New Delhi, Aug. 13 -- Legacy urea plants are likely to face a structural decline in profitability following tighter energy-efficiency norms announced on July 30, 2026, according to Crisil Ratings.

In a report, the ratings agency said it expects gains from energy efficiency to decline, reducing operating profitability by around 25 per cent to approximately Rs 1,250 per tonne from Rs 1,700 per tonne.

The impact is expected to vary across manufacturers, with companies more dependent on legacy urea operations likely to face greater pressure. Plants that previously benefited most from energy-efficiency savings are also expected to see a sharper decline in earnings, the report added.

Credit Impact Expected To Remain Contained

Despite the ex...