Financial Performance Overview
NFL reported strong financial results for FY26 with revenue from operations increasing 9% to ₹21,514.18 crore from ₹19,794.50 crore in FY25. Profit after tax surged 15% to ₹211.49 crore, with basic earnings per share at ₹4.31. The company operates in four reportable segments: Manufactured Fertilizers (₹12,958 crore revenue), Manufactured Chemicals (₹524 crore), Traded Imported Fertilizers (₹6,414 crore), and Others (₹1,808 crore). Key financial position items include total assets of ₹11,724 crore, trade receivables of ₹5,411 crore (including ₹5,199 crore subsidy receivable from Government), and borrowings of ₹3,959 crore.
AGM Resolutions and Corporate Actions
The 52nd AGM convened on 22nd September 2026 via video conference to consider several resolutions including adoption of financial statements, declaration of final dividend of ₹1.04 per share (10.40%), reappointment of directors retiring by rotation, and appointment of multiple government nominee directors. Special business included increasing borrowing limits to ₹27,000 crore, creation of charges on company assets, and adoption of new Articles of Association. The board recommended ratification of cost auditor remuneration totaling ₹3.46 lakh.
Subsidy Recognition and Government Support
The company recognized significant subsidy income based on various government notifications: ₹10,759 crore under New Urea Policy, ₹4,096 crore under Nutrient Based Subsidy policy, and an additional ₹1,480 crore on DAP & TSP fertilizers based on Department of Fertilizers guidelines for Kharif 2025 extended till March 2026. The company also recognized subsidy of ₹1,922 crore on 6.751 lakh MT of fertilizers pending sale through POS devices.
Corporate Governance and Compliance Issues
NFL faced significant regulatory challenges with board composition non-compliance with SEBI LODR regulations from 1st April 2025 to 4th May 2025 due to delayed appointment of independent directors by the Government of India. This resulted in monetary fines of ₹26.84 lakh each from BSE and NSE for Regulation 17(1) non-compliance, with additional fines of ₹5.19 lakh each for committee composition issues. The company's board committees (Audit, Stakeholders Relationship, Nomination and Remuneration, CSR, and Risk Management) all experienced composition issues during this period.
Operational Expansion and CSR Initiatives
The company expanded its farmer outreach through inauguration of NFL Kisan Dhan Direct Sales Centres across Rajasthan, Haryana, Telangana, and Karnataka. Extensive farmer training programs, field demonstrations, and soil testing campaigns were conducted in Punjab, Madhya Pradesh, and Karnataka. CSR initiatives included providing 56 RO water purifiers in 32 MCD schools benefiting 25,000 students, women's health check-up camps, traditional art wall paintings, and various community development activities. The company spent ₹249.53 lakh on CSR against an obligation of ₹424.49 lakh.
Joint Ventures and Investments
NFL maintains investments in three joint ventures: Ramagundam Fertilizers & Chemicals Limited (26% holding, share of profit ₹182.18 crore), Assam Valley Fertilizer & Chemical Company Limited (20.24% holding, investment of ₹10.27 crore, share of loss ₹5.53 crore), and Urvarak Videsh Limited (33.33% holding, dormant).
Shareholding and Corporate Structure
The President of India holds 74.71% promoter shareholding (366,529,532 shares) with no change in share capital during the year. The company maintained its market position with NSE ranking of 814 as of 31st December 2025 based on market capitalization.
Auditor Reports and Compliance Certifications
The financial statements received unmodified audit opinions from Dassani & Associates LLP and RSPH & Associates, with emphasis of matter paragraphs regarding subsidy recognition and joint venture audit matters. Secretarial audit was provided by Agarwal S. & Associates, with CEO/CFO certifications on financial reporting and internal controls.
Contingent Liabilities and Risk Factors
Total contingent liabilities stood at ₹923.64 crore comprising income tax matters (₹52.18 crore), excise/Customs/GST (₹703.44 crore), sales tax/VAT (₹7.02 crore), arbitration and civil cases (₹157.61 crore), and other claims (₹1.85 crore). The company also faces defined benefit obligations including gratuity liability of ₹123.33 crore (unfunded).