Asian Fertilizers Limited reported a net loss of ₹64.80 lakh for the quarter ended June 30, 2026 (Q1FY27), widening from a net loss of ₹33.94 lakh in the fourth quarter of FY26. The company’s revenue from operations fell sharply by 56.5% year-on-year to ₹930.39 lakh, down from ₹2,141.15 lakh in the corresponding period last year.

The Board of Directors approved the unaudited financial results at its meeting held on August 12, 2026, in Gorakhpur. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Kapoor Tandon & Co., Chartered Accountants.

Financial Performance Overview

Total income for the quarter stood at ₹959.74 lakh, comprising ₹930.39 lakh from operations and ₹29.36 lakh from other income. This was insufficient to cover total expenses of ₹1,024.54 lakh, resulting in a pre-tax loss of ₹64.80 lakh. No tax expenses were recorded for the period due to the loss position.

Cost of material consumed dropped significantly to ₹91.70 lakh from ₹398.66 lakh in the previous quarter and ₹1,090.59 lakh in Q1FY26. However, purchases of stock-in-trade rose to ₹708.41 lakh, up from ₹352.75 lakh in Q4FY26. Employee benefit expenses decreased to ₹77.77 lakh, while finance costs increased to ₹47.18 lakh from ₹32.91 lakh in the prior quarter.

What the Numbers Show

A notable divergence exists between the decline in operational revenue and the composition of expenses. While revenue from operations fell more than half compared to the previous year, employee benefit expenses remained relatively stable at ₹77.77 lakh (versus ₹83.99 lakh in Q1FY26). This suggests fixed cost rigidity amidst a sharp contraction in top-line activity. Furthermore, other income contributed only 3.1% of total income in Q1FY27, down from a higher reliance in previous periods where operational margins were thinner or negative.

Auditor Review

Kapoor Tandon & Co. issued a limited review report stating that nothing came to their attention to cause them to believe the financial statements do not disclose the information required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company is primarily engaged in the manufacture and sale of Single Super Phosphate Fertilizer.

The basic and diluted earnings per share (EPS) for the quarter were (₹0.82), compared to a loss of ₹0.43 per share in Q4FY26 and a profit of ₹0.14 per share in Q1FY26.

Asian Fertilizers Limited reported a net loss of ₹33.94 lacs for the quarter ended March 31, 2026, reversing the profit of ₹54.68 lacs recorded in the same period last year. The company's financial performance was impacted by a substantial decline in revenue from operations, which fell to ₹927.45 lacs in Q4FY26 from ₹1,640.87 lacs in the year-ago quarter. For the full financial year ended March 31, 2026, the company posted a net profit of ₹39.18 lacs, a decrease from ₹24.31 lacs in FY25, while total revenue rose to ₹6,928.23 lacs from ₹6,600.82 lacs.

The audited financial results, reviewed by the Audit Committee and approved by the Board of Directors on May 30, 2026, were submitted to the BSE Ltd. pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. M/s Kapoor Tandon & Co., Chartered Accountants, issued an audit report with an unmodified opinion, confirming that the financial results present a true and fair view in conformity with the applicable accounting standards.

Financial Performance

The company's expenses for the quarter increased to ₹1,017.84 lacs from ₹1,585.79 lacs in the prior year, driven by higher costs of material consumed and purchases of stock-in-trade. Total income for the quarter stood at ₹972.54 lacs, compared to ₹1,661.07 lacs in Q4FY25. The basic and diluted earnings per share (EPS) for the quarter stood at (₹0.43), compared to ₹0.69 in the corresponding quarter of the previous year.

For the full year, total income increased to ₹6,928.23 lacs from ₹6,600.82 lacs in the previous year. The company reported a profit before tax of ₹54.65 lacs for FY26, up from ₹36.09 lacs in FY25. The EPS for the year improved to ₹0.50 from ₹0.31 in the previous year.

Balance Sheet and Cash Flows

As of March 31, 2026, the company's total assets stood at ₹5,075.66 lacs, an increase from ₹4,457.41 lacs in the previous year. Total equity and liabilities increased to ₹5,075.66 lacs, comprising total equity of ₹1,909.60 lacs and total liabilities of ₹3,166.06 lacs. Current liabilities rose significantly to ₹2,966.83 lacs, primarily due to an increase in short-term borrowings to ₹1,869.79 lacs.

The statement of cash flows for the year ended March 31, 2026, showed a net decrease in cash and cash equivalents of ₹7.01 lacs. Cash generated from operations was negative at ₹76.55 lacs, while net cash used in investing activities was ₹498.78 lacs. The company generated net cash from financing activities of ₹568.32 lacs, largely due to proceeds from short-term borrowings.