Gujarat State Fertilizers & Chemicals Limited (GSFC) announced its financial results for Q2 and H1 FY 2026-27, achieving its ever-highest top-lines. Q2 2026-27 sales stood at ₹4711 Crores, a 50% year-on-year growth, while H1 2026-27 recorded ₹8293 Crores, a 56% YoY increase. Despite revenue growth, the company faced margin compression due to soaring raw material costs.
GSFC Reports Record Top-Lines for Q2 and H1 FY 2026-27
Gujarat State Fertilizers & Chemicals Limited (GSFC) has announced its financial results for the second quarter (Q2) and the first half (H1) of the fiscal year 2026-27. The company achieved its ever-highest top-lines for both periods, demonstrating significant revenue expansion amidst challenging market conditions.
Strong Revenue Growth Driven by Sales Value
In Q2 2026-27, GSFC’s total sales reached ₹4711 Crores, marking a substantial year-on-year growth of 50%. The first half of FY 2026-27 saw revenues climb to ₹8293 Crores, an impressive 56% increase compared to the previous year. This robust growth was primarily attributed to higher sales value, even as raw material prices experienced unprecedented surges.
Fertilizer Segment Performance
The Fertilizer segment reported a 55% year-on-year growth in sales value for Q2 2026-27, increasing by ₹1,386 Crores. This growth was achieved despite a 6% decline in sales volume, from 6.08 LMT to 5.69 LMT. Higher DAP realization, supported by the Government’s DAP Special Package, was a key driver. However, sharp increases in raw material costs, notably Sulphur (+327%) and Natural Gas (+62%), compressed the segment’s EBIT to ₹17 Crores from ₹224 Crores in Q2 2025-26.
Industrial Products Segment Shows Positive Momentum
The Industrial Products segment continued its positive performance, with sales increasing by ₹185 Crores in Q2 2026-27, a 30% growth over Q2 2025-26. EBIT improved to ₹66 Crores from ₹54 Crores, driven by better realizations across major products. Sales of Caprolactam and Nylon saw notable increases, alongside higher volumes for Anone. The Capro-Benzene spread also significantly improved from US$ 512 per MT to US$ 849 per MT.
Outlook and Strategic Focus
Looking ahead to Q3 2026-27, GSFC plans to adopt a proactive and disciplined approach, prioritizing operational efficiency, an optimal product mix, sharper inventory management, and timely market supplies. The company aims to strengthen channel competitiveness and protect sales realizations and profitability in a challenging environment marked by geopolitical uncertainty and evolving global supply dynamics.
Capex and Expansion Plans
GSFC continues to advance its capital expenditure plans. The C-Train Modification for additional 1200 MTPD APS production at the Sikka Unit was commissioned on October 23, 2026. Upcoming projects include the Phosphoric Acid (PA) and Sulphuric Acid (SA) Project at Sikka, targeting 198 KTPA PA and 594 KTPA SA.
Source: BSE
