Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) Q3 25/26 earnings summary

Executive summary

• Revenue increased quarter-over-quarter and year-over-year, mainly due to higher chemical product volumes, though profit was impacted by lower other income and realizations, partially offset by lower input costs and higher volumes.

• Fertilizer segment remained stable with slight improvement in NBS rates; complex fertilizers and urea performed well in terms of volume.

• Government support on fertilizer subsidy improved cash flow and kept working capital levels low.

• Annual plant turnarounds at Bharuch and Dahej complexes affected nine-month comparisons.

• Board approved appointments of new Managing Director and Additional Director, and a revision in the Related Party Transaction Policy.

Financial highlights

• Q3 FY26 operating revenue: ₹1,996 crore (up from ₹1,899 crore YoY); PAT: ₹150 crore (down from ₹158 crore YoY); 9M FY26 operating revenue: ₹5,565 crore (down from ₹5,837 crore YoY).

• Working capital remained under control due to steady subsidy flows; subsidy outstanding at quarter-end was INR 302 crore.

• Standalone Q3 PBT: ₹204 crore (down from ₹211 crore YoY); 9M PBT: ₹539 crore (up from ₹503 crore YoY).

• Standalone Q3 EPS: ₹10.20 (down from ₹10.75 YoY); 9M EPS: ₹27.55 (up from ₹25.51 YoY).

• Standalone net profit margin for Q3: ~7.5%.

Outlook and guidance

• Ongoing capex projects (coal-based power plant, ammonia expansion, nitric acid, ammonium nitrate) are on track and expected to enhance both revenue and profitability.

• No major shutdowns planned for Q4; next major annual shutdown scheduled for Q2 FY27.

• Volume growth expected in TDI and downstream products as reliability improves and new capacities come online.

• Management expects cost advantages from capacity-building CapEx and operational transformation initiatives.

• Revision in energy and fixed cost is being pursued with the government, with an announcement expected by June 2026.