Financial Performance Overview
FACT reported a significant net loss of ₹396 crore (₹3,960.02 lakh) for FY 2025-26, a sharp reversal from the net profit of ₹41.23 crore in the previous year. This occurred despite substantial revenue growth to ₹5,723.76 crore (₹5,72,376.14 lakh) from ₹4,050.91 crore in FY25, driven by higher fertilizer sales and increased government subsidies of ₹2,572.92 crore. The loss was primarily attributed to high input costs, supply chain disruptions, and commodity price volatility.
Operational Highlights and Production
FACT achieved record production of 11.13 lakh MT of fertilizers, including 8.30 lakh MT of Factamfos and 2.83 lakh MT of ammonium sulfate (all-time high). Sales performance was strong with total sales reaching 13.37 lakh MT, including a 12% increase in ammonium sulfate sales to 2.99 lakh MT and 11% growth in NP fertilizer sales to nearly 8 lakh MT. The caprolactam plant remained under preservation mode due to economic unviability, incurring unabsorbed fixed costs of ₹42.07 crore.
Corporate Governance and AGM Details
The company held its 82nd Annual General Meeting virtually on September 29, 2026, to adopt financial statements, appoint directors, and approve auditor remuneration. Key resolutions included the re-appointment of government nominee directors Shri Manoj Sethi and Shri Santosh Kumar, and the appointment of independent directors Shri Narpat Singh Rathore and Shri Ramawatar Rajgarhia for three-year terms. Remote e-voting was conducted through CDSL platform from September 26-28, 2026.
Expansion Plans and Capital Structure
FACT is pursuing an ambitious CAPEX 2.0 expansion plan worth ₹6,350 crore currently under government consideration. The company is also exploring feasibility of a new urea manufacturing facility under the NIPU-2026 policy. A new 1,650 TPD NP plant at Cochin Division is approaching commissioning. The company carries substantial government debt of ₹3,921.63 crore (principal ₹1,770.49 crore + accrued interest ₹2,151.14 crore), currently classified as current maturities pending financial restructuring approval.
Contingencies and Legal Matters
Significant contingent liabilities total ₹597.12 crore, including claims from suppliers and contractors (₹320.75 crore), excise and tax matters, and potential additional interest on government loans. Contingent assets amount to ₹292.71 crore, primarily from a disputed contractor advance of ₹289.56 crore. The FACT-RCF Building Products Ltd joint venture underwent NCLT-approved resolution, with FACT's investment fully impaired and an appeal pending with NCLAT Chennai.
Related Party Transactions and Compliance
The company had significant transactions with government entities including Indian Oil Corporation (₹1,078.69 crore), Bharat Petroleum Corporation (₹412.18 crore), and Rashtriya Chemicals And Fertilizers (₹77.52 crore). CSR expenditure of ₹36.33 lakh fell short of the required ₹472.28 lakh, with unspent amounts transferred to a dedicated account. The company faces provident fund-related challenges with income tax demands and exemption cancellations, currently under legal challenge.