New Delhi: Rashtriya Chemicals and Fertilizers Ltd (RCFL), a public sector undertaking under the Ministry of Chemicals and Fertilizers, reported a massive 404% year-on-year (YoY) jump in net profit for the first quarter of FY26, even as revenue declined sharply.
The company’s Profit After Tax (PAT) rose to ₹54.4 crore in Q1FY26, compared to ₹10.8 crore in the same period last year (Q1FY25), driven by improved margins and cost optimizations.
Revenue Falls Over 23% YoY
Despite the profit growth, RCF’s revenue from operations dropped by 23.2% YoY, coming in at ₹3,370.5 crore for Q1FY26, down from ₹4,396 crore in Q1FY25. The company attributed this drop primarily to changes in sales mix and pricing pressures in the fertilizer sector.
EBITDA Growth and Margin Expansion
The company’s EBITDA stood at ₹157.9 crore, up 36.4% from ₹115.8 crore in the same quarter last year.
EBITDA margin improved by over 200 basis points, rising to 4.7% in Q1FY26 from 2.6% in Q1FY25, reflecting better cost control and efficiency in operations.
Board Approves NCD Issuance Worth ₹1,100 Cr
In a strategic move to bolster its financial resources, RCF’s Board has approved the issuance of secured or unsecured, non-convertible debentures (NCDs). The total issuance will be up to ₹1,100 crore, to be raised in one or more tranches via private placement over the next 12 months.
The proposal is subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Stock Reaction
Following the announcement, RCF shares were trading 0.36% higher at ₹146.11 on the BSE, reflecting cautious optimism among investors.
About RCFL
Rashtriya Chemicals & Fertilizers Ltd. is an Indian central public sector undertaking which produces chemical and fertilizers and is based in Mumbai. It is under the ownership of the Government of India and administrative control of the Ministry of Chemicals and Fertilizers.
