Q2 FY27 results analysis · November 13, 2026
FACT Q2 FY27 Results Analysis: Swings to Rs. 39 Cr Profit, Revenue Slips 10%
+88.3%PAT year on year, Rs. 39.28 Cr
Source: Quarterly results filing (NSE)
Quick summary
Fertilizers & Chemicals Travancore Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,463.73 Cr (-10.16% YoY) and PAT growth of +88.30% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,463.73 Cr (-10.16% YoY) |
| PAT (Q2) | Rs. 39.28 Cr (+88.30% YoY) |
| EBITDA margin | 6.72% (+430 bps YoY) |
| EPS (Q2) | Rs. 0.61 (+90.63% YoY) |
Quarter Snapshot
Q2 FY27 swung to a Rs.39.28 cr profit from Q1's Rs.(61.94) cr loss with EBITDA margin of 6.72% vs 2.42% a year ago, but revenue fell 10.16% YoY and the improvement is policy-assisted — the Rs.63.95 cr DoF subsidy package plus a Rs.25.25 cr provision write-back exceed the quarter's PBT, with scenario H1 PBT of Rs.(63.82) cr. Cash conversion is the weakest feature: H1 CFO of Rs.(904.19) cr, inventories up 160.40%, D/E at 3.16x, and cash down to Rs.68.82 cr. The DoF loan restructuring, if approved, remains the single largest lever on both the P&L and balance sheet.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue/demand | "Likely behind" — Aug industry sales −10.33% YoY, complex fertilisers ~−34% (web-sourced, dated) | Q2 revenue Rs.1,463.73 cr, −10.16% YoY | Played out |
| Margins | "Further compression from FY26's 3.67%… not recovery" | Operating margin 8.50% (company basis), EBITDA margin 6.72% vs 2.42% year-ago; but ex-items H1 scenario PBT Rs.(63.82) cr — reported), with the underlying squeeze visible only after stripping the package | Contradicted |
| Pass-through cap under pre-war NBS rates | No mid-season relief expected; DAP support seen "only from rabi" | A sulphur/acid-specific package was notified effective Jun-2026 and Rs.63.95 cr recognised in these results — relief arrived mid-quarter | Contradicted / Partially |
| Traded book as offset | "One partial offset: the traded/imported book" | Purchases of stock-in-trade +220.34% YoY to Rs.1,390.61 cr | Played out |
| Volume target re-phase | "Re-phased or qualified rather than reaffirmed" | No volume KPIs in the filing | Not observable |
| Liquidity | Deterioration expected after FY26's Rs.(995.70) cr burn | H1 CFO Rs.(904.19) cr vs Rs.(142.36) cr H1FY26; FCF Rs.(949.56) cr | Played out |
| Watch: margin bridge | Cost of materials % of revenue vs ≈68.7% Q1 / ~60% FY26 | 66.97% in Q2; total consumption ratio 74.70% vs 79.95% Q1 and 77.83% FY26 — improved QoQ, mix shifted toward traded volumes | Partially addressed |
| Watch: 1,650 TPD NP plant / CAPEX 2.0 / restructuring / dealer-stock basis | Updates sought | Not addressed in the filing — remain open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 indigenous fertiliser sales 14.25 lakh MT | FY26 Annual Report (Board's Report) | No volume KPIs disclosed in the Q2 filing — not assessable from the filing | Too Early |
| FY27 imported sales 1.50 lakh MT | FY26 Annual Report | Not disclosed | Too Early |
| FY27 traded sales 0.64 lakh MT | FY26 Annual Report | Not disclosed; directional proxy: purchases of stock-in-trade +220.34% YoY | Too Early |
| Operating margin trajectory (company basis; FY26 3.67%) | FY26 Annual Report key ratios | Q2 FY27: 8.50%; H1 FY27: 4.48% — on the company's own metric | On Track |
| "Continue the excellent production and marketing performance during 2026-27 once the West Asia crisis subsides" | FY26 Annual Report MD&A | Crisis did not subside in the quarter (per pre-call note, web-sourced, dated Nov-2026); Q2 revenue −10.16% YoY | Too Early / conditioned event unmet |
| Financial restructuring of GoI loan — "expects an early implementation" | FY26 Annual Report MD&A | No movement disclosed; penal interest still withheld, not recognised | Too Early |
Key Investment Insights
Key Positives
- Q2 PAT of Rs.39.28 cr, an absolute swing of Rs.101.22 cr from Q1's loss of Rs.(61.94) cr; PAT +88.30% YoY
- EBITDA margin of 6.72% in Q2 vs 2.42% a year ago and −2.38% in Q1; company-basis operating margin 8.50% vs 5.10% YoY
- Total consumption ratio improved to 74.70% of revenue from 79.95% in Q1 and 78.46% a year ago
- Employee costs (−15.45% YoY), other expenses (−11.71% YoY) and finance costs (−4.91% YoY) all fell faster than revenue
- Fertiliser segment result more than doubled YoY to Rs.100.91 cr (+121%) with margin of 6.89% vs 2.80%
- Petrochemical half-year loss narrowed to Rs.(10.57) cr from Rs.(30.20) cr
- Traded book scaled sharply: purchases of stock-in-trade +220.34% YoY to Rs.1,390.61 cr
Risk Factors
- Revenue declined 10.16% YoY to Rs.1,463.73 cr
- H1 CFO of Rs.(904.19) cr and FCF of Rs.(949.56) cr; operating cash outflow is roughly 13x half-year EBITDA
- Excluding the Rs.63.95 cr DoF package, Rs.25.25 cr provision write-back, and Rs.24.34 cr unrecognised penal interest, scenario H1 PBT is Rs.(63.82) cr
- D/E worsened to 3.16x from 2.93x; H1 interest coverage of 1.01x barely covered finance costs
- Inventories rose 160.40% to Rs.3,220.90 cr, funded by trade payables (others) up 648.14% to Rs.1,764.43 cr and higher borrowings
- Net worth fell 1.64% in the half-year to Rs.1,328.16 cr; DoF loan restructuring still pending with Rs.24.34 cr H1 penal interest unrecognised
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.