GNFC Q2 FY2026 Results: Profit Up 70% YoY and EBITDA Doubles on Strong Chemical Segment Recovery

Gujarat Narmada Valley Fertilizers & Chemicals Q2 FY2026 Financial Results

Gujarat Narmada Valley Fertilizers & Chemicals Ltd (NSE: GNFC) reported a solid set of numbers for the quarter ended September 30, 2025 (Q2 FY26), driven by better sales volumes and a sharp reduction in input costs. The company recorded significant improvement in profitability despite only marginal revenue growth.

Stock Performance & Key Metrics

As of November 13, 2025:

• Current Price: ₹517
• Market Cap: ₹7,595 Crores
• Stock P/E: 12.0
• Book Value: ₹589 per share
• Dividend Yield: 3.52%
• ROCE: 9.57%
• ROE: 7.08%
• Debt to Equity: 0.00
• Debt: ₹13 Crores
• Face Value: ₹10
• EPS (Q2 FY26): ₹12.18

Q2 FY2026 Financial Highlights

Result Summary

• Revenue increased slightly by 3% YoY to ₹1,968 Cr from ₹1,917 Cr, supported by stronger chemical segment volumes.
• EBITDA more than doubled to ₹185 Cr from ₹90 Cr, reflecting improved cost efficiency and better product mix.
• Net Profit (PAT) surged 70% YoY to ₹179 Cr, aided by lower input costs and improved margins in the chemical division.
• Sequentially (QoQ), PAT more than doubled from ₹83 Cr in Q1 FY26, as operations normalized post the annual turnaround.

Management attributed the performance improvement mainly to better sales volumes, reduced input costs, and improved subsidy realisations under the Government’s Nutrient-Based Subsidy (NBS) scheme.

Segment Performance

• Chemical Segment: Revenue and margins improved substantially YoY due to higher TDI volumes and lower raw material costs.
• Fertilizer Segment: Margins remained under pressure but losses reduced due to lower input costs and steady subsidy inflows.
• TDI Business: Benefited from the Government’s extension of the anti-dumping duty till March 2026, supporting price stability.

Management Commentary

> “It gives me pleasure in sharing encouraging results for Q2 FY25-26,” said Dr. T. Natarajan, Managing Director, GNFC. > “While Q1 performance was affected by annual turnaround, Q2 results show strong recovery supported by improved chemical volumes, lower costs, and subsidy revisions.”

He further added that Government support for fertilizer subsidies and revisions in energy and fixed cost structures are expected to improve competitiveness and profitability going forward.

Strategic and Operational Highlights

• Nutrient Based Subsidy (NBS) rates for Rabi season revised upward by ₹872 per MT, enhancing competitiveness.
• Brownfield investment approved for Ammonium Nitrate Melt plant (163 KTPA), to be synchronized with WNA-III commissioning.
• Power plant at Dahej expected to become operational in FY2025-26, improving TDI margins.
• Orderly working capital management due to timely subsidy receipts, resulting in healthy cash flow generation.

Key Balance Sheet Highlights (Standalone)

Cash flow from operations during H1 FY26 stood at ₹314 Cr, largely offsetting capex-related outflows.

Outlook

GNFC expects to maintain steady performance in the second half of FY26, supported by:

• Commissioning of new projects under its capex roadmap,
• Continued strength in TDI and chemical products,
• Better operational efficiency and cost optimization initiatives, and
• Stable subsidy inflows from the Government.

With multiple capacity expansion projects in progress and improving fertilizer demand outlook, the company is poised for gradual growth and stronger profitability over the medium term.

About the Company

Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) is a joint-sector enterprise promoted by the Government of Gujarat and Gujarat State Fertilizers & Chemicals Ltd (GSFC). Founded in 1976 and headquartered in Bharuch, GNFC operates one of the world’s largest single-stream ammonia-urea complexes and has since diversified into chemicals, fertilizers, and industrial products.

Its operations are structured into:

• Fertilizers: Urea, Ammonia, and other nitrogen-based products.
• Chemicals: TDI, Formic Acid, Methanol, Nitric Acid, and Acetic Acid.
• Utilities & Infrastructure: Power generation and waste management systems.

GNFC’s commitment to modernization and diversification has positioned it among India’s most efficient integrated fertilizer and chemical producers.

*For full financial results, refer to the official media release PDF*

*Data as of November 13, 2025 | Results approved by Board of Directors on November 12, 2025*