Fertilizers and Chemicals Travancore Limited Earnings Summary — Q1 FY2027
FACT Reports Q1 Loss Amid Supply Chain Disruptions and Geopolitical Volatility
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 3.8% sequentially in Q3 FY2026.
- Revenue of ₹1,568 Cr is 65.1% higher year-on-year.
- Revenue has compounded at -2.6% annualised over the last 10 quarters.
- Net profit of ₹-68 Cr is 948.8% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -66.0% annualised across the period.
- Operating margin stands at -2.7% in Q3 FY2026.
- Operating margin compressed by 605 bps year-on-year.
- Over the last two years operating margin has contracted by 665 bps.
- PBT margin is -4.7%.
- Expenses grew 75.5% against revenue growth of 65.1%.
- Operating profit of ₹-43 Cr is 236.0% lower year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 24/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 | Q3 FY2024 | Q2 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Volatile | 1,568 | 1,629 | 1,043 | 1,053 | 949 | 1,449 | 600 | 1,062 | 1,097 | 1,663 |
| Expenses | Volatile | 1,611 | 1,590 | 1,019 | 968 | 918 | 1,414 | 656 | 1,025 | 1,054 | 1,531 |
| Operating Profit | Volatile | -43 | 39 | 24 | 85 | 32 | 35 | -57 | 37 | 43 | 132 |
| Operating Margin | Volatile | -2.7% | 2.4% | 2.3% | 8.1% | 3.3% | 2.4% | -9.4% | 3.5% | 3.9% | 8.0% |
| Other Income | Volatile | 39 | 51 | 52 | 76 | 57 | 48 | 60 | -129 | 54 | 39 |
| Interest | Stable | 62 | 62 | 62 | 60 | 62 | 61 | 62 | 61 | 62 | 61 |
| Depreciation | Volatile | 9 | 8 | 7 | 13 | 12 | 6 | 5 | 11 | 5 | 5 |
| Profit Before Tax | Volatile | -74 | 21 | 7 | 88 | 15 | 15 | -64 | -164 | 30 | 105 |
| Tax | Volatile | -6 | 0 | 3 | 17 | 7 | 4 | -16 | -103 | — | — |
| Net Profit | Volatile | -68 | 21 | 4 | 71 | 8 | 11 | -49 | -61 | 30 | 105 |
| Net Margin | Volatile | -4.3% | 1.3% | 0.4% | 6.7% | 0.8% | 0.8% | -8.1% | -5.8% | 2.8% | 6.3% |
Key Takeaways
- Revenue grew 21.5% YoY to ₹1,253 Cr but declined significantly on a sequential basis compared to Q4 FY26.
- Net profit witnessed a sharp decline to ₹3.16 Cr, down from ₹7.08 Cr in the same quarter last year.
- The company reported a Loss Before Tax of ₹64.50 Cr for the quarter, primarily driven by high material costs and inventory adjustments.
- The Fertiliser segment remains the primary revenue driver at ₹1,25,658 Lakhs, while the Petrochemical segment remains marginal.
- Operational results were severely impacted by a temporary shutdown of manufacturing plants due to geopolitical issues in West Asia.
- Raw material availability (key feedstocks) has been disrupted, leading to increased pressure on the cost of materials consumed.
- Finance costs remained relatively stable at ₹61.98 Cr compared to ₹64.31 Cr in the previous quarter.
- FACT has discontinued the consolidation of FRBL following an NCLT resolution plan, which is currently under appeal.
Management Guidance
Management highlighted that the ongoing geopolitical situation in West Asia has created significant disruptions in the supply of key raw materials, necessitating temporary plant shutdowns.
Sentiment Shift
Deteriorating
The transition from a profitable prior-year quarter to a significant pre-tax loss, combined with active manufacturing shutdowns due to raw material shortages, indicates a worsening operational environment.
Outlook
The outlook remains highly uncertain and dependent on the stabilization of raw material supply chains from West Asia; the current high P/E ratio and margin erosion suggest significant valuation risks.
From the Annual Report (Key Quotes)
“Certain manufacturing plants of the Company are temporarily shut down due to disruptions arising from the ongoing geopolitical situation in West Asia.”
“Auditors draw attention to Note No. 4... regarding temporary shut down... affecting the availability of key raw materials.”
“The Company has ceased to have joint control over FRBL... discontinued consolidation of its interest in FRBL.”
Official Quarterly Documents
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This summary is AI-generated from Fertilizers and Chemicals Travancore Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
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