Gujarat State Fertilizers & Chemicals Q2 FY27 results: net profit down 38.2% to ₹200.24 crore

How did Gujarat State Fertilizers & Chemicals perform in Q2 FY27?

Consolidated revenue for the September 2026 quarter was ₹4,741 crore, up 48.7% from ₹3,187 crore in Q2 FY26 and 32.3% from ₹3,583 crore in Q1 FY27. EBITDA fell to ₹139.67 crore from ₹336.62 crore a year earlier, and the EBITDA margin declined 7.7 percentage points to 2.9%. Profit before tax was ₹240.47 crore and profit after tax was ₹200.24 crore, down from ₹324.11 crore in Q2 FY26. Basic EPS was ₹5.02, compared with ₹8.13 a year earlier and ₹3.98 in Q1 FY27.

On a standalone basis, Q2 FY27 revenue was ₹4,711 crore and profit after tax was ₹183.08 crore. The consolidated result includes revenue of ₹4,740.94 crore and profit after tax of ₹200.24 crore for the quarter. Against Q1 FY27, consolidated profit before tax rose to ₹240.47 crore from ₹202.03 crore, while profit after tax increased to ₹200.24 crore from ₹158.54 crore.

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

Total expenses rose 60.9% year on year to ₹4,671 crore, outpacing the 48.7% increase in revenue. Cost of materials was the main reported increase, rising 60.1% to ₹2,099 crore from ₹1,311 crore. Finance costs rose 726.3% to ₹14.79 crore, and depreciation increased 8.4% to ₹54.75 crore, while employee cost declined 0.2% to ₹192.76 crore. Other expenses fell 15.5% to ₹402.09 crore.

Other income increased 19.1% to ₹170.34 crore from ₹142.97 crore, and tax expense fell 53.0% to ₹49.01 crore from ₹104.38 crore. There was no exceptional item in either Q2 FY27 or Q2 FY26. Management attributed the earnings pressure to sharp increases in Sulphur and Natural Gas prices, which compressed fertilizer margins despite higher DAP realisations.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue was ₹8,324.09 crore, up 55.0% from ₹5,371.78 crore in H1 FY26. Total income rose 53.5% to ₹8,528.01 crore from ₹5,556.50 crore. Profit before tax declined 27.1% to ₹442.50 crore from ₹606.74 crore, while profit after tax fell 22.5% to ₹358.78 crore from ₹462.71 crore.

H1 FY27 basic EPS was ₹9.00, down from ₹11.61 in H1 FY26. Revenue growth came alongside lower profitability, with the filing showing higher expenses than in the year-ago period and management citing increased Sulphur and Natural Gas costs as a pressure on fertilizer margins.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹17,815.13 crore, compared with ₹14,389.55 crore at 31 March 2026. Total equity was ₹13,082.71 crore against ₹12,277.52 crore, borrowings were ₹632.68 crore against ₹25.00 crore, and cash was ₹741.88 crore against ₹191.77 crore. Inventories were ₹2,968.82 crore, trade receivables ₹3,994.08 crore and trade payables ₹2,435.90 crore.

For H1 FY27, operating cash flow was negative ₹129.24 crore, compared with ₹450.92 crore in H1 FY26. Investing cash flow was ₹95.34 crore against negative ₹12.13 crore, while financing cash flow was ₹584.01 crore against negative ₹204.29 crore. Capital expenditure was ₹102.32 crore, compared with ₹227.99 crore in H1 FY26.

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

Revenue rose year on year in each of the last six quarters. It fell to ₹1,922.19 crore in Q4 FY25 before reaching ₹4,740.94 crore in Q2 FY27, the highest level in the reported trend. Profit after tax peaked at ₹324.11 crore in Q2 FY26 and bottomed at ₹52.14 crore in Q4 FY26; it was ₹200.24 crore in the latest quarter.

The EBITDA margin peaked at 10.6% in Q2 FY26 and fell to 3.2% in Q4 FY26 before recovering to 6.5% in Q1 FY27. It then declined to 2.9% in Q2 FY27. Thus, revenue moved higher in the latest quarter, while the margin and profit moved lower from the previous quarter.

Which businesses drove the quarter?

Fertilizer Products revenue was ₹3,937.37 crore, up 53.2% from ₹2,569.32 crore in Q2 FY26. Segment EBIT fell to ₹34.75 crore from ₹229.38 crore, and the reported EBIT margin was 0.9%. Management said fertilizer sales value increased 55% despite a 6% decline in sales volume from 6.08 LMT to 5.69 LMT, with higher DAP realisations supporting revenue.

Industrial Products revenue was ₹803.57 crore, up 30.0% from ₹618.05 crore in Q2 FY26. Segment EBIT rose to ₹65.64 crore from ₹53.92 crore, with an EBIT margin of 8.2%. Management said better realisations across major products supported the improvement, while the Capro-Benzene spread widened from US$ 512 per MT to US$ 849 per MT.

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, along with the statutory auditors’ limited review report. No dividend, fund raise or appointment was reported in the same-day filings provided. The Board also approved steps to reduce Gujarat State Fertilizers & Chemicals’ stake in Gujarat Port and Logistics Company Limited to 11%, after which GPLCL will cease to be a subsidiary.

The company said the transfer of 6,50,000 equity shares to Gujarat Maritime Board would be made at ₹10 per share, with a total consideration of ₹65,00,000. It also approved renunciation of its rights entitlement in favour of Gujarat Industrial Development Corporation and Gujarat Rail Infrastructure Development Corporation Limited. GPLCL has not commenced operations, and the company said its cessation as a subsidiary will not affect its revenue or business.

What did Gujarat State Fertilizers & Chemicals' management say?

Management said higher DAP realisations and better industrial-product pricing lifted the top line, while a 6% fall in fertilizer volume and sharp increases in Sulphur and Natural Gas prices compressed fertilizer EBIT. It cited Sulphur up 327% and Natural Gas up 62%, and said the Capro-Benzene spread widened from US$ 512 per MT to US$ 849 per MT. The company said operational efficiency, optimal product mix, sharper inventory management and timely market supplies were priorities for Q3.

Management said the Caprolactam–Benzene spread was expected to moderate in Q3 FY26-27 as regional supply normalised, potentially affecting Caprolactam–Nylon chain margins. It also said demand for Melamine and Technical Grade Urea was expected to remain steady, while HX Crystal exports may improve and other Industrial Products demand was projected to remain steady. Urea subsidy rates remained uncertain pending finalisation of the actual Pool Gas rate, and Rabi-season risks included high fertiliser inventories, a subdued monsoon and lower reservoir levels.

Management said the C-Train Modification for additional 1200 MTPD APS production at Sikka was commissioned on 23 October 2026. The ongoing Phosphoric Acid and Sulphuric Acid Project at Sikka targets 198 KTPA PA & 594 KTPA SA, with schedule columns extending from H2 26-27 through H1 29-30. No analyst questions were provided in the materials supplied.

How did Gujarat State Fertilizers & Chemicals shares react?

The filing appeared after market hours. From the price when the filing appeared, the stock moved down 0.2% after five minutes, down 0.5% after 15 minutes and down 0.7% after 30 minutes. On the reaction day, it was unchanged at 0.0% from the previous close, while the Fertilizers industry median moved up 0.2%.

By the next day’s close, the stock was up 3.1% from its pre-results close, compared with a 3.0% median move for the industry’s other stocks. The stock therefore outperformed the sector by 0.1 percentage points. Earlier results-day moves included up 4.2% on 6 October 2026, down 1.1% on 12 August 2026, down 3.1% on 22 May 2026 and up 0.1% on 9 February 2026.

How did other Fertilizers companies do?

Five other Fertilizers companies that had filed for the quarter were compared with Gujarat State Fertilizers & Chemicals. Their median revenue growth was 22.3%, below the company’s 48.7% growth in Q2 FY27. All five peers grew slower than the company, and none grew faster. Two of the five peers reported higher profit.