Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) Q1 25/26 earnings summary

Executive summary

• Unaudited standalone and consolidated financial results for Q1 FY 2025-26 were approved, reflecting the impact of an 18-day annual turnaround at the Bharuch complex, which led to lower volumes, higher unproductive and fixed costs, and affected comparability with previous periods.

• Board approved several appointments, including independent directors and auditors, and revised the Code of Conduct for Prevention of Insider Trading.

Financial highlights

• Standalone revenue from operations for Q1 FY 2025-26 was ₹1,601 crore, down from ₹2,055 crore in Q4 FY 2024-25 and ₹2,021 crore in Q1 FY 2024-25.

• Standalone net profit for Q1 FY 2025-26 was ₹78 crore, compared to ₹210 crore in Q4 FY 2024-25 and ₹115 crore in Q1 FY 2024-25.

• Consolidated net profit for Q1 FY 2025-26 was ₹83 crore, down from ₹211 crore in Q4 FY 2024-25 and ₹118 crore in Q1 FY 2024-25.

• Total comprehensive income improved due to higher fair market value of investments.

Outlook and guidance

• Operational costs at Dahej are expected to improve with the commissioning of a new coal-based power plant in FY 2025-26.

• Throughput at Bharuch complex has stabilized post-turnaround, and margin improvement is anticipated.

• Revision in energy and fixed costs is being pursued with the government, with an announcement expected by year-end.