National Fertilizers FY26 profit increased sharply to ₹232.67 crore, marking a 124% rise from ₹104.08 crore in FY25. The Navratna fertiliser company also reported higher turnover and fertiliser sales during the year, although its results continued to reflect the impact of subsidy receipts, trading income and working-capital pressures.
According to company-related reports, National Fertilizers’ turnover increased to ₹21,230.67 crore in FY26 from ₹19,532.86 crore a year earlier. Fertiliser sales volume also rose to 65.20 lakh metric tonnes from 63.37 lakh metric tonnes.
The improvement came despite volatility in global energy and fertiliser markets. Geopolitical tensions in the Middle East also increased freight and logistics costs, adding pressure to the fertiliser business.
Trading Gains and Subsidy Arrears Support National Fertilizers Profit
A major factor behind the National Fertilizers FY26 profit increase was stronger income from traded products and the receipt of older subsidy dues.
The company also benefited from lower marketing expenditure. As a result, these factors helped offset pressure from higher costs across the fertiliser industry.
However, the profit increase should not be viewed only as a result of higher sales volumes. Subsidy receipts and the timing of government payments played an important role in the company’s FY26 financial performance.
For fertiliser companies, subsidy payments can have a significant impact on profitability and cash flow. Therefore, delays in subsidy payments can increase working-capital requirements even when reported profits improve.
Non-Urea Products Drive Growth
National Fertilizers also recorded strong growth across several non-urea product categories.
Agro-chemical sales reached an all-time high of 7,413 metric tonnes/kilolitres in FY26, compared with 4,259 in FY25.
Similarly, sales of potash derived from molasses increased to 60,942 metric tonnes, up from 44,681 metric tonnes in the previous year.
Seaweed granules also recorded significant growth. Sales more than doubled to 16,097 metric tonnes from 6,457 metric tonnes in FY25.
These numbers indicate that National Fertilizers is gradually expanding beyond its traditional fertiliser portfolio.
Industrial Products and Trading Business Remain Strong
The industrial products division continued to contribute to the company’s revenue.
Nitric acid sales reached 91,372 metric tonnes, while ammonium nitrate sales stood at 46,868 metric tonnes. Together, these products generated revenue of around ₹533.83 crore.
Meanwhile, revenue from the trading business increased to ₹245.23 crore from ₹145.30 crore in FY25.
The growth in agro-chemicals, industrial chemicals and specialty products could help National Fertilizers diversify its revenue base and reduce its dependence on conventional fertiliser operations.
National Fertilizers Plans ₹10,601 Crore Namrup-IV Project
National Fertilizers is also expanding its project pipeline.
At the Annual General Meeting held on September 22, 2026, chairman and managing director Dr U. Saravanan outlined several major capital expenditure plans.
One of the largest projects is the proposed Namrup-IV ammonia-urea complex in Assam through Assam Valley Fertilizer and Chemical Company Limited (AVFCCL).
The project has a tentative capital outlay of ₹10,601.40 crore and is expected to be completed within 48 months.
National Fertilizers will hold an 18% equity stake in the joint venture, with an estimated investment commitment of ₹572.45 crore.
The project could add significant urea production capacity in north-east India and strengthen fertiliser availability in the region.
Bentonite Sulphur and Bio-Fertiliser Capacity Expanded
National Fertilizers is also investing in specialised fertiliser products.
The company is setting up a 25,000 metric tonnes per annum bentonite sulphur plant at its Vijaipur unit.
In addition, the capacity of its bio-fertiliser plant at Vijaipur has been doubled to 1,400 metric tonnes per annum.
These investments highlight the company’s strategy of expanding into specialty and sustainable agricultural inputs alongside its conventional fertiliser portfolio.
National Fertilizers Explores 2 MTPA Urea Project in Russia
Beyond India, National Fertilizers is examining a major international urea project in Russia.
The proposed facility would have a production capacity of 2 million metric tonnes per annum.
The project is being explored in collaboration with Rashtriya Chemicals and Fertilizers, Indian Potash Ltd and Uralchem JSC.
The proposed investment reflects the broader strategy of Indian fertiliser companies to explore international partnerships and strengthen long-term fertiliser supply security.
Higher Receivables Put Pressure on Cash Flow
Despite the strong improvement in profitability, National Fertilizers continues to face working-capital challenges.
Trade receivables increased mainly because of higher subsidy receivables related to manufactured fertilisers.
At the same time, current borrowings increased as subsidy receipts declined during the year.
This means the company’s reported profitability improved faster than its cash collections.
For the fertiliser industry, this remains an important issue because delayed subsidy payments can increase borrowing requirements and financing costs.
Shareholders Approve ₹1.04 Dividend
National Fertilizers shareholders approved all 14 resolutions placed before the Annual General Meeting.
The resolutions included approval of the audited FY26 financial statements and a final dividend of ₹1.04 per equity share.
Shareholders also approved the reappointment of Dr U. Saravanan as chairman and managing director and Mahesh Chander Gupta as director, marketing.
The company’s borrowing limits were also increased to ₹27,000 crore, including ₹12,000 crore of fund-based borrowing and ₹15,000 crore of non-fund-based facilities.
National Fertilizers FY26 Outlook
The National Fertilizers FY26 profit improvement highlights the company’s stronger financial performance during the year. However, subsidy receipts, receivables and borrowings remain important factors for its future cash flow.
At the same time, the company’s expansion into agro-chemicals, bio-fertilisers, bentonite sulphur and industrial products could provide additional growth opportunities.
The proposed Namrup-IV project and the potential Russia urea project could further strengthen National Fertilizers’ long-term production and supply position.
Overall, the company enters FY27 with a stronger profit base and an ambitious investment pipeline. However, timely subsidy payments, disciplined capital expenditure and successful execution of new projects will be critical for sustaining growth.
