FACT profit plunges 95.53% as costs outpace revenue growth
Standalone margin recovered sequentially, but remained 15.49 percentage points below the 51-peer commodities median.
Filed 29 May 2026, 14:20 IST · Fertilizers & Chemicals Travancore Ltd (FACT)
Key takeaways
- Standalone net profit fell 95.53% year on year to Rs 3.16 cr despite revenue growth of 40.88%.
- Operating margin recovered 6.01 percentage points sequentially as expenses fell 10.90%, faster than the 5.36% decline in revenue.
- Other income equalled 581.2% of profit before tax, making the Rs 5.85 cr pre-tax profit highly dependent on non-operating income.
Price around the results
Revenue growth did not translate into operating profit
FACT's standalone revenue rose 40.88% year on year, but expenses increased faster at 48.20%, reducing operating margin by 4.77 percentage points. Operating profit therefore fell 42.65% to Rs 48.65 cr, while net profit dropped 95.53% to Rs 3.16 cr. The company reported EPS of Rs 0.05 versus Rs 1.09 a year earlier.
Sequential recovery came from lower expenses, not stronger sales
Revenue declined 5.36% sequentially, but expenses fell 10.90%, taking operating margin up 6.01 percentage points from -2.73%. Interest still rose 4.03% to Rs 64.31 cr, exceeding operating profit and limiting pre-tax earnings. Other income contributed Rs 34.00 cr, or 581.2% of profit before tax, so the reported profit has weak operating support.
Margin remains near the bottom of the reporting peer set
FACT's 3.28% operating margin was 15.49 percentage points below the 18.77% median for 51 commodities peers that had reported the quarter. It ranked second from the bottom in that group. The margin has improved from Q3FY26's loss-making quarter, but remains well below the 8.05% recorded in Q4FY25.
The market reaction was unusually negative for FACT
The stock fell 5.17% on the results day and was down 6.12% after five sessions. That was materially larger than the 2.35% median absolute move after its last eight results, when moves were evenly split between four rises and four declines.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,484 cr | ₹1,568 cr | -5.36% | +40.88% |
| Other income | ₹34 cr | ₹39 cr | -13.29% | -55.42% |
| Expenses | ₹1,435 cr | ₹1,611 cr | -10.90% | +48.20% |
| Operating profit | ₹49 cr | ₹-43 cr | — | -42.65% |
| Operating margin (%) | 3.28% | -2.73% | — | — |
| Interest | ₹64 cr | ₹62 cr | +4.03% | +6.60% |
| Depreciation | ₹12 cr | ₹9 cr | +45.74% | -2.50% |
| Profit before tax | ₹6 cr | ₹-74 cr | — | -93.35% |
| Tax | ₹3 cr | ₹-6 cr | — | -84.40% |
| Net profit | ₹3 cr | ₹-68 cr | — | -95.53% |
| EPS (₹) | ₹0.05 | ₹-1.05 | — | -95.41% |
Operating margin of 3.28% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.17% | -3.67% |
| Next session | -5.93% | — |
| 5 sessions | -6.12% | -3.86% |
| 15 sessions | -4.17% | — |
| 30 sessions | -7.32% | — |
Volume on the results session was 3.69× its 20-day average.
What to watch
- Whether operating margin holds above 3.28% after the sequential recovery.
- Whether interest stays near or below Rs 64.31 cr relative to operating profit.
- Whether other income remains a smaller share than 581.2% of profit before tax.