NAGAFERT2026-04-012026-06-30iso4217:INRxbrli:pureiso4217:INRxbrli:shares

539917

NAGAFERT

NOTLISTED

INE454M01024

Nagarjuna Fertilizers and Chemicals Limited

Main Board

Equity

2026-04-01

2027-03-31

2026-08-30

2026-08-27

INR

Lakhs

Quarterly

First quarter

Single segment

FERTILIZERS

2026-08-30

12:30:00

2026-08-30

13:30:00

Not applicable

2026-04-01

2026-06-30

Unaudited

Consolidated

-55644000

598065000

-0.09

Notes: 1) The above statement of Un-Audited Standalone Financial Results for the quarter ended 30th June 2026, was reviewed and recommended by the Audit Committee and approved by the Board of Directors at their meetings held on August 30, 2026. 2) The Statutory Auditors have carried out Limited Review of the above financials for the quarter ended June 30, 2026. 3) Consequent to the settlement of Debt and receipt of sale proceeds from sale of core and non-core assets controlled by ACRE, there are no revenue generating business left with the Company for operations (including land, property plant and equipment) affecting the Going Concern of the Company. Based on the audit findings for FY 2024-25, as the accounts cannot be prepared on a Going Concern basis, the company's financials have been prepared on a 'not a going concern' basis, reflecting discontinued business operations effective from the quarter ended June 30, 2024. This status continues for the quarter ended June 30, 2026. 4) Without considering the energy and other claims from the Government (which is under review/consideration) the current liabilities exceed the current assets by about Rs. 88,057.03 Lakhs. The Company is pursuing various subsidy claims with the Government including reimbursement of Energy consumed, AP State Electricity Duty paid and IGST etc., the funds from these claims if and when received will be used for the settlement of the recognized, reconciled liabilities which are not being contested. 5) "There are various claims and reliefs against the company. These are not acknowledged as debts by the company as they are disputed in various forums, courts, appeals, including arbitration awards amounting to around Rs 1314.98 crores*. These claims / contingent liabilities stated above are not confirmed as dues but recorded as disputes. Amongst them, the major are Water cess (Rs 616.03 Crores), Arbitration awards which includes (Trammo (Rs. 173.36 Crores) Tecnimont (Rs.49.94 Crores) PIPL* (Rs.50.85 Cores) and Anand Bharti claim (Rs. 21.63 crores) etc . * - The amount of Rs 1314.98 crores is an approximate amount and can change upward or downwards including and not limited to reconciliation, outcomes of the court, reliefs granted after negotiation etc. *- The application filed by the company under section 34 of Arbitration and conciliation Act, 1996, against the Arbitration Award passed in favor of Pipeline Infrastructure Ltd, has been dismissed by Hon'ble High Court Bombay. The company has filed appeal against the order, under section 37 of the Arbitration and Conciliation Act, 1996. " 6) As per Office Memorandum's (OM) issued by DoF (MoCF) which is the basis of gas supply by GAIL since 2018, the Company owes to GAIL towards supply of gas Rs. 465 Crores (to be paid from the Escrow Account as and when subsidy is credited to the account by DoF), after adjusting deposit with GAIL of Rs. 85.50 Crores and the interest recovered Rs. 301 Crores towards actual gas bills. In contradiction to the OM, GAIL has been claiming interest which is not provided in OM and has been adjusting payments made for gas bill towards interest. The company has been disputing all interest claims amounting to Rs. 624 Crores (Rs. 301 Crores by GAIL unilaterally adjusted and new claims of Rs. 323 Crores till 30th June 2026). The company will be making appropriately make accounting entries for the adjusted interest and deposit with GAIL. 7) Claims Against GAIL: NFCL a profitable and growing company till 2014 went into financial stress, defaulted on debt, eventually lost its assets and business on accounts of GAlL miss representation and gross negligence in operating and maintaining its gas pipelines. NFCL had lost the GAIL arbitration case in 2023 basis miss representation of GAIL in arbitration. The company has filed an application under section 34 of Arbitration and Conciliation Act 1996 which is pending adjudication in Delhi High Court since 2023. Since 2024 NFCL is not a going concern, NFCL assigned its rights in favour of AMPL to represent it in all legal forums/proceedings to pursue claims from GAIL including Arbitration claim in its name as an assignee along with agency coupled with interest under the provisions of Indian Contract Act, 1872. Should GAIL satisfy the award in the future, from the net proceeds after adjusting dues, NFCL shall use the award as it deems fit. AMPL has since exited its investments in NFCL and presently post agreement Agrivestors the current promoter of NFCL is perusing the case in place of AMPL. 8) Claim by GAIL: GAIL has filed a petition under section 9 and 11 of Arbitration and Conciliation Act, 1996, in Hon'ble Hight Court of Delhi, seeking relief for their outstanding dues sighting novated clauses of the gas agreements. The Company is contesting the case disputing the total claim of GAIL stating that GAIL has stopped supplies in 2018 as the company was unable to comply with the gas supply agreement clauses (as regards security and payment terms) and GAIL resumed in 2018 and continued gas supplies till 2024 after intervention of Department of Fertilisers, Ministry of Chemicals and Fertilisers, Government of India assuring GAIL on gas bill payments and via Office Memorandum (OM) despite continued financial stress at NFCL. Accordingly, the commercial contractual security and payment clauses between NFCL and GAIL, were superseded and stood novated with the issuance of OM and execution and operationalization of OM and escrow arrangement as per the OM terms and NFCL stopped complying with the novated gas terms since 2018. The Government did not agree to pay subsidy amounts into the Escrow Account within a specified period, it not agree to reimburse GAIL of any interest for delays in subsidy payments by DOF into Escrow Account, it did not require NFCL to secure GAIL in any form or pay interest to GAIL as it was unable to do so in the Office Memorandums issued between 2018 and 2024. GAIL resumed the gas supply and NFCL produced urea basis OMs issued by Govt since 2018. GAIL was fully aware of the impossibility of the company in complying with the novated security and payment terms gas supply agreement since 2018 and has communicated in writing in various legal forums and with DoF that it started supplies only after security and assurances of payment from DoF via OM. Despite this GAIL in violation of the agreed terms, it has been adjusting payments made towards towards interest since 2018 and also raising claims for interest post the sale of assets on the amounts due from Escrow Account. The company is disputing security and interest being claimed by of GAIL, with GAIL, DoF and in Legal Forums. NFCL has never assumed any responsibility for delays in subsidy processing, payments to escrow account nor for reimbursement of interest on delayed processing/payment by Government into Escrow Account. As and when the payments are released by DoF into the Escrow Account GAIL will get paid its dues as per OM only for gas bills post reconciliation and not interest. 9) The Company has been using the Nagarjuna Brand / Trademarks for its urea and other products under a License Agreement Dt 29/01/1998 with the grantor, a related party. The company, during the period ended on 31.12.2021, received a claim from the grantor asserting its right to royalty for the period from 29/01/1998. NFCL acknowledged the contract and liability as per the agreement. The company agreed without prejudice to the rights of AMPL to settle the claims in a manner such that the dues are secured and paid/deducted on a priory basis. The Dolaramudu trademark/mascot being used by the Group and by NFCL in urea packaging. After the government letter dated August 18, 2023, on One Nation One Fertilizers by introducing Single Brand for fertilizers and Logo under fertilizer subsidy scheme, the company has discontinued use of trademark and did not renew the trademark. The group agreed to continue the trademark. Based on the agreed terms with NACL the company has written to NACL to stop utilizing the groups trademarks vide letter dated 28th May 2025, after hearing news that there is a change in company ownership and management. The grantor has submitted its brand due claim to NFCL towards royalty payment for an amount of Rs. 836.67 crores (principal and interest) as on March 31, 2021, as per License Agreement, with the Interim Resolution Professional appointed by Hon'ble NCLT, Hyderabad Bench, when the company was admitted to NCLT under Insolvency and Bankruptcy Code, 2006, in 2021. The amount claimed is as per the agreement. 10) "Government of India announced New Urea Policy (NUP)-2015 and Gas Pooling Policy for Fertilizer (Urea) Sector which are effective from 1 st June 2015 to 31st March 2019. Government of India extended the NUP -2015 from 1st April 2019 until further orders. Income from Urea Operations has been recognized in accordance with the said policies. Income towards freight subsidy, Reimbursement claims towards additional fixed cost, Input escalation I deescalation, have been recognized during the Quarter ended on June 30, 2026, in terms of the said policies. The Subsidy income is recognized based on the notified Gas Pool prices for the time being in force and upon final notification of the prices the escalation I de-escalations are accounted for in the year in which these notifications are issued." 11) The Company has dealer deposits, credit notes and trade advances in its books which was consolidated and converted into trade dues. Certain dealers have assigned their liabilities to 3rd party and basis reconciliation appropriate entries would be passed as per extant guidelines. 12) The Company has received certain claims from parties for settlement of dues including rentals (totaling Rs 41,86,02,859). The Company shall account for the same appropriately. 13) Due to inordinate delays in claim processing and subsidy receivables from central and state governments for Urea and MI, the company has been facing severe financial crunch, non-payment to vendors resulting in disruptions in day to day functioning. 14) The figures for the corresponding previous periods have been regrouped, wherever necessary, to make them comparable with those of the current periods.