NFL's Q1 FY 2025-26 Quarterly Results

Result Summary

• NFL reported a 33.3% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a decline of 30.7%.
• Its expenses for the quarter were down by 29.2% QoQ and 30.5% YoY.
• The net profit decreased 119.0% QoQ and increased 353.9% YoY.
• The earnings per share (EPS) of NFL declined at 0.8 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

NFL (National Fertilizers Limited) is a prominent player in the fertilizer industry in India. Known for its production of urea, NFL operates under the purview of the Ministry of Chemicals and Fertilizers, Government of India. The company is integral to India's agricultural sector, supplying essential fertilizers that contribute to the country's food security. NFL's product portfolio includes urea, bio-fertilizers, and other industrial chemicals. The company has a significant impact on the agricultural practices in India, catering primarily to farmers and agricultural cooperatives. As of the data provided, there is no information on any recent major developments pertaining to NFL.

Revenue

In Q1FY26, NFL reported a total income of ₹3543.09 crores, which reflects a significant decrease of 33.3% compared to the previous quarter (Q4FY25) and a 30.7% decline from the same quarter the previous year (Q1FY25). This decline in total income is noteworthy given the context of a generally high revenue base in previous periods. The comparison with Q4FY25, where the total income was ₹5310.52 crores, highlights the substantial quarterly reduction in revenue. Similarly, the year-over-year comparison with Q1FY25's total income of ₹5109.64 crores underscores the downward trend in NFL's revenue over the year.

Profitability

NFL's profitability metrics indicate a challenging financial period in Q1FY26. The company reported a loss before tax of ₹44.74 crores, showing a significant downturn from the profit before tax of ₹242.47 crores in Q4FY25. This represents a negative quarter-over-quarter change of 118.5%. Compared to Q1FY25, where the loss before tax stood at ₹53.92 crores, there is a year-over-year improvement of 17.0%. The profit after tax for Q1FY26 was a loss of ₹39.44 crores, contrasting sharply with a profit of ₹207.68 crores in Q4FY25, marking a steep decline of 119.0% from the previous quarter. However, when compared to Q1FY25's loss of ₹8.69 crores, there is a significant year-over-year change of 353.9%.

Operating Metrics

Examining NFL's operating metrics reveals that total expenses in Q1FY26 amounted to ₹3587.83 crores, down by 29.2% from Q4FY25 and 30.5% from Q1FY25. Despite the reduction in expenses, the decline in revenue outpaced the cost-cutting efforts, affecting the company's profitability. The tax expense in Q1FY26 was a negative ₹12.64 crores, contrasting with a positive tax payment of ₹60.72 crores in Q4FY25 and a tax credit of ₹12.59 crores in Q1FY25. The earnings per share (EPS) for Q1FY26 were reported at a negative ₹0.80, compared to a positive ₹4.23 in Q4FY25, indicating a quarter-over-quarter decrease of 118.9%, and a decline from a negative ₹0.18 in Q1FY25, showing a substantial year-over-year change of 344.4%.