Fertilizers & Chemicals Travancore Ltd (FACT) Q1 FY27 Results Analysis: PAT Plunges to Loss, Revenue Grows 20%

Fertilizers & Chemicals Travancore Ltd reported Q1 FY27 numbers with revenue of Rs. 1,253.40 Cr (+20.20% YoY) and PAT growth of -1547.20% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 20.2% YoY from subsidy revision, but cost surge and temporary plant shutdown caused a deep PAT loss of Rs.61.94 cr and negative EBITDA margin. The company faces severe margin pressure, high fixed finance costs, and no guidance visibility, suggesting a challenging near-term outlook.

Key Investment Insights

Key Positives

• Revenue grew 20.2% YoY to Rs.1,253.40 cr, driven by 21% NBS hike and 10% urea price increase.
• Petrochemical segment loss narrowed to Rs.2.07 cr from Rs.17.26 cr YoY.

Risk Factors

• EBITDA swung to -Rs.29.80 cr from +Rs.23.98 cr, margin -2.38%.
• PAT swung to -Rs.61.94 cr from +Rs.4.28 cr.
• Cost of materials consumed rose 43.05% YoY, outpacing 20.2% revenue growth, causing severe margin compression.
• Fertiliser segment reported loss of Rs.32.60 cr vs profit of Rs.34.17 cr YoY.
• Temporary plant shutdown due to West Asia geopolitical situation impacted operations.
• Finance costs of Rs.61.98 cr are not covered by operating profits (interest coverage ratio zero).