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Financial

NFL Q3 Results FY26: Net Profit Surges 203% YoY to ₹93.8 Crore

PSU Connect
National Fertilizers Limited (NFL) Q3 results 2025-26: Net profit jumps to ₹93.77 Cr (₹9,377 Lakh) on strong subsidy income. Swings from loss to 203% YoY growth. Read the full analysis.
NFL Q3 Results FY26: Net Profit Surges 203% YoY to ₹93.8 Crore

Mumbai:  National Fertilizers Limited (NFL), a Navratna PSU under the Government of India, has reported a stunning financial performance for the quarter ended December 31, 2025, staging a strong comeback driven by subsidy income and robust operational performance.

The company's standalone net profit for Q3 FY26 skyrocketed to ₹93.77 crore, a massive 203% jump compared to a profit of ₹30.90 crore in the same quarter last year. This marks a significant turnaround from the sequential quarter (Q2 FY26), where the company had posted a loss of ₹10.21 crore.

 

1. Financial Performance Snapshot (Standalone)

NFL has staged a strong turnaround in Q3 FY26 compared to the previous quarter.

  • Q3 FY26 (Oct-Dec 2025): Net Profit of ₹9,377 Lakh (₹93.77 Crore).

  • vs. Q2 FY26 (Jul-Sep 2025): Net Loss of (₹1,021 Lakh) . The company swung from a loss to a significant profit.

  • vs. Q3 FY25 (Oct-Dec 2024): Net Profit of ₹3,090 Lakh. This represents a Year-on-Year (YoY) growth of 203% .

 

Key Drivers of Profitability:

  • Revenue Growth: Total Income from Operations grew to ₹6,86,975 Lakh in Q3 FY26, up from ₹5,85,585 Lakh in Q3 FY25, marking a 17.3% YoY increase.

  • Operational Improvement: The company reported a Profit before tax of ₹13,107 Lakh in Q3 FY26, compared to a loss before tax of (₹1,032 Lakh) in the preceding quarter (Q2 FY26).

  • Subsidy Income: Note No. 3 in the financial results highlights a significant factor. The company recognized subsidy income of ₹1,46,395 Lakh for the nine-month period (₹53,706 Lakh for the quarter) on DAP & TSP fertilizers based on operational guidelines from the Department of Fertilizers (DoF) for Kharif 2025, which has been extended until March 31, 2026.

 

2. Nine-Month Performance (April-Dec 2025)

For the first nine months of FY26, the company has returned to profitability after being in the red during the same period last year.

  • Net Profit (9M FY26): ₹5,146 Lakh (₹51.46 Crore).

  • Net Loss (9M FY25): (₹2,107 Lakh) .

 

Also Read: NBCC Q3 Results: Net Profit Surges 38% to ₹19,660 Cr on Kochi Project Reversal

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3. Segment Performance (Standalone)

The results show strong performance across most segments in Q3:

  • Traded Imported Fertilizers (Under NBS): This was the star performer, with segment profit surging to ₹14,128 Lakh in Q3 FY26, compared to just ₹10 Lakh in Q3 FY25. This is the primary driver of the quarterly turnaround.

  • Manufactured Chemicals: Consistent performer with a profit of ₹2,616 Lakh.

  • Manufactured Fertilizers (Urea, etc.): Recovered from a loss in Q2 to post a profit of ₹4,109 Lakh in Q3.

  • Others (Domestic Trading, Agro Inputs): Contributed ₹2,450 Lakh to the segment profit.

 

4. Key Auditor Observations (Emphasis of Matter)

The Auditor's Report (Page 2) draws attention to Note No. 3, which is crucial for understanding the financials:

  • Subsidy Recognition: The auditors emphasize that the company has recognized subsidy income based on operational guidelines issued by the Department of Fertilizers (DoF) for implementing provisions over and above the NBS (Nutrient Based Subsidy) rates. These guidelines were approved for Kharif 2025 and have been extended until March 31, 2026. This confirms that the significant subsidy income booked is in line with government directives.

5. Financial Ratios & Health (Standalone)

The improvement in profitability is reflected in the key ratios for Q3 FY26:

  • Earnings Per Share (EPS): Jumped to ₹1.91 in Q3 FY26, from a negative (₹0.21) in Q2 FY26 and ₹0.63 in Q3 FY25.

  • Operating Margin (%): Improved significantly to 2.70% in Q3 FY26, compared to 0.43% in Q2 FY26.

  • Net Profit Margin (%): Stood at 1.36% for the quarter.

  • Debt-Equity Ratio: Stood at 1.95 as of Dec 31, 2025, higher than 0.72 at the end of FY25, indicating increased borrowing for working capital or other needs. The Interest Service Coverage Ratio of 3.64 times shows the company's ability to comfortably meet its interest obligations.

 

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Summary & Headline Suggestion

  • Key Takeaway: NFL delivered a blockbuster Q3, swinging from a loss in the previous quarter to a massive 203% YoY profit growth, driven by a surge in revenue and high subsidy income from traded fertilizers.

  • Suggested Headline: "NFL Q3 Results: Net Profit Surges 203% YoY to ₹93.8 Cr on Strong Fertilizer Subsidy and Trading Income"

Conclusion: The documents show a definitive "netadat" (positive result) for National Fertilizers Limited, with a stellar performance in the December quarter, successfully reversing the losses from the September quarter.

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