Rashtriya Chemicals & Fertilizers Ltd. (RCF) AI Stock Analysis

• Market Cap: ₹64.41B
• Dividend Yield: 0.93%
• Average Volume (3M): 69.74K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.60
• Revenue Growth: -3.19%
• EPS Growth: 59.25%
• Country: IN
• Employees: 2,526
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Agricultural Inputs
• EPS (TTM): 1.47
• Shares Outstanding: 551,688,100
• 10 Day Avg. Volume: 60,425
• 30 Day Avg. Volume: 69,743
• PEG Ratio: 3.81
• Price to Book (P/B): 1.48
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 4.57
• 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: 60 Neutral
• Price Target: ₹134.00 ▼(-10.25% Downside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is primarily supported by decent financial performance (revenue growth and stable balance sheet) but is held back by weak technicals (downtrend and bearish momentum). Valuation is mixed, with a moderate dividend yield offset by a relatively high P/E.

Positive Factors

Essential market position

RCF’s core business is producing urea and complex fertilizers sold through dealers, cooperatives and institutional channels. This gives durable demand exposure to India’s agriculture sector, supporting steady volumes and long-term revenue stability even through cycles.

Operational margins

The company reports healthy gross margins and positive EBIT/EBITDA, indicating efficient production and cost control at the operating level. Sustained operational margins support cash generation and reinvestment capacity over the medium term.

Balance sheet stability & improving FCF

RCF maintains manageable leverage and a stable equity ratio, while free cash flow has improved from prior periods. This combination enhances financial flexibility for maintenance capex, working capital and potential strategic investments over the coming months.

Negative Factors

Low net profit margin

Despite healthy gross and EBITDA margins, low net margins indicate downstream cost pressures or non-operating expenses that erode shareholder returns. Persistently low net margins limit retained earnings and reduce ROE improvement potential without structural cost fixes.

Cash conversion needs improvement

Although free cash flow has improved, the conversion of accounting profits into cash remains imperfect. Weak cash conversion can constrain working capital, delay subsidy recoveries, and limit ability to fund capex or reduce leverage consistently over the medium term.

Dependence on regulated pricing/subsidies

A substantial portion of revenue and margins depends on government-regulated prices and subsidy settlements. This structural dependence reduces pricing autonomy, introduces timing risk in subsidy receipts, and makes earnings sensitive to policy or reimbursement delays.

Rashtriya Chemicals & Fertilizers Ltd. Business Overview & Revenue Model

Company Description

Rashtriya Chemicals and Fertilizers Limited manufactures, markets, and sells fertilizers and industrial chemicals primarily in India. The company operates through Fertilizers, Industrial Chemicals, and Trading segments. It offers various fertilizers, including Suphala 15:15:15, a granular natural color fertilizer that is used in the cultivation of cash crops and fruit crops, as well as in improving the yield of plantation crops; Ujjwala neem coated urea, a chemical fertilizer; Biola, a bio-fertilizer that solubilizes the fixed phosphorus in the soil and makes it available to the crops; Sujala water soluble fertilizers that contain nitrogen, phosphorus, and potash for crops grown in green houses, as well as other field crops; and Microla micronutrients. The company also provides basic chemicals, such a methanol, ammonia, ammonium nitrate, sodium nitrate, sodium nitrite, ammonium bicarbonate, methylamines, dimethyl formamide and dimethyl acetamide, formic acid, and argon. In addition, it offers soil testing and farmer training services, as well as publishes RCF Sheti Patrika, a monthly farm magazine. Rashtriya Chemicals and Fertilizers Limited was incorporated in 1978 and is based in Mumbai, India.

How the Company Makes Money

RCF makes money primarily by selling fertilizers and industrial chemicals. Its largest revenue stream comes from manufacturing and marketing agricultural fertilizers—especially urea and complex (NPK) fertilizers—sold through fertilizer distribution channels (dealers/retailers, cooperatives, and institutional buyers) to farmers and agribusiness customers. A significant portion of its fertilizer business is influenced by India’s fertilizer pricing/subsidy framework; accordingly, earnings are driven by (a) sales volumes, (b) government-regulated pricing/realizations for certain fertilizer products, and (c) subsidy receipts/settlements tied to the regulated scheme where applicable. In addition to fertilizers, RCF generates revenue from industrial chemicals produced at its manufacturing complexes and sold to downstream industrial users; this stream depends on market-linked pricing, product mix, and industrial demand. Overall profitability is sensitive to input costs (notably natural gas and other feedstocks), plant utilization, and working-capital timing related to receivables and subsidy collections. Specific details on named partnerships, product-level revenue splits, or contract terms are null.

Rashtriya Chemicals & Fertilizers Ltd. Financial Statement Overview

Summary

Income statement is solid (75) on strong revenue growth and positive EBIT/EBITDA margins, but low net margin suggests cost pressure. Balance sheet is stable (68) with manageable leverage, though ROE is modest. Cash flow is weaker (62): free cash flow improved, but conversion relative to profits still needs improvement.

Income Statement

Rashtriya Chemicals & Fertilizers Ltd. shows strong revenue growth with a significant increase in total revenue from the previous year. The gross profit margin is healthy, indicating efficient production processes. However, the net profit margin is relatively low, reflecting potential cost management issues. The EBIT and EBITDA margins are positive, suggesting operational efficiency but with room for improvement.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, which suggests a balanced use of debt and equity financing. The equity ratio is stable, showing a good proportion of assets financed by equity. Return on equity is modest, indicating potential for improved profitability on shareholders' investment. While there is some leverage, it is within manageable limits.

Cash Flow

The company has shown improvement in free cash flow from previous periods, reflecting better cash management. The operating cash flow to net income ratio suggests that the company effectively converts its income into cash. However, the free cash flow to net income ratio highlights areas for further improvement in cash generation relative to profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	169.11B	169.34B	169.81B	78.83B	53.14B	82.81B
Gross Profit	55.00B	66.50B	-37.09B	-112.35B	62.82B	374.80M
EBITDA	9.16B	8.46B	7.12B	16.57B	12.44B	8.79B
Net Income	3.12B	2.42B	2.25B	9.66B	7.02B	3.84B
Balance Sheet
Total Assets	133.02B	112.67B	114.56B	97.05B	105.31B	76.42B
Cash, Cash Equivalents and Short-Term Investments	19.09B	12.00B	1.56B	113.00M	11.08B	14.71B
Total Debt	27.78B	27.62B	32.97B	18.77B	29.79B	20.79B
Total Liabilities	83.80B	65.21B	68.50B	51.15B	66.49B	42.90B
Stockholders Equity	49.22B	47.45B	46.06B	45.90B	38.82B	33.51B
Cash Flow
Free Cash Flow	6.48B	15.36B	-9.05B	4.02B	-7.62B	49.65B
Operating Cash Flow	12.93B	23.64B	-4.22B	7.87B	-5.92B	52.11B
Investing Cash Flow	-10.67B	-6.81B	-4.64B	-3.16B	-3.79B	-6.10B
Financing Cash Flow	-1.41B	-8.53B	10.32B	-15.60B	5.99B	-31.31B

Rashtriya Chemicals & Fertilizers Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 149.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RCF, the sentiment is Negative. The current price of 149.3 is above the 20-day moving average (MA) of 121.27, above the 50-day MA of 128.87, and above the 200-day MA of 143.42, indicating a bearish trend. The MACD of -3.62 indicates Negative momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 40.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RCF.

Rashtriya Chemicals & 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%

Rashtriya Chemicals & Fertilizers Ltd. Corporate Events

Rashtriya Chemicals & Fertilizers Announces Senior Management Change

Rashtriya Chemicals & Fertilizers Ltd. has announced a change in its senior management, in line with regulatory disclosure requirements for listed entities. The company notified the stock exchanges that Anupam Sonawane, General Manager in charge of Purchase, Contract Cell and MS & IT, has superannuated effective March 1, 2026, marking a key leadership transition in its procurement and information technology functions.

The retirement of a senior executive overseeing critical purchase and IT operations may prompt internal restructuring and succession moves within the organisation. Investors and other stakeholders are likely to monitor how the company manages continuity in these core support areas, given their importance to operational efficiency and compliance in the regulated fertilizer and chemicals industry.

Rashtriya Chemicals and Fertilizers Names Nazhat Shaikh as New Chairperson and MD

Rashtriya Chemicals and Fertilizers Ltd. has appointed Director (Finance) Nazhat J. Shaikh as Chairperson and Managing Director with effect from 1 January 2026, following the superannuation and consequent cessation of Shri S. C. Mudgerikar as Chairman and Managing Director at the close of business on 31 December 2025. Shaikh, a chartered accountant and long-time RCF executive who joined the company in 1989, brings extensive experience across finance, IT implementation, governance committees and prior board-level exposure at National Film Development Corporation, signaling continuity in leadership and potentially a smooth transition in strategic and operational oversight for the state-owned fertilizer producer and its stakeholders.