Bharat Agri Fert & Realty Q1 FY26 results: net loss widens to ₹0.34 crore, revenue up 0.2%

How did Bharat Agri Fert & Realty perform in Q1 FY26?

Bharat Agri Fert & Realty reported standalone revenue of ₹5.56 crore in Q1 FY26, against ₹5.55 crore in Q1 FY25 and ₹7.06 crore in Q4 FY25. The year-on-year increase was 0.2%, while the sequential decrease was 21.2%. Total income was ₹6.77 crore, up 6.6% from ₹6.35 crore a year earlier and down 44.6% from ₹12.23 crore in the previous quarter.

EBITDA was ₹1.73 crore in Q1 FY26, compared with ₹0.22 crore in Q1 FY25 and ₹2.59 crore in Q4 FY25. The margin was 31.2%, up 27.2 percentage points from 4.0% a year earlier but down 5.5 percentage points from 36.7% in the previous quarter. The company reported a net loss of ₹0.34 crore and EPS of -₹0.06, compared with a net loss of ₹0.05 crore and EPS of -₹0.01 in Q1 FY25.

Profit before tax was a loss of ₹0.22 crore in Q1 FY26, compared with a loss of ₹0.82 crore in Q1 FY25 and profit of ₹3.75 crore in Q4 FY25. The results are presented on a standalone basis; the supplied filings and figures do not include consolidated results for this quarter.

What changed in Bharat Agri Fert & Realty's costs and profit?

Against Q1 FY25, total expenses fell to ₹6.99 crore from ₹7.18 crore. Cost of materials consumed was ₹7.43 crore, down ₹3.27 crore or 30.6%, while employee cost was ₹1.14 crore, up ₹0.01 crore or 0.9%. Other expenses rose to ₹4.79 crore from ₹3.98 crore, finance costs increased to ₹1.77 crore from ₹0.88 crore, and depreciation rose to ₹1.39 crore from ₹0.97 crore.

Other income increased to ₹1.21 crore from ₹0.80 crore, a rise of ₹0.41 crore or 51.2%. Tax was ₹0.12 crore, compared with a tax credit of ₹0.77 crore in Q1 FY25. There was no exceptional item in either quarter. The supplied filing excerpts do not state reasons for the changes in the individual cost lines.

Compared with Q4 FY25, other income fell to ₹1.21 crore from ₹5.16 crore, while total expenses declined to ₹6.99 crore from ₹8.48 crore. Cost of materials consumed rose by ₹2.18 crore, finance costs fell by ₹0.97 crore and other expenses fell by ₹1.53 crore. EBITDA margin declined to 31.2% from 36.7%, and the company moved from profit of ₹4.27 crore to a net loss of ₹0.34 crore.

How has Bharat Agri Fert & Realty done over the last 8 quarters?

Revenue rose in each of the last four quarters, according to the supplied trend data, reaching ₹7.06 crore in Q4 FY25 before falling to ₹5.56 crore in Q1 FY26. The recent revenue low was ₹5.04 crore in Q2 FY24, while the recent high was ₹7.06 crore in Q4 FY25. Profit ranged from a loss of ₹4.25 crore in Q3 FY24 to profit of ₹5.47 crore in Q4 FY24, with Q1 FY26 ending at a net loss of ₹0.34 crore.

EBITDA margin peaked at 36.7% in Q4 FY25, down from a recent low of -24.7% in Q3 FY24, and eased to 31.2% in Q1 FY26. Profit was positive in Q4 FY24 and Q4 FY25 but negative in the other quarters shown, including Q3 FY25 and Q1 FY26. The current quarter therefore shows lower revenue and profit than Q4 FY25, with the EBITDA margin also lower.

Which businesses drove the quarter?

Resort was the largest reported segment in Q1 FY26, with revenue of ₹4.97 crore, up 45.4% from ₹3.42 crore in Q1 FY25. Segment EBIT was ₹0.15 crore, compared with an EBIT loss of ₹0.33 crore in the year-ago quarter, while the reported EBIT margin was 12.5%.

Fertiliser revenue was ₹0.59 crore, down 72.5% from ₹2.13 crore in Q1 FY25. Segment EBIT was ₹0.15 crore, compared with an EBIT loss of ₹0.33 crore, and the reported EBIT margin was 24.9%. Construction reported revenue of ₹0.0 crore and EBIT of -₹0.51 crore, while Others reported revenue of ₹0.0 crore and EBIT of ₹0.0 crore.

What did the auditors point out?

The independent auditor issued a qualified conclusion on the review of the unaudited interim financial results. The auditor drew attention to old overdue trade receivables of ₹10.35 crore, for which the company had made no provision, stating that this constituted a departure from the Indian Accounting Standards prescribed under section 133 of the Companies Act, 2013. The auditor said the matter, along with the Fertiliser Segment matter, had been qualified in the preceding quarter and the year ended 31 March 2025.

The auditor also stated that the Fertiliser Segment had incurred a significant loss in the June 2025 quarter and earlier reporting periods, with capacity utilisation below 10%, and that no impairment study had been carried out under Ind AS 36 “Impairment of Assets”. The auditor said it was unable to obtain sufficient appropriate audit evidence for this matter and was unable to comment on the quantum of provision that might be required. The review report included an emphasis-of-matter paragraph covering sub judice matters.

The emphasis-of-matter paragraph stated that certain matters were sub judice as at 30 June 2025. It referred to a short receipt of Transferable Developments Rights of ₹1.16 crore and maintenance charges payable of ₹0.33 crore, noting that the company had not provided for these amounts. The auditor stated that its opinion was not modified in respect of this sub judice matter.

How did Bharat Agri Fert & Realty shares react?

How did other Fertilizers companies do?

Among the other Fertilizers companies that had filed this quarter, the median revenue growth was 16.9%, compared with Bharat Agri Fert & Realty’s 0.2% growth. Three peers grew more slowly than the company and 17 grew faster than the company. Of the 22 peers used for the profit comparison, 18 reported higher profit.