Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) Q2 26/27 earnings summary

Executive summary

• Standalone Q2 revenue was ₹2,773 crore, PBT ₹241 crore and PAT ₹185 crore; revenue and profit rose YoY but fell QoQ.

• Higher volumes supported Q2 revenue, while lower chemical realizations, higher fixed and input costs, coal costs and wage provisions pressured QoQ results.

• H1 standalone revenue was ₹5,011 crore, PBT ₹657 crore and PAT ₹495 crore; YoY comparisons are affected by the prior-year Bharuch turnaround.

• Consolidated Q2 PAT was ₹194 crore, including ₹9 crore share of associate profit; H1 consolidated PAT was ₹506 crore.

Financial highlights

• Q2 revenue from operations was ₹2,773 crore versus ₹1,968 crore YoY; total income was ₹2,901 crore versus ₹2,095 crore.

• Q2 PBT was ₹241 crore versus ₹230 crore YoY and ₹416 crore QoQ; PAT was ₹185 crore versus ₹177 crore YoY and ₹310 crore QoQ.

• Q2 one-time impacts were net adverse ~₹75 crore across energy norms, freight claims and wage settlement; wage-related accruals may continue.

• H1 CapEx was ~₹500 crore; property, plant and equipment purchases, including CWIP and advances, were ₹332 crore.

Outlook and guidance

• No forecasts or guidance are provided on future results or business outlook; near-term focus remains operations, cost optimization and protecting margins amid market volatility.

• Longer-term priorities include value-added products, efficient operations and adding meaningful products to the pipeline; project studies and reports are expected during FY27.

• Most projects are broadly on schedule; one project was delayed three months, with a recovery plan agreed with the turnkey contractor.

• Complex-fertilizer nutrient-based subsidy rates effective from the Rabi season were awaited.