Share of Madras Fertilisers Limited is currently trading at around Rs.74/-Investors are asking for the Madras Fertilisers Share Price Target 2026, 2030, 2035 and 2040. In this article, we will discuss about the business prospects and financial performance of the Company and based on our discussion and analysis will tell you the Madras Fertilisers Share Price Target 2026, 2030, 2035 and 2040
Discussion & Analysis of Business & Financial performance with future business prospects of Madras Fertilisers Ltd:
Madras Fertilizers Limited (MFL), a Public Sector Undertaking (PSU) under the Department of Fertilizers (Government of India), is currently navigating a significant turnaround phase. Historically plagued by operational inefficiencies and financial losses, the company has recently demonstrated operational resilience and a return to profitability, though structural financial challenges remain.
Current Business Position (As of December 2025)
1. Financial Turnaround: MFL has shown a marked improvement in its financial health during the ongoing fiscal year (FY 2025-26).
- Profitability: The company reported a substantial surge in Net Profit for Q2 FY2025, reaching approximately ₹13 Crore, a massive jump compared to the marginal profits seen in the previous year. For the full fiscal year, projections estimate a net profit significantly higher than the ₹5.6 Crore recorded in FY24.
- Revenue Stability: Despite global fertilizer price volatility, MFL has maintained steady revenue streams, driven by consistent production and government subsidy disbursements.
- Balance Sheet Concerns: Despite recent profits, the company remains technically “sick” with a negative net worth (approx. -₹323 Crore). The accumulated losses from previous decades continue to weigh heavily on its valuation, resulting in a negative book value per share.
2. Operational Efficiency: The transition from Naphtha to Re-Liquefied Natural Gas (RLNG) as feedstock was a critical milestone completed in 2019, and MFL is now reaping the benefits.
- Record Production: In March 2025, the plant achieved its highest-ever monthly production levels for both Ammonia and Urea. The plant is operating at high capacity utilization (often exceeding 100% for Urea).
- Energy Efficiency: MFL has successfully lowered its Specific Energy Consumption (SEC) to record lows (around 6.6 GCal/MT for Urea). This is vital because government subsidy payouts are linked to energy efficiency norms; lower consumption means higher retained margins.
Future Business Prospects
1. Modernization and Greenfield Expansion: The most significant prospect for MFL is the proposed Greenfield Project. Management has outlined plans to construct a new, state-of-the-art Ammonia (2200 MTPD) and Urea (3500 MTPD) plant. If executed, this would replace the vintage 1970s-era machinery, drastically reducing downtime and maintenance costs while tripling production capacity.
2. Sustainability Projects:
- Water Security: Chennai’s water scarcity is a perennial operational risk. To mitigate this, MFL has floated Expressions of Interest (EOI) for a Desalination Plant to secure a consistent industrial water supply, reducing reliance on the city’s strained resources.
- Green Belt & Emissions: The company is actively expanding its green belt and upgrading turbines to reduce its carbon footprint, aligning with India’s stricter industrial environmental standards.
3. Strategic Divestment & Policy Risks: As a PSU, MFL remains a candidate for potential disinvestment or privatization. While no immediate sale is active as of December 2025, the government’s intent to monetize non-strategic assets hangs over the company. A successful privatization could unlock value through modernization capital, but it remains a speculative “wildcard” for investors.
Conclusion
Madras Fertilizers Ltd is currently in a stabilization phase. The shift to gas feedstock and recent record-breaking production runs have proven that the plant can be operationally profitable. However, the future outlook depends on capital injection: without the proposed Greenfield plant or a financial restructuring to wipe out accumulated losses, MFL’s growth is capped by its aging infrastructure and negative net worth.
Share Price Targets:
Madras Fertilisers Share Price Target 2026
Based on the above discussion and analysis, the share price of Madras Fertilisers Ltd may touch the level of around Rs.80-85 in 2026
Madras Fertilisers Share Price Target 2030
Based on the above discussion and analysis, the share price of Madras Fertilisers Ltd may touch the level of around Rs.170-180 in 2030
Madras Fertilisers Share Price Target 2035
Based on the above discussion and analysis, the share price of Madras Fertilisers Ltd may touch the level of around Rs.375–400 in 2035
Madras Fertilisers Share Price Target 2040
Based on the above discussion and analysis, the share price of Madras Fertilisers Ltd may touch the level of around Rs.800-900 in 2040
Disclaimer: Investment in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
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