National Fertilizers Limited borrowings rise to Rs 4,563.78 crore

National Fertilizers Limited reported current borrowings of Rs 4,563.78 crore at September 30, 2026, up from Rs 3,959.25 crore at March 31, 2026, as trade receivables reached Rs 6,296.23 crore and inventories rose to Rs 2,919.75 crore. Its half-year operating cash outflow narrowed to Rs 191.81 crore from Rs 2,200.09 crore a year earlier.

Why did NFL's current borrowings increase at September 2026?

NFL's current borrowings rose by Rs 604.53 crore in the six months ended September 30, 2026, to Rs 4,563.78 crore from Rs 3,959.25 crore at March 31, 2026. The cash-flow statement records the same Rs 604.53 crore increase in working-capital borrowings and short-term loans, compared with a Rs 2,536.30 crore increase in the half year ended September 30, 2025.

The filing does not assign individual borrowings to a specific use, but the increase coincided with higher current assets and liabilities. Total assets increased to Rs 15,547.04 crore at September 30 from Rs 11,730.49 crore at March 31, while total segment liabilities rose to Rs 12,693.29 crore from Rs 8,883.33 crore. NFL reported no commercial papers outstanding at September 30, 2026.

NFL's debt-equity ratio was 1.60 times at September 30, 2026, against 1.39 times at March 31, 2026. The company defines this ratio as long-term and short-term borrowings divided by shareholders' funds. Net worth was Rs 2,853.75 crore at September 30, compared with Rs 2,847.16 crore at the preceding year-end.

How much did NFL's receivables and inventory rise?

NFL's trade receivables increased by Rs 884.99 crore to Rs 6,296.23 crore at September 30, 2026, from Rs 5,411.24 crore at March 31. Inventories rose by Rs 1,834.69 crore to Rs 2,919.75 crore from Rs 1,085.06 crore, taking the combined increase in those two current-asset categories to Rs 2,719.68 crore.

The cash-flow statement records a Rs 1,967.46 crore outflow from increased trade and other receivables in the half year ended September 30, 2026, versus a Rs 1,960.69 crore outflow in the year-earlier half. It also records a Rs 1,835.00 crore outflow from increased inventories, lower than the Rs 2,102.61 crore outflow in the comparable 2025 period.

NFL reported debtor turnover of 1.74 times for the half year ended September 30, 2026, compared with 2.45 times a year earlier. Inventory turnover was 6.68 times, against 6.49 times in the prior-year half. NFL defines debtor turnover as sales divided by average trade receivables and inventory turnover as sales divided by average inventory.

What offset the cash tied up in NFL's working capital?

NFL generated Rs 3,344.06 crore from an increase in trade payables, provisions and other liabilities in the half year ended September 30, 2026, compared with Rs 1,747.57 crore in the previous-year period. That inflow partly offset the combined Rs 3,802.46 crore cash outflow from higher receivables and inventories before direct taxes.

Trade payables to entities other than micro and small enterprises were Rs 2,539.26 crore at September 30, 2026, up from Rs 1,457.46 crore at March 31. Other financial liabilities increased to Rs 3,609.38 crore from Rs 1,320.48 crore. The filing does not provide a category-by-category reconciliation of those balance-sheet changes to the aggregate operating cash-flow movement.

Net cash from operating activities remained negative but improved year on year, with an outflow of Rs 191.81 crore for the half year ended September 30, 2026, compared with an outflow of Rs 2,200.09 crore a year earlier. Operating profit before working-capital changes rose to Rs 336.66 crore from Rs 143.45 crore, while direct taxes paid increased to Rs 70.07 crore from Rs 27.81 crore.

How did NFL's liquidity and earnings change during the half year?

NFL's current ratio was 1.02 times at September 30, 2026, compared with 1.04 times at March 31, 2026. NFL defines the measure as current assets excluding assets held for disposal divided by current liabilities excluding deferred government grant. Cash and cash equivalents were Rs 63.29 crore at September 30, up from Rs 55.18 crore at March 31.

Net cash from financing activities was Rs 398.98 crore during the half year ended September 30, 2026, down from Rs 2,364.95 crore a year earlier. Alongside the Rs 604.53 crore increase in working-capital borrowings and short-term loans, financing cash flows included Rs 153.41 crore of interest paid, Rs 51.02 crore of dividends paid and Rs 1.12 crore of lease-liability payments.

Standalone revenue from operations was Rs 10,314.33 crore in the half year ended September 30, 2026, compared with Rs 10,284.47 crore in the prior-year half. Profit after tax turned to Rs 56.53 crore from a Rs 42.31 crore loss, while finance costs increased to Rs 153.87 crore from Rs 100.93 crore.

Manufactured fertilizers generated Rs 8,269.27 crore of half-year segment revenue, compared with Rs 6,163.46 crore a year earlier. Traded imported fertilizers under the nutrient-based subsidy, or NBS, segment generated Rs 977.80 crore, down from Rs 3,355.04 crore, while its segment result was Rs 94.23 crore versus Rs 9.52 crore.

Conclusion

NFL's September 2026 standalone disclosures show that working capital expanded substantially, led by the Rs 1,834.69 crore rise in inventories and the Rs 884.99 crore increase in trade receivables. Current borrowings rose to Rs 4,563.78 crore, while higher payables, provisions and other liabilities helped reduce the operating cash outflow to Rs 191.81 crore from Rs 2,200.09 crore in the prior-year half.

The next disclosed policy matter is the Department of Fertilizers' New Energy Norms, effective from April 1, 2025 and valid until March 31, 2028. NFL accounted for Rs 117.00 crore of related subsidy income for April 2025 to March 2026 during the half year ended September 2026; subsequent disclosures can show how receivables, inventory and short-term funding develop under those norms.