National Fertilizers Limited has announced a major capacity expansion initiative at its Vijaipur Unit, with the Board of Directors providing in-principle approval for the project. The expansion represents a significant step in the company's growth strategy to meet rising market demand.

Project Investment and Capacity Details

The capacity expansion project involves a substantial investment commitment and will establish new production capabilities at the facility.

Project Status and Timeline

The expansion project is currently in its initial stage, with the Board having accorded in-principle approval. The company has indicated that specific details regarding the period within which the proposed capacity will be added are yet to be finalized, as the project remains in preliminary phases.

Similarly, the mode of financing for the Rs. 104.03 crore investment has not been determined at this stage, with the company noting that these details will be worked out as the project advances beyond the initial approval phase.

Strategic Rationale

National Fertilizers Limited has cited increasing market demand as the primary rationale behind this capacity expansion initiative. The addition of 25,000 MTPA capacity at the Vijaipur Unit will enable the company to better serve market requirements and strengthen its production capabilities.

The Vijaipur Unit currently operates with no existing production capacity, making this expansion a greenfield development that will establish new manufacturing capabilities for the company at this location.

National Fertilizers Limited has delivered a robust financial performance for the third quarter ended 31st December 2025, demonstrating significant recovery and operational efficiency improvements across its business segments.

Financial Performance Overview

The company's standalone financial results show remarkable improvement with net profit reaching ₹93.77 crore in Q3FY26, representing a substantial 203% increase from ₹30.90 crore recorded in Q3FY25. On a consolidated basis, the performance was even stronger with net profit of ₹135.20 crore compared to ₹45.81 crore in the corresponding quarter of the previous year.

Revenue and Operational Performance

Total income from operations increased to ₹6,887.12 crore in Q3FY26 from ₹5,887.51 crore in Q3FY25, reflecting strong demand across the company's product portfolio. Revenue from operations grew by 17% to ₹6,869.75 crore compared to ₹5,855.85 crore in the previous year quarter.

The company's profit before tax improved significantly to ₹131.07 crore in Q3FY26 from ₹41.92 crore in Q3FY25, indicating enhanced operational efficiency and better cost management.

Segment-wise Performance Analysis

The company operates across four key segments, each contributing to the overall growth:

The Traded Imported Fertilizers segment showed particularly strong performance with revenue increasing from ₹2,119.16 crore to ₹2,739.16 crore, while the Others segment, including domestic traded products and agro inputs, nearly doubled from ₹410.92 crore to ₹697.02 crore.

Subsidy Income Recognition

A significant factor contributing to the strong performance was the recognition of subsidy income of ₹537.06 crore for the quarter on DAP & TSP fertilizers. This was based on operational guidelines issued by the Department of Fertilizers for implementation of provisions over and above NBS subsidy rates approved for Kharif 2025, which has been extended till 31st March 2026.

Nine Months Performance

For the nine months ended 31st December 2025, the company reported standalone net profit of ₹51.46 crore compared to a loss of ₹21.07 crore in the corresponding period of the previous year. On a consolidated basis, nine months profit stood at ₹59.95 crore against ₹49.19 crore in the previous year.

Financial Ratios and Position

The company's financial position remained stable with key performance indicators showing improvement:

• Earnings per share (standalone): ₹1.91 for Q3FY26 vs ₹0.63 for Q3FY25
• Earnings per share (consolidated): ₹2.76 for Q3FY26 vs ₹0.93 for Q3FY25
• Debt-equity ratio: 1.95 times as of Q3FY26
• Current ratio: 1.02 times

The Board of Directors approved these results at their meeting held on 13th February 2026, with the financial statements prepared in accordance with Indian Accounting Standards and reviewed by statutory auditors.