Synopsis: PSU shares rose 9% after strong Q4 results. Revenue increased 49.6% YoY to ₹5,581 Crores, while net profit jumped 157.7% YoY to ₹186.72 Crores. The earnings per share (EPS) for the quarterly period stood at ₹3.38.
The shares of a Small-Cap company specialising in the manufacturing and marketing of fertilisers, bio-fertilisers, micro-nutrients, and a wide array of basic industrial chemicals, are in focus as they have surged 9 percent following their Q4 results.
With a market capitalisation of Rs. 7,296.08 crores in the day’s trade, the shares of Rashtriya Chemicals and Fertilisers Ltd rose upto 9 percent, making a high of Rs. 136.50 per share compared to its previous closing price of Rs. 125.20 per share.
What Happened
Rashtriya Chemicals and Fertilisers Ltd, engaged in the manufacturing and marketing of fertilisers, bio-fertilisers, micro-nutrients, and a wide array of basic industrial chemicals, is in focus following their Q4 results as follows:
Its Revenue from operations increased by 49.6 percent YoY from Rs. 3,730 Crores in Q4FY25 to Rs. 5,581 Crores in Q4FY26, and it increased by 31.8 percent QoQ from Rs. 4,236 Crores in Q3FY26 to Rs. 5,581 Crores in Q4FY26.
Its Net Profit YoY increased by 157.7 percent from Rs. 72.46 Crores in Q4FY25 to Rs. 186.72 Crores in Q4FY26, and on a QoQ basis, it increased by 130.8 percent from Rs. 80.95 Crores in Q3FY26 to Rs. 186.72 Crores in Q4FY26.
The earnings per share (EPS) for the quarterly period stood at Rs. 3.38, compared to Rs. 1.31 in the previous year’s quarter. Along with it, the Board of Directors of the Company has recommended a final dividend of Rs. 1.34/- per equity share of Rs. 1 01- each (i.e. 13.40% on the paid-up equity share capital) for the financial year ended March 31, 2026.
Segment-wise Revenue & Others
On a year-on-year (YoY) basis, the company’s segment revenue shows broad-based growth. Fertilisers increased from Rs. 2,932.35 Crores in FY25 to Rs. 3,021.73 Crores in FY26, reflecting a rise of Rs. 89.38 Crores. Industrial Chemicals grew from Rs. 417.46 Crores to Rs. 495.80 Crores, an increase of Rs. 78.34 Crores.
The trading business witnessed a sharp jump from Rs. 376.94 Crores to Rs. 2,059.41 Crores, marking a significant increase of Rs. 1,682.47 Crores. Unallocated revenue also increased marginally from Rs. 2.92 Crores to Rs. 3.63 Crores, up by Rs. 0.71 Crores.
The company reported a Return on Capital Employed (ROCE) of 10.2%, indicating moderate efficiency in utilising its capital to generate earnings. The Return on Equity (ROE) stood at 8.06%, reflecting a steady but relatively conservative return generated on shareholders’ funds.
The company’s financial leverage remains manageable with a debt-to-equity ratio of 0.80, suggesting a balanced capital structure. Additionally, it has maintained a healthy dividend payout ratio of 25.8%, indicating a consistent return of profits to shareholders while retaining adequate earnings for growth.
Rashtriya Chemicals & Fertilisers Ltd is a leading public sector enterprise in India engaged in the manufacturing and marketing of fertilisers and industrial chemicals. It operates under the administrative control of the Government of India and plays a key role in supporting the country’s agricultural sector by ensuring the availability of essential crop nutrients.
The company’s product portfolio primarily includes urea, complex fertilisers, and a range of industrial chemicals. It operates major manufacturing facilities located in Trombay and Thal, which are among its key production hubs. Along with fertilisers, RCF also has a presence in speciality chemicals, contributing to diversified revenue streams.
RCF focuses on strengthening agricultural productivity through sustainable and efficient fertiliser solutions. Over the years, it has been working on capacity expansion, modernisation of plants, and improving operational efficiency to remain competitive in the fertiliser industry while maintaining its PSU mandate of serving farmers.
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