State-run Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) reported an 88 per cent year-on-year jump in consolidated profit after tax (PAT) to ₹396 crore for the quarter ended March 2026, aided by improved product realisations, lower input costs and one-time income in the fertiliser segment.

Revenue from operations rose 7.4 per cent to ₹2,208 crore during the quarter. The sharp rise in profitability came despite relatively moderate revenue growth, reflecting a strong improvement in operating margins during the quarter. The company said earnings were boosted by better sales realisations across a majority of products, along with lower raw material and energy-linked input costs.

The chemicals segment, particularly, benefited from higher realisations, improved volumes and higher other income, while losses in the fertiliser segment narrowed due to lower fixed costs and one-time income booked during the quarter.

“The result has improved mainly due to better sales realisation and lower input costs,” Managing Director Rajkumar Beniwal said. GNFC, a joint sector enterprise promoted by the Gujarat Government and Gujarat State Fertilizers & Chemicals Ltd (GSFC), operates integrated fertiliser and chemical manufacturing facilities at Bharuch in Gujarat.

Revenue from the fertiliser segment rose 1.6 per cent year-on-year in Q4, supported by higher volumes, although realisations remained under pressure. The chemicals segment continued to outperform, with revenues rising 9.1 per cent, driven by better product realisations. Sequentially, the chemicals business also posted a stronger performance due to higher volumes and realisations, partially offset by elevated input costs.

For the full year FY26, GNFC reported a 35 per cent increase in consolidated PAT at ₹808 crore, even as revenue declined 1.5 per cent to ₹7,773 crore. The company attributed the decline in annual revenue comparability to turnaround activities at the Bharuch complex during FY26, compared with shutdowns at the Dahej complex in the previous year.

On a full-year basis, profit before tax improved primarily due to lower input costs, especially in the chemicals segment. However, the fertiliser segment remained under pressure due to higher energy norms and fixed costs. The board of directors recommended a dividend of ₹21 per equity share, or 210 per cent for FY26, subject to shareholder approval at the upcoming annual general meeting.

Published on May 18, 2026