By: ICN Bureau
Last updated : November 12, 2026 9:05 pm
Revenue from operations experienced a modest decline of 4.3% YoY
Rashtriya Chemicals and Fertilizers Limited (RCF) delivered a resilient financial performance in Q2 FY27, marked by strong bottom-line growth and significant margin expansion despite a slight contraction in topline revenue.
For the quarter ended September 30, 2026, the state-run fertilizer and chemical manufacturer reported a 24.3% year-on-year (YoY) surge in standalone net profit to Rs. 131.45 crore, compared to Rs. 105.35 crore in the corresponding period of the previous fiscal year.
Revenue from operations experienced a modest decline of 4.3% YoY, settling at Rs. 5,063.19 crore against Rs. 5,293 crore in Q2 FY26. However, disciplined cost management and lower input expenses enabled RCF to substantially boost its operating efficiency during the period.
Earnings before interest, tax, depreciation, and amortization (EBITDA) jumped 41.1% YoY to Rs. 302 crore, up from Rs. 214 crore a year earlier. Consequently, the company's EBITDA margin expanded by nearly 200 basis points to reach approximately 6.0% (5.97% standalone), up from 4.0% in Q2 FY26.
Segment-wise, the core fertilizer business demonstrated a strong sequential turnaround, swinging back to a segment profit of Rs. 84.94 crore after posting an operating loss in the preceding first quarter. This recovery was achieved even as revised energy norms for the company's Thal manufacturing unit negatively impacted government subsidy income by Rs. 60.17 crore during the quarter.
Meanwhile, the industrial chemicals division continued to serve as a high-margin earnings pillar for the company, generating a segment profit of Rs. 144.93 crore on revenues of Rs. 505.93 crore.
In addition to improved operational profitability, RCF strengthened its overall balance sheet and liquidity position considerably. Cash and cash equivalents rose sharply to Rs. 969.92 crore as of September 30, 2026, compared to Rs. 123.89 crore in the prior period.