Fertilizers and Chemicals Travancore Limited (FACT) enters the Q1 FY2026-27 results against a backdrop of a severely deficient monsoon and rising global input costs. Investors will be looking for management's commentary on the sustainability of the company's recent return to profitability and the impact of the April nutrient-based subsidy revision on margins.
| Results date | August 14, 2026 |
|---|---|
| Quarter | Q1 FY 2026-2027 |
| Previous quarter revenue | Rs. 14,838,500,000 |
| Previous quarter PAT | Rs. 31,600,000 |
| Net debt (latest quarter) | Rs. 3,986 Cr |
| Market cap | Rs. 53,027.55 Cr |
| CMP | Rs. 820.45 |
The company has scheduled its board meeting for August 14, 2026, to consider the audited financial results and recommend dividend for FY2026.
The company's performance in Q1 is likely behind the year-ago quarter due to a 23% YoY gap in Kharif sowing as of June 25, which deferred fertiliser offtake into the following months. While the April 2026 nutrient-based subsidy hike of up to 21% and a 10% urea price increase provided a tailwind, these were set before the full impact of the West Asia conflict pushed imported DAP prices to over $800/tonne. Finance costs remain a structural drag on the balance sheet, which carries Rs. 3,986 Cr of borrowings and saw negative operating cash flow of Rs. 996 Cr in FY26. Management's commentary will be critical in assessing whether the April subsidy rates adequately cover the raw-material cost surge or if the company faced significant margin compression throughout the quarter.
Volume and Demand Trajectory: Monitoring the impact of the monsoon deficit on sales.
Subsidy and Working Capital: Evaluating the cash flow impact of government subsidy receivables.
Cost Pass-Through and Margins: Assessing the adequacy of current subsidy rates against global input inflation.
Profitability Sustainability: Tracking the transition from Q4 FY26 performance.
Profit before tax improved to Rs. 58,500,000 in Q4 FY2025-26 from a loss of Rs. 740,600,000 in the previous quarter. Similarly, profit for the period turned positive to Rs. 31,600,000 from a loss of Rs. 679,000,000 in Q3.
With total borrowings of Rs. 3,986 Cr and total equity of Rs. 1,350 Cr, the company operates with a leverage ratio of approximately 2.95x. This high debt load makes the company sensitive to finance costs, which were Rs. 64 Cr in Q4 FY26 alone.
Kharif 2026 sowing was significantly impacted by a rainfall deficit, with acreage as of June 25 down 23% YoY to 182.72 lakh hectares. This delayed sowing cycle compressed fertiliser offtake volumes within the April-June quarter.