Gujarat State Fertilizers & Chemicals Ltd (GSFC) reported a 38.2% year-on-year decline in net profit to ₹200.2 crore for the second quarter, compared with ₹324.1 crore in the corresponding period last year. According to reports from CNBC TV18, revenue from operations increased 48.8% YoY to ₹4,741 crore from ₹3,187 crore in the year-ago quarter. However, earnings before interest, taxes, depreciation and amortisation (EBITDA) declined 58.5% to ₹140 crore from ₹337 crore a year earlier, with the EBITDA margin contracting to 3% from 11% in the corresponding quarter last year. The company achieved its highest-ever second-quarter and first-half revenue, with total sales rising 50% year-on-year to ₹4,711 crore in Q2FY27 and increasing 56% to ₹8,293 crore in H1FY27.
The company achieved its highest-ever second-quarter and first-half revenue, with total sales rising 50% year-on-year to ₹4,711 crore in Q2FY27 and increasing 56% to ₹8,293 crore in H1FY27. As reported by CNBC TV18, growth in the top line was constrained by an unprecedented increase in key raw material prices driven by geopolitical pressures. The fertiliser segment recorded a 55% YoY increase in sales value, adding ₹1,386 crore, despite a 6% decline in sales volume to 5.69 lakh metric tonnes from 6.08 LMT. The growth was primarily driven by higher diammonium phosphate (DAP) realisations, with DAP revenue increasing by ₹1,659 crore, supported by the government's DAP Special Package to compensate for international price variations.
Sharp increases in key raw material costs significantly affected margins, with sulphur prices rising 327% and natural gas increasing 62%. According to CNBC TV18, the fertiliser segment's EBIT fell to ₹17 crore from ₹224 crore in Q2FY26. The company noted that urea subsidy rates remain subject to revision following the finalisation of the actual Pool Gas rate by FICC-GAIL, which has been pending since April 2026. Despite these challenges, the company maintained uninterrupted operations and ensured supply continuity during the quarter, with changes in product mix, responsive production planning and timely pricing actions helping mitigate the impact on core margins.
The industrial products segment continued its positive performance with sales increasing by ₹185 crore, registering 30% growth over Q2FY26. As reported by CNBC TV18, EBIT improved to ₹66 crore from ₹54 crore in the year-ago quarter, supported by better realisations across major products in line with market trends. Sales of caprolactam and nylon increased by ₹58 crore and ₹60 crore respectively, mainly due to higher realisations, while Anone sales rose by ₹36 crore driven by higher volumes. Technical Grade Urea (TGU) sales increased by ₹26 crore, and these gains were partly offset by a ₹5 crore decline in melamine sales. The Capro-Benzene spread improved significantly to $849 per metric tonne from $512 per MT.
On the capital expenditure front, the company continues to advance projects aligned with its strategic growth roadmap. The C-Train modification for an additional 1,200 metric tonnes per day (MTPD) of Ammonium Phosphate Sulphate (APS) production at its Sikka unit was commissioned on October 23, 2026. Looking ahead, GSFC expects the Caprolactam-Benzene spread to moderate in Q3FY27 as regional supply normalises, potentially affecting margins across the Caprolactam-Nylon value chain. The company plans to prioritise operational efficiency, optimal product mix, and sharper inventory management for Q3, while maintaining focus on strengthening channel competitiveness and protecting sales realisations through a proactive and disciplined approach.
