Gujarat State Fertilizers & Chemicals Limited (GSFC) announced its financial results for the second quarter and half-year ended September 30, 2026. The company achieved its highest-ever Q2 and H1 top-lines, with Q2 FY27 sales reaching ₹4,711 Crores, a 50% YoY growth. The Fertilizer segment saw a 55% rise in sales value, while the Industrial Products segment grew by 30%. Despite increased raw material costs, the company maintained resilient operations.
GSFC Announces Strong Q2 FY27 Financial Performance
Gujarat State Fertilizers & Chemicals Limited (GSFC) has reported a robust financial performance for the second quarter (Q2) and the first half (H1) of the financial year 2026-27, ending September 30, 2026. The company achieved its highest-ever quarterly and half-yearly top-lines, reflecting strong demand and effective business strategies.
Record Top-Line Growth
In Q2 FY27, GSFC’s total sales stood at ₹4,711 Crores, marking an impressive 50% year-on-year growth. For the half-year ended September 30, 2026, the company reported total sales of ₹8,293 Crores, an increase of 56% compared to the previous year. This significant growth was primarily driven by strong performance in both its Fertilizer and Industrial Products segments, despite challenges posed by unprecedented raw material price increases.
Segmental Performance Highlights
The Fertilizer segment witnessed a substantial 55% YoY growth in sales value during Q2 FY27, with sales increasing by ₹1,386 Crores. This growth was achieved despite a 6% decline in sales volume. Higher DAP realization and the Government’s DAP Special Package contributed positively to the segment’s revenue. However, sharp increases in raw material costs, particularly Sulphur (+327%) and Natural Gas (+62%), compressed the EBIT of this segment to ₹17 Crores from ₹224 Crores in Q2 FY26.
The Industrial Products segment continued its positive momentum, with sales growing by ₹185 Crores in Q2 FY27, representing a 30% growth over Q2 FY26. Earnings Before Interest and Taxes (EBIT) for the segment improved to ₹66 Crores from ₹54 Crores, supported by better realisations across key products. Sales of Caprolactam and Nylon saw significant increases, driven by higher pricing. The Capro-Benzene spread also improved considerably to US$ 849 per MT from US$ 512 per MT.
Resilient Operations and Outlook
GSFC maintained uninterrupted operations and ensured supply continuity amidst heightened geopolitical uncertainty and evolving global supply dynamics. The company’s agile approach in product mix, production planning, and pricing actions helped mitigate the impact of market volatilities and defend core margins.
Looking ahead, GSFC is advancing its capex plans, with the C-Train Modification for additional APS production at Sikka Unit already commissioned. The outlook suggests a competitive Rabi season for fertilizers, with inventory levels high. Demand for fertilizers may be constrained by subdued monsoon conditions, particularly in Southern India. The company expects forthcoming NBS subsidy rates to partially mitigate elevated raw material costs. The Caprolactam-Benzene spread is anticipated to moderate, while demand for Melamine and Technical Grade Urea is expected to remain steady.
Financial Snapshot (Q2 FY27 vs FY26)
- Operating Revenue: ₹4,711 Crores (Q2 FY27) vs ₹3,140 Crores (Q2 FY26)
- Total Revenue: ₹4,881 Crores (Q2 FY27) vs ₹3,282 Crores (Q2 FY26)
- Operating EBIDTA: ₹131 Crores (Q2 FY27) vs ₹333 Crores (Q2 FY26)
- PBT: ₹231 Crores (Q2 FY27) vs ₹424 Crores (Q2 FY26)
- PAT: ₹183 Crores (Q2 FY27) vs ₹320 Crores (Q2 FY26)
- EPS (Rs/ Share, not annualised): ₹4.60 (Q2 FY27) vs ₹8.04 (Q2 FY26)
Source: BSE
