Khaitan Chemicals & Fertilizers Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with BSE Limited and National Stock Exchange of India Limited. The filing, made in compliance with Regulation 34 (2) (f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details the company's adherence to the nine principles of the National Guidelines on Responsible Business Conduct (NGRBC). The report highlights the company's operational footprint, including six manufacturing plants and eight offices located nationally, serving 13 states across India.

Operational and Financial Overview

The company's primary business activities include the manufacture of Single Super Phosphate, which accounted for 81.55% of the total turnover, and Sulphuric Acid, contributing 18.45%. The report indicates that the company operates on a standalone basis. For the financial year 2024-25, the company reported a turnover of ₹72016.77 lacs and a net worth of ₹22263.84 lacs, making Corporate Social Responsibility (CSR) applicable under Section 135 of the Companies Act, 2013.

Environmental Performance

Khaitan Chemicals & Fertilizers Limited reported implementing a Zero Liquid Discharge (ZLD) mechanism at all its units, ensuring 100% of effluent generated is recycled as process water. The company installed online PTZ cameras and flow meters to monitor ZLD conditions, with real-time data communicated to the Central and State Pollution Control Boards. Total energy consumption for FY 2025-26 was recorded at 336,752,286.4 Mega Joules, entirely sourced from renewable channels including electricity and fuel. The company generated captive power using waste heat from sulphuric acid production, avoiding greenhouse gas emissions.

Water consumption for the year stood at 3,67,638 kilolitres, a decrease from the previous year's 5,38,018 kilolitres. The company managed a total of 322.740 metric tonnes of waste, including hazardous and non-hazardous categories. A significant portion of waste, specifically 1509.030 metric tonnes, was recovered through recycling operations. The company also safely disposed of 16.43 metric tonnes of plastic waste, 0.66 metric tonnes of e-waste, and 10.15 metric tonnes of other hazardous waste.

Social and Governance Metrics

The company reported a total workforce of 644 individuals, comprising 323 employees and 321 workers. Women represented 1.85% of the total employees and 0% of the total workers. The Board of Directors included two women members out of six, representing a 33.33% diversity ratio. All permanent workers were covered by health and accident insurance schemes. The company recorded one recordable work-related injury for workers during the financial year, with no fatalities reported.

In terms of governance, the company disclosed a penalty of ₹35,400 levied by the Bombay Stock Exchange and National Stock Exchange due to a temporary shortfall in the number of Non-Executive Directors on the Board. The company stated that it has processes in place to identify and mitigate material risks, including raw material shortages and delays in government subsidies. The CSR Committee of the Board oversees sustainability-related issues, chaired by Managing Director Mr. Utsav Khaitan.

Key Financial and Operational Data

Khaitan Chemicals and Fertilizers Limited reported a net profit of ₹68.76 crore for the financial year ended March 31, 2026, a significant increase compared to the net profit of ₹1.40 crore in the previous year. The company’s revenue from operations surged to ₹10,031.31 crore, up from ₹7,210.27 crore in FY25, driven by higher sales volumes and improved profitability in its fertilizer and chemical divisions.

The company produced 4,40,271 metric tonnes (MT) of Single Super Phosphate (SSP) fertilizer and 1,83,943 MT of chemicals and specialty chemicals during the year. Sales of SSP stood at 4,54,276 MT, while chemical sales reached 1,28,086 MT. The profit before interest, depreciation, exceptional items, and tax improved significantly to ₹1,144.99 crore from ₹239.17 crore in the previous year.

Financial Performance

The company’s cash profit before tax for the year was ₹816.04 crore, compared to a cash loss of ₹58.90 crore in FY25. Earnings per share (EPS) for the year increased to ₹7.09 from ₹0.14 in the previous year. The Board of Directors has recommended a dividend of Re. 0.05 per equity share, amounting to 5% on the face value of Re. 1 each, for the financial year ended March 31, 2026.

Operational Review

The Fertilizer, Chemicals & Specialty Chemicals Division operated in a stable business environment during the year, despite continuous rises in raw material prices. The company focused on operational efficiency, cost optimization, and inventory management. The Government of India’s increase in Nutrient Based Subsidy (NBS) rates to ₹7,408 per MT for the Rabi season helped improve the profitability of the SSP industry.

Board and Corporate Governance

The Board met four times during the financial year. Mr. Suman Jyoti Khaitan was appointed as an Additional Director (Independent) effective October 29, 2025, while Mr. Inder Jit Singh resigned as an Independent Director on the same date. The company’s statutory auditors, M/s. NSBP & Co., Chartered Accountants, have been re-appointed for a term of five years.

The company has fully complied with the conditions of corporate governance as stipulated under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, except for a temporary shortfall in the number of non-executive directors on the Board, for which a penalty was paid to the stock exchanges.