Zuari Agro FY26 Net Profit at INR 954.78 Cr on Exceptional Gains

Zuari Agro Chemicals Limited reported its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results at its meeting held on May 15, 2026. The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) and received an unmodified audit report from the statutory auditors, M/s. K.P. Rao & Co., Chartered Accountants.

Standalone Financial Performance

On a standalone basis, the company recorded a net profit of INR 954.78 crores for FY26, a significant turnaround from the net loss of INR 73.09 crores in the previous year. This performance was primarily driven by exceptional items totalling INR 1,168.91 crores. These gains arose from the composite scheme of amalgamation between Mangalore Chemicals & Fertilizers Limited (MCFL) and Paradeep Phosphates Limited (PPL), as well as the slump sale of the company's granulated single super phosphate plant at Mahad, Maharashtra. Consequently, the standalone entity reported no revenue from operations in FY26, as its fertiliser business was divested effective September 30, 2025.

The following table summarises the key standalone financial metrics:

Metric:	Q4 FY26	Q3 FY26	Q4 FY25	FY26	FY25
Total Income (INR Crores):	7.14	0.25	0.25	17.65	27.25
Total Expenses (INR Crores):	19.68	16.57	26.37	69.85	98.08
Profit/(Loss) Before Exceptional Items & Tax (INR Crores):	(12.54)	(16.32)	(26.12)	(52.20)	(70.83)
Exceptional Items (INR Crores):	0.08	(0.13)	-	1,168.91	-
Net Profit/(Loss) — Total (INR Crores):	(14.60)	(7.74)	(22.85)	954.78	(73.09)
Basic EPS — Continuing & Discontinued (INR):	(3.47)	(1.84)	(5.43)	227.01	(17.38)

Consolidated Financial Performance

At the consolidated level, revenue from operations for FY26 declined to INR 3,199.72 crores from INR 4,436.09 crores in FY25. This decrease was primarily due to the derecognition of MCFL as a subsidiary effective September 26, 2025, following the implementation of the NCLT-approved composite scheme. Despite the lower revenue, the group reported a consolidated net profit of INR 982.36 crores for FY26, compared to INR 230.96 crores in the previous year. The group's share of profit from its joint venture increased to INR 217.60 crores in FY26 from INR 150.33 crores in FY25.

The following table presents the key consolidated financial metrics:

Metric:	Q4 FY26	Q3 FY26	Q4 FY25	FY26	FY25
Revenue from Operations (INR Crores):	187.33	343.70	951.99	3,199.72	4,436.09
Total Income (INR Crores):	195.55	344.87	973.80	3,220.02	4,490.37
Total Expenses (INR Crores):	223.64	356.60	980.86	3,050.45	4,337.57
Profit/(Loss) Before Exceptional Items & Tax (INR Crores):	(28.09)	(11.73)	(7.06)	169.57	152.80
Exceptional Items (INR Crores):	(2.80)	(2.90)	-	811.79	-
Net Profit/(Loss) — Total (INR Crores):	(25.10)	39.70	27.20	982.36	230.96
Basic EPS — Continuing & Discontinued (INR):	(5.94)	9.43	4.72	218.70	39.17

Exceptional Items and Key Corporate Transactions

The standalone exceptional items of INR 1,168.91 crores for FY26 included a gain of INR 9.32 crores from the slump sale of the fertiliser plant at Mahad, INR 172.73 crores from the transfer of equity shares in MCFL to ZMPPL, and INR 986.91 crores from the receipt of equity shares of PPL in exchange for the investment in MCFL. At the consolidated level, exceptional items of INR 811.79 crores included a gain on loss of control of subsidiary MCFL of INR 817.49 crores, partially offset by the statutory impact of the New Labour Code and other provisions.

Balance Sheet Highlights

Standalone total assets stood at INR 1,332.50 crores as at March 31, 2026, compared to INR 1,133.40 crores in the prior year. Standalone total equity improved significantly to INR 632.58 crores from INR 135.63 crores. On a consolidated basis, total assets were INR 3,250.52 crores as at March 31, 2026, versus INR 5,026.41 crores as at March 31, 2025. Consolidated total equity stood at INR 2,089.67 crores compared to INR 2,517.47 crores in the prior year.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.34%	+10.68%	+5.30%	-24.60%	+10.60%	+75.75%

Zuari Agro Chemicals has disclosed the receipt of four interim orders from the Regional Director, Western Region, Ministry of Corporate Affairs (MCA), Mumbai, dated 8th May 2026. The disclosure was made pursuant to Regulation 30 read with Clause 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The orders relate to compounding applications filed under Section 441 of the Companies Act, 2013 for alleged non-compliances under Section 129 of the Companies Act, 2013.

Nature of Interim Orders

The four interim orders were passed by the Regional Director, Western Region, Mumbai, in connection with compounding applications submitted by the company's Executive Director, Promoter directors, Director, and Key Managerial Personnel (KMPs), including earlier directors and KMPs. The alleged non-compliances pertain to accounting disclosures and presentation matters, which the company characterised as unintentional and procedural in nature. The orders involve alleged violations under IND AS-33, IND AS-36, IND AS-37, and Schedule III of the Companies Act, 2013.

Details of Alleged Violations

The following table summarises the specific alleged violations cited in the interim orders:

Particulars:	Details
IND AS-33	Non-disclosure/presentation of Basic and Diluted EPS separately for FY 2019-20 to FY 2022-23
IND AS-36	Alleged non-compliance relating to impairment assessment of investment in Zuari Farmhub Limited for FY 2019-20 to FY 2022-23
IND AS-37	Alleged non-compliance relating to deferred tax assets and related disclosures for FY 2020-21 and FY 2021-22
Schedule III	Disclosure-related non-compliance relating to separate disclosure of legal and professional expenses for FY 2020-21 and FY 2021-22

Financial and Operational Impact

Zuari Agro Chemicals stated that the interim orders have no material impact on the financials, operations, or other activities of the company. The company itself was not levied with any compounding fees pursuant to the said orders. However, pursuant to the four interim compounding orders, a total compounding fee amounting to Rs. 66.00 lakhs was levied collectively on the Executive Director, Promoter directors, Director, CFO, Ex-Director, and Ex-CFO.

Regulatory Disclosure

The intimation was signed by Asheeba Pereira, Company Secretary, on 9th May 2026, and submitted to both BSE Limited and the National Stock Exchange of India Ltd. The company requested both exchanges to take the information on record. The disclosure was made in compliance with applicable SEBI LODR requirements governing timely intimation of orders and directions received from regulatory authorities.