Madras Fertilizers LimitedQ1 FY27 Results & Financial Update

Madras Fertilizers Limited: Q1 FY27 standalone results and company financials – revenue ₹814.01 Cr, PAT ₹34.59 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.

NSE: MADRASFERTPublished 20 Oct 2026Updated 20 Oct 2026~6 min read
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Revenue from operations₹814.01 CrReported Q1 FY27
Profit after tax₹34.59 CrReported Q1 FY27
EPS₹2.15Reported Q1 FY27

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Quarterly Results AnalysisExplore Madras Fertilizers Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.

Quarter overview

Quarterly earnings analysis

01

Operational performance during the quarter was constrained by significant plant shutdowns: the ammonia plant was shut down for 11.96 days due to equipment breakdowns and statutory boiler inspections, while the urea plant experienced a 12.23-day shutdown for similar maintenance and inspection reasons.

02

Operations at the complex fertilizer plants remained suspended for the entire quarter due to ongoing safety concerns and a shortage of manpower.

03

Financial results were impacted by regulatory and accounting adjustments, including an estimated penalty deduction of Rs. 80.26 lakh from subsidy income due to awaiting approval for the extension of existing energy consumption norms.

04

The company remains in default on the repayment of principal and interest on loans extended by the Government of India, with revival proposals pending evaluation under Atmanirbhar Bharat guidelines.

05

Statutory compliance challenges persisted during the quarter, notably the absence of the requisite number of independent directors and a woman director following board completions in April and June 2026.

01 · Business model

What does Madras Fertilizers do?

Madras Fertilizers Limited is a Government of India undertaking engaged in the manufacture and sale of fertilizers and agro-chemicals, operating out of its manufacturing facility located in Manali, Chennai.

The company's primary product portfolio includes urea—specifically neem-coated urea—along with complex fertilizers and trading operations that complement its core manufacturing capabilities.

Revenues are heavily driven by government-administered fertilizer policies, including direct revenue streams from neem-coated urea subsidies and freight subsidies provided by the Government of India (GOI).

MFL operates within a single primary business segment of fertilizer manufacture and functions within the domestic Indian agricultural market.

02 · Historical context

What shaped the business before this quarter

Energy Norm Approvals

MFL previously submitted representations requesting the Government of India to extend existing energy norms of 8.337 Gcal/MT of urea until energy reduction measures are fully implemented.

Revival Proposals

The company previously submitted financial revival proposals to the Department of Fertilizers (DOF) under the Atmanirbhar Bharat PSE policy, seeking a waiver of accrued interest and penal interest on GOI loans.

03 · Financial snapshot

Current-quarter financial snapshot

MetricQ1 FY27
Revenue from operations₹814.01 Cr
Total income₹826.46 Cr
Profit before tax₹46.08 Cr
Profit after tax₹34.59 Cr
EPS₹2.15

04 · Why it moved

Why the quarter looked the way it did

What drove revenue

Neem-Coated Urea Subsidy

Accounted for Rs. 669.16 crore (Rs. 66,916 lakhs) towards subsidy for neem-coated urea, recognized on a provisional basis at Rs. 55,397 per MT subject to final GOI determination.

Freight Subsidy

Contributed Rs. 16.79 crore (Rs. 1,679 lakhs) to the total revenue from operations during the quarter.

What drove margins

Cost of Materials Consumed

Totaled Rs. 498.38 crore for the quarter, reflecting primary raw material inputs required for manufacturing operations.

Operating and Maintenance Expenses

Stood at Rs. 249.84 crore, driven by plant upkeep, maintenance activities, and operational overheads.

Finance Costs

Incurred finance costs of Rs. 15.35 crore during the quarter, reflecting ongoing interest burdens on outstanding borrowings.

Energy Norm Penalty

Charged a penalty of Rs. 8.02 crore (Rs. 8,026 lakhs) on an estimated basis as a deduction from subsidy income due to delayed approval for energy norm extensions.

05 · Segments, products & geography

Which parts of the business are doing the work

Segments and products

Single Business Segment

Fertilizer manufacture is the primary business segment; trading operations accounted for less than 10% of total revenue and do not warrant separate segment reporting under Ind AS 108.

Geography and market mix

Domestic Operations

The company operates entirely within a single economic and geographic environment in India.

06 · Capacity, projects & execution

What is being built, commissioned or delivered

Capacity, production and utilisation

Ammonia Plant Shutdown

Experienced a shut-down of 11.96 days during the quarter to attend to equipment breakdowns and carry out statutory boiler inspections.

Urea Plant Shutdown

Experienced a shut-down of 12.23 days during the quarter for equipment breakdown repairs and statutory boiler inspections.

Complex Fertilizer Plants Shutdown

Remained shut down for the entire quarter due to safety concerns and manpower shortages.

07 · Pressure points & risks

What is not going smoothly

Board Composition Non-Compliance

Failed to meet statutory requirements regarding the composition of the Board of Directors due to the completion of terms for independent directors, leading to potential stock exchange penalties.

Plant Outages

Prolonged and recurring shutdowns across ammonia, urea, and complex fertilizer plants constrained operational output during the quarter.

08 · Items worth noticing

The line items that can distort a quick read

Energy Norm Penalty Deduction

Recognition of an estimated penalty of Rs. 8.02 crore as a deduction in subsidy income pending approval for energy norm extensions.

09 · Cash flow & balance sheet

Profit is one thing. Cash and funding tell another part of the story.

Capital allocation & funding

Revival Package Status

A request for a waiver of accrued interest and penal interest and conversion of principal into zero-percent loans under a PSE policy revival package was temporarily placed on hold, requiring a fresh proposal submission.

10 · Key Q&A

The quarter, answered directly

What does Madras Fertilizers do?

Madras Fertilizers Limited is a Government of India undertaking engaged in the manufacture and sale of fertilizers and agro-chemicals, operating out of its manufacturing facility located in Manali, Chennai.

What is the clearest takeaway from Q1 FY27?

Operational performance during the quarter was constrained by significant plant shutdowns: the ammonia plant was shut down for 11.96 days due to equipment breakdowns and statutory boiler inspections, while the urea plant experienced a 12.23-day shutdown for similar maintenance and inspection reasons.

What drove revenue or demand?

Accounted for Rs. 669.16 crore (Rs. 66,916 lakhs) towards subsidy for neem-coated urea, recognized on a provisional basis at Rs. 55,397 per MT subject to final GOI determination.

What mattered most for margins or profitability?

Totaled Rs. 498.38 crore for the quarter, reflecting primary raw material inputs required for manufacturing operations.

What changed operationally beyond the headline numbers?

Experienced a shut-down of 11.96 days during the quarter to attend to equipment breakdowns and carry out statutory boiler inspections.

What are the main pressure points disclosed for the quarter?

Failed to meet statutory requirements regarding the composition of the Board of Directors due to the completion of terms for independent directors, leading to potential stock exchange penalties.

11 · Scenario calculator

Earnings sensitivity: what if growth and margins change?

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12 · Next filing checkpoints

What the next disclosure can confirm or change

  1. 01

    Board Constitution: Appointment of required independent directors and woman director by the Department of Fertilizers to achieve regulatory compliance.

  2. 02

    Revival Package Progress: Resubmission and evaluation of the financial revival proposal with the Department of Fertilizers for GOI loan restructuring.

  3. 03

    Plant Operations: Resumption and stability of operations at the complex fertilizer plants and prevention of further equipment breakdowns in ammonia and urea units.

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