Madras Fertilizers Limited temporarily suspended production at its manufacturing facility on June 15, 2026, following an emergency shutdown caused by an equipment breakdown. The unplanned halt impacts the output of Ammonia and Urea, with operations tentatively scheduled to resume on June 23, 2026, pending the successful completion of necessary repair works.

The company disclosed that rectifying the faulty equipment is expected to take approximately eight days. Consequently, Madras Fertilizers plans to utilize this downtime to conduct statutory inspection and maintenance of the Boilers. The filing emphasized that the shutdown resulted from circumstances beyond the company's control.

Operational Timeline

The disruption affects the plant's ability to manufacture key fertilizers during the shutdown window. The following table outlines the key dates and events related to the temporary closure:

The intimation was submitted to the National Stock Exchange of India Ltd in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. J Srinivasa Saravanan, Company Secretary & Compliance Officer, signed the disclosure on behalf of Madras Fertilizers Limited.

Madras Fertilizers Limited , a Government of India Undertaking headquartered in Manali, Chennai, released its audited standalone financial results for the fourth quarter and full year ended March 31, 2026, following Board approval at a meeting held on May 12, 2026. The statutory auditors, M/s Sundar Srini & Sridhar, Chartered Accountants, issued an unmodified opinion on the financial results. The Board also approved the appointment of Mrs. Aruna Prasad, Practicing Cost Accountant, as Cost Auditor for the financial year 2026-27, subject to shareholder confirmation at the forthcoming Annual General Meeting.

Financial Performance Overview

Madras Fertilizers recorded a net profit of ₹8,042 lakhs for the year ended March 31, 2026, compared to ₹6,425 lakhs in the previous year. Total income for the full year stood at ₹2,37,355 lakhs, declining from ₹2,58,504 lakhs in FY25. Revenue from operations for FY26 was ₹2,30,035 lakhs, against ₹2,54,108 lakhs in FY25. Total expenses for the year were ₹2,26,286 lakhs, compared to ₹2,49,344 lakhs in the prior year.

The following table presents the key financial metrics for the quarter and year ended March 31, 2026 (₹ in lakhs):

Revenue Composition and Subsidy Details

The revenue from operations of ₹2,30,035 lakhs for the year ended March 31, 2026 includes ₹1,83,478 lakhs towards subsidy for Neem coated Urea and ₹7,157 lakhs for freight subsidy. The subsidy rate adopted by the company for accounting the subsidy claim amounted to ₹38,360 per MT, which remains subject to variation upon final determination of rates by the Government of India under the new pricing scheme.

During the quarter ended March 31, 2026, final tariff notifications were issued for FY 2023-24 in respect of Neem coated urea subsidy, and for FYs 2021-22, 2022-23, and 2023-24 in respect of freight subsidy. As a result, the current year subsidy for Neem coated urea includes a reversal of ₹4,873 lakhs, while subsidy for freight is higher by ₹1,730 lakhs on account of these notifications. Additionally, pending Government approval for extension of the existing energy norm of 8.337 Gcal/MT of Urea, the company recognised a penalty of ₹1,148 lakhs for the quarter and ₹16,425 lakhs for the year ended March 31, 2026 as a deduction in subsidy income.

Balance Sheet Highlights

The company's total equity turned positive at ₹9,197 lakhs as at March 31, 2026, compared to a negative equity of ₹(3,230) lakhs as at March 31, 2025. Paid-up equity share capital stood at ₹16,110 lakhs (face value of ₹10/- each) across all reported periods. The following table summarises the company's assets and liabilities position (₹ in lakhs):

Cash Flow Summary

For the year ended March 31, 2026, net cash from operating activities stood at ₹529 lakhs, compared to ₹11,404 lakhs in the previous year. Net cash from investing activities was ₹3,092 lakhs, against a net outflow of ₹(17,400) lakhs in FY25. Net cash used in financing activities was ₹(3,418) lakhs, compared to ₹(5,130) lakhs in FY25. Cash and cash equivalents at the end of the period were ₹14,191 lakhs, up from ₹13,988 lakhs at the beginning of the period.

Operational and Governance Matters

During the quarter ended March 31, 2026, plant shutdowns were recorded as follows:

The company has defaulted in repayment of principal and interest on loans taken from the Government of India. A request for waiver of accrued and penal interest, along with conversion of principal loan into zero-interest borrowings, has been placed on hold by the Department of Fertilizers under the new PSE policy framework under Atmanirbhar Bharat, and the company has been advised to submit a fresh proposal. Penal interest of ₹44,333 lakhs (previous year: ₹39,468 lakhs) has been reported as a contingent liability.

Exceptional items for the quarter and year ended March 31, 2026 totalling ₹(838) lakhs include enhanced gratuity cost with interest of ₹236 lakhs pursuant to a Madras High Court order, and a service cost of ₹602 lakhs arising from an increase in the gratuity benefit limit from ₹20 lakhs to ₹25 lakhs following a Pay Revision Order. The company also noted the absence of the requisite number of independent directors and a women director on its Board, resulting in non-compliance with applicable provisions and penalties imposed by the stock exchange, reported as contingent liabilities. NPK production has remained under suspension since December 2022, with raw materials held at ₹2,789 lakhs as at year-end under periodic technical assessment.