Government of India charges penal interest on FACT's outstanding loan

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FACT · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reactionminutes from the announcement price · days from the prior close

-0.7%Reaction day

₹806.40

prior close

₹804.30

announcement price

After-mkt

timing

Nifty Smallcap 250market+1.0%-1.7% vs market

Fertilizers peers, median of 21sector+0.5%-1.2% vs sector

On the reaction day the stock moved 1.7 pts less than Nifty Smallcap 250 and 1.2 pts less than its Fertilizers peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

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30m

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Sessions after the filingfrom the prior close

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Reaction day

-0.7+1.0-1.7+0.5-1.2

Next day

-0.6+1.2-1.8+0.7-1.3

-1.2+1.2-2.4-0.1-1.1

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15d

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UpDownMarket · Nifty Smallcap 250Sector · Fertilizers peers, median of 21Pending

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AI summary

FACT Ltd has received a communication from the Ministry of Chemicals and Fertilizers, Government of India, dated 1 September 2026, that penal interest has been charged on its outstanding Government of India loan with effect from 1 April 2018. The impact stands at about Rs 3,89,50,72,456 for the period 1 April 2018 to 31 March 2026, and about Rs 48,68,84,057 for the current financial year 2026-27. The company had already been disclosing the penal interest from 1 April 2022 as a contingent liability in its financial statements. FACT is taking up the matter with the Ministry for waiver of the penal interest.

Likely market impact

Potential additional liability of around Rs 438 crores could pressure earnings and the stock, although the company has applied for a waiver from the Government.