GSFC Reports Record Q2 Performance with 20% Revenue Growth
Gujarat State Fertilizers & Chemicals Limited (GSFC) announced strong Q2 FY 2025-26 results with total sales reaching Rs. 3,140.00 crore, up 20% year-on-year. Profit After Tax (PAT) increased by 6% to Rs. 320.00 crore. The Fertilizer segment saw 21% revenue growth, while the Industrial Products segment turned profitable with a 13% sales increase. GSFC anticipates positive outlook for the upcoming quarter, citing favorable agricultural conditions and government support. The company is also progressing on expansion projects including Sulphuric Acid and Phosphoric Acid capacities.
*this image is generated using AI for illustrative purposes only.
Gujarat State Fertilizers & Chemicals Limited (GSFC) has announced its financial results for the second quarter, showcasing a robust performance across key metrics.
Financial Highlights
GSFC delivered its highest-ever Q2 performance, with total sales reaching Rs. 3,140.00 crore, marking a significant 20% year-on-year growth. The company's Profit After Tax (PAT) stood at Rs. 320.00 crore, representing a 6% increase compared to the same period last year.
Here's a breakdown of the key financial metrics:
| Particulars (Rs. in crore) | Q2 FY 2025-26 | Q2 FY 2024-25 | YoY Change |
|---|---|---|---|
| Operating Revenue | 3,140.00 | 2,623.00 | +20% |
| Total Revenue | 3,282.00 | 2,775.00 | +18% |
| Operating EBITDA | 333.00 | 289.00 | +15% |
| Profit Before Tax (PBT) | 424.00 | 391.00 | +8% |
| Profit After Tax (PAT) | 320.00 | 303.00 | +6% |
| EPS (Rs./Share) | 8.04 | 7.60 | +6% |
Segment Performance
Fertilizer Segment
The Fertilizer segment was a key driver of growth, registering a 21% increase in revenue. This growth was supported by higher sales volumes, which rose from 5.47 Lakh MT to 6.08 Lakh MT, including substantial Di-Ammonium Phosphate (DAP) trading.
However, the segment's EBIT moderated to Rs. 224.00 crore from Rs. 257.00 crore in the previous year. This moderation was attributed to steep increases in key raw material prices:
- Phosphoric Acid: Up by 20%
- Sulphuric Acid: Up by 123%
- Sulphur: Up by 150%
These price hikes offset the benefit of higher realizations in P&K fertilizers. The company noted that softer prices of Natural Gas and Ammonia provided partial relief, although a 15% decline in Urea realization weighed on margins.
Industrial Products Segment
The Industrial Products segment demonstrated a strong turnaround:
- Sales increased by 13% year-on-year to Rs. 618.00 crore
- EBIT improved from a loss of Rs. 17.00 crore to a profit of Rs. 54.00 crore
This improvement was led by:
- Higher sales of traded products like Ammonia
- Increased production and sale of HX Crystal
These factors helped overcome headwinds in Caprolactam and other major industrial products. The Caprolactam–Benzene spread declined to USD 512.00 per MT from USD 620.00 per MT, but cost optimization measures and product-mix management supported profitability.
Outlook
GSFC anticipates a positive outlook for the upcoming quarter, citing several factors:
- An above-normal southwest monsoon
- Higher Minimum Support Prices for key Rabi crops
- Healthy demand expected for agri-inputs
- Government announcement of NBS subsidy rates for H2 2025-26, with a 10% increase in Phosphorus and Sulphur nutrients
- Comfortable opening fertilizer inventories for the Rabi season
The company expects to achieve sales in line with availability built up through its domestic manufacturing capacities during the third quarter.
For the Industrial Products segment, GSFC anticipates:
- Pressure on the Caprolactam–Benzene spread due to oversupply conditions and a prolonged slowdown in China
- Steady demand for Melamine in both domestic and export markets
- Soft domestic demand for HX Crystal, with potential improvement in export volumes
- Stable demand for other Industrial Products, though pricing pressure may persist due to cheaper Chinese imports
Overall, GSFC projects stable demand and turnover in the Industrial Products segment for Q3 2025-26.
Expansion Plans
GSFC has outlined its ongoing expansion projects:
| Project | Capacity | Timeline |
|---|---|---|
| Sulphuric Acid (SA-V) Project | 198 KTPA | FY 2025-26 Q3 |
| C-Train Modification for APS Production at Sikka Unit | 1200 MTPD | FY 2025-26 Q3-Q4, FY 2026-27 Q1 |
| Phosphoric Acid (PA) and Sulphuric Acid (SA) Project at Sikka Unit | 198 KTPA PA & 594 KTPA SA | FY 2025-26 Q3 to FY 2027-28 |
These expansion plans are expected to enhance GSFC's production capabilities and market position in the coming years.
GSFC's Q2 FY 2025-26 results demonstrate the company's resilience in the face of raw material volatility and its ability to maintain growth momentum across both business segments. The company's strategic initiatives and expansion plans position it well for continued growth in the fertilizer and industrial products markets.
Historical Stock Returns for Gujarat State Fertilizers & Chemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.30% | +3.67% | +1.46% | -1.06% | -2.09% | +204.06% |
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