Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) reported a robust performance for Q4 and full-year FY26, highlighted by a 35% increase in annual Profit After Tax (PAT) to INR 797 crore. The company celebrated 50 years of operations, showcasing financial resilience through diverse segments. Despite headwinds, GNFC declared a dividend of 210%, or INR 21 per share, the second-highest in its half-century history, driven by strong chemical realizations and improved operational efficiency.
Financial Highlights and Annual Performance
GNFC delivered a strong financial performance in FY26, marked by a 35% year-on-year growth in PAT to INR 797 crore, with a total Profit Before Tax (PBT) of INR 1,065 crore. Revenue for the quarter showed an 11% improvement on a sequential basis and a 7% increase compared to the same period last year. Management attributed these gains to better realizations in the chemical segment, particularly in Q4, and benign raw material prices throughout the year.
Segmental Insights and Market Dynamics
The company navigated complex market conditions, including geopolitical impacts on logistics and raw material availability. While chemical volumes faced some caps due to production maintenance, the fertilizer segment performed strongly. Notably, the IT division saw significant growth, with revenue up 20% and profits doubling from INR 17 crore to INR 35 crore. The management noted that production levels for key products like TDI, Acetic Acid, and Ammonium Nitrate remain optimized, with plant utilization rates for most chemicals exceeding 100%.
Strategic Projects and Future Outlook
GNFC is actively pursuing a robust capital expenditure pipeline to bolster long-term growth. The company confirmed that its coal-based captive power project (CCPP) is expected to be operational by August 2026, offering significant monthly cost-saving potential. Furthermore, key projects including ammonia expansion, weak nitric acid, and ammonium nitrate melt are currently on track, with expected commissioning in FY27. The company has allocated a capex of approximately INR 2,800 crore for FY27 to support these strategic initiatives.
Shareholder Value
In recognition of its 50-year milestone and strong cash flow generation, the Board has declared a dividend of 210%, equating to INR 21 per share. This represents the second-highest dividend payout in the company’s history, reflecting confidence in its balance sheet strength and commitment to delivering consistent value to shareholders.
Source: BSE
