National Fertilizer Faces Profitability Challenges Amidst Strong Revenue Growth

National Fertilizer has recently undergone a financial trend adjustment, reflecting a challenging performance landscape for the company in the fertilizers sector. For the quarter ending September 2025, National Fertilizer reported net sales reaching Rs 6,763.07 crore, marking a significant achievement in revenue generation. However, the company faced substantial setbacks in profitability metrics, with a reported profit before tax (PBT) of Rs -51.18 crore, indicating a drastic decline of 897.66%. Similarly, the profit after tax (PAT) stood at Rs -35.81 crore, reflecting a significant drop of 396.7%.
The company's return on capital employed (ROCE) was recorded at a low of 4.41%, and the debtors turnover ratio was also at a concerning low of 4.09 times, suggesting inefficiencies in asset management and cash flow.

In terms of market performance, National Fertilizer's stock has shown volatility, with a current price of Rs 93.15, slightly up from the previous close of Rs 92.56. Over various time frames, the stock has underperformed compared to the Sensex, particularly in the year-to-date and one-year returns, where it lagged significantly behind the broader market index. However, the company has demonstrated resilience over longer periods, with notable returns over three, five, and ten years.