Zuari Agro Chemicals Q4 Profit Falls 96% To ₹37 Crore As Revenue Drops Amid MCFL Deconsolidation

Mumbai: Zuari Agro Chemicals Ltd reported a 96 percent year-on-year decline in consolidated net profit to Rs 37.4 crore in Q4 FY26, compared with Rs 992.4 crore in the corresponding quarter last year, while total income fell sharply to Rs 195.6 crore from Rs 973.8 crore.

Sequentially, profit declined from Rs 71.2 crore reported in Q3 FY26. The company’s quarterly trajectory reflects the impact of the deconsolidation of Mangalore Chemicals & Fertilizers Ltd (MCFL) and restructuring-related accounting adjustments.

Zuari Agro Chemicals posted consolidated total expenses of Rs 303.6 crore during the March quarter against Rs 980.9 crore a year ago, while the company reported a pre-tax loss of Rs 50.7 crore compared with a profit before tax of Rs 334.5 crore in Q4 FY25.

On a standalone basis, the company reported a net loss of Rs 14.6 crore for the quarter, wider than the Rs 0.4 crore loss recorded in the December quarter.

The company stated that the quarter and annual numbers are not comparable with previous periods following the derecognition of MCFL as a subsidiary effective September 26, 2025, under a composite scheme involving Paradeep Phosphates Ltd (PPL).

Zuari Agro Chemicals transferred its MCFL stake to Zuari Maroc Phosphates Pvt Ltd at Rs 144 per share, aggregating Rs 418.1 crore, and subsequently received shares of PPL under the approved merger scheme.

During FY26, the company also recognised exceptional items including Rs 817.5 crore gain on loss of control of subsidiary MCFL at the consolidated level, while standalone books reflected gains from the transfer and restructuring transactions.

The company additionally recorded fair-value losses on PPL shares through other comprehensive income after classifying the investment under FVTOCI norms.

For the full year FY26, consolidated total income stood at Rs 3,320 crore against Rs 4,450 crore in FY25, while consolidated net profit fell to Rs 231 crore from Rs 527 crore in the previous year.

The company said its fertilizer products business has been divested from September 30, 2025, and it is evaluating new strategic business opportunities to strengthen future operations.

Disclaimer: This report is based on unaudited/audited regulatory filings and is not investment advice.