Gujarat Narmada Valley Fertilizers & Chemicals Q2 FY27 results: net profit up 8.4% to ₹194 crore

How did Gujarat Narmada Valley Fertilizers & Chemicals perform in Q2 FY27?

Gujarat Narmada Valley Fertilizers & Chemicals reported consolidated revenue from operations of ₹2,773 crore in Q2 FY27, up 40.9% from ₹1,968 crore in Q2 FY26 and 23.9% from ₹2,238 crore in Q1 FY27. EBITDA was ₹197 crore, with a margin of 7.1%, compared with ₹185 crore and 9.4% a year ago and ₹393 crore and 17.6% in the previous quarter.

Consolidated profit before tax was ₹241 crore, against ₹230 crore in Q2 FY26 and ₹416 crore in Q1 FY27. Net profit including the share of an associate was ₹194 crore, compared with ₹179 crore a year ago and ₹312 crore in the previous quarter. Basic EPS was ₹13.20, against ₹12.18 and ₹21.22, respectively. On the standalone basis, revenue was ₹2,773 crore and profit after tax was ₹185 crore.

What changed in Gujarat Narmada Valley Fertilizers & Chemicals' costs and profit?

Against Q2 FY26, total expenses increased by ₹795 crore, or 42.6%, to ₹2,660 crore. Cost of materials was ₹1,473 crore, up ₹447 crore or 43.6%, employee cost rose ₹50 crore or 36.8% to ₹186 crore, other expenses increased ₹99 crore or 17.6% to ₹663 crore, and depreciation rose ₹2 crore or 2.5% to ₹83 crore. Finance costs were unchanged at ₹1 crore.

Other income increased by ₹1 crore, or 0.8%, to ₹128 crore, while tax expense rose by ₹3 crore, or 5.7%, to ₹56 crore. There was no exceptional item. Management said the year-on-year increase in revenue was driven by higher realisations across most products and higher volumes in some products. It said PBT was marginally higher because of higher realisations and volumes, partly offset by higher input and fixed costs.

Management said sequential revenue rose because of higher volumes across most products and dividend income, while lower realisations partly offset the increase. It said PBT fell mainly because of lower realisations and higher fixed costs, partly offset by higher volumes. The company also reported substantial liquidation of inventory built up at the beginning of the quarter.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹5,011 crore, up ₹1,442 crore or 40.4% from ₹3,569 crore in H1 FY26. Total income was ₹5,240 crore, up ₹1,394 crore or 36.2%, while profit before tax rose by ₹322 crore, or 96.1%, to ₹657 crore.

Consolidated net profit was ₹506 crore in H1 FY27, up ₹244 crore or 93.1% from ₹262 crore, and basic EPS was ₹34.42, against ₹17.82. Management said the year-on-year comparison was not comparable because the prior-year period included an annual maintenance turnaround at the Bharuch complex.

What do the balance sheet and cash flow show?

Consolidated total assets were ₹12,082 crore on 30 September 2026, against ₹11,359 crore on 31 March 2026. Total equity was ₹9,328 crore, compared with ₹9,115 crore. Inventories increased to ₹1,259 crore from ₹1,018 crore, trade receivables to ₹969 crore from ₹641 crore, and trade payables to ₹591 crore from ₹454 crore.

Consolidated borrowings were ₹109 crore, against no borrowings at the previous balance-sheet date, while cash and cash equivalents fell to ₹11 crore from ₹74 crore. H1 FY27 operating cash flow was ₹141 crore, compared with ₹314 crore in H1 FY26; investing cash flow was negative ₹3 crore against positive ₹28 crore, and financing cash flow was negative ₹310 crore against negative ₹264 crore. Capital expenditure was ₹332 crore, against ₹348 crore.

How has Gujarat Narmada Valley Fertilizers & Chemicals done over the last 8 quarters?

Revenue reached its highest quarterly level in the series at ₹2,773 crore in Q2 FY27, while net profit was ₹194 crore and the EBITDA margin was 7.1%. Revenue had previously fallen to ₹1,601 crore in Q1 FY26, when net profit was ₹83 crore and the EBITDA margin was 1.9%.

The EBITDA margin peaked at 21.8% in Q4 FY26, when revenue was ₹2,208 crore and net profit was ₹396 crore, before declining to 17.6% in Q1 FY27 and 7.1% in Q2 FY27. Revenue rose in each of the last five quarters on a year-on-year basis, while profit rose in each of the last three quarters.

Which businesses drove the quarter?

Fertilizers recorded revenue of ₹1,117 crore in Q2 FY27, up 43.0% from ₹781 crore in Q2 FY26. Segment EBIT was negative ₹38 crore, compared with negative ₹35 crore, and the EBIT margin was negative 3.4%. Management said the loss increased mainly because of higher fixed and input costs in complex fertilisers, partly offset by higher realisations and lower energy norms in Neem Urea.

Chemicals reported revenue of ₹1,631 crore, up 40.4% from ₹1,162 crore, and segment EBIT of ₹177 crore, compared with ₹158 crore. The EBIT margin was 10.9%. Management said segment performance improved mainly because of higher realisations and volumes, partly offset by higher input and fixed costs. Others reported revenue of ₹25 crore, unchanged from ₹25 crore, and EBIT of ₹12 crore, down from ₹14 crore.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, together with the statutory auditors’ limited review reports. It also approved the related press release, and the results were made available on the company’s website.

A separate filing clarified that the board meeting date had been stated incorrectly as 2 November 2025. The company confirmed that the meeting was held on 2 November 2026 and said that no other information in the original intimations had changed. The same-day filings did not announce a dividend, fund raise or appointment.

What did Gujarat Narmada Valley Fertilizers & Chemicals' management say?

Managing Director Sanjeev Kumar said nutrient-based subsidy rates for complex fertilisers were awaited and would take effect from the RABI season. He said subsidy cash receipts were regular, but high feed and fuel prices linked to the geopolitical situation had increased working-capital intensity. He also said high energy prices had affected operating costs, although the company remained profitable.

Management identified lower realisations and higher fixed and input costs as pressures on sequential PBT and the Fertilizer segment. It also cited higher working-capital intensity, the pending complex-fertiliser subsidy rates and the revision of NCU fixed costs, which it said was being pursued with the government at industry level with the task assigned to NITI Aayog. The presentation said the company does not provide forecasts or guidance on future results or business outlook.

Management said the Dahej captive coal-based power plant had started and was reducing operating costs. It also said the opening inventory built up at the beginning of Q2 was substantially liquidated. The presentation listed the Ammonia Expansion at Bharuch, Weak Nitric Acid-III, Ammonium Nitrate-II and the New CFBC Steam Boiler as projects under execution, while BisPhenol-A, Polyols and Acetic Acid were under consideration.

How did Gujarat Narmada Valley Fertilizers & Chemicals shares react?

The filing was released after market hours from a pre-results close of ₹510.85. The stock was down 3.3% after five minutes, down 2.4% after 15 minutes and down 4.0% after 30 minutes. It closed the reaction day down 9.3%, while the median move for the other Commodity Chemicals stocks was 0.0%.

By the next day’s close, the stock was down 7.9% from its pre-results close, compared with a 0.7% median move for the industry. Its move was 8.6 percentage points below the sector median on a cumulative basis. Earlier results-day moves were 0.6% on 5 August 2026, 4.1% on 18 May 2026 and negative 2.5% on 10 February 2026.

How did other Commodity Chemicals companies do?

Fourteen other Commodity Chemicals companies had filed for the quarter as of 4 November 2026. Their median revenue growth was 18.2%, compared with Gujarat Narmada Valley Fertilizers & Chemicals’ 40.9% consolidated revenue growth in Q2 FY27.

Ten peers grew revenue more slowly than the company and four grew faster. Twelve of 17 peers reported higher profit, based on the companies for which profit was compared.