Management Commentary

Mr. Sanjeev Kumar, IAS, Managing Director commented on Q2 FY26-27 results:

  • QoQ: Revenue increased due to higher volume across majority products (partially offset by lower realization). Profit decreased due to lower realization and higher fixed cost (partially offset by higher volume).
  • YoY Q2: Revenue increased due to higher realizations across majority products and higher volume. Profit marginally increased due to higher realization & volume (partially offset by higher input cost & fixed cost).
  • YoY H1: Revenue & PBT are not comparable due to Annual turnaround in Bharuch complex during H1 FY25-26.
  • Other comprehensive income change attributable to fair market value changes in quoted/unquoted investments and actuarial assumptions of employee benefit obligations.

Operational Updates

  • Dahej captive Coal base power plant has started operations, resulting in reduction in operation cost.
  • Neem Urea Energy Norms revised from 6.20 Gcal/MT to 6.37 Gcal/MT effective from April 01, 2025.
  • Revision in fixed cost for NCU being pursued with Government at industry level (task assigned to NITI Aayog).
  • Nutrient based subsidy rates for complex fertilizer awaited (effective from RABI season).
  • Working capital intensity increased due to high feed and fuel prices from geopolitical situation (war).
  • Q2 FY26-27 witnessed liquidation of substantial built-up inventory at beginning of quarter.

Financial Performance (₹ Crores)

Quarterly Comparison

| Particulars | Q2 FY26-27 | Q1 FY26-27 | Q2 FY25-26 |

| Operating Revenue | 2,773 | 2,238 | 1,968 |

| Total Revenue | 2,901 | 2,339 | 2,095 |

| PBT | 241 | 416 | 230 |

| PAT | 185 | 310 | 177 |

Half-Yearly Comparison

| Particulars | H1 FY26-27 | H1 FY25-26 |

| Operating Revenue | 5,011 | 3,569 |

| Total Revenue | 5,240 | 3,846 |

| PBT | 657 | 335 |

| PAT | 495 | 255 |

Segment Performance Analysis

Q2 vs Q1 FY26-27

  • Fertilizer Segment: Loss decreased due to lower input cost in complex fertilizer & higher energy norms in Neem Urea during Q1 (partially offset by lower volume in complex fertilizer and higher fixed cost).
  • Chemical Segment: Performance lower due to lower realizations & higher fixed cost (partially offset by higher volume).

Q2 vs Q2 FY25-26

  • Fertilizer Segment: Loss marginally increased due to higher fixed cost & higher input cost in complex fertilizers (partially offset by higher realization in complex fertilizers and lower energy norms in Neem Urea).
  • Chemical Segment: Performance marginally improved due to higher realization & higher volume (partially offset by higher input cost & fixed cost).

H1 vs H1 FY25-26

  • Fertilizer Segment: Loss decreased due to higher realization in complex fertilizers & lower energy norms in Neem Urea (partially offset by higher input cost in complex fertilizers).
  • Chemical Segment: Performance improved due to higher realization & higher volume (partially offset by higher input cost & fixed cost).

Balance Sheet Position (₹ Crores)

| Particulars | 30-09-2026 | 31-03-2026 |

| Net Fixed Assets* | 3,314 | 2,881 |

| CWIP | 781 | 900 |

| Investments | 1,260 | 1,558 |

| Cash & Bank balance/deposits | 1,805 | 1,111 |

| Other Assets | 4,777 | 4,775 |

| Total Assets | 11,937 | 11,225 |

| Borrowings | 109 | - |

| Deferred tax liability (net) | 176 | 208 |

| Government grants | 425 | 455 |

| Other liabilities & Provisions | 2,044 | 1,581 |

| Net worth | 9,183 | 8,981 |

| Total Liabilities | 11,937 | 11,225 |

*Includes Property, plant & equipment, Intangible assets, Right of use assets and Investment property

  • CWIP represents mainly WNA-III plant, Ammonium Nitrate II plant under construction and urea reactor under replacement.
  • Investments represent both quoted and unquoted investment in equities/G-sec.

Cash Flow Statement (₹ Crores)

| Particulars | H1 FY26-27 | H1 FY25-26 |

| Operating Cash Flow before WC changes | 675 | 322 |

| Net Change in Working Capital | (387) | 98 |

| Taxes Paid | (147) | (106) |

| Net cash from Operating Activities | 141 | 314 |

| Net cash used in Investing Activities | (3) | 28 |

| Net cash used in Financing Activities | (310) | (264) |

| Net Decrease in Cash & Cash Equivalent | (172) | 78 |

| Cash at beginning of year | 74 | (80) |

| Cash at end of year | (98) | (2) |

  • Outflow from financing activity mainly represents payment of dividend.

Project Pipeline

Under Execution

1. Ammonia Expansion – Bharuch (50 KTPA): Expected to increase reliability of existing ammonia loop with energy cost saving

2. Weak Nitric Acid –III – Bharuch (200 KTPA): Expected to strengthen market share, increase revenue and results

3. Ammonium Nitrate –II – Bharuch (163 KTPA)

4. New CFBC Steam Boiler – Bharuch (180-200 MT/HR): Expected to increase reliability with energy cost saving

Under Consideration

1. BisPhenol-A (BPA) – Dahej (150 KTPA)

2. Polyols – Dahej (100 KTPA)

3. Acetic Acid - Bharuch (350 KTPA)

Company Uniqueness Claims

  • Never lost a single man-day on account of labour discord
  • Only company in India to produce Oil based Ammonia
  • Only manufacturer of Toluene Di-isocyanate (TDI) in South East Asia & Indian Sub Continent
  • Largest producer of Formic Acid in India
  • One of top producers of Aniline, AN Melt, WNA & CNA
  • India's only manufacturer of Glacial Acetic acid through Methanol Carbonylation route

Disclosure Policy

  • Only matters in public domain can be discussed
  • Company does not provide forecasts about future business situation
  • Company does not comment or give guidance on future results or business outlook