Nagarjuna Fertilizers and Chemicals Limited has submitted to the Exchange, the financial results for the period ended March 31, 2025.
Awaiting price reaction for this filing.
Nagarjuna Fertilizers (NFCL) has filed its audited results for FY25, reporting a standalone profit of Rs. 2,42,487 lakhs compared to a loss of Rs. 1,28,389 lakhs in FY24. However, this profit is entirely from one-time, non-operational items: Rs. 1,34,007 lakhs from waiver of borrowings, Rs. 1,06,561 lakhs reversal of asset impairment, and Rs. 13,124 lakhs profit on sale of assets. The company has zero revenue from operations because its urea and micro-irrigation plants were sold by lenders under SARFAESI Act in May–June 2024, effectively shutting down its entire business. The accounts have been prepared on a 'non-going concern' basis, confirmed by auditors with an Emphasis of Matter. Current liabilities exceed current assets by Rs. 86,096 lakhs, and contingent liabilities in disputes stand at Rs. 81,596 lakhs. Promoter Amlika Mercantile sold its 45.44% stake to Agri Vestors at Rs. 4.31 per share in March 2025.
This is effectively a shell company now: no operations, no revenue, and the headline profit comes only from one-time accounting entries. Shareholders should note the going concern qualification, massive negative operational reality, and dependence on uncertain subsidy/GAIL claims to settle liabilities. The stock price already reflects this distress, and the path to value creation depends entirely on successful recovery of pending government claims and the GAIL arbitration award assigned to AMPL.