Gujarat Narmada Valley Fertilizers and Chemicals Limited has informed the Exchange regarding a press release dated August 06, 2025, titled "Results for the Quarter ended 30th June, 2025".
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GNFC reported weak Q1 FY25-26 results, with standalone operating revenue falling to ₹1,601 Cr from ₹2,021 Cr a year ago, and net profit dropping to ₹78 Cr from ₹115 Cr. Total revenue stood at ₹1,751 Cr versus ₹2,120 Cr in Q1 FY24-25, while PBT came in at ₹105 Cr versus ₹157 Cr. Management attributed the decline mainly to the annual turnaround shutdown at the Bharuch complex in April 2025, which cut volumes and pushed up fixed costs like repairs and maintenance. Both fertilizer and chemical segments saw lower revenue and profits, with the fertilizer segment posting a ₹100 Cr loss (worse than the ₹44 Cr loss a year ago), while chemicals profit fell to ₹136 Cr from ₹250 Cr. On the positive side, the Anti-Dumping Duty on Aniline was extended from July 2025 to July 2030, providing long-term protection. The company also highlighted improved cash flows from timely government subsidy receipts, and is pursuing energy and fixed cost revisions with the government, expected by year-end. A capex roadmap is being developed with a strategic consultant, and commissioning of a new power plant in FY25-26 should lower TDI production costs at the Dahej complex.
Short-term, results are weak and largely explained by one-time shutdown effects rather than structural issues, so the market may look through the decline. However, persistent losses in the fertilizer segment due to high energy costs and weak chemical realisations remain a concern. Watch for the energy cost revision announcement and power plant commissioning, which could meaningfully improve margins in coming quarters.