Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) Q3 25/26 earnings summary

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 chemical segment saw higher volumes but faced pricing pressure except for TDI, which benefited from global price improvements.

• 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); 9M FY26 revenue: ₹5,565 crore (down from ₹5,837 crore YoY); 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.

• Standalone net profit margin for Q3: ~7.5%.

• Other comprehensive income affected by changes in fair market value of investments and actuarial assumptions.

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.