President of India-Backed Fertiliser Stock Share Price Surges Over 18%; Here’s Why

The rise in FACT shares is closely linked to changes in crude oil and natural gas prices, which directly affect fertiliser production costs and industry margins.

How Crude Oil and Its Derivatives Affect Fertiliser?

Crude oil prices directly influence fertiliser costs by affecting natural gas prices, a key raw material for nitrogen-based fertilisers.

Think of crude oil as the base fuel that influences many other production inputs. When crude rises, the cost of its derivatives (like naphtha) and energy components goes up. This pushes up the cost of producing essential fertiliser chemicals such as ammonia and urea. In consideration of this, higher crude leads to higher naphtha and other derivative costs, which can squeeze margins.

Understanding the link between crude oil, natural gas, and fertiliser production helps explain today’s sharp rise in FACT shares.

It is important to note that natural gas prices do not always rise alongside crude oil prices. Global energy events like conflicts can cause price hikes in both markets (as seen in early 2026), which can increase production costs for fertilisers. The supply of natural gas is crucial for fertiliser companies because most of it is used as feedstock to produce ammonia, a primary ingredient in urea production. Natural gas is also required to generate the high heat and pressure needed for the chemical reactions in the manufacturing process.

What Helped Fertiliser Companies Today?

On March 10, 2026, crude oil prices fell by around 24 per cent and reached USD 86, slightly above the average price before the Middle East conflict. This sudden drop in crude prices eased input costs for fertiliser companies, providing a positive trigger for the stock market.

Additionally, the government issued the Natural Gas Regulation Order, 2026. Under the new order from the Ministry of Petroleum and Natural Gas, priority sectors such as domestic PNG, CNG, fertiliser plants, and LPG production will receive higher allocation. Supplies to non-priority industries will be reduced to ensure households and essential sectors do not face shortages. Fertiliser plants will receive around 70 per cent of their average gas requirement based on the last six-month average.

The rise in FACT shares comes amid a broader sector trend, with other fertiliser companies also seeing gains, indicating increased investor confidence in the industry.

FACT Share Price Performance

In accordance with market data, the share of Fertilizers & Chemicals Travancore Ltd (FACT) rose to Rs 783.80, gaining Rs 121.70, which represents an 18.38 per cent increase, as of March 10, 2026, 12:46:39 IST. During today’s trading session, the shares reached an Intraday high of Rs 788.65, which is Rs 126.55 above the previous close of Rs 662.10. This marks a rise of over 19 per cent from the previous day’s closing price, with a VWAP of Rs 757.58, indicating strong buying interest throughout the session.

The year-to-date (YTD) performance of the stock is -17.03 per cent. Over the past one year (1Y), the stock has gained 18.60 per cent.

About FACT

Fertilizers & Chemicals Travancore Ltd (FACT), incorporated in the year 1943, is the first large-scale fertiliser plant in India at Udyogamandal, Kochi, Kerala. The company is engaged in the manufacturing and selling of fertilisers, its by-products and Caprolactam. It is under the administrative control of the Department of Fertilisers, Ministry of Chemicals & Fertilisers, Government of India. The President of India holds 90 per cent shares in the company. 

Disclaimer: The article is for informational purposes only and not investment advice.