Rashtriya Chemicals and Fertilizers Limited has submitted to the Exchange, the financial results for the period ended Jun 30, 2025.
RCF · price
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Awaiting price reaction for this filing.
RCF reported Q1 FY26 standalone revenue from operations of ₹3,370.58 crore, down about 23% from ₹4,396.06 crore in Q1 FY25, mainly due to a sharp drop in the trading segment. Despite the revenue fall, profit after tax jumped to ₹54.12 crore from ₹10.73 crore, a roughly 5x year-on-year increase, helped by lower input costs and a better product mix. Operating margin expanded to 4.68% from 2.64%, and net profit margin rose to 1.61% from 0.24%, signalling stronger profitability per unit of sales. Urea production was impacted for around 45 days due to extended planned maintenance of the Ammonia plant at the Thal unit, and the company booked ₹28.99 crore of subsidy income under new DoF guidelines for DAP and TSP imports. The board also approved raising up to ₹1,100 crore through secured/unsecured non-convertible debentures via private placement over the next twelve months, subject to shareholder approval.
The sharp jump in profits and margin expansion despite falling revenue is a positive signal for shareholders and could support the stock in the short term. However, ongoing gas pooling dispute with GAIL (₹204 crore combined disputed amount), dilution of stake in Talcher Fertilizers from 33.33% to 20.25%, and plans to raise additional debt of up to ₹1,100 crore are key points to watch.