Gujarat State Fertilizers & Chemicals Ltd (GSFC) saw its net profit decline by 27% to ₹52.14 crore in the March quarter, down from ₹71.76 crore in the same period last year. This occurred despite a significant 35% increase in total income, which rose to ₹2,668.12 crore from ₹1,978.85 crore year-on-year.
For the full fiscal year, GSFC reported a net profit of ₹673 crore, an increase from ₹591.16 crore in the prior year. Total income for the fiscal year also grew to ₹11,221.87 crore from ₹9,848.64 crore. The company's board has recommended a dividend of ₹5 per equity share.
Fertiliser Segment Performance
The company's fertiliser division performed well, with sales increasing 17% to ₹1,196 crore and sales volumes growing 12% to 22.31 lakh tonnes. However, this segment's profitability was squeezed by a sharp rise in the cost of key raw materials such as sulphur and sulphuric acid. These price increases are linked to ongoing global geopolitical events.
Outlook for FY27
GSFC expects a challenging environment for its fertiliser segment in the first quarter of fiscal year 2026-27. Volatility in global raw material markets, influenced by Middle Eastern geopolitical events, is predicted to continue and impact profit margins.
