National Fertilizer's Q2 FY 2025-26 Quarterly Results

Result Summary

• National Fertilizer Ltd reported a 91.3% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 53.9%.
• Its expenses for the quarter were up by 89.2% QoQ and 53.7% YoY.
• The net profit decreased 9.2% QoQ and decreased 396.7% YoY.
• The earnings per share (EPS) of National Fertilizer Ltd declined at 0.73 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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

Company Overview

National Fertilizer Ltd is a leading public sector enterprise in India, primarily operating in the production and marketing of fertilizers and industrial chemicals. The company focuses on providing a range of nitrogenous fertilizers, which play a crucial role in the agricultural sector. Given its strategic importance, National Fertilizer Ltd contributes significantly to ensuring food security in India. As part of the chemical industry, the company's operations are subject to fluctuations in raw material prices and government policies affecting the agricultural and fertilizer sectors. However, specific recent developments or strategic changes for this period are not provided here.

Revenue

In the second quarter of the fiscal year 2026 (Q2FY26), National Fertilizer Ltd reported a total income of ₹6778.33 crores, marking a substantial increase of 91.3% quarter-over-quarter (QoQ) from ₹3543.09 crores in Q1FY26. This also represents a year-over-year (YoY) growth of 53.9% from ₹4404.40 crores in Q2FY25. The significant rise in revenue on both a quarterly and annual basis reflects a period of increased business activity and potentially higher sales volumes or prices, although specific drivers are not detailed in the available data.

Profitability

The profitability metrics for National Fertilizer Ltd in Q2FY26 indicate a challenging financial environment, with a reported profit before tax (PBT) of -₹10.32 crores. This shows an improvement of 76.9% QoQ from -₹44.74 crores in Q1FY26, but a decline of 25.2% YoY from -₹13.80 crores in Q2FY25. The tax expense was minimal at -₹0.11 crores, significantly reduced both QoQ and YoY by 99.1% and 96.5%, respectively. Consequently, the profit after tax (PAT) stood at -₹35.81 crores, showing a marginal QoQ improvement of 9.2% from -₹39.44 crores, but a significant decline YoY by 396.7% from a profit of ₹12.07 crores in Q2FY25. Earnings per share (EPS) were reported at -₹0.73, reflecting an 8.8% QoQ improvement from -₹0.80 and a dramatic YoY decline of 392.0% from ₹0.25.

Operating Metrics

The total expenses for Q2FY26 were ₹6788.65 crores, which represents an 89.2% increase QoQ from ₹3587.83 crores and a 53.7% increase YoY from ₹4418.20 crores. This rise in expenses corresponds closely with the increase in total income, suggesting a proportional growth in operational scale. However, the expenses slightly exceeded the total income for the quarter, contributing to the negative profitability figures. The company’s cost structure and expense management in relation to its revenue growth are critical aspects to consider when reviewing its operational efficiency for this period.