Fertilisers and Chemicals Travancore shares leaped over 3% on Friday after the state-run producer delivered an 87.9% surge in second-quarter net profit.
Net earnings for the September quarter reached ₹39.28 crore, up from ₹20.9 crore in the corresponding quarter last year. The profit expansion unfolded against a shrinking top line. Revenue from operations slid 10.2% to ₹1,463.7 crore compared to ₹1,629.3 crore posted during the same period twelve months prior.
Yet operational profitability told a very different story.
Earnings before interest, taxes, depreciation, and amortisation more than doubled to ₹98.4 crore from ₹39.5 crore a year earlier. That performance lifted EBITDA margin to 6.7%, up sharply from 2.4% in the year-ago period.
The September quarter marked an abrupt operational recovery from the preceding three-month stretch.
In the prior quarter, the chemical manufacturer had posted a consolidated net loss of ₹61.94 crore. Revenue in that quarter stood at ₹1,253.4 crore, while operational earnings had collapsed into negative territory with an EBITDA loss of ₹29.8 crore against a profit of ₹23.98 crore in the preceding year.
| Financial Metric | Q2 Current Year | Q2 Previous Year | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹1,463.70 crore | ₹1,629.30 crore | -10.2% |
| Net Profit (PAT) | ₹39.28 crore | ₹20.90 crore | +87.9% |
| EBITDA | ₹98.40 crore | ₹39.50 crore | +149.1% |
| EBITDA Margin | 6.7% | 2.4% | +430 bps |
The market reacted swiftly to the margin print.
The stock opened the session at ₹795.00 before aggressive buying carried it to an intraday high of ₹844.60, representing a climb of over 3% before buyers ceded ground to partial profit-taking. Momentum in the counter has gathered pace over recent weeks, with FACT advancing 11.11% across the trailing month.
Market Context: The recovery puts the stock 26.05% above its 52-week low of ₹652.10, while leaving it 22.35% shy of its 52-week high of ₹1,058.60.
Institutional desks will now track whether the manufacturer can defend its operating spread across the second half of the fiscal year without further erosion in aggregate sales volumes.