Fertiliser stocks rally up to 8% on subsidy boost; analyst lists top picks

The government has approved a ₹41,534 crore subsidy for Phosphatic and Potassic (P&K) fertilisers for the upcoming 2025-26 kharif season.

Fertiliser stocks surged in trade today following the government’s approval of a ₹41,534 crore fertiliser subsidy to support Kharif 2026 crops. Leading the rally was Fertilisers & Chemicals Travancore, soaring over 8 per cent to touch a high of ₹888.40. As of 10 AM, the stock was trading at ₹872.50, with 1.9 million equities exchanging hands on the National Stock Exchange (NSE).

 

Other fertiliser stocks gained, with Rashtriya Chemicals & Fertilizers (RCF) trading at ₹129.55, National Fertilizers at ₹768, Bharat Agri Fert & Realty at ₹25.38, and Madras Fertilizers at ₹67.85, up in the range of 3 to 4 per cent. Coromandel International and Gujarat State Fertilizers & Chemicals were up 1.5 per cent at ₹2,124 and ₹163.40, respectively.

 

 

Gaurav Sharma, associate VP & head of research at Globe Capital, said that fertiliser stocks are seen holding well in today's session because of two reasons - the government's subsidiary announcement and the ceasefire in West Asia. The subsidiary is a positive move for the companies, as Street sees it as a "big relief package".

 

"The announcement of a package from the government for the fertiliser sector is expected to create a positive outlook. Since this is an industry-wide package, it will have a positive impact across the sector. I am optimistic about the growth of companies like FACT and Deepak Fertilizers. Besides, companies such as RCF and National Fertilizers will also see an impact," the analyst said.

 

Earlier on Wednesday, the government approved a ₹41,534 crore subsidy for Phosphatic and Potassic (P&K) fertilisers for the upcoming 2025-26 kharif season, up by 12 per cent from the year-ago period. The subsidy rates are effective from April 1 till September 30, 2026. The kharif (summer) crop planting begins with the onset of southwest monsoon from June.

 

For the kharif 2026 season, the government has fixed the subsidy rate for nitrogen at ₹47.32 per kg, phosphate at ₹52.76/ kg, potash at ₹2.38/kg and sulphur at ₹3.16/kg.

 

The recent momentum in fertiliser stocks was further supported by the West Asia ceasefire announcement, which has improved overall market sentiment and boosted investor confidence. Notably, India is the world's second-largest consumer of fertilisers after China and relies heavily on imports of both raw materials and finished products, much of which comes from the West Asia East regions.

 

Gaurav further said that if the conflict in Iran ends and the Strait of Hormuz reopens, trade will normalise. "Many Indian fertiliser companies export a significant portion of their products to the Gulf region, so this development would further support the industry. Overall, we can expect some positive momentum in the sector."    ================== 

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