Gujarat State Fertilizers & Chemicals Limited (GSFC) delivered exceptional financial performance in Q1FY27, with standalone net profit after tax rising 15.1% year-on-year to ₹161.11 crore. The company's revenue from operations surged 64.9% to ₹3,581.40 crore compared to ₹2,171.65 crore in Q1FY26, marking the highest-ever Q1 sales for the company. Earnings per share (basic and diluted) stood at ₹4.04 on a standalone basis, up from ₹3.51 in Q1FY26. The consolidated net profit attributable to owners increased 14.4% to ₹158.54 crore, with profit before tax growing 11.7% to ₹207.31 crore and total comprehensive income reaching ₹783.47 crore, significantly higher than ₹626.47 crore in the corresponding quarter of the previous year.
The company's exceptional revenue performance was primarily driven by the Fertilizers segment, which delivered strong operating performance with sales increasing by 82% from ₹1,619 crore to ₹2,947 crore, marking the highest-ever Q1 fertilizer sales. Sales volumes grew by 17% from 4.51 lakh metric tonnes to 5.26 lakh metric tonnes on a year-on-year basis, driven by higher manufactured and traded Diammonium Phosphate (DAP) sales volumes, supported by the Government's DAP Special Package to compensate for international price variations. The Industrial Products segment recorded its second-highest Q1 performance to date, with sales increasing by 15% from ₹553 crore to ₹635 crore and EBIT rising sharply from ₹25 crore to ₹116 crore on a year-on-year basis, supported mainly by higher sales of Caprolactam and a substantial rise in the Capro-Benzene spread from $540 per metric tonne to $816 per metric tonne.
Despite strong revenue growth, the company faced margin compression due to significant increases in key raw material prices amid global geopolitical developments. Sulphur prices rose by 231%, Ammonia by 144%, Natural Gas by 38%, and P2O5 by 30% on a year-on-year basis, impacting the Fertilizers segment's EBIT margin, which compressed to 4.09% from 8.49% in Q1FY26. The consolidated EBITDA stood at ₹2,430 crore, up from ₹1,920 crore in the corresponding quarter of the previous year, but EBITDA margin contracted to 6.79% from 8.82% in Q1FY26, reflecting the impact of rising input costs on operating profitability. Cost of materials consumed rose 91.6% to ₹2,409.23 crore, outpacing revenue growth, while employee benefits expense increased 10.1% to ₹191.29 crore. The divergence between revenue growth and net profit expansion suggests that cost structures absorbed a significant portion of top-line gains.
The company continues to advance its capex plans aligned with its strategic growth roadmap, with ongoing projects including the C-Train Modification for APS Production at the Sikka Unit (1,200 MTPD APS) and the Phosphoric Acid (PA) and Sulphuric Acid (SA) Project at Sikka (198 KTPA PA & 594 KTPA SA), both scheduled for completion in Q2FY27. During its meeting held on August 12, 2026, the Board of Directors approved the unaudited financial results and reappointed M/s N D Birla & Co., Cost Accountants, Ahmedabad, as Cost Auditors for FY2026-27. Looking ahead, management noted that while the revival of rainfall in July has improved the outlook for the agri-input sector ahead of the Rabi season, evolving global geopolitical developments continue to create uncertainty around raw material availability and pricing. The Caprolactam-Benzene spread is expected to remain stable to soft in the near term amid crude oil volatility, potentially exerting pressure on margins across the Caprolactam-Nylon value chain.
