The Fertilisers and Chemicals Travancore Ltd (FACT) has received communication from the Principal Accounts Office, Ministry of Chemicals and Fertilisers, Government of India, regarding penal interest charges on its outstanding Government of India loan. According to reports from CNBC TV18, the total penal interest impact stands at ₹438.20 crore, comprising ₹389.51 crore for the period from April 1, 2018 to March 31, 2026, and ₹48.69 crore for the current financial year 2026-27. The company had been disclosing penal interest for the period from April 1, 2022, as a contingent liability in its financial statements up to March 31, 2026.
FACT has stated that it is taking up the matter with the Ministry of Chemicals and Fertilisers, Government of India, seeking waiver of the penal interest charged. As reported by CNBC TV18, the company's financial performance showed mixed results for the quarter ended June 2026. FACT reported a consolidated net loss of ₹61.94 crore for the quarter, compared with a net profit of ₹4.28 crore a year earlier, as its operating performance deteriorated. Revenue from operations rose 20.2% year-on-year to ₹1,253.4 crore from ₹1,042.8 crore in the corresponding quarter last year. However, Earnings before interest, taxes, depreciation and amortisation (EBITDA) swung to a loss of ₹29.8 crore from a profit of ₹23.98 crore a year earlier. The company generated about ₹211 crore more revenue than a year earlier, but EBITDA worsened by nearly ₹54 crore, indicating that higher revenue did not translate into improved operating earnings during the quarter.
Separately, FACT announced on August 13 that the Ministry of Chemicals and Fertilisers had notified the appointment of Narpat Singh Rathore and Ramawater Rajgarhia as non-official independent directors on its board. The appointments are for three years from the date of notification or until further orders, whichever is earlier. Shares of Fertilisers and Chemicals Travancore Ltd ended at ₹807.00, down by ₹7.20, or 0.88%, on the BSE. The stock performance reflected investor concerns over the company's financial challenges and the significant penal interest burden, with the company's market capitalization impacted by the deteriorating financial performance and regulatory developments.
