Mumbai: National Fertilizers Limited (NFL), a Navratna PSU under the Government of India, reported a blockbuster performance for the quarter ended December 31, 2025 (Q3 FY26). The company staged a sharp turnaround, posting a standalone net profit of ₹93.77 crore, marking a massive 203% year-on-year (YoY) growth driven by higher revenue and robust fertilizer subsidy income.
The results were approved at the Board meeting held on February 13, 2026.
Q3 FY26 Financial Performance Snapshot (Standalone)
NFL delivered a strong recovery during the October–December 2025 quarter:
- Net Profit (Q3 FY26): ₹9,377 lakh (₹93.77 crore)
- Q2 FY26: Net loss of ₹1,021 lakh (₹10.21 crore)
- Q3 FY25: Net profit of ₹3,090 lakh
The company not only reversed its sequential quarterly loss but also recorded a 203% YoY surge in profit.
Revenue Growth
- Total Income (Q3 FY26): ₹6,88,712 lakh
- Total Income (Q3 FY25): ₹5,88,751 lakh
- YoY Growth: 17.3%
Profit Before Tax (PBT) stood at ₹13,107 lakh in Q3 FY26, compared to a loss before tax of ₹1,032 lakh in Q2 FY26, highlighting improved operational efficiency.
Subsidy Income Boosts Profitability
A key contributor to NFL’s strong Q3 performance was subsidy income recognition.
- Subsidy Income (9M FY26): ₹1,46,395 lakh
- Subsidy Income (Q3 FY26): ₹53,706 lakh
The subsidy pertains to DAP and TSP fertilizers under operational guidelines issued by the Department of Fertilizers (DoF) for Kharif 2025, extended until March 31, 2026. The auditor emphasized that the subsidy recognition aligns with government directives under the Nutrient Based Subsidy (NBS) framework.
Nine-Month Performance (April–December 2025)
NFL returned to profitability for the nine months ended December 31, 2025:
- Net Profit (9M FY26): ₹5,146 lakh (₹51.46 crore)
- Net Loss (9M FY25): ₹2,107 lakh
This marks a strong turnaround compared to the previous financial year.
Segment-Wise Performance (Standalone)
Star Performer: Traded Imported Fertilizers (Under NBS)
- Q3 FY26 Profit: ₹14,128 lakh
- Q3 FY25 Profit: ₹10 lakh
This segment emerged as the biggest driver of quarterly growth.
Manufactured Fertilizers (Urea, etc.)
- Posted a ₹4,109 lakh profit in Q3 FY26
- Recovered from a loss in Q2 FY26
Manufactured Chemicals
- Delivered steady profit of ₹2,616 lakh
Others (Domestic Trading & Agro Inputs)
- Contributed ₹2,450 lakh to segment profit
Consolidated Financial Highlights
On a consolidated basis:
- Total Income (9M FY26): ₹17,20,854 lakh
- Profit After Tax (9M FY26): ₹5,995 lakh
The consolidated performance also reflected significant improvement compared to the previous year’s losses.
Key Financial Ratios Reflect Strength
- Earnings Per Share (EPS): ₹1.91 (vs. ₹0.63 in Q3 FY25 and negative ₹0.21 in Q2 FY26)
- Operating Margin: Improved to 2.70% (from 0.43% in Q2 FY26)
- Net Profit Margin: 1.36%
- Debt-Equity Ratio: 1.95 (vs. 0.72 at FY25-end)
- Interest Coverage Ratio: 3.64 times
While borrowing levels increased, the company maintains a comfortable ability to service interest obligations.
Board Meeting Decisions & Corporate Update
The Board of Directors approved:
- Unaudited Standalone and Consolidated Financial Results for Q3 and 9M FY26
- Limited Review Report
- Alteration of Articles of Association (subject to regulatory and shareholder approval)
The meeting was held on February 13, 2026, from 03:00 PM to 05:05 PM.
About National Fertilizers Limited (NFL)
National Fertilizers Limited is a Navratna public sector undertaking under the Government of India and one of the leading producers of urea and industrial chemicals in the country. The company manufactures and markets neem-coated urea, bio-fertilizers, and other agricultural inputs, playing a vital role in supporting India’s farming sector and ensuring fertilizer availability nationwide.
