1. At a Glance – PSU Heritage, Balance Sheet Hangover
FACT is that legendary PSU which proudly says “first large-scale fertiliser plant in India” and then quietly hands you a balance sheet that looks like it survived multiple Five-Year Plans and a few policy experiments.
At a market cap of ₹53,164 Cr and a current price of ₹819, the stock trades at a jaw-dropping P/B of ~38.5x and a headline P/E of ~3,590x — yes, that’s not a typo, that’s what happens when profits go on vacation.
Latest Q3 FY26 (Dec 2025) numbers:
- Revenue: ₹1,568 Cr (YoY +65%)
- PAT: –₹67.9 Cr (because why not)
- EPS: –₹1.05
- ROCE: 8.65%
- Debt: ₹3,837 Cr
- Interest Coverage: 1.11 (barely breathing)
In short: top-line sprints, bottom-line limps, balance sheet wheezes.
Now the real question — is this a cyclical fertilizer mess or a structural PSU soap opera? Let’s dig.
2. Introduction – When History Becomes Both Asset and Liability
Founded in 1943, FACT isn’t just a company — it’s a freedom-era institution. Located at Udyogamandal, Kochi, it has outlived colonial rule, license raj, liberalisation, and several finance ministers with different Excel sheets.
But legacy has a cost. FACT operates in one of India’s most regulated sectors:
- Subsidy dependence
- Administered pricing
- Government-controlled capital structure
- And a balance sheet that still remembers old loans
FACT’s journey is best described as operationally relevant but financially constrained. When fertilizer demand spikes, volumes move. When subsidies delay, cash flows choke. And when
gas prices misbehave, margins vanish faster than PSU AGM attendance.
So yes, FACT is important. But is it efficient? That’s where things get spicy.
3. Business Model – WTF Do They Even Do?
Think of FACT as three businesses wearing one PSU uniform:
🧪 Fertilisers (Core Daddy)
- Factamfos (NP Complex): ~73% of revenue
- Ammonium Sulphate: ~13%
- Imported fertilisers (MOP): ~9%
Classic agri-inputs, price-controlled, subsidy-linked, politically sensitive.
🧵 Caprolactam (The Forgotten Middle Child)
Used in:
- Nylon tyre cord
- Engineering plastics
- Industrial yarn
Good product. Bad economics historically. Cyclical demand + volatile raw materials = headache.
🛠 Engineering Arms (FEDO & FEW)
- FEDO: EPC services for ammonia, acids, fertiliser plants
- FEW: Heavy fabrication, tanks, pipelines
These divisions are technically strong but commercially under-monetised. Imagine having IIT-level engineers and PSU-level billing efficiency.
So FACT does many things, just not always profitably at the same time.
4. Financials Overview – Revenue Flexing, Profits Ghosting
Quarterly Comparison (₹ Cr, Consolidated)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,568 | 949 | 1,629 | +65.1% | –3.7% |
| EBITDA | –43 | 32 | 39 | NA | –210% |
| PAT | –68 | 8 | 21 | –949% | –423% |
| EPS (₹) | –1.05 | 0.12 | 0.32 | – | – |
