Synopsis:A Gujarat-based fertilizer and chemicals maker posted a sharp jump in quarterly profit, backed by better product prices and falling input costs, while pushing ahead with a multi-thousand crore expansion plan.
A Gujarat-based integrated chemicals and fertilizers company reported a strong finish to FY26, with quarterly profit more than doubling on a sequential basis. Better realisations across most products and lower input costs drove the improvement, even as the full-year picture was weighed down by a planned maintenance shutdown at its main plant.
Q4 FY26 Results: What the Numbers Say
Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) posted a consolidated profit after tax (PAT) of ₹808 crore for FY26, up from ₹597 crore in FY25 – a rise of around 35% year on year. For Q4 FY26 specifically, PAT came in at ₹392 crore, compared to ₹150 crore in Q3 FY26 and ₹210 crore in Q4 FY25. That is a jump of about 161% quarter on quarter and 87% year on year.
Total revenue for the quarter stood at ₹2,333 crore, up from ₹2,093 crore in Q3 FY26 and ₹2,177 crore in Q4 FY25. Operating revenue came in at ₹2,208 crore for the quarter.
For the full year, total revenue was ₹8,272 crore versus ₹8,393 crore in FY25. The slight decline was mainly because GNFC carried out its annual maintenance shutdown at the Bharuch complex this year, while the previous year’s shutdown had taken place at the Dahej facility. PBT for FY26 improved to ₹1,065 crore from ₹790 crore in FY25, mainly due to lower input costs.
What Drove the Numbers
The chemicals segment was the main engine of growth. Geopolitical tensions in global markets pushed up realisations for several of GNFC’s chemical products. The company also benefited from lower costs across key raw materials – toluene prices fell 11% year on year, benzene dropped 28%, and ammonia costs came down 14%. Natural gas prices, however, rose 33% year on year, which was a headwind.
The fertilizer segment continued to post losses, with the full-year segment loss widening slightly to ₹186 crore from ₹180 crore in FY25, due to higher energy and fixed costs. The company is still awaiting a revision in government-set energy norms and fixed cost parameters.
On the positive side, GNFC became debt-free during FY26, with borrowings falling to nil from ₹99 crore a year earlier. The board announced a dividend of ₹21 per share (210% on face value) with a payout ratio of 39%.
Capex: Building for Growth
GNFC has a brownfield capex programme of around ₹2,100 crore under execution. This covers a Weak Nitric Acid plant (200 KTPA), an Ammonium Nitrate expansion (163 KTPA), and an Ammonia expansion (50 KTPA) at Bharuch. Additionally, maintenance capex of about ₹700 crore is underway, including a new CFBC boiler and an EHV transmission line. A coal-based power and steam plant at Dahej – expected to improve operating margins for its TDI unit – is targeted to commence by Q2 FY27.
Under consideration are larger projects including a 150 KTPA BisphenolA plant, 100 KTPA Polyols unit, and a 350 KTPA Acetic Acid expansion, all at Dahej or Bharuch.
About the Company
Gujarat Narmada Valley Fertilizers & Chemicals Limited is a joint sector enterprise promoted by the Government of Gujarat and GSFC. Founded in 1976 and headquartered in Bharuch, it operates two complexes – at Bharuch (since 1982) and Dahej (since 2014). The company makes fertilizers and a wide range of industrial chemicals, and is the only manufacturer of Toluene Di-isocyanate (TDI) in South and Southeast Asia.
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