in the Indian agrochemical sector. The company aims to:

• Strengthen its presence in India’s crop protection market.
• Expand its technical capabilities and domestic formulations business.
• Accelerate product commercialisation and new product development.
• Enter the contract manufacturing segment.
• Leverage existing R&D, customer base, and global sourcing networks for enhanced synergies.

The management of Coromandel International believes this acquisition will significantly augment its market footprint both domestically and internationally, creating a more integrated and comprehensive agricultural solutions portfolio.

Financial Snapshot of NACL

NACL Industries Ltd. reported a total income of ₹1,242.56 crore for the full fiscal year 2025 (FY25), experiencing a decline compared to ₹1,787.29 crore in FY24. Correspondingly, the company recorded a net loss of ₹92.13 crore for FY25, worsening from a net loss of ₹58.89 crore in FY24. This led to a Basic EPS of (₹4.62) for the fiscal year, indicating continued unprofitability with a net profit margin of (7.46)%. For the fourth quarter of FY25 (Q4 FY25), the company’s financial performance showed a total income of ₹202.05 crore and a net loss of ₹50.00 crore, resulting in a Basic EPS of (₹2.51) for the quarter. These figures highlight a period of financial strain for the company, with revenue contraction and sustained losses, contrasting with the recent surge in its stock price, which appears to be driven by the anticipated acquisition by Coromandel International.

Market Outlook and Risks

While Indian agriculture is currently supported by favourable rainfall and robust reservoir levels, Coromandel’s FY25 annual report highlights potential risks. These include tariff-related embargoes that could lead to increased input costs and negatively impact consumption, particularly in major international markets such as the United States. Despite these potential headwinds, the strategic benefits derived from the acquisition are expected to provide long-term advantages.

About NACL Industries

Established in 1993, NACL began as an active ingredient manufacturer and evolved into a full-spectrum agrochemical firm with a strong presence in retail, B2B, and exports. It offers over 66 products across all major crop segments, including insecticides, herbicides, fungicides, and plant growth regulators, and has longstanding relationships with several multinational clients.

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