Whalesbook
Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) revealed a robust financial performance for its fourth quarter, marked by an 87.7% year-on-year increase in consolidated net profit to ₹396 crore. This substantial gain was primarily fueled by improved sales realisations across a majority of its products and a noticeable reduction in input costs. Revenue for the quarter rose 7.4% to ₹2,208 crore from the ₹2,055 crore posted in the same period last year.
Operational Efficiency
The company's operational efficiency saw a marked improvement, with EBITDA nearly doubling from ₹240 crore to ₹482 crore. Consequently, the EBITDA margin expanded significantly to 21.8%, a considerable jump from the 11.7% recorded in the prior year. Managing Director Rajkumar Beniwal attributed the enhanced quarterly performance, both sequentially and annually, to these favorable realisations and cost management.
Segment Performance Analysis
GNFC's performance varied across its segments. The chemical segment demonstrated strength, with revenue increasing due to higher volumes and better realisations. Conversely, the fertiliser segment's revenue declined sequentially, impacted by lower volumes and realisations. However, fertiliser segment losses narrowed year-on-year due to reduced fixed and input costs, alongside a one-time income recorded in Q4FY26.
Dividend Recommendation
In light of the strong financial results, the company's board of directors has recommended a dividend of ₹21 per equity share for the financial year 2026. This payout, equivalent to 210% of the face value, is subject to approval from shareholders at the forthcoming annual general meeting.
Financial Year Comparability
GNFC noted that direct year-on-year revenue comparisons for the full financial year might not be entirely straightforward. This is attributed to scheduled annual turnarounds at its Bharuch complex in the current fiscal and at the Dahej complex in the previous fiscal, which affect production volumes.