New Delhi: Rashtriya Chemicals and Fertilizers Limited (RCF) has reported strong financial performance for the quarter ended June 30, 2026, with standalone net profit rising 37.3% year-on-year to ₹74.29 crore.
The company had reported a profit after tax of ₹54.12 crore in the corresponding quarter of FY26. Revenue from operations also increased 6.4% to ₹3,585.71 crore from ₹3,370.58 crore in Q1 FY26.
The Board of Directors approved the unaudited standalone and consolidated financial results at its meeting. The meeting commenced at 12:15 PM and concluded at 3:30 PM.
RCF Q1 FY27 Financial Results
RCF recorded year-on-year growth across its key profitability metrics during the quarter.
- Revenue from Operations: ₹3,585.71 crore, up 6.4%
- Total Income: ₹3,621.15 crore, up 6.2%
- Profit Before Tax: ₹102.18 crore, up 36.6%
- Profit After Tax: ₹74.29 crore, up 37.3%
- Basic & Diluted EPS: ₹1.35, compared with ₹0.98 in Q1 FY26
The improvement in profit came despite a substantial reduction in subsidy income following the revision of energy norms applicable to the company’s Thai Unit.
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Revised Urea Energy Norms Impact RCF’s Subsidy Income
The Department of Fertilizers revised the energy norm for RCF’s Thai Unit from 6.200 Gcal/MT to 5.984 Gcal/MT, with retrospective effect from April 1, 2025.
The revision resulted in a significant reduction in subsidy income:
- FY 2025-26 impact: ₹132.52 crore
- Q1 FY27 impact: ₹39.02 crore
- Total impact recognised in Q1 FY27: ₹171.54 crore
Despite this financial impact, RCF managed to deliver higher profit compared with the same quarter last year.
Fertilizer and Industrial Chemical Revenue Rise
RCF reported strong growth in its key business segments during Q1 FY27.
Fertilizer revenue increased 19.77% year-on-year to ₹2,567.80 crore.
Revenue from industrial chemicals recorded a much sharper increase of 85.35% to ₹708.16 crore.
However, trading income declined 63.63% to ₹306.11 crore during the quarter.
The segment-wise performance was:
- Fertilizers: ₹2,567.80 crore, up 19.77%
- Industrial Chemicals: ₹708.16 crore, up 85.35%
- Trading: ₹306.11 crore, down 63.63%
RCF Board Approves ₹1,100 Crore Debenture Issue
The Board also approved the issuance of secured or unsecured non-convertible debentures (NCDs) aggregating up to ₹1,100 crore.
The debentures may be issued in one or more series or tranches over the next 12 months through private placement.
The proposed issue remains subject to approval from shareholders at the company’s ensuing Annual General Meeting (AGM).
Auditor’s Review
The company’s statutory auditors issued a Limited Review Report with an unmodified conclusion on the financial results.
The report includes an emphasis of matter relating to the revision of energy norms and gas pooling issues.
RCF Q1 FY27 Results: Key Takeaways
The company’s quarterly performance highlights several important developments:
- Net profit increased 37.3% year-on-year.
- Revenue from operations grew 6.4%.
- Fertilizer revenue rose nearly 20%.
- Industrial chemicals revenue increased more than 85%.
- The company absorbed a ₹171.54 crore impact from revised energy norms recognised in Q1 FY27.
- The Board approved a proposed ₹1,100 crore NCD issue, subject to shareholders’ approval.
About Rashtriya Chemicals and Fertilizers
Rashtriya Chemicals and Fertilizers Limited (RCF) is a public sector undertaking (PSU) engaged in the manufacturing and marketing of fertilizers and industrial chemicals. The Government of India holds a 75% stake in the company. RCF serves the agriculture sector through its fertilizer business and also operates in industrial chemicals and related segments.
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