Zuari Agro Chemicals Announces Q4 Results, MD Appointment, and Divestiture of Fertilizer Business

Zuari Agro Chemicals Announces Q4 Results, MD Appointment, and Divestiture of Fertilizer Business​

Zuari Agro Chemicals Limited announced key corporate governance updates and financial results following its Board meeting held on May 15, 2026. The company reported its audited Standalone and Consolidated Financial Results for the quarter and year ended March 31, 2026.

During the board meeting, the company approved the re-appointment of M/s. K.P. Rao & Co., Chartered Accountants, as Statutory Auditors for a second term of five consecutive years. Furthermore, Nitin M. Kantak was appointed as Managing Director for a period of one year, effective from September 3, 2026, and continuing until September 2, 2027.

Financial Performance and Results​

The audited Standalone and Consolidated Financial Results for the quarter and year ended March 31, 2026, were approved by the Board of Directors.

The company recognized several significant items in its financial reporting, including:

• Divestiture of Business: The company divested its entire business of fertilizer products, which was its sole operating segment, effective September 30, 2025.
• Scheme of Amalgamation: The company processed a Composite Scheme of Arrangement involving Mangalore Chemicals & Fertilizers Limited (MCFL) and Paradeep Phosphates Limited (PPL). As part of this scheme, the company transferred its investment of 2,90,37,000 equity shares in MCFL to Zuari Maroc Phosphates Private Limited (ZMPPL) at a consideration of INR 144 per share, aggregating to INR 418.13 crores. Consequently, the company received 6,54,33,846 equity shares of PPL in exchange for its investment in MCFL.
• Business Transfer: On September 30, 2025, the company consummated a Business Transfer Agreement (BTA) with Mangalore Chemicals and Fertilizers Limited (MCFL) for its granulated single super phosphate plant. This transaction resulted in a recognized gain of INR 9.32 crores as an exceptional item.

Exceptional Items and Operational Changes​

The financial results incorporated two major exceptional items: the gain from the transfer of the fertilizer plant and the impact of new labor codes.

The impact of the new Labour Codes was recognized as an exceptional item due to the regulatory-driven nature of the charges. The net charge recognized during the year ended March 31, 2026, stood at INR 0.05 crores in the standalone statement and INR 4.93 crores in the consolidated statement.

The financial data for the year ended March 31, 2026, highlight the following key figures related to exceptional items:


The overall financial statements incorporate these significant structural and operational changes, leading to a classification of the investment in PPL as a Financial Asset at Fair Value through Other Comprehensive Income (FVTOCI).

The company previously disclosed that its business of fertilizer products was divested effective September 30, 2025, marking a strategic shift as the company evaluates new business opportunities to strengthen its operational and financial position.

ZUARI Stock Price Movement​

As of 2:16 PM, shares of Zuari Agro Chemicals Limited are slipping by 2.80% in live trading, currently at ₹228.11. Amid 96,965 shares traded so far, the stock sheds value, maintaining selling pressure throughout the live market session.