Below is a structured extraction and summary of the relevant and actionable financial information from the filing of National Fertilizers Limited for the quarter ended 30th June 2025 (Q1 FY26), including standalone and consolidated results, auditor’s notes, segment data, and other key disclosures.

1. Auditor’s Note

• Type: Independent Auditor’s Review Report on Unaudited Financial Results (Standalone and Consolidated) for Q1 FY26.
• Opinion:
  • Unmodified conclusion (no qualifications or adverse remarks).
  • The review was conducted under SRE 2410 standards, providing moderate assurance.
  • No material misstatements noted.
• Emphasis of Matter:
  • Recognition of subsidy income of ₹2,549 Lakhs on DAP fertilizers for Q1 FY26 based on Department of Fertilizers operational guidelines over and above NBS subsidy rates for Kharif 2025 shipments (April 1 to Sept 30, 2025).
  • This does not modify the auditor’s conclusion.
• Other Matters:
  • Comparative figures for Q1 FY25 reviewed by joint auditors with unmodified opinion.
  • Consolidated results include share of net loss from two joint ventures (Ramagundam Fertilizers & Chemicals Ltd and Urvarak Videsh Ltd) amounting to ₹734.49 Lakhs for Q1 FY26.

Conclusion: No audit qualifications or concerns; standard clean review with emphasis on subsidy income recognition.

2. Financial Performance

Key Financial Figures (₹ Lakhs)

Margins (Standalone & Consolidated)

3. Detailed Notes / Management Commentary

• Subsidy Income Recognition:
  Subsidy income of ₹2,549 Lakhs recognized on DAP fertilizers for Q1 FY26 based on DoF operational guidelines over and above NBS subsidy rates for Kharif 2025 shipments (April 1 to Sept 30, 2025).

• Dividend:
  Board recommended a final dividend of ₹1.56 per equity share (15.60%) for FY25, subject to shareholder approval at the 51st AGM.

• Accounting Policies:
  Financial results prepared as per Indian Accounting Standards (Ind AS) 34 for interim reporting and comply with SEBI LODR regulations.

• Credit Ratings:

  • Commercial Papers: ICRA A1+, India Ratings IND A1+ (No change from previous quarter).
  • Long Term Bank Lines: ICRA AA/Stable, India Ratings IND AA/Stable.
  • No commercial papers outstanding as of 30th June 2025.

• No defaults or deviations reported on loans or debt securities.

• Ratios:

  • Debt-Equity ratio improved from 1.72 (Q1 FY25) to 0.77 (Q1 FY26) standalone, and from 1.80 to 0.79 consolidated.
  • Coverage ratios declined in Q1 FY26 compared to Q4 FY25 but improved vs Q1 FY25.

4. Segment Information (Standalone & Consolidated)

• Segment assets and liabilities show the largest asset base and liabilities in Manufactured Fertilizers segment.

5. Capex, Projects, Corporate Activity

• No explicit mention of capital expenditure or ongoing/planned projects in the filing.
• No reported writedowns, impairments, or provisions.
• No acquisitions, disposals, mergers, or restructuring efforts disclosed.
• The company continues to maintain stable credit ratings and no defaults.

6. Standalone vs Consolidated

• Both standalone and consolidated results are provided and reviewed.
• Consolidated results include share of two joint ventures with a net loss of ₹734.49 Lakhs in Q1 FY26.
• Consolidated net profit/loss and margins are slightly lower than standalone due to JV losses.
• Debt-equity and coverage ratios are broadly consistent between standalone and consolidated.

Summary for Investment Analysis Team

Actionable Insights:

• Monitor Q2 FY26 results for recovery from Q1 loss and impact of subsidy income.
• Assess risks related to JV losses and segment-wise profitability, especially in Manufactured Fertilizers.
• Dividend payout indicates confidence in cash flows despite Q1 loss.
• Strong credit ratings and improved leverage ratios support financial stability.
• No audit or regulatory concerns enhance reliability of reported results.

End of Analysis