STATUTORY REPORTS
Fertilizer Segment revenue has been decreased by 136 Crores from 2,900 Crores to 2,764 Crores mainly due to claimable subsidy of Urea in view of lower variable cost and lower volume in both the fertilizer products partially offset by higher realization of complex fertilizer. Fertilizer Segment Results decreased from loss of (180) Crores to loss of (186) Crores, decreased by 3% at 6 Crores mainly due to higher fixed cost, higher energy norms in Urea and lower volume partially offset by higher realization of complex fertilizer and lower input cost of complex fertilizer.
Chemical Segment revenue marginally lower by 1 Crores from 4,900 Crores to 4,899 Crores due to lower volume in all the chemical products except TDI, Formic Acid, AN Melt & CNA partially offset by higher realization in all the chemical products except Aniline, TDI, Acetic Acid & Ethyl Acetate. Chemical Segment Results increased from 665 Crores to 913 Crores higher by 37% at 248 Crores mainly due to decrease in input cost, higher realization, penalty income received due to delay in operation of CCPP plant during FY 25-26 and lower fixed cost partially offset by lower volume.
The other segment revenue increased by 18 Crores from 92 Crores to 110 Crores mainly due to increase in revenue of IT services provided by (n)Code Solutions. The other segment results increased from 23 Crores to 46 Crores higher by 100% at 23 Crores mainly due to higher profitability of IT services.
Outlook:
6.1. Fertilizers Business:
The fertilizer industry continues to remain structurally resilient, supported by rising food demand, limited arable land, and increasing crop intensity. While global demand growth is moderate, India stands out with steady consumption growth driven by policy support and agricultural dependence.
The ongoing Middle East conflict has adversely impacted the fertilizer sector by disrupting key global supply chains, particularly through the Strait of Hormuz, a critical transit route. This has led to a rise in international prices specially urea along with constraints in LNG availability, which may affect domestic urea production.
Given India’s significant dependence on imports—approximately 50% for DAP and nearly 100% for potash, along with gas-linked urea production—these developments pose risks to timely availability and cost of fertilizers, especially during the Kharif season.
Despite these challenges, (like in the past) GOI expected to continue strong support through higher subsidies, price controls, and import measures, which should help maintain overall supply and prevent any major disruption in agricultural output. Government of India has allocated ~ 1.71 lakh crore for fertilizer subsidy in FY 2026–27 in which ~ 1.16 lakh cr is towards Urea and ~ 0.54 lakh Cr is towards NBS (P&K fertilizers)
The India Meteorological Department (IMD)/Skymet have forecasted below normal South West (SW, four-month active season) monsoon for the current year 2026 due to El Nino conditions during the monsoon season. As per the prediction, below normal rainfall is ranging between 92-94% (with a model error of +/- 5%) of long period average (LPA- 50-year average) of 868 mm (~87cm, ~35 inches) for the four-month season from June to Sep.
010 | 50 Annual Report 2025-2026