National Fertilizers Ltd. (NFL) AI Stock Analysis

• Market Cap: ₹33.99B
• Dividend Yield: 1.77%
• Average Volume (3M): 41.73K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.72
• Revenue Growth: -7.78%
• EPS Growth: -70.89%
• Country: IN
• Employees: 2,739
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 2.76
• Shares Outstanding: 490,578,400
• 10 Day Avg. Volume: 43,953
• 30 Day Avg. Volume: 41,728
• PEG Ratio: 0.99
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 0.21
• P/FCF Ratio: 1.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹68.00 ▼(-25.87% Downside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

National Fertilizers Ltd. faces significant challenges, with financial volatility and bearish technical indicators being the most impactful factors. The high P/E ratio suggests overvaluation, and while there are signs of financial recovery, the overall outlook remains cautious.

Positive Factors

Market position & distribution network

NFL's pan-India manufacturing and dealer/institutional distribution creates durable volume access to farmers and institutional buyers. This broad network reduces regional concentration risk, supports steady offtake of core urea volumes and helps sustain revenue even if individual plants underperform.

Improving operating cash flow & FCF

A return to positive operating cash flow and free cash flow materially strengthens liquidity and operational flexibility. Improved cash generation supports working-capital needs, funds selective capex and aids debt servicing, reducing refinancing risk and enhancing balance-sheet resilience over months.

Stable shareholders' equity buffer

A stable equity base provides a structural capital buffer against cyclical earnings swings and timing mismatches in policy-linked receivables. That resilience supports leverage management, allows measured investment, and helps preserve credit capacity during agricultural commodity or input-price stress.

Negative Factors

High financial leverage

A relatively high debt-to-equity ratio raises persistent interest and refinancing burdens, constraining financial flexibility. In a policy-driven industry with timing mismatches in receivables, elevated leverage increases vulnerability to delayed subsidy payments or feedstock cost shocks and limits strategic optionality.

Volatile profitability

Historic swings to negative gross profit and unstable net margins indicate structural earnings volatility. Such inconsistency undermines predictable cashflows, complicates multi-year planning for maintenance and capacity, and weakens the company's ability to fund growth or return capital without external support.

Policy-dependent realizations

Material dependence on government pricing and subsidy frameworks limits pricing power and creates receivable/timing risk. Structural exposure to policy design means margins and effective revenues can shift with regulation, creating persistent uncertainty for margins and investment returns.

National Fertilizers Ltd. Business Overview & Revenue Model

Company Description

National Fertilizers Limited engages in the production and marketing of urea products, industrial products, and bio-fertilizers in India. It operates through Own Fertilizers, Fertilizers Trading, and Other Products & Services segments. The company offers Kisan urea for various types of crops, as well as for foliar sprays; neem coated urea and bentonite sulphur products; bio-fertilizers, including rhizobium, phosphate and zinc solubilizing bacteria, and azetobactor that are used to supplement chemical fertilizers, as well as to maintain soil fertility; and industrial products comprising nitric acid dilute, ammonium nitrate, anhydrous ammonia, and sodium nitrite and nitrate under the KISAN brand name, as well as certified seeds under the Kisan Beej brand name. It also trades in compost products; and agrochemicals/pesticides comprising insecticides, herbicides, and fungicides, as well as potassium chloride, diammonium phosphate, and nitro phosphate. National Fertilizers Limited was incorporated in 1974 and is based in Noida, India.

How the Company Makes Money

NFL primarily makes money by manufacturing and selling fertilizers, with urea as its main product line. Revenue is generated through bulk sales into the domestic agriculture market via institutional buyers and dealer/retailer channels, supported by logistics and distribution arrangements to move product from plants to consumption regions. A significant portion of NFL’s fertilizer realizations are influenced by India’s fertilizer policy framework, where the effective revenue per unit is typically a combination of customer pricing and government support mechanisms applicable to fertilizers (especially urea); specific scheme-level details and amounts are not provided here. Additional revenue can come from sales of other fertilizer products and select industrial/chemical by-products produced at its facilities. Key earnings drivers include volumes sold, plant operating rates, input costs (notably natural gas used as feedstock/fuel), working-capital efficiency (given the timing of policy-related receivables where applicable), and the company’s marketing reach and relationships with distribution partners and institutional customers.

National Fertilizers Ltd. Financial Statement Overview

Summary

National Fertilizers Ltd. is experiencing financial volatility with some recovery signs. The income statement shows fluctuating profits, the balance sheet indicates high leverage but stable equity, and cash flow improvements suggest better liquidity management.

Income Statement

National Fertilizers Ltd. has faced challenges in maintaining a stable revenue base, with recent years showing significant volatility in total revenue. The company has struggled with profitability, as indicated by fluctuating net profit margins and negative gross profits in some years. However, the most recent year shows a slight recovery in net income, which is a positive sign.

Balance Sheet

The balance sheet shows a moderate level of stability with a consistent stockholders' equity position. However, the debt-to-equity ratio is relatively high, indicating potential financial leverage risks. Nevertheless, the equity ratio remains stable, suggesting some resilience in the company's asset financing structure.

Cash Flow

Cash flow analysis indicates an improvement in operating cash flow in the most recent year, which is promising for liquidity. The company has managed to generate positive free cash flow after a period of negative cash flows, enhancing its cash position. However, cash flow from investing and financing activities signals caution in capital allocation and debt management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	206.10B	197.94B	235.60B	71.17B	49.08B	46.75B
Gross Profit	36.72B	25.63B	-142.92B	-202.85B	-85.58B	-44.52B
EBITDA	6.97B	8.10B	8.02B	12.70B	6.16B	9.31B
Net Income	1.05B	1.84B	1.50B	4.58B	-951.20M	2.37B
Balance Sheet
Total Assets	132.84B	93.11B	112.06B	125.34B	104.94B	84.12B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.42B	299.30M	132.10M	258.20M	393.30M
Total Debt	45.37B	20.01B	40.91B	39.93B	31.72B	18.92B
Total Liabilities	107.20B	65.95B	86.51B	99.92B	84.47B	62.72B
Stockholders Equity	25.64B	27.16B	25.54B	25.42B	20.47B	21.40B
Cash Flow
Free Cash Flow	-24.53B	23.86B	3.76B	-5.41B	-13.26B	66.03B
Operating Cash Flow	-23.15B	25.90B	6.68B	-3.33B	-10.29B	70.21B
Investing Cash Flow	-889.40M	-2.68B	-3.34B	-2.06B	-1.29B	-4.97B
Financing Cash Flow	24.41B	-23.34B	-3.18B	5.26B	11.45B	-65.05B

National Fertilizers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.73
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NFL, the sentiment is Negative. The current price of 91.73 is above the 20-day moving average (MA) of 73.55, above the 50-day MA of 78.13, and above the 200-day MA of 90.05, indicating a bearish trend. The MACD of -2.78 indicates Positive momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 15.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NFL.

National Fertilizers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFC	70 Outperform	₹59.83B	12.10	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹61.41B	11.49	―	2.80%	15.25%	26.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RCF	60 Neutral	₹64.41B	24.87	―	0.93%	-3.19%	59.25%
MADRASFERT	48 Neutral	₹9.83B	127.23	―	―	3.38%	0.68%
NFL	45 Neutral	₹33.99B	8.30	―	1.77%	-7.78%	-70.89%

National Fertilizers Ltd. Corporate Events

National Fertilizers gives finance portfolio additional charge to marketing chief Gupta

National Fertilizers Limited has announced a management change with Director (Marketing) Mahesh Chander Gupta receiving additional charge of the Director (Finance) role for three months or until a regular appointee joins, subject to government approvals. Gupta, a seasoned executive with over three decades of experience in natural gas, petrochemicals and petroleum marketing at Indian Oil Corporation, is expected to leverage his background to drive National Fertilizers’ expanding portfolio, support its push toward market leadership and advance its strategic goals in energy transition, sustainability and self-sufficiency in urea production.

His prior leadership in scaling IOCL’s natural gas and petrochemicals businesses, combined with his management and cost accountancy credentials, positions him to influence both the company’s financial stewardship and long-term growth strategy. The appointment signals continuity in leadership during a transition phase and may help align financial decision-making with National Fertilizers’ broader diversification and globalization ambitions in an evolving energy and fertilizers landscape.

National Fertilizers Sets Board Meet for Q3 FY26 Results, Extends Trading Window Closure

National Fertilizers Limited has scheduled a meeting of its Board of Directors in Noida on 13 February 2026 to consider, approve and record the standalone and consolidated unaudited financial results for the quarter ended 31 December 2025, following review by the Audit Committee. In line with SEBI’s insider trading regulations and the company’s code of conduct for designated persons, the trading window for insiders, designated employees and their immediate relatives, which had been closed from 15 January 2026, will remain shut until 15 February 2026, covering the period around the board meeting and results announcement to prevent any potential misuse of unpublished price-sensitive information.