Fertilizers and Chemicals Travancore Limited (FACT)
🎯 Key Takeaways
- FACT is navigating a strategic inflection point marked by declining profitability and governance changes, transitioning from a historically profitable fertilizer producer to a more complex, capital-intensive chemical enterprise facing margin pressures and leadership shifts..
- Revenue declined 34.5% QoQ to ₹949 in Q3FY25.
- ⚠️ Sustained margin compression due to global fertilizer price volatility and weak domestic demand.
📖 The Story
FACT is navigating a strategic inflection point marked by declining profitability and governance changes, transitioning from a historically profitable fertilizer producer to a more complex, capital-intensive chemical enterprise facing margin pressures and leadership shifts.
📰 What's Happening
In Q3FY25, revenue declined 34% YoY to ₹949 crore from ₹1,449 crore in Q2FY25, with operating profit falling to ₹89 crore from ₹83 crore despite a slight margin improvement to 3.3%. The company recorded a net profit of ₹8 crore and EPS of ₹0.12, reflecting significant earnings compression. This follows a pattern of volatility, with Q4FY24 showing a loss of ₹61 crore and negative EPS of ₹-0.95, suggesting cyclical demand and pricing pressures in the fertilizer segment. Management has not announced major new capacity expansions or product launches recently, but the resignation of Independent Director Billeswar Sinha on 30th March 2026 due to election commitments has created a vacancy in the Nomination and Remuneration Committee, requiring board-level recruitment to maintain governance compliance.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q4FY23 | Q1FY24 | Q2FY24 | Q3FY24 | Q4FY24 | Q1FY25 | Q2FY25 | Q3FY25 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,249 | 1,233 | 1,663 | 1,097 | 1,062 | 600 | 1,449 | 949 |
| Operating Profit | 236 | 140 | 172 | 97 | -92 | 3 | 83 | 89 |
| OPM % | 14.8% | 11.9% | 8.0% | 3.9% | 3.5% | -9.4% | 2.4% | 3.3% |
| Net Profit | 166 | 72 | 105 | 30 | -61 | -49 | 11 | 8 |
| EPS | ₹2.56 | ₹1.11 | ₹1.63 | ₹0.47 | ₹-0.95 | ₹0.75 | ₹0.17 | ₹0.12 |
The sharp revenue contraction from Q2FY25 to Q3FY25 aligns with broader industry headwinds, including soft global fertilizer prices and seasonal demand lulls, though the company maintained positive operating cash flow. Margins remain structurally lower than pre-pandemic levels, with OPM at 3.3% in Q3FY25 compared to 14.8% in Q4FY23, indicating persistent pricing pressure and input cost volatility. The turnaround from losses in Q4FY24 to modest profitability in Q3FY25 suggests stabilization, but earnings remain highly sensitive to commodity cycles and monsoon patterns.
🔮 Management Outlook & What's Next
Management has not provided formal forward guidance in the latest filings, but past disclosures indicate focus on operational efficiency, cost optimization, and portfolio optimization within the agrochemicals segment. There has been no announced capacity expansion or new product commercialization recently, suggesting a conservative capital allocation approach amid uncertain demand.
Extracted from official company announcements. Not StockFin.ai's opinion.
⚖️ Peer Comparison — Fertilizers & Agrochemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| Fertilizers and Chemicals Travancore Limited | 57,117 | -630.5 | — | — | — |
| Coromandel International Limited | 55,044 | 33.3 | — | — | — |
| UPL Limited | 53,373 | -157.3 | — | — | — |
| PI Industries Limited | 47,259 | 27.8 | — | — | — |
| Sumitomo Chemical India Limited | 22,898 | 44.4 | — | — | — |
| Bayer Cropscience Limited | 21,796 | — | — | — | — |
| Chambal Fertilizers & Chemicals Limited | 18,025 | 11.1 | — | — | — |
| Paradeep Phosphates Limited | 12,506 | 30.3 | — | — | — |
| Sharda Cropchem Limited | 8,742 | 35.8 | — | — | — |
| Rashtriya Chemicals and Fertilizers Limited | 6,876 | 25.9 | — | — | — |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Sustained margin compression due to global fertilizer price volatility and weak domestic demand. 2. Governance risk from ongoing board reconstitution following the resignation of an independent director, potentially affecting committee oversight. 3. Cyclicality of agrochemical demand exposing earnings to monsoon variability and government subsidy policies.
📋 Recent Filings
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Announcement 11 June 2026Fertilizers and Chemicals Travancore Limited (FACT) informed the National Stock Exchange of a sudden spike in share trading volume on June 11, 2026, w...
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Announcement 10 June 2026No summary available
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Announcement 8 June 2026Fertilizers and Chemicals Travancore Limited announced that the Ministry of Mines appointed its Director (Marketing), Shri Anupam Misra, as Chairman a...
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Announcement 1 June 2026Fertilizers and Chemicals Travancore Limited announced the superannuation of Dr. K. Jayachandran, Director (Technical), effective May 31, 2026, follow...
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Announcement 24 April 2026FACT disclosed that India's Ministry of Chemicals and Fertilizers approved its request to manufacture di-ammonium phosphate (DAP) at the Udyogmandal p...
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Announcement 20 April 2026Fertilizers and Chemicals Travancore Limited (FACT) informed the National Stock Exchange of an unexplained increase in share trading volume, stating i...
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Announcement 17 April 2026No summary available
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Announcement 7 April 2026Fertilizers and Chemicals Travancore Limited (FACT) filed a general corporate filing on the NSE. The filing provides routine regulatory compliance doc...
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🟡 Board Meeting 2 April 2026FACT's Independent Director Shri. Billeswar Sinha resigned effective **30th March 2026** to contest the West Bengal Legislative Assembly election from...
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Announcement 1 April 2026Fertilizers and Chemicals Travancore Limited (FACT) filed a general corporate submission on the NSE. The filing lacks specific operational, financial,...
🧠 Analyst's Read
FACT's near-term outlook hinges on agricultural demand recovery and successful board renewal. Investors should monitor quarterly margin trends and the speed of independent director replacement as early indicators of operational and governance stability.
Based on filing content and financial data. Not a recommendation.
Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-06-16.