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:

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:

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.

Zuari Agro Chemicals has informed stock exchanges that it received an interim order on May 14, 2026, from the Office of the Regional Director, Western Region-I, Ministry of Corporate Affairs, Mumbai. The order relates to a compounding application filed under Section 441 of the Companies Act, 2013 for alleged non-compliances under Section 129 read with IND AS-36. 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.

Nature of the Interim Order

The interim order was passed on a compounding application submitted by the Executive Director, Promoter Directors, Directors, and Key Managerial Personnel (KMPs), including former directors and KMPs. The order was issued by the Regional Director, Western Region-I, Mumbai. The following table summarises the key details of the regulatory action:

Alleged Violations

The alleged violation cited in the interim order pertains to non-compliance with IND AS-36 relating to impairment assessment and disclosure requirements. Specifically, it concerns the investment in Mangalore Chemicals & Fertilizers Limited for the financial years 2019-20 to 2022-23.

Financial and Operational Impact

Zuari Agro Chemicals has stated that there is no material impact on its financials, operations, or other activities on account of the aforesaid interim order. The company itself has not been levied with any compounding fees pursuant to the said order.

However, compounding fees have been levied on the individuals involved. The following table outlines the financial implication:

The aggregate compounding fees of Rs. 22.25 lakhs have been levied on the Executive Director, Promoter Directors, Directors, and KMPs, including former directors and KMPs, and not on the listed entity itself. The company has requested the stock exchanges to take the above information on record.