Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) investor relations material

Executive summary

• Q3 FY26 revenue increased quarter-over-quarter and year-over-year, mainly due to higher chemical product volumes, though profit was impacted by lower other income and realizations, partially offset by lower input costs and higher volumes.

• Fertilizer segment remained stable with improved NBS rates and strong urea volumes, while losses reduced due to absence of unfavorable subsidy freight rates seen in the previous quarter.

• Government support on fertilizer subsidy improved cash flow and kept working capital levels low.

• Annual plant turnarounds at Bharuch and Dahej complexes affected year-over-year nine-month comparisons.

• Board approved appointments of new Managing Director and Additional Director, and a revision in the Related Party Transaction Policy.

Financial highlights

• Q3 FY26 operating revenue: ₹1,996 crore (up from ₹1,899 crore YoY); PAT: ₹150 crore (down from ₹158 crore YoY); PBT: ₹204 crore.

• 9M FY26 operating revenue: ₹5,565 crore (down from ₹5,837 crore YoY) due to plant shutdowns; PAT: ₹405 crore (up from ₹375 crore YoY).

• Operational income improved, driven by higher volumes in both chemical and fertilizer segments.

• Working capital remained under control, supported by timely subsidy flows; subsidy outstanding at INR 302 crore.

• Around INR 1,000 crore of CapEx spent till December, with total commitments up to INR 2,600 crore.

Outlook and guidance

• Ongoing capex projects (coal-based power plant, ammonia expansion, nitric acid, ammonium nitrate) are on track and expected to enhance both revenue and profitability.

• No major shutdowns planned for Q4; next major annual shutdown scheduled for Q2 FY27.

• Volume growth expected in TDI and downstream products as reliability improves and new capacities come online.

• Management expects cost advantages from capacity-building CapEx and operational transformation initiatives.

• Revision in energy and fixed cost is being pursued with the government, with an announcement expected by June 2026.