National Fertilizers Limited FY26 Annual Report Summary
Financial Performance
National Fertilizers Limited reported strong financial results for FY 2025-26 with revenue from operations increasing 9% to ₹21,514.18 crore. Profit Before Tax surged 124% YoY to ₹232.67 crore, while Profit After Tax reached ₹169.65 crore (up from ₹76.26 crore in FY25). The company achieved record fertilizer sales of 65.20 LMT, including 54.45 LMT urea, with non-urea contribution rising to 40.34% of revenue from 32.59% last year.
Subsidy Recognition and Auditor Emphasis
A significant emphasis matter highlighted by auditors was the recognition of ₹1,479.97 crore in subsidy income on DAP & TSP fertilizers based on operational guidelines from the Department of Fertilizers rather than final notifications. Total subsidy receipts amounted to ₹15,036.16 crore, with subsidy receivable standing at ₹5,198.89 crore as of March 31, 2026.
Operational Highlights
The company achieved 112.69% capacity utilization in urea production and recorded growth across multiple segments including bio-fertilizers (727 MT, record high), agro-chemicals (₹172.31 crore), and industrial products (₹533.83 crore). Energy efficiency improvements were noted across all plants, with Vijaipur II achieving 5.450 Gcal/MT against a norm of 5.500.
Strategic Initiatives
NFL formed Assam Valley Fertilizer JV with Govt. of Assam (40%), NFL (18%), OIL (18%), HURL (13%), and BVFCL (11%) for a 12.7 LMT urea plant at Namrup, Assam (project cost: ₹10,601.40 crore). The company also signed an MoU with Uralchem JSC, RCF and IPL for a 2 million MT urea facility in Russia and is expanding bentonite sulphur and bio-fertilizer capacities.
Corporate Governance Issues
The report disclosed corporate governance non-compliance from April 21 to May 4, 2025, due to delayed appointments of Independent Directors by the Government of India. This affected board composition and committee structures until new appointments were made in May 2025. The company emphasized it had no control over government appointment timelines.
Balance Sheet and Liabilities
Trade receivables surged to ₹5,411.24 crore (mainly subsidy dues), while borrowings increased significantly to ₹3,959.25 crore. Employee benefit obligations showed substantial increases, with gratuity liability rising to ₹123.33 crore from ₹79.35 crore. Contingent liabilities totaled ₹923.64 crore, primarily related to tax and regulatory disputes.
CSR and Compliance
The company spent ₹249.53 lakh on CSR against an obligation of ₹424.49 lakh, transferring ₹174.79 lakh to an unspent account. SEBI requirements for physical shareholders were detailed, clarifying that non-submission of nomination details does not freeze accounts or withhold payments.
Segment Performance
Segment analysis showed strong growth in traded imported fertilizers (41.6% increase to ₹6,413.83 crore) and others segment (29.5% increase to ₹1,807.57 crore), while manufactured fertilizers declined 3.5% to ₹12,958.13 crore. Total segment results improved to ₹590.14 crore from ₹402.23 crore in FY25.