Mangalore Chemicals & Fertilizers Limited (MCF) has reported a strong financial performance for the first quarter of fiscal year 2026, with significant growth in revenue and profitability.

Financial Highlights

• Revenue from operations increased by 6% to ₹862.00 crores, up from ₹814.00 crores in the same quarter last year.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 22% to ₹118.00 crores, compared to ₹112.00 crores in Q1 FY25.
• Profit After Tax (PAT) surged by 41% to ₹83.00 crores, a substantial increase from ₹68.00 crores in the previous year's corresponding quarter.
• Earnings Per Share (EPS) rose to ₹5.20 from ₹3.70, reflecting the company's improved profitability.

Operational Performance

MCF demonstrated robust operational efficiency during the quarter:

• The company's ammonia and urea plants operated continuously throughout the period.
• Urea production reached 1.22 lakh metric tonnes.
• Sales quantity increased by 4% to 1.98 lakh metric tonnes, indicating strong market demand.

Production Capacity and Market Presence

Mangalore Chemicals & Fertilizers Limited boasts significant production capabilities:

• Urea production capacity: 3.80 lakh metric tonnes
• DAP and complex fertilizers capacity: 2.85 lakh metric tonnes

The company's primary marketing territories include:

Management Commentary

Nitin M Kantak, Whole Time Director of MCF, expressed satisfaction with the company's performance, stating, "Our Q1 FY26 results demonstrate MCF's resilience and operational excellence. The significant growth in profitability reflects our efficient cost management and strong market presence."

Future Outlook

While the company has reported impressive results, it's important to note that MCF is currently in the process of a proposed merger with Paradeep Phosphates Limited. The company is in the process of obtaining necessary regulatory approvals for this strategic move, which could potentially reshape its future operations and market position.

Investors and stakeholders will be keenly watching how this merger progresses and its potential impact on MCF's future performance in the fertilizer industry.

Note: The financial results are subject to limited review by the company's auditors.

Mangalore Chemicals & Fertilizers Limited (MCF) has reported a significant increase in its financial performance for the first quarter of the fiscal year. The company's net profit surged by 40% to ₹616.00 million, up from ₹439.00 million in the corresponding period last year.

Revenue Growth

MCF's revenue from operations saw a notable rise, reaching ₹8,620.00 million in Q1, compared to ₹8,100.00 million in the same quarter of the previous year. This represents a year-over-year increase of approximately 6.4%.

Profitability Metrics

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also showed improvement, rising to ₹1,100.00 million from ₹1,050.00 million in the year-ago period. Notably, the EBITDA margin remained stable at 13%, indicating consistent operational efficiency.

Financial Highlights

Operational Performance

The unaudited financial results, approved by the Board of Directors, reveal strong operational performance. The company's total income for the quarter stood at ₹8,692.37 million, with revenue from contracts with customers accounting for ₹8,621.59 million.

Expenses and Cost Management

MCF reported total expenses of ₹7,863.94 million for the quarter. The major components of expenses included:

• Cost of materials consumed: ₹4,574.90 million
• Other expenses: ₹2,215.82 million
• Employee benefits expense: ₹203.05 million
• Finance costs: ₹168.83 million

Earnings Per Share

The company's earnings per share (EPS) for the quarter stood at ₹5.20, reflecting the improved profitability.

Management Commentary

Nitin M Kantak, Whole Time Director of Mangalore Chemicals & Fertilizers Limited, expressed satisfaction with the company's performance. He stated, "Our Q1 results demonstrate MCF's resilience and operational efficiency. The significant increase in net profit and steady revenue growth reflect our strong market position and effective cost management strategies."

Future Outlook

While the company has shown robust performance in Q1, it continues to navigate challenges in the fertilizer industry, including fluctuations in raw material costs and regulatory changes. MCF remains focused on maintaining its growth trajectory and operational efficiency in the coming quarters.

The management has also noted that the company is in the process of obtaining necessary regulatory approvals for a proposed merger with Paradeep Phosphates Limited, which could potentially impact its future operations and market position.

Investors and stakeholders will be keenly watching MCF's performance in the subsequent quarters to see if the company can maintain this growth momentum in the highly competitive fertilizer market.