Highlights

• Fertilisers and Chemicals Travancore Limited (NSE: FACT) rose 4.16% to ₹851.80.
• The Centre approved ₹41,534.00 crore as nutrient-based subsidy for the kharif season.
• Higher subsidy support may help offset rising raw material and energy costs.
• The government also increased natural gas allocation to fertiliser plants to 90.00%.
• FACT moved above its 50-day SMA of ₹784.14 after the announcement.
• RSI climbed to 60.74, reflecting stronger near-term momentum.

Overview

Fertiliser stocks remained in focus after the Centre approved ₹41,534.00 crore as nutrient-based subsidy for the upcoming kharif season. The announcement came at a time when rising tensions in West Asia have pushed up global prices of natural gas and fertiliser inputs.

Among the key gainers, Fertilisers and Chemicals Travancore Limited (NSE: FACT) advanced 4.16% to ₹851.80 on April 9, 2026. The stock opened at ₹829.00 and touched an intraday high of ₹888.40 before easing slightly. Investors appeared encouraged by expectations that the additional subsidy may help fertiliser companies manage rising production costs.

Why FACT Share Price Rose

The subsidy decision is important because fertiliser producers have been facing higher input costs following the recent jump in global energy prices. Natural gas is the key raw material used in the production of urea, and it accounts for more than 80.00% of the overall cost.

The government has also increased natural gas supply to fertiliser companies to 90.00%, compared with the earlier allocation of 70.00%–75.00%. Higher gas availability is expected to improve production stability and reduce the risk of supply disruptions.

FACT is seen as one of the likely beneficiaries because stronger gas supply and higher subsidy support could reduce the pressure on margins during the current period of volatile energy prices.

Fundamental View

For the quarter ended December 2025, Fertilisers and Chemicals Travancore Limited reported standalone total income of ₹160,705.00 lakh. However, the company posted a loss before tax of ₹7,406.00 lakh and a net loss of ₹6,790.00 lakh. Earnings per share for the quarter stood at negative ₹1.05.

The recent policy support therefore becomes important for FACT, as improved subsidy and lower feedstock pressure may help the company stabilise its financial performance in the coming quarters.

Technical View

FACT is currently trading near ₹851.80 and has moved decisively above its 50-day Simple Moving Average near ₹784.14. The stock had spent several weeks consolidating below the moving average before breaking higher in the current session.

The chart shows that the stock rebounded sharply from the March lows near ₹670.00 and has now entered a stronger recovery phase. The latest move above the 50-day average indicates that the broader price structure has improved.

Momentum has also strengthened. The 14-day RSI is currently near 60.74, which is above the neutral 50 mark and reflects improving near-term sentiment. While the stock may witness some consolidation after the sharp rise, the overall structure remains constructive as long as it stays above the recent breakout zone.

Key Technical Levels

On the downside, the immediate support zone is placed between ₹790.00 and ₹745.00. Holding above this range may keep the recent recovery intact.

On the upside, the next hurdle for FACT is likely to emerge in the ₹920.00–₹1,000.00 zone. A sustained move above this area could open the possibility of a further extension in the ongoing recovery.

Source: TradingView

Risks To Watch

• Global natural gas prices remain volatile due to the West Asia conflict.
• Any delay in subsidy payments could affect cash flow for fertiliser companies.
• FACT continues to report losses despite the recent policy support.
• Failure to hold above the 50-day SMA may weaken the current recovery.

Summary

Fertiliser stocks moved higher after the Centre announced fresh subsidy support and increased gas allocation for the sector. Fertilisers and Chemicals Travancore Limited emerged as one of the major gainers, supported by hopes that the measures could reduce cost pressure and improve production visibility. Technically, the stock has strengthened after moving above its 50-day SMA, while momentum indicators also suggest that the recovery remains active in the near term.