Synopsis:
Gujarat State Fertilizers reported 14 percent QoQ revenue growth and 92 percent QoQ profit jump in Q1 FY26, despite lower Urea sales, with strong industrial performance and continued capex project progress.
During Friday’s trading session, shares of a company engaged in producing bulk and non-bulk fertilisers and chemicals jumped nearly 8 percent on BSE, after reporting financial results for Q1 FY26 with a net profit growth of around 92 percent QoQ and 59 percent YoY.
At 10:55 a.m., the shares of Gujarat State Fertilizers & Chemicals Limited were trading in the green at Rs. 211.05 on BSE, up by around 6 percent, as against its previous closing price of Rs. 198.8, with a market cap of Rs. 8,410 crores. The stock has delivered negative returns of over 7 percent in the last one year, but has gained by around 2 percent in the last six months.
What’s the News
According to the latest regulatory filings on the stock exchanges, Gujarat State Fertilizers & Chemicals Limited announced the financial results for Q1 FY26 on Thursday after market hours.
For Q1 FY26, Gujarat State Fertilizers reported a consolidated revenue from operations of Rs. 2,184.4 crores, marking around a 14 percent QoQ growth compared to Rs. 1,922 crores in Q4 FY25, and a marginal year-on-year increase of about 1 percent from Rs. 2,162.5 crores recorded in Q1 FY25.
Net profit for the quarter stood at Rs. 138.6 crores, marking a growth of around 92 percent QoQ compared to Rs. 72 crores in Q4 FY25, as well as a year-on-year increase of about 59 percent from Rs. 87 crores in Q1 FY25.
In Q1 FY26, Urea sales declined 73 percent due to the exclusion of Rs. 149 crores project-linked trial sales and stabilisation challenges. Raw material trends were mixed, with natural gas and ammonia prices softened, while P₂O₅ and sulphur/SA acid saw sharp increases. The Industrial Products segment turned profitable, recording an EBIT of Rs. 25 crore, supported by stronger Ammonia and HX sales, despite lower spreads and core volumes.
Gujarat State Fertilizers continues to progress its capex plans aligned with its strategic growth roadmap. Key upcoming projects include the 198 KTPA Sulphuric Acid (SA-V) project by Q3 FY26, and the 198 KTPA Phosphoric Acid and 594 KTPA Sulphuric Acid project at Sikka, targeted for completion by FY28.
Projects commissioned during Q1 FY26 include the 15 MW Solar Power Plant at Charanka, the Urea-II Revamp Project, and participation in GIPCL’s 75 MW Solar Power Project.
The southwest monsoon is progressing well, supporting Kharif sowing and boosting agri-input demand in Q2 FY26. However, the fertiliser industry in India may face challenges due to rising prices of key raw materials like phosphoric acid and finished products such as DAP and NPK, potentially leading to an upward revision in NPK MRP.
Policy support from the DoF will be crucial, and the company plans to follow a balanced production-import strategy to manage costs. Caprolactam-Benzene spreads are expected to remain under pressure due to global oversupply and cheaper Chinese imports. While melamine and other industrial products are expected to see stable demand, pricing may remain under strain from low-cost imports.
Gujarat State Fertilizers & Chemicals Limited (GSFC) is principally engaged in the business of the production of bulk and non-bulk fertilisers and chemicals. The company pioneered the manufacture of DAP complex fertiliser in India, and is the sole producer of Melamine HX Sulphate Crystal. It is also among the major producers of Caprolactam and Nylon 6 in the country.
Written by Shivani Singh
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