National Fertilizers books Rs 315.91 crore in subsidies

National Fertilizers Limited recognised two separately disclosed subsidy-income items totalling Rs 315.91 crore in the half year ended 30 September 2026: Rs 198.91 crore on DAP and TSP and Rs 117 crore under New Energy Norms for 1 April 2025 to 31 March 2026. The latter was accounted for after a 30 July 2026 Department of Fertilizers notification.

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

National Fertilizers recognised Rs 198.91 crore of subsidy income on DAP and TSP fertilisers in the half year ended 30 September 2026. The Department of Fertilizers issued the relevant operational guidelines through letters dated 5 January 2026 and 29 May 2026. The filing says those guidelines implemented provisions in addition to subsidy rates approved for Rabi 2025 shipments arriving from 1 October 2025 to 31 March 2026 and Kharif 2026 shipments arriving from 1 April 2026 to 30 September 2026.

National Fertilizers also accounted for Rs 117 crore of subsidy income in the same half-year results for the period from 1 April 2025 to 31 March 2026. This entry relates to the fixation of New Energy Norms, or NEN, and is distinct from the DAP and TSP recognition. Adding the two separately disclosed entries gives Rs 315.91 crore, but the filing does not present that arithmetic total as a separate line item.

The Rs 198.91 crore DAP and TSP amount included Rs 13.41 crore recognised in the quarter ended 30 June 2026. The difference of Rs 185.50 crore was therefore recognised in the quarter ended 30 September 2026. The auditors’ emphasis-of-matter paragraph describes the half-year amount as subsidy income recognised on the sale of closing DAP and TSP stock.

Why was Rs 117 crore recorded after the relevant financial year?

National Fertilizers recorded Rs 117 crore in the half year ended 30 September 2026 because the Department of Fertilizers conveyed NEN fixation on 30 July 2026 while making the norms applicable from 1 April 2025. The company said the booked income related to the full period from 1 April 2025 to 31 March 2026, which had already ended before the July notification.

The NEN notification is stated to be valid from 1 April 2025 until 31 March 2028. The timing therefore places income related to financial year 2025-26 in the financial results for the half year ended 30 September 2026. National Fertilizers did not disclose a split of the Rs 117 crore between the quarters ended 30 June 2026 and 30 September 2026.

The limited review report on the consolidated financial results separately drew attention to the Rs 117 crore recognition. It identified the amount as revenue recognised as subsidy income for 1 April 2025 to 31 March 2026 and accounted for in the half year ended 30 September 2026. The report also noted that the NEN applied from 1 April 2025 through 31 March 2028.

How did the subsidy entries compare with National Fertilizers’ reported results?

National Fertilizers reported standalone profit before tax of Rs 79.26 crore and profit after tax of Rs 56.53 crore for the half year ended 30 September 2026. The Rs 315.91 crore sum of the two disclosed subsidy entries was higher than profit before tax, but the filing provides no adjusted earnings calculation that isolates the effect of the entries after expenses, tax and other accounting movements.

Standalone revenue from operations was Rs 10,314.33 crore for the half year ended 30 September 2026, compared with Rs 10,284.47 crore a year earlier. Profit before tax moved from a loss of Rs 55.06 crore in the half year ended 30 September 2025 to profit of Rs 79.26 crore, while profit after tax changed from a loss of Rs 42.31 crore to profit of Rs 56.53 crore.

Quarterly results differed within the 2026 half year. National Fertilizers recorded profit after tax of Rs 70.91 crore in the quarter ended 30 June 2026, followed by a loss after tax of Rs 14.38 crore in the quarter ended 30 September 2026. Revenue from operations rose to Rs 5,813.94 crore in the September quarter from Rs 4,500.39 crore in the June quarter.

What did the audit review say about the accounting entries?

National Fertilizers’ unaudited standalone financial results for the half year ended 30 September 2026 were reviewed by the Audit Committee and approved by the Board of Directors on 11 November 2026. The company said the results were prepared under Indian Accounting Standards, or Ind AS, and the applicable Securities and Exchange Board of India listing regulations.

The auditors included both the Rs 198.91 crore DAP and TSP entry and the Rs 117 crore NEN entry as emphasis-of-matter items in their review report on consolidated financial results. They said their conclusion was not modified in respect of these matters. That wording means the matters were specifically highlighted while the review conclusion itself remained unchanged.

The consolidated review report also referred to a separate restatement at Assam Valley Fertilizers and Chemical Company Limited, a joint venture. Its auditors identified Rs 26.18 crore of expenditure that had previously been capitalised as capital work in progress and was later charged to profit and loss, along with reversal of an Rs 8.75 lakh excess expenditure provision. These joint-venture matters are separate from National Fertilizers’ two disclosed subsidy-income entries.

Conclusion

National Fertilizers’ half-year accounts to 30 September 2026 contain Rs 315.91 crore from two separately disclosed subsidy recognitions: Rs 198.91 crore on DAP and TSP under operational guidelines and Rs 117 crore linked to NEN. The Rs 117 crore item is notable because it relates to 1 April 2025 to 31 March 2026 but was accounted for after the 30 July 2026 NEN notification.

The next point to watch is how National Fertilizers reports subsidy income under NEN, which the Department of Fertilizers says is valid until 31 March 2028. Subsequent results may also show whether the movement from Rs 70.91 crore profit after tax in the June 2026 quarter to a Rs 14.38 crore loss in the September 2026 quarter persists or changes.