Nagarjuna Fertilizers & Chemicals announced its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, maintaining its discontinued operations status established since June 30, 2024.

Financial Performance Overview

The company reported significant financial challenges during Q3 FY26, with operations remaining suspended following the settlement of debt and sale of core assets.

Board Approval and Audit Review

The Board of Directors approved the financial results at their meeting held on February 14, 2026, which commenced at 3:00 PM and concluded at 4:00 PM. The Audit Committee reviewed the results prior to Board approval, and statutory auditors conducted a limited review of the quarterly financials.

Discontinued Operations Status

The company continues to prepare its financial statements on a 'not a going concern' basis, reflecting discontinued business operations effective from June 30, 2024. Following the settlement of debt and receipt of sale proceeds from core and non-core assets controlled by ACRE, no revenue-generating business or fixed assets remain with the company.

Major Claims and Disputes

The company faces various claims and legal disputes across multiple forums. Major contingent liabilities include Water cess claims of Rs 566.51 crores, arbitration awards including Trammo (Rs 157.04 crores), Tecnimont (Rs 44.62 crores), and PIPL (Rs 48.57 crores).

GAIL-Related Matters

Nagarjuna Fertilizers owes Rs 562.04 crores to GAIL for gas supply dues, with the company disputing additional interest claims of Rs 562.87 crores. The company has assigned its rights to AMPL to represent it in legal proceedings against GAIL, including arbitration claims.

Government Claims and Settlements

The company is pursuing various subsidy claims with the Government, including reimbursement of energy consumed and AP State Electricity Duty. The deferred Sales Tax outstanding of Rs 13.43 crores to the Government of Andhra Pradesh has been paid and settled in full.

Subsidy and Policy Adjustments

During Q3 FY26, the company recognized an increase in gas costs of Rs 1,070.58 lakhs following GAIL's debit note dated October 14, 2025, with corresponding urea subsidy increase of Rs 845.89 lakhs for FY 2023-24. However, no revenue from operations was recognized for the current quarter due to production cessation since June 4, 2024.

Nagarjuna Fertilizers and Chemicals Limited has issued a regulatory clarification to BSE Limited and National Stock Exchange of India regarding its current operational status following the completion of major asset sales. The company submitted its response on January 19, 2026, addressing inquiries about recent developments and providing updates on its post-asset sale position.

Asset Sale and Debt Settlement Details

The company's clarification references previous disclosures from July 12, 2024, which detailed the completion of asset sales to Assets Care and Reconstruction Enterprise Limited (ACRE). The debt settlement process involved significant asset disposals across multiple categories.

Regulatory Compliance and No Due Certificate

ACRE issued a No Due Certificate dated July 11, 2024, confirming the complete settlement of outstanding obligations. This certificate provided comprehensive debt relief for the company across multiple areas:

• Unconditional release from all liabilities and claims
• Discharge of outstanding debt and amounts due to ACRE
• Release of all security created in favor of ACRE
• Release of personal guarantees and pledge of shares held by promoter Amlika Mercantile Private Limited

Following this settlement, the company confirmed it has no term loans or working capital debt outstanding and is not in default with any secured lenders.

Current Operational Status

The company's January 2026 clarification indicates significant operational changes following the asset sale. The financials are now prepared on a non-going concern basis, reflecting the fundamental change in the company's operational structure. The majority of the company's workforce has moved to other opportunities, indicating a substantial reduction in operational capacity.

Outstanding Claims and Future Arrangements

Despite the asset sales, certain receivables and claims remain with the company. The management is actively pursuing government-related financial recoveries:

• Working on subsidy claims with government authorities
• Pursuing energy reimbursement claims
• Planning to settle remaining company dues upon receipt of subsidies

The company has also disclosed exploration of future operational possibilities, including discussions with government entities and AM Green Ammonia (India) Private Limited regarding urea production arrangements for a specified period.

Exchange Communication

In response to standard regulatory inquiries, the company confirmed that the standard questions regarding negotiations, undisclosed information, and regulatory proceedings were "Not Applicable" to their current situation. The company provided reference to their July 12, 2024 disclosure for additional context on the asset sale process and debt settlement completion.