GNFC Q2 Profit SKYROCKETS 70%! Investor Alert: Shares Surge 5% Amidst Strong Performance & Positive Outlook!

Chemicals

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Updated on 12 Nov 2025, 01:40 pm

Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) announced robust financial results for the second quarter of FY26, with a net profit of ₹179 crore, marking a significant 70.4% increase compared to ₹105 crore in the same period last year. The company's revenue saw a modest growth of 2.7%, reaching ₹1,968 crore, driven by better sales volumes and enhanced cost efficiencies. A key highlight was the near doubling of EBITDA to ₹185 crore from ₹90 crore, resulting in a substantial expansion of profit margins from 4.7% to 9.4% year-on-year.

GNFC Managing Director Dr. T. Natarajan attributed this strong performance to improved sales and a decline in input costs, noting that the prior quarter's results were affected by annual maintenance shutdowns. The company expressed optimism for the future, expecting improved competitiveness due to the government’s revised nutrient-based subsidy rates for the Rabi season and the extension of the anti-dumping duty on Toluene Diisocyanate (TDI) imports until March 2026.

Further strategic initiatives include pursuing revisions in energy and fixed costs expected by year-end. GNFC is also progressing with a brownfield investment for a 163 KTPA ammonium nitrate melt plant, aligning with the upcoming commissioning of its Weak Nitric Acid (WNA-III) plant. The operationalization of its power plant in FY26 is projected to significantly enhance cost efficiency at the Dahej TDI complex, further bolstering margins.

The board has approved a final dividend of ₹18 per equity share for FY25, totaling ₹264.49 crore. Following these positive results and outlook, shares of GNFC ended 5.02% higher at ₹518.10 on the NSE.

Impact This news is highly positive for Gujarat Narmada Valley Fertilizers & Chemicals Ltd shareholders, signaling strong operational and financial health. The government's supportive policies, such as increased subsidies and extended import duties, are expected to provide a stable operating environment and improve cost competitiveness for Indian chemical and fertilizer manufacturers. The company's strategic investments in new plants and efficiency enhancements position it well for sustained growth. Rating: 8/10

Difficult Terms: YoY: Year-on-Year, comparing current period data with the same period in the previous year. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization, an indicator of operational profitability. Margins: The profit earned by a company as a percentage of its revenue. Nutrient-based subsidy (NBS): Government financial assistance provided to fertilizer producers based on the nutrient content (N, P, K) of fertilizers. Rabi season: The winter cropping season in India. Anti-dumping duty: A tariff imposed on imported goods sold below their fair market value to protect domestic industries. TDI: Toluene Diisocyanate, a key chemical used in the production of polyurethane foams and coatings. Brownfield investment: Investment in existing industrial sites, often for expansion or modernization. KTPA: Kilo Tonnes Per Annum, a unit measuring production capacity per year. Commissioning: The process of bringing a new plant or equipment into operational use. Weak Nitric Acid (WNA): Nitric acid with a concentration typically below 70%. Dahej TDI complex: GNFC's Toluene Diisocyanate manufacturing facility located in Dahej, Gujarat.