
FACT reported a sharp decline in fourth-quarter earnings with net profit falling 95.5% year-on-year to ₹3.16 crore from ₹70.9 crore in the corresponding quarter last year. According to Business Standard, the company achieved strong revenue growth with sales rising 40.88% to ₹1,483.85 crore compared with ₹1,053.28 crore in Q4FY25. Despite the profit decline, the company also reported a net loss of ₹39.6 crore for the full financial year 2025-26 compared with a net profit of ₹41.2 crore in the previous fiscal, even as annual revenue from operations jumped 41.3% to ₹5,723.76 crore.
EBITDA declined 43% year-on-year to ₹48.6 crore from ₹85 crore, while operating margin contracted sharply to 3.3% from 8% a year ago. As reported by Business Standard, the company's total expenditure surged to ₹1,512 crore in the quarter from ₹1,042 crore year ago, while finance costs increased to ₹64.3 crore from ₹60.3 crore. Other income also fell to ₹34 crore from ₹59.9 crore in the year-ago period. The significant margin compression despite strong revenue growth highlights operational challenges facing the company.
According to Business Standard, segment-wise, the fertiliser business had slipped into losses during Q3, while the petrochemical segment also remained loss-making. The company's diversified business segments continue to face profitability challenges, contributing to the overall weak performance across key operational areas.
Following the earnings announcement, shares of FACT fell to an intraday low of ₹850.05 before trimming some losses. As reported by Moneycontrol, the stock was trading over 5% lower at ₹878.85 on the NSE in afternoon trade. The market reaction reflects investor concerns over the company's ability to maintain profitability despite strong revenue growth, particularly given the significant margin compression seen in the quarter and the challenging financial year performance.