National Fertilizers posts Rs 14.38 crore Q2 loss as costs rise

National Fertilizers Limited posted a standalone loss of Rs 14.38 crore for the quarter ended September 30, 2026, although revenue from operations rose 29% sequentially to Rs 5,813.94 crore. Total expenses reached Rs 5,853.87 crore, exceeding Rs 5,837.79 crore of total income and reversing the previous quarter’s Rs 70.91 crore profit.

Why did National Fertilizers report a loss in the September 2026 quarter?

National Fertilizers reported a loss because total expenses of Rs 5,853.87 crore exceeded total income of Rs 5,837.79 crore by Rs 16.08 crore in the quarter ended September 30, 2026. This resulted in a pre-tax loss of Rs 16.08 crore, compared with a pre-tax profit of Rs 95.34 crore in the quarter ended June 30, 2026. The standalone statement reported no exceptional items in either period.

The result was also a loss for the same quarter a year earlier, although the scale changed. National Fertilizers had reported a Rs 10.21 crore loss for the quarter ended September 30, 2025, making the latest loss Rs 4.17 crore higher. The sequential movement was more pronounced, as the company moved from a Rs 70.91 crore profit in the June 2026 quarter to a Rs 14.38 crore loss.

Basic and diluted earnings per share were negative Rs 0.29 for the September 2026 quarter, against positive Rs 1.45 in the June 2026 quarter and negative Rs 0.21 a year earlier. National Fertilizers reported paid-up equity share capital of Rs 490.58 crore, with a face value of Rs 10 per share.

How did National Fertilizers revenue change in the September quarter?

National Fertilizers increased revenue from operations by Rs 1,313.55 crore, or about 29%, sequentially to Rs 5,813.94 crore in the September 2026 quarter from Rs 4,500.39 crore in the June 2026 quarter. Revenue remained below the Rs 6,750.30 crore reported in the September 2025 quarter, a year-on-year reduction of Rs 936.36 crore.

Other income rose to Rs 23.85 crore in the September 2026 quarter from Rs 11.44 crore in the June 2026 quarter, taking total income to Rs 5,837.79 crore from Rs 4,511.83 crore. Other income was Rs 28.02 crore in the quarter ended September 30, 2025. The standalone filing does not provide product-wise sales volumes or a separate explanation for the revenue movement.

For the half year ended September 30, 2026, National Fertilizers reported revenue from operations of Rs 10,314.33 crore, compared with Rs 10,284.47 crore in the corresponding half year of 2025. Total income was Rs 10,349.62 crore, up from Rs 10,321.41 crore, so the half-year increase was substantially smaller than the quarter-on-quarter revenue increase in the September quarter.

Which costs increased at National Fertilizers in the September quarter?

National Fertilizers’ purchases of stock-in-trade rose to Rs 2,568.07 crore in the September 2026 quarter from Rs 494.23 crore in the June 2026 quarter. Cost of materials consumed increased to Rs 2,404.95 crore from Rs 2,123.43 crore, while power and fuel expense rose to Rs 1,700.75 crore from Rs 1,501.51 crore. Total expenses consequently increased by Rs 1,437.38 crore quarter on quarter.

Changes in inventories provided a Rs 1,553.22 crore credit in the September quarter, compared with a Rs 343.17 crore credit in the preceding quarter. Finance costs fell to Rs 74.57 crore from Rs 79.30 crore, and employee benefit expense declined to Rs 151.19 crore from Rs 165.88 crore. These reductions did not offset the higher purchases of stock-in-trade, material consumption and power and fuel expense.

Against the September 2025 quarter, stock-in-trade purchases fell by Rs 1,397.87 crore, while material consumption rose by Rs 639.81 crore and power and fuel expense increased by Rs 461.52 crore. Total expenses were Rs 934.77 crore lower year on year, but total income was also Rs 940.53 crore lower, resulting in a Rs 14.38 crore loss compared with a Rs 10.21 crore loss a year earlier.

What subsidy income did National Fertilizers recognise in the half year?

National Fertilizers recognised Rs 198.91 crore of subsidy income on diammonium phosphate, or DAP, and triple super phosphate, or TSP, fertilisers during the half year ended September 30, 2026. The recognition followed Department of Fertilizers operational guidelines dated January 5, 2026 and May 29, 2026, covering provisions in addition to nutrient-based subsidy rates for specified Rabi 2025 and Kharif 2026 shipments.

Of the Rs 198.91 crore recognised in the half year, Rs 13.41 crore had been recognised in the June 2026 quarter. The filing does not provide a separate quarterly split for the balance or identify the amount attributable to each DAP and TSP product. The subsidy disclosure therefore explains a half-year accounting item rather than a separately stated September-quarter amount.

National Fertilizers also accounted for Rs 117 crore of subsidy income during the half year relating to April 1, 2025 through March 31, 2026. The Department of Fertilizers notified New Energy Norms, or NEN, on July 30, 2026; the norms apply from April 1, 2025 until March 31, 2028. This recognition was recorded in the half-year financial results.

What do National Fertilizers’ half-year results and ratios show?

National Fertilizers reported standalone profit after tax of Rs 56.53 crore for the half year ended September 30, 2026, reversing a Rs 42.31 crore loss in the corresponding half year of 2025. Profit before tax was Rs 79.26 crore, compared with a pre-tax loss of Rs 55.06 crore a year earlier, though the September-quarter loss reduced the first-half profit.

The debt-equity ratio was 1.60 times at September 30, 2026, compared with 1.88 times at June 30, 2026 and 1.71 times at September 30, 2025. The current ratio was 1.02 times, versus 1.03 times in the immediately preceding quarter and 1.01 times a year earlier. National Fertilizers stated that quarterly ratios are not annualised.

Net worth was Rs 2,853.75 crore at September 30, 2026, compared with Rs 2,918.62 crore at June 30, 2026 and Rs 2,645.60 crore at September 30, 2025. The company’s net profit margin was negative 0.25% in the September 2026 quarter, compared with positive 1.58% in June 2026 and negative 0.15% in the September 2025 quarter.

Conclusion

National Fertilizers’ September 2026 standalone result shows that a 29% sequential revenue increase did not prevent a Rs 14.38 crore loss because expenses rose Rs 1,437.38 crore from the preceding quarter and exceeded income. The company nevertheless reported Rs 56.53 crore of profit after tax for the first half, compared with a Rs 42.31 crore loss in the prior-year half.

The next results will show whether the September-quarter cost movements persist and how the disclosed subsidy recognitions affect reported income. The filing identifies the New Energy Norms as applicable until March 31, 2028, while recording Rs 117 crore of related subsidy income and Rs 198.91 crore of DAP and TSP subsidy income in the half year ended September 30, 2026.