RCF September-quarter profit rises 24% to Rs 131.45 crore

Rashtriya Chemicals and Fertilizers Limited reported standalone profit after tax of Rs 131.45 crore for the quarter ended September 30, 2026, up 24% from Rs 105.69 crore a year earlier. RCF increased profit despite a 4% decline in revenue, supported by higher industrial chemicals earnings and a sequential return to profit in fertilizers.

How did RCF perform in the September 2026 quarter?

RCF recorded profit after tax of Rs 131.45 crore in the September 2026 quarter, compared with Rs 105.69 crore in the September 2025 quarter and Rs 74.29 crore in the preceding June 2026 quarter. Basic earnings per share rose to Rs 2.38 from Rs 1.92 a year earlier and Rs 1.35 in June; quarterly earnings per share are not annualised.

Revenue from operations was Rs 5,063.19 crore, down from Rs 5,292.58 crore a year earlier but up from Rs 3,585.71 crore in June 2026. Total income, including Rs 22.55 crore of other income, reached Rs 5,085.74 crore, while total expenses were Rs 4,908.14 crore and profit before tax was Rs 177.60 crore.

Cost lines moved in different directions in the September quarter. Material consumption increased to Rs 2,340.13 crore from Rs 1,538.31 crore a year earlier, while power and fuel expense rose to Rs 1,555.47 crore from Rs 982.49 crore. Changes in inventories generated a Rs 1,691.96 crore credit, compared with an expense of Rs 345.96 crore in the September 2025 quarter.

Which RCF segments drove the September-quarter result?

RCF’s industrial chemicals segment delivered the largest segment result at Rs 144.93 crore in the September 2026 quarter, up from Rs 41.77 crore a year earlier. Fertilizers contributed Rs 84.94 crore after a Rs 150.30 crore loss in the June 2026 quarter, while trading contributed Rs 10.57 crore.

Industrial chemicals revenue rose to Rs 505.93 crore from Rs 327.49 crore in the September 2025 quarter, although it declined from Rs 708.16 crore in June 2026. Its September segment result was below Rs 300.47 crore in June, but the half-year result increased to Rs 445.40 crore from Rs 136.65 crore a year earlier.

Fertilizer revenue rose to Rs 3,945.22 crore from Rs 2,946.97 crore a year earlier, but segment result declined from Rs 108.49 crore. The sequential movement differed: revenue rose from Rs 2,567.80 crore in June 2026 and the segment moved from a Rs 150.30 crore loss to an Rs 84.94 crore profit.

Trading was the main reason group revenue declined year on year. Trading revenue fell to Rs 608.40 crore from Rs 2,013.11 crore in the September 2025 quarter, while its segment result declined to Rs 10.57 crore from Rs 47.51 crore. In the half year, trading revenue was Rs 914.51 crore against Rs 2,854.86 crore and segment result was Rs 31.23 crore against Rs 129.49 crore.

What changed in RCF’s first-half financial performance?

RCF’s profit after tax for the half year ended September 30, 2026 rose to Rs 205.74 crore from Rs 159.81 crore a year earlier, while revenue from operations was nearly unchanged at Rs 8,648.90 crore versus Rs 8,663.16 crore. Profit before tax increased to Rs 279.78 crore from Rs 215.76 crore, and half-year earnings per share rose to Rs 3.73 from Rs 2.90.

The half-year segment mix shifted toward industrial chemicals. Fertilizer revenue increased to Rs 6,513.02 crore from Rs 5,090.82 crore, but the segment reported a Rs 65.36 crore loss compared with a Rs 68.40 crore profit a year earlier. Industrial chemicals revenue rose to Rs 1,214.09 crore from Rs 709.55 crore, with segment result increasing to Rs 445.40 crore from Rs 136.65 crore.

Total half-year expenses fell to Rs 8,427.11 crore from Rs 8,537.57 crore. The inventory-change line produced a Rs 2,206.95 crore credit, against a Rs 729.75 crore credit a year earlier, while material consumption increased to Rs 4,074.73 crore from Rs 2,768.74 crore and power and fuel expense rose to Rs 2,718.20 crore from Rs 1,793.38 crore.

RCF reported an operating margin of 6.04% for the half year, compared with 4.29% a year earlier, and a net profit margin of 2.38%, compared with 1.84%. Finance costs rose to Rs 136.12 crore from Rs 110.30 crore, while depreciation and amortisation increased to Rs 164.18 crore from Rs 136.17 crore.

What subsidy and gas-pooling matters remain unresolved for RCF?

RCF recognised Rs 179.28 crore of subsidy income above notified nutrient-based subsidy rates during the half year, including Rs 151.52 crore in the September 2026 quarter. The estimated recognition relates to quantities sold from di-ammonium phosphate and triple superphosphate imports, for shipments arriving between April 1 and September 30, 2026.

The Department of Fertilizers revised the Thal urea unit’s energy-consumption norm to 5.984 gigacalories per metric tonne from 6.200 gigacalories per metric tonne, effective April 1, 2025 until March 31, 2028. RCF disclosed a cumulative financial impact of Rs 231.71 crore through September 30, 2026, including an additional Rs 60.17 crore during the September quarter.

RCF continued to record Rs 79.84 crore as receivable from the Department of Fertilizers in the gas-pooling matter through September 2026. It also disputed a Rs 52.18 crore demand from GAIL (India) Limited for fiscal 2022-23, with the total disputed amount for that year stated at Rs 123.57 crore.

The Department of Fertilizers disposed of RCF’s representation on October 23, 2026, after which RCF submitted a further representation seeking reconsideration. RCF said no provision was necessary because it expects resolution in its favour, while the statutory auditor’s limited-review conclusion was not modified in respect of the matter.

Conclusion

RCF’s September-quarter profit growth was achieved despite lower year-on-year revenue because industrial chemicals segment result increased to Rs 144.93 crore and fertilizers returned to profit from a Rs 150.30 crore loss in June. The half-year profit increase to Rs 205.74 crore also came with revenue broadly unchanged at Rs 8,648.90 crore, as segment performance and inventory movements changed.

The disclosed items to watch are the effect of the Thal unit’s 5.984 gigacalories-per-metric-tonne energy norm through March 31, 2028 and the Department of Fertilizers’ response to RCF’s reconsideration request on the Rs 79.84 crore gas-pooling receivable. RCF also reported Rs 217.50 crore pending for settlement from the Department of Fertilizers as of September 30, 2026 for earlier phosphatic and potassic fertilizer procurement.