While the revision in the Nutrient Based Subsidy (NBS) rates had resulted in sustenance of profitability for P&K players, the recent currency depreciation is expected to result in moderation in contribution levels as retail price hikes may be difficult to undertake to pass on the impact. 

With subsidy outlay likely to remain inadequate for P&K fertilisers in FY2026, ICRA expects the GoI to make additional allocations to meet the shortfall.

Exhibit: Trend in expected sales volumes

Source: DoF, ICRA Research