RCF Hit by ₹85.8 Million Tax Demand: Fertilizer Giant Faces New Fiscal Hurdle

Rashtriya Chemicals and Fertilizers Ltd, a key player in India's fertilizer and chemicals industry, faces a fresh tax challenge with a demand of ₹85.8 million rupees. Such orders are common in the sector amid GST and other compliance audits, often contested successfully on appeal. RCF, known for robust Q2 profits of ₹105 crore despite margin pressures, maintains financial stability.

Key Highlights

Demand Amount: ₹85.8 million (₹8.58 crore), issued by relevant tax authority (likely GST or income tax division).

Company Response: RCF evaluating legal options for appeal; no material financial or operational impact expected currently.

Context: Aligns with recent sector trends, including similar demands on peers like Dhanuka Agritech (₹121 crore) and prior RCF notices (e.g., ₹98.2 million).

Stock Implications: Shares traded around ₹150 recently; investors monitoring for updates amid strong revenue growth of 23% YoY in Q2.

Market Context
Fertilizer firms like RCF navigate volatile input costs and policy shifts, including GST debates on uniform rates. Despite this, RCF reported 33% profit growth in recent quarters, driven by fertilizer sales. The tax demand remains minor relative to ₹16,900 crore annual revenue.
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Sources: Moneycontrol Hindi, TradingView Reuters, Indian Chemical News, Zerodha