National Fertilizers Limited (NFL), a leading player in India's fertilizer sector, has announced a significant investment of ₹5.72 billion in Assam Valley Fertilizer and Chemical Company Limited (AVFCCL) for the development of a new ammonia-urea complex. This strategic move aims to bolster fertilizer manufacturing infrastructure in the northeastern region of India.

Investment Details

The Board of Directors of National Fertilizers Limited approved the investment during a meeting held on November 11. The funds will be directed towards equity capital in AVFCCL, a joint venture company, for the establishment of the Namrup-IV Fertilizer Plant in Namrup, Assam.

Joint Venture Structure

AVFCCL is a recently incorporated joint venture with the following equity structure:

NFL made an initial subscription payment of ₹1.80 lakh towards this joint venture on September 6.

Project Significance

This investment marks a significant step in expanding NFL's production capabilities and strengthening its presence in the northeastern part of India. The new ammonia-urea complex is expected to enhance the region's fertilizer production capacity, potentially reducing dependency on imports and improving farmers' access to essential agricultural inputs.

Financial Implications

This substantial investment comes at a time when NFL's financial performance has shown some volatility. The company reported a net loss of ₹42.31 crore for the half-year ended September 30, compared to a net loss of ₹51.97 crore in the same period last year. However, the strategic nature of this investment suggests NFL's commitment to long-term growth and market expansion.

Conclusion

National Fertilizers Limited's ₹5.72 billion investment in the Assam Valley Fertilizer and Chemical Company Limited represents a significant move in the Indian fertilizer industry. As the project develops, it will be crucial to monitor its progress and its impact on NFL's financial health and market position in the coming years.

National Fertilizers Limited (NFL), a key player in India's fertilizer sector, has reported a narrower loss for the second quarter of fiscal year 2025-26, despite a significant increase in revenue. The company's financial results highlight both challenges and improvements in its operations.

Financial Performance

NFL reported a standalone net loss of ₹10.21 crore for the quarter ended September 30, 2025, showing a significant improvement from the ₹40.84 crore loss recorded in the previous quarter. This reduction in losses indicates the company's efforts to enhance its financial position.

The company recognized subsidy income of ₹901.40 crore for the quarter on DAP & TSP fertilizers based on operational guidelines from the Department of Fertilizers for Kharif 2025.

Half-Year Performance

For the half-year period, NFL's financial results show:

The consolidated results showed a net loss of ₹5.80 crore for the quarter and ₹75.25 crore for the half-year.

Dividend and Strategic Developments

NFL's Board approved a final dividend of ₹1.56 per share for FY 2024-25, which was paid in October 2025, demonstrating the company's commitment to shareholder returns despite challenging financial conditions.

In a strategic move, National Fertilizers entered into a joint venture agreement for Assam Valley Fertilizer and Chemical Company Limited with an 18% equity holding. This partnership could potentially strengthen NFL's market position and operational capabilities in the future.

Outlook

While National Fertilizers has managed to narrow its losses and benefit from subsidy income, the company still faces challenges in achieving profitability. The effectiveness of the joint venture and the company's ability to leverage subsidy support may be crucial for its future performance.

Investors and market observers will likely be watching NFL's strategies to improve its profit margins and capitalize on strategic partnerships in the coming quarters.