Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) reported a 41% year-on-year surge in Q2 FY27 revenue to Rs 2,773 crore, driven by higher product volumes. While profit after tax saw a modest 4.5% rise to Rs 185 crore, management continues to navigate margin pressures caused by lower realizations and elevated input costs. The company is actively executing key expansion projects including Ammonia and Nitric Acid plant upgrades to support long-term growth, while maintaining its legal stance against a long-standing Rs 21,370 crore DoT demand.
GNFC Reports Strong Revenue Growth in Q2 FY27
Revenue grew 41% to Rs 2,773 crore; Profit after tax reached Rs 185 crore.
Reader Takeaway: Revenue is scaling on volume growth, but lower product realizations and DoT litigation remain key headwinds.
What just happened
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) released its standalone financial results for the quarter ending September 30, 2026. The company recorded a significant top-line expansion, with revenue from operations climbing to Rs 2,773 crore compared to Rs 1,968 crore in the same period last year. Profit after tax improved to Rs 185 crore, up from Rs 177 crore in Q2 FY26. The half-year revenue for FY27 reached Rs 5,011 crore.
Why this matters
The growth underscores the company’s ability to drive volume in both its fertilizer and chemical segments. While top-line growth is robust, profit margins face pressure from lower market realizations across the product portfolio. Investors should note that the H1 results are not strictly comparable to the previous year due to an annual turnaround at the Bharuch complex conducted in the first half of FY26.
Expansion and Projects
GNFC is pushing ahead with capital expenditure to secure future growth. Projects currently under construction include a 50 KTPA Ammonia expansion, a 200 KTPA Weak Nitric Acid-III plant, a 163 KTPA Ammonium Nitrate-II plant, and a new steam boiler in Bharuch. The company is also evaluating potential entries into Bisphenol-A and Polyols at Dahej, along with Acetic Acid production in Bharuch.
Risks to watch
Investors must track the long-standing regulatory dispute involving a Rs 21,370 crore demand from the Department of Telecommunications (DoT). This pertains to VSAT and ISP licenses from 2005 to 2020. Management maintains that this is unrelated to their core chemical and fertilizer business and considers an unfavorable outcome unlikely. Additionally, high feed and fuel prices continue to impact working capital requirements.
What to track next
Watch for the commissioning timelines of the ongoing expansion projects. Operational efficiencies gained from these new capacities will be critical to offsetting price volatility and achieving margin improvements in coming quarters.