Natl.Fertilizer Q1 FY27 Results (NSE: NFL)
Signal: Loss reversed
The read
The operating inflection is real—EBITDA margin expanded to 6.2% from roughly 2% YoY and manufactured fertilizers turned profitable—but the quarter's ₹11338 lakh consolidated PAT also relies on ₹4247 lakh of JV profit and ₹13041 lakh of subsidy recognized for prior-period or closing-stock-related items, so repeatability remains the key thesis question.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,500.39 Cr | 27.3% | +3.5% |
| EBIT | ₹174.64 Cr | 12027.8% | |
| Net profit | ₹113.38 Cr | N/A | |
| EPS | ₹2.31 | N/A | |
| EBIT margin | 6.2% |
P&L walk
Revenue increased 27.3% YoY to ₹450039 lakh, EBITDA grew 185.3% to ₹27824 lakh with margin at 6.2%, and PAT turned positive at ₹11338 lakh; however, ₹4247 lakh of JV profit and ₹13041 lakh of subsidy income recognized in the quarter make the bottom-line recovery less purely operational.
Segments
Manufactured fertilizers drove the recovery with revenue of ₹388367 lakh, up 34.6% YoY, and segment result turning positive at ₹10201 lakh from a ₹946 lakh loss; traded imported fertilizers dragged with revenue down 27.5% YoY, while JVs added ₹4247 lakh to consolidated profit.
Key positives
- Revenue reached ₹450039 lakh, up 27.3% YoY, led by manufactured fertilizers revenue of ₹388367 lakh, up 34.6%.
- EBITDA grew 185.3% YoY to ₹27824 lakh versus 27.3% revenue growth, while employee costs declined 0.9% and depreciation rose 7.8%; EBITDA margin expanded 420bps to 6.2%.
- Manufactured fertilizers segment result turned positive at ₹10201 lakh from a ₹946 lakh loss YoY.
- Consolidated PAT turned positive at ₹11338 lakh from a ₹3944 lakh loss, with EPS turning positive at ₹2.31 from -₹0.80.
Key concerns
- Raw-material cost increased to 47.2% of revenue from 41.6% YoY, compressing the calculated gross margin by 560bps; revenue grew 27.3% while raw-material cost grew about 44.3%, indicating cost absorption rather than full pass-through.
- Finance costs rose 71.6% YoY to ₹7930 lakh, despite the operating recovery.
- Standalone PAT was only ₹7091 lakh versus consolidated PAT of ₹11338 lakh, making ₹4247 lakh of JV profit material to group earnings.
Research and educational content only. Not investment advice.