Synopsis: National Fertilisers Ltd surged 11% after reporting a 193% YoY jump in Q3 PAT, driven by improved operational performance and recovery from a sequential loss. Revenue growth, enhanced energy efficiency, and diversified agri-input operations strengthened sentiment, reinforcing its position as a key PSU player in India’s fertiliser sector.
The shares of this company, which is engaged in the production and marketing of neem-coated urea, bio-fertilisers (solid & liquid) and other allied industrial products. It is also engaged in trading of imported and domestic fertilisers, compost, seeds and other agro products and had its shares in momentum today after the company reported robust Q3 results.
With the market cap of Rs 3,981 crore, the shares of National Fertilizer Ltd have gained about 11% and reached a high at Rs 86.70, compared to their previous day’s closing price of Rs 78.11. The shares are trading at a PE of 20.5, whereas its industry PE is at 18.4.
Q3 FY26 Result highlights
The revenue from operations for the company stood at Rs 6,870 crore when compared to Rs 5,856 crore in Q3 FY25, growing by about 17 per cent on a YoY basis and, on a QoQ basis, growing by 1.6 per cent from Rs 6,763 crore in Q2 FY26.
The PAT grew about 193% on a YoY basis when you compare the Q3 FY26 profit at Rs 135 crore to the Rs 46 crore profit in Q3 FY25. However, on a QoQ basis, it has grown from the Rs 36 crore loss in Q2 FY26, helping the share price jump.
National Fertilisers Limited (NFL) is a Navratna public sector undertaking established in 1974, with a majority government holding of 74.71%. Headquartered in Noida, the firm is one of the leading urea manufacturers in India, accounting for almost 16% of the country’s total urea production. With an installed capacity of 35.68 LMT (re-assessed at 32.31 LMT), the firm has five gas-based ammonia-urea plants located in the states of Punjab, Haryana, and Madhya Pradesh.
The firm’s strategic makeover from fuel oil to natural gas and its efforts to increase capacity are indicative of a robust operational focus on efficiency, sustainability, and cost-effectiveness. However, in addition to its conventional urea manufacturing business, the firm has also diversified its operations into bio-fertilisers, bentonite sulphur, certified seeds marketed under the brand name “Kisan Beej”, and industrial chemicals such as nitric acid and ammonium nitrate.
The firm’s broad marketing network, including zonal, state, and area offices spread across India, is a significant strength in terms of distribution reach. Additionally, the firm has soil testing laboratories and R&D facilities at each of its manufacturing sites. This holistic strategy enhances its positioning not only as a fertiliser producer but also as an agri-input solutions provider.
In terms of strategy, NFL is concentrating on sustainability and growth. Its investment in energy-efficient GTG-HRSG technology meets the NUP-2015 norms, increasing energy efficiency and lowering costs. The resurrection of its Ramagundam urea unit via its joint venture RFCL (in which NFL has 26% equity and marketing rights for 100% of production) strengthens its supply chain and revenue visibility.
Furthermore, its backward integration into agrochemicals and seed processing indicates a carefully planned diversification move. Taken together, the NFL balances PSU-supported stability with a gradual process of modernisation and expansion, positioning itself as an integral part of the fertiliser and agricultural sector in India.
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