Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) Q1 26/27 earnings summary

Executive summary

• Revenue for Q1 FY 26-27 increased marginally quarter-over-quarter due to improved realization across all products, partially offset by lower volumes and higher input costs.

• Profit before tax (PBT) and profit after tax (PAT) declined sequentially, mainly due to higher input and fixed costs, despite better product realizations.

• Unaudited standalone and consolidated financial results for Q1 FY 2026-27 were approved.

• Year-over-year comparisons are impacted by the annual turnaround at the Bharuch complex in Q1 FY 25-26.

• A Memorandum of Understanding was approved with GMDC to explore coal-to-chemicals opportunities.

Financial highlights

• Q1 FY 26-27 standalone operating revenue: ₹2,238 crore, up from ₹2,208 crore in Q4 FY 25-26 and ₹1,601 crore in Q1 FY 25-26.

• Standalone net profit for Q1 FY 26-27 was ₹310 crore, down from ₹392 crore in Q4 FY 25-26 but up from ₹78 crore in Q1 FY 25-26.

• Consolidated net profit for Q1 FY 26-27 was ₹312 crore, compared to ₹396 crore in Q4 FY 25-26 and ₹83 crore in Q1 FY 25-26.

• Standalone PBT for Q1 FY 26-27 was ₹416 crore, down from ₹526 crore in Q4 FY 25-26.

• Earnings per share (EPS) for Q1 FY 26-27 stood at ₹21.09 (standalone) and ₹21.22 (consolidated).

Outlook and guidance

• No forward-looking statements or guidance provided as a matter of policy.

• Management expects a positive financial impact of approximately ₹61 crore in Q2 FY 26-27 due to revised energy norms for Neem Coated Urea.

• Focus remains on margin protection and enhancement, with ongoing efforts to meet customer demand despite margin pressures.

• Long-term strategy emphasizes top-line and margin growth through value-added products.