Polymer coated urea (PCU) was evaluated for its efficiency under two rice establishment methods [transplanting method (TP) and direct-seeded rice (DSR)] during two crop seasons (rabi, dry season and kharif, wet season). The results indicated that split application of PCU @ 75 and 100% recommended dose of nitrogen (RDN) were at par and resulted in significantly higher yields (46 and 49%) than normal urea in splits, respectively, during rabi 2015–2016 under transplanting method. During kharif-2016 under transplanting method, grain yield was maximum with 100% RDN from PCU single dose (5.13 t ha−1) which was on par to 100% PCU in 3 splits (4.62 t ha−1) and 75% PCU (4.80 t ha−1) as a basal dose. In DSR, significantly higher grain yield was recorded in 100% RDN supplied through PCU as basal dose (6.16 t ha−1). The maximum nitrogen use efficiency indices were observed in 75% PCU (split) followed by 100% PCU (Split) in rabi-2015–2016 but in the case of kharif-2016, basal application of 100% PCU found to be superior followed by 75% PCU. Thus, PCU proved its efficiency by saving 25% of N in transplanted rice in both wet and dry seasons and by considerable labor saving due to single basal application in case of transplanting as well as DSR in the wet season.