Gujarat State Fertilizers & Chemicals has fixed September 11, 2026, as the record date for its upcoming dividend and September 21, 2026, as the cut-off date for e-voting. The company will hold its 64th Annual General Meeting on September 28, 2026.

The board disclosed these details in regulatory filings on August 29, 2026. The dividend payment will be made on or after October 5, 2026, subject to shareholder approval at the AGM.

Key Dates and Details

The company outlined the schedule for the meeting and dividend process:

Shareholders whose names appear on the Register of Members or the list of beneficial owners as of the close of business on September 11, 2026, will be eligible for the dividend if approved. To exercise their right to vote electronically, shareholders must be on record as of September 21, 2026.

The AGM proceedings will be deemed conducted at the registered office in Vadodara, Gujarat. Nidhi Pillai, Company Secretary and Vice President (Legal & HRS), signed the disclosures.

Gujarat State Fertilizers & Chemicals Limited ( Gujarat State Fertilizers & Chemicals ) reported a significant improvement in profitability for the first quarter of FY27, with standalone net profit after tax rising 15.1% year-on-year to ₹161.11 crore. The consolidated net profit attributable to owners of the company increased 14.4% to ₹158.54 crore, reflecting strong operational performance across the group. Earnings per share (basic and diluted) stood at ₹4.04 on a standalone basis, up from ₹3.51 in Q1FY26.

Revenue from operations surged 64.9% to ₹3,581.40 crore on a standalone basis, compared to ₹2,171.65 crore in Q1FY26. This marks the highest-ever Q1 sales for the company. Consolidated revenue followed a similar trajectory, growing 64.1% to ₹3,583.15 crore from ₹2,184.41 crore in the prior year period. The substantial top-line growth was supported by higher cost of materials consumed, which rose to ₹2,409.23 crore from ₹1,257.61 crore in the prior year period, indicating increased production and sales activity.

Segment Performance

The Fertilizers segment delivered a 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 (LMT) to 5.26 LMT on a year-on-year basis. This growth was 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.

However, the Fertilizers segment reported an EBIT margin of 4.09%, down from 8.49% in Q1FY26. This compression was 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. Current sulfur prices have exceeded $1,000 per metric tonne internationally, with domestic average costs reaching approximately INR 82,000 per metric tonne in Q1, now rising towards INR 115,000 per metric tonne.

The Industrial Products segment recorded its second-highest Q1 performance to date. Sales increased by 15% from ₹553 crore to ₹635 crore, while EBIT rose sharply from ₹25 crore to ₹116 crore on a year-on-year basis. The improved performance was 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 volatility, the benzene-capro spread remains above $800, providing a comfortable contribution level.

Financial Performance Highlights

The company’s consolidated EBITDA for Q1FY27 stood at ₹2,430 crore, up from ₹1,920 crore in the corresponding quarter of the previous year. The EBITDA margin contracted to 6.79% from 8.82% in Q1FY26, reflecting the impact of rising input costs on operating profitability despite the surge in revenue.

The company’s profit before tax stood at ₹207.31 crore for the quarter, up from ₹185.59 crore in Q1FY25. Total comprehensive income for the standalone entity reached ₹783.47 crore, significantly higher than the ₹626.47 crore recorded in the corresponding quarter of the previous year. This increase was largely influenced by other comprehensive income items that will not be reclassified to profit or loss, which totaled ₹726.65 crore against ₹567.74 crore in Q1FY25.

Consolidated figures showed consistent growth, with profit before tax increasing to ₹205.14 crore from ₹184.49 crore. The share of profit from associates contributed ₹3.11 crore to the consolidated bottom line, down slightly from ₹5.02 crore in the previous year. Equity share capital remained unchanged at ₹79.70 crore.

Liquidity and Working Capital

Management highlighted a temporary cash crunch during the quarter due to delayed government subsidy releases and strategic inventory buildup. As of June 30, 2026, the company had incurred ₹500 crore in borrowings. Outstanding subsidy dues amounted to approximately ₹500 crore, though management noted that subsidies are being released regularly. The company strategically deployed funds to procure raw materials and finished goods to ensure supply continuity during the Rabi season, anticipating continued high raw material prices.

What the Numbers Show

A key analytical observation is the divergence between revenue growth and net profit expansion. While revenue grew by nearly 65%, net profit expanded by only 15%. This suggests that cost structures, particularly material costs and employee benefits, absorbed a significant portion of the top-line gains. 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. Additionally, changes in inventories provided a credit of ₹758.07 crore compared to ₹231.81 crore in the prior year, indicating a strategic build-up of finished goods or work-in-progress that positively impacted current quarter earnings but may reflect future cost carry-forwards.

Corporate Actions and Outlook

During its meeting held on August 12, 2026, the Board of Directors approved the unaudited financial results for the quarter ended June 30, 2026. The Board also reappointed M/s N D Birla & Co., Cost Accountants, Ahmedabad, as Cost Auditors for the financial year 2026-27. The firm will be remunerated ₹4,40,000 per annum plus applicable service tax and out-of-pocket expenses, subject to ratification by members at the ensuing Annual General Meeting.

The company continues to advance its capex plans aligned with its strategic growth roadmap. Ongoing projects include 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. The DAP train conversion for fungible production of APS at Sikka is expected to be commissioned within one to two months. Additionally, the Board has approved new projects at Dahej involving both fertilizer and industrial products, with further details expected after technology tie-ups are finalized.

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. Melamine production was negligible in Q1 due to high natural gas costs and cheap Chinese imports; the company has approached the Government of India for anti-dumping duties.

The financial results were reviewed by Statutory Auditors M/s CNK & Associates LLP, Chartered Accountants, Vadodara, who issued an unmodified limited review report. The consolidated results include subsidiaries GSFC Agrotech Ltd, Vadodara Jal Sanchay Private Limited, and Gujarat Port and Logistics Company Limited, along with associates Gujarat Green Revolution Company Limited, Vadodara Enviro Channel Ltd, and Karnalyte Resources Inc.