FACT swings to a Rs 61.94 cr loss as costs outrun revenue
Revenue grew YoY, but faster expense growth cut operating margin by 4.68 percentage points; the company ranked lowest among 81 reported commodity peers.
Filed 14 Aug 2026, 15:07 IST · Fertilizers & Chemicals Travancore Ltd (FACT)
Key takeaways
- FACT posted a standalone net loss of Rs 61.94 cr, reversing a Rs 4.28 cr profit a year earlier.
- Expenses rose +25.95% YoY against +20.20% revenue growth, pushing operating margin down 4.68 percentage points to -2.38%.
- FACT's operating margin was 20.54 percentage points below the 18.16% median of 81 reported commodity peers, ranking it first from the bottom.
Price around the results
Revenue growth failed to translate into profit
FACT's standalone revenue increased +20.20% YoY to Rs 1,253.40 cr, but the company moved from a Rs 4.28 cr profit to a Rs 61.94 cr loss. Sequentially, revenue fell -15.53% and net profit declined from Rs 3.16 cr to a loss of Rs 61.94 cr. The deterioration was also visible before tax, with PBT moving from a Rs 7.08 cr profit to a Rs 64.50 cr loss.
Faster expense growth erased the operating profit
Expenses grew +25.95% YoY, faster than revenue, which reduced operating margin by 4.68 percentage points from 2.30% to -2.38%. Sequentially, expenses fell -10.59%, but the sharper -15.53% revenue decline caused a 5.66 percentage-point margin drop from 3.28%. Other income was Rs 34.00 cr, yet PBT remained negative; the lower 3.97% tax rate, down 35.58 percentage points YoY, only cushioned the loss by Rs 2.56 cr.
Margin recovery has proved uneven
Operating margin improved from -2.73% in Q3FY26 to 3.28% in Q4FY26, but slipped back to -2.38% in Q1FY27. It remains well below the 8.05% recorded in Q4FY25. Among 81 commodity peers that have reported, FACT's margin was 20.54 percentage points below the 18.16% sector median and ranked first from the bottom.
Past result-day moves have leaned negative
The stock has fallen after five of its last eight results and risen after three, with a median absolute move of 3.30%. That history points to a usually negative but moderate post-results reaction, though the current result-day response is not yet covered here.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,253 cr | ₹1,484 cr | -15.53% | +20.20% |
| Other income | ₹34 cr | ₹34 cr | +0.00% | -34.35% |
| Expenses | ₹1,283 cr | ₹1,435 cr | -10.59% | +25.95% |
| Operating profit | ₹-30 cr | ₹49 cr | — | — |
| Operating margin (%) | -2.38% | 3.28% | — | — |
| Interest | ₹62 cr | ₹64 cr | -3.62% | +0.39% |
| Depreciation | ₹7 cr | ₹12 cr | -46.20% | -3.31% |
| Profit before tax | ₹-65 cr | ₹6 cr | — | — |
| Tax | ₹-3 cr | ₹3 cr | — | — |
| Net profit | ₹-62 cr | ₹3 cr | — | — |
| EPS (₹) | ₹-0.96 | ₹0.05 | — | — |
Operating margin of -2.38% compares with a Commodities sector median of 18.16% across 81 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from -2.38% after the 5.66 percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue after the YoY gap of +25.95% versus +20.20%.
- Whether interest moves below Rs 61.98 cr after changing only +0.39% YoY.