In today’s market session, fertilizer stocks were rallying two days ahead of the 2025 Union Budget presentation, which will be held on February 1st.
Market experts expect the Finance Minister to allocate Rs 1.7 lakh crore for fertilizer subsidies, which is a small surge from the Rs 1.64 lakh crore from the previous year’s Budget. This will be the second budget under the Modi 3.0 government, and it’s expected to focus on organic alternatives by increasing funding for the Market Development Assistance (MDA) scheme.
The MDA scheme, launched in 2023 to promote organic fertilizers, is set to get more funding in FY26 which is Rs 150 crore allocated with an increase from Rs 100 crore in FY25. The goal of this initiative is to encourage the use of organic fertilizers and manure, supporting India’s long-term plan for sustainable farming.
The government’s strategy aims to reduce reliance on chemical fertilizers like urea and NPK by promoting organic and alternative options. Additionally, nano urea and nano DAP are being promoted as innovative solutions to ease the growing subsidy burden on traditional fertilizers.
If the upcoming Budget increases spending on rural infrastructure, agricultural subsidies, or reforms, it could boost demand for fertilizers, potentially driving stock prices higher.
Furthermore, the analyst at Goldman Sachs predicts that the government’s total spending on rural development, welfare programs, transfer schemes, and subsidies to remain close to pre-pandemic levels, around 3 percent of GDP in the upcoming Budget.
Fertilizer stocks climbed up to 11 percent this month which outperformed the Nifty 50 index which has declined 2 percent over the same period.
Fertilizer stocks to watch out before ahead of the 2025 Union Budget presentation
Rashtriya Chemicals & Fertilizers Ltd
Mini Ratna stock Rashtriya Chemicals and Fertilizers Limited (RCF), is a leading fertilizers and chemicals manufacturing company with about 75 percent of its equity held by the Government of India.
RCF manufactures Urea, Complex Fertilizers, Biofertilizers, Micro-nutrients, 100 percent water soluble fertilizers, soil conditioners, and a wide range of Industrial Chemicals. It has a countrywide marketing network with more than 5,800 dealers present all over India.
With a market capitalization of 8,614.64 Crores, the shares jumped upto 4 percent. The company’s revenue rose by 2.6 percent from Rs 4,222.14 crore to Rs 4,332.16 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs. 51.03 crore to Rs. 78.96 crore during the same period.
Mangalore Chemicals & Fertilizers Ltd
Mangalore Chemicals & Fertilizers Ltd (MCF) is a leading manufacturer of fertilizers based in India. The company produces a wide range of products, including urea, single super phosphate (SSP), and various other fertilizers used in agriculture.
With a market capitalization of 1,933.06 Crores, the shares jumped upto 5 percent. The company’s revenue declined by 44.9 percent from Rs 1,420.86 crore to Rs 781.7 crore in Q2FY24-25. Meanwhile, Net profit declined from Rs. 67.71 crore to Rs. 26.38 crore during the same period.
Madras Fertilizers Ltd
Madras Fertilizers Limited (MFL) is an Indian company specializing in the manufacturing of fertilizers and petrochemicals. It primarily produces urea, ammonia, and other fertilizers essential for agricultural growth.
With a market capitalization of 1,444.27 Crores, the shares jumped upto 4 percent. The company’s revenue rose by 38 percent from Rs 394.06 crore to Rs 542.06 crore in Q2FY24-25. Meanwhile, Net profit declined from Rs. 3.35 crore to Rs. 1.58 crore during the same period.
National Fertilizer Ltd
Mini Ratna stock National Fertilizers Limited (NFL), is the 2nd largest Urea Player in India with about 75 percent of its equity held by the Government of India.
NFL manufactures key agricultural products such as urea, neem-coated urea, and various other nitrogenous fertilizers. The company plays a crucial role in meeting the nutritional needs of Indian agriculture, helping increase crop productivity across the country.
With a market capitalization of 5,072.6 Crores, the shares jumped upto 3 percent. The company’s revenue declined by 22 percent from Rs 5,691.2 crore to Rs 4,404.4 crore in Q2FY24-25. Meanwhile, Net profit rose from a loss of Rs. 87.1 crore to a profit of Rs. 12.07 crore during the same period.
Coromandel International Ltd
Coromandel International Limited is a prominent Indian company that manufactures a wide range of fertilizers, including phosphatic fertilizers, crop protection chemicals, and specialty nutrients.
With a market capitalization of 52,864 Crores, the shares jumped up to 3 percent. The company’s revenue rose by 6.6 percent from Rs 7,032.92 crore to Rs 7,497.83 crore in Q2FY24-25. Meanwhile, Net profit declined from Rs. 756.87 crore to Rs. 664.05 crore during the same period.
Written by Sridhar J
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