Fertiliser stocks rallied sharply on Tuesday, with shares rising up to 13% after Russian President Vladimir Putin assured India of uninterrupted fertiliser supplies amid Middle East disruptions and rising global input costs. Fertilisers and Chemicals Travancore (FACT) led the gains, with its shares rising as much as 13% to cross ₹887 apiece in morning trade. Rashtriya Chemicals and Fertilisers (RCF) gained around 8%, while Paradeep Phosphates rallied more than 7%. Chambal Fertilisers & Chemicals shares advanced around 4%. The gains came after Putin assured External Affairs Minister S Jaishankar that Russia would continue meeting India's energy and fertiliser requirements. Putin was quoted as saying by state-run TASS: "We are doing everything we can to fully meet the needs of Indian farmers and the agricultural sector, increasing these supplies and stand ready to continue doing so." The assurance comes at a critical time for India's fertiliser supply chain, with the conflict in the Middle East disrupting global trade and pushing up prices of key inputs.
Indian fertiliser companies are positioning themselves for the next phase of growth through significant capacity expansions and strategic investments. Deepak Fertilisers & Petrochemicals Corp is in the final stages of its capital expenditure cycle, with major projects scheduled to commence operations in Q2FY27. The company's greenfield Technical Ammonium Nitrate (TAN) project at Gopalpur, Odisha, is approximately 96% complete, while the Dahej, Gujarat nitric acid expansion is 93% complete. Both projects remain within approved capex envelopes with total spending of around ₹38.5 billion till Q1FY27. The commencement of gas supplies under the company's 15-year LNG agreement with Equinor ASA in May 2026 is projected to yield estimated annual savings of around ₹3 billion at current prices.
According to reports from Ace Equity, promoters of Chambal Fertilisers and Chemicals and Paradeep Phosphates have raised their stakes in their respective companies for the fourth consecutive quarter during the June quarter. This trend reflects positive sentiment among promoters toward their businesses, as they are aware of company plans, actual financials, growth rates, and product demand. When promoter holdings are high, it demonstrates management confidence about business prospects and future potential.
As reported by Ace Equity, promoters of Chambal Fertilisers, the country's leading fertiliser maker, increased their stake to 61.34% from 61.25% in the previous quarter. The company that produces 13% of total urea in India previously held a 60.50% stake. Despite strong operational performance, Chambal Fertilisers reported mixed financial results for the first quarter. Net profit declined 5% to ₹524 crore from ₹549 crore year-on-year, while revenue from operations fell 12% to ₹5,027 crore from ₹5,698 crore. However, the company showed operational strength with EBITDA advancing 12% to ₹850 crore and EBITDA margin improving by 360 basis points to 16.93%.
As reported by Ace Equity, at the end of the March quarter, promoters of 20 companies in the NIFTY500 index raised stakes in their companies. The 30-share S&P BSE SENSEX rose 6.3% and the NSE benchmark NIFTY50 index advanced 6.87%, or 1,54 points, from March closing of 22,331 during the first quarter of the current financial year. The supply assurance comes as India faces significant fertiliser challenges, with the government already using around 56% of its annual fertiliser subsidy allocation in less than five months of FY27, with expenditure reaching around ₹99,000 crore. This spending has raised expectations that the government's total fertiliser subsidy expenditure could exceed the FY27 budget estimate of ₹1.77 lakh crore. Production of complex NP/NPK fertilisers fell 28% year-on-year to 19.2 lakh tonnes in the April-June quarter, while imports declined even more sharply by 48.5% to 4.9 lakh tonnes. In April, the government approved a 10-21% increase in nutrient subsidy rates for the 2026 kharif season, taking the total subsidy outlay to ₹41,534 crore.
