Annual Report enclosed herewith

Rashtriya Chemicals Fertilizers Limited Annual Report 2025-26 Rashtriya Chemicals and Fertilizers Limited (A Government of India Undertaking) 48th ANNUAL REPORT 2025-26 Handing over of cheque of Chief Minister’s Relief Fund, Maharashtra to Hon’ble Chief Minister of Maharashtra Shri Devendra Fadnavis by Shri S. C. Mudgerikar, then the Chairman & Managing Director, RCF in presence of other dignitaries Inauguration of RCF KARO Home - Free accommodation facility for Cancer Braveheart’s and their caregivers in presence of Shri Shivakumar Subramaniam, Chairman & Managing Director, Ms. Nazhat J. Shaikh, Director (Finance), Ms Ritu Goswami, Director (Technical), Shri Niranjan S. Sonak, Director (Marketing) Dr. Rahul S. Jagtap, CVO, RCF with other senior Officials of RCF in the presence of Ms Uma Malhotra, Managing Trustee of KARO Home Rashtriya Chemicals and Fertilizers Limited CHAIRMAN’S MESSAGE nation, supporting the farming community and creating sustainable long-term value for all stakeholders. Overview of the Economy The financial year 2025-26 was marked by a challenging global environment characterised by geopolitical tensions, trade uncertainties, supply-chain disruptions and volatility in commodity prices. Despite these headwinds, India continued to demonstrate strong economic resilience, supported by robust domestic consumption, sustained public capital expenditure, increasing private investment and the continued strength of the services sector. According to the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI), India remained one of the fastest-growing major economies, with real GDP estimated to have grown by 7.7% during FY 2025-26, from 7.1% in the previous year, reflecting the strength of its domestic economic fundamentals. Continued policy reforms, infrastructure development, manufacturing initiatives, digital transformation and increasing formalisation of the economy further strengthened India’s growth prospects. For the fertilizer sector, global geopolitical developments, energy and commodity price volatility, availability of key Dear Shareholders, raw materials and disruptions in international supply It gives me immense pleasure to present the 48th Annual chains remained key areas of concern. Nevertheless, Report of your Company, highlighting the performance the sector continued to play a vital role in supporting and achievements of your Company during the financial agricultural productivity and national food security. year 2025-26. Overview of the Fertilizer Industry The year under review unfolded against a backdrop of Overall fertiliser production marginally declined by 0.04% global economic uncertainty, fluctuating energy and during FY 2025-26 as compared to FY 2024-25, primarily commodity prices, evolving policy frameworks and due to a reduction in urea production as several Urea units persistent geopolitical tensions. The continuing Russia- preponed their shutdowns owing to lean season & on the Ukraine conflict, together with disruptions to critical wake of West Asia crisis which impacted availability of gas. maritime trade routes, including the Strait of Hormuz, Accordingly, Urea production decreased by 4.32% during has further heightened volatility in energy markets, raw the year. However, production of other major fertilisers material availability and global supply chains. These registered growth, with DAP production increasing by developments have presented significant challenges 3.49%, NPK production by 6.03%, and SSP production by to the fertilizer industry, while also underscoring the 9.45% over the previous financial year. strategic importance of fertilizer security, supply-chain resilience and sustainable agricultural practices. Against Fertiliser imports witnessed a significant increase of this challenging backdrop, your Company demonstrated 44.44% during FY 2025-26, driven mainly by higher resilience, agility and a strong sense of responsibility imports of Urea, DAP and NPK. Urea imports surged by towards the nation. By maintaining operational continuity 83.28%, DAP imports by 35.57%, and NPK imports by and ensuring the availability of quality fertilizers, your 63.20% compared to FY 2024-25. In contrast, imports of Company continued to contribute meaningfully to MOP declined by 18.10% during the year. India’s agricultural ecosystem, strengthen food security and support the livelihoods and well-being of millions of Total fertiliser sales increased by 2.14% during FY 2025- farmers across the country. 26 as compared to the previous year, supported by higher sales of Urea, DAP, MOP and SSP. Sales of urea, With a focus on balanced and judicious use of fertilizers, DAP, MOP & SSP increased by 2.23%, 1.24%, 2.46% and sustainable agriculture and efficient utilisation of 12.19% respectively. In contrast, sales of NPK declined resources, your Company continues to align its growth 1.03% over the previous year. and business strategies with the nation’s priorities of fertilizer security, food security, rural development and For FY 2026-27, the Government has provided a budgetary inclusive growth. allocation of ` 1.71 lakh crore towards fertiliser subsidies, comprising ` 1.17 lakh crore for urea subsidy and ` 0.54 As we look ahead, your Company will continue to lakh crore under the Nutrient Based Subsidy (NBS) scheme. navigate the evolving global landscape with prudence However, the recent increase in international prices of and agility, while pursuing opportunities for sustainable natural gas, key raw materials and fertilisers indicates that growth, operational excellence and value creation. With the budgeted allocation may prove inadequate to meet the continued support of our stakeholders, your Company the actual subsidy requirement, potentially necessitating remains steadfast in its commitment to serving the supplementary budgetary support during FY 2026-27. The fertilizer industry, however, continued to operate in of TDRs received/receivable from MCGM/MMRDA and an environment of global supply-chain uncertainties and also against the surrender of land. dependence on imported raw materials and feedstocks. The Company achieved Earnings Before Interest, Volatility in the prices and availability of natural gas, Depreciation and Tax (EBIDTA) of ` 1,151.56 crore as ammonia, phosphatic and potassic raw materials, compared to ` 839.57 crore in the previous year and Profit together with fluctuations in international freight and After Tax (PAT) for the year stood at ` 429.81 crore as exchange rates, remained important considerations against ` 241.63 crore in the previous year, representing for the industry. At the same time, the sector witnessed a growth of 77.88%, reflecting the Company’s improved increasing emphasis on domestic production, efficient operational performance, favourable product mix and utilisation of resources, balanced and judicious application better contribution from fertilizer and trading operations. of nutrients, and the adoption of innovative products and technologies. In the face of intense market competition & falling international prices, Industrial Products Division has The sector is also undergoing a gradual transformation achieved the net sales turnover of ` 1625.94 Crore from towards greater sustainability and resource efficiency. its Industrial Chemicals segment. Initiatives promoting nano fertilizers, bio-fertilizers, fortified and speciality fertilizers, precision nutrient During the year, your Company has achieved the following management and balanced use of fertilizers are milestones: gaining increasing importance. These developments are  Achieved highest ever total fertiliser sale of 37.60 expected to contribute towards improving nutrient-use LMT (excl. Imp. Urea), registering growth of 2.3% efficiency, reducing environmental impact and promoting over last year. sustainable agricultural productivity.  Suphala 15:15:15 recorded highest ever sale of 6.53 Risin [Showing first 8,000 characters — download PDF for full document]