Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) released its Investor Presentation following the Q3 FY 25-26 results call. Management highlighted improved Q-o-Q revenue driven by higher chemical volumes. Key updates cover segment performance, feedstock spreads (Toluene, Methanol, Benzene), energy input trends, and an overview of critical expansion projects underway, including a Coal Based Steam & Power Plant at Dahej. Financial comparisons note that 9M figures are not comparable due to annual turnarounds.
Q3 FY 25-26 Performance Highlights
The Managing Director shared results for Q3 FY 25-26, noting that Revenue improved Q-o-Q due to higher volume in chemical products. While Q-o-Q profit saw a dip due to lower other income and realizations, this was partially offset by lower input costs. Year-on-year (Y-o-Y) Q3 results were marginally lower due to similar factors. Management emphasized that Y-o-Y 9M Revenue & Result are not comparable due to annual turnarounds conducted at the Bharuch Complex in the current 9M and the Dahej Complex in the previous 9M.
The company confirmed that the revision in energy and fixed cost is being pursued with the Government, with an expected announcement by June-26. Furthermore, the release of fertilizer subsidy by Gol has helped keep working capital levels low, improving cash flow.
Financial Snapshot (₹ Crores)
A summary of key financial figures reveals the following performance points:
| Particulars | Q3 FY 25-26 | Q2 FY 25-26 | Q3 FY 24-25 | 9M FY 25-26 | 9M FY 24-25 |
| Operating Revenue | 1,996 | 1,968 | 1,899 | 5,565 | 5,837 |
| Total Revenue | 2,093 | 2,095 | 2,056 | 5,939 | 6,216 |
| PBT | 204 | 230 | 211 | 539 | 503 |
| PAT | 150 | 177 | 158 | 405 | 375 |
Segment Performance Analysis
Q3 Comparison
In Q-o-Q Q3 comparison, the Fertilizer Segment loss decreased, primarily due to lower realization in Q2 FY 25-26. The Chemical Segment performance marginally decreased due to lower realization and decreased operating income, partially offset by increased volume and lower input costs.
Year-on-Year Q3 showed that the Fertilizer Segment loss decreased due to higher realization and reduced input costs. Conversely, the Chemical Segment performance decreased due to lower realization.
9M Comparison (Not Comparable)
The 9M Segment Revenue shows total revenue around ₹71 Crores (FY 25-26) versus ₹69 Crores (FY 24-25). The 9M Segment Result for FY 25-26 was 28 Crores, compared to 18 Crores in the previous year.
Feedstock and Energy Trends
The presentation detailed trends in key feedstock spreads:
- Toluene/TDI Spread: Reached its lowest spread of 81 (‘000/MT) in Q1 FY 25-26, widening slightly to 97 by Q3 FY 25-26.
- Methanol/Acetic Acid Spread: Experienced its highest spread of 40 (‘000/MT) in Q1 FY 25-26, narrowing significantly to a lowest spread of 33 in Q3 FY 25-26.
- Benzene/Aniline Spread: Reached its lowest spread of 102 (‘000/MT) in Q3 FY 25-26, down from a high of 131 in Q3 FY 24-25.
In Key Energy Inputs, Oil (Rs./MT) settled at 45 (‘000) in Q3 FY 25-26, showing a 6% Q-o-Q decrease. Natural Gas stabilized at 47 (‘000 Rs./’000 SM3), while Imported Coal remained steady at 11 (Rs./MT).
Expansion Pipeline
GNFC is executing several key projects:
- Coal Based Steam & Power Plant (CCPP) at Dahej: Capacity of 150 MT/Hr Steam & 18 MW Power, expected to commence operations in FY 25-26. This project aims to reduce steam cost and overall TDI operating cost.
- Ammonia Expansion at Bharuch: Capacity of 50 KTPA, scheduled for commissioning in FY 26-27.
- Weak Nitric Acid –III and Ammonium Nitrate -II at Bharuch: Capacities of 200 KTPA and 163 KTPA, respectively, both scheduled for FY 26-27 completion, intended to strengthen market share.
Projects under consideration include BisPhenol-A (BPA) at Dahej (150 KTPA) and Polyols at Dahej (100 KTPA).
Company Strengths
The company highlighted its core strengths which include a Multi-product basket promoting financial stability, Robust manufacturing technologies, and a Strong technical team.
Source: BSE
