GNFC chemicals posted Rs 602 crore six-month profit

Gujarat Narmada Valley Fertilizers & Chemicals Limited reported a Rs 602 crore chemicals segment profit for the six months ended September 30, 2026, more than double Rs 294 crore a year earlier, while its fertilizers segment recorded a Rs 123 crore loss. Chemicals provided the principal improvement in GNFC’s segment earnings during the period.

How did GNFC’s segments perform in the six months ended September 2026?

GNFC’s chemicals segment reported a Rs 602 crore profit in the six months ended September 30, 2026, against Rs 294 crore in the corresponding six months ended September 30, 2025. The company defines its segment result as profit or loss before tax and finance cost from each segment. Fertilizers remained loss-making at Rs 123 crore, although the loss narrowed from Rs 135 crore a year earlier.

The Rs 308 crore increase in chemicals profit was substantially larger than the Rs 12 crore narrowing of the fertilizers loss. The others segment delivered Rs 21 crore, compared with Rs 17 crore in the prior-year period. Total segment results consequently rose to Rs 500 crore from Rs 176 crore, an increase of Rs 324 crore across the three reported business segments.

GNFC’s total segment result was lower than its Rs 657 crore profit before tax because the reconciliation includes unallocable items. Unallocable income was Rs 190 crore in the six months ended September 2026, while unallocable expenditure was Rs 30 crore and finance costs were Rs 3 crore. In the corresponding prior-year period, these items were Rs 192 crore, Rs 30 crore and Rs 3 crore respectively, producing profit before tax of Rs 335 crore.

Did GNFC’s revenue growth come from chemicals or fertilizers?

GNFC’s revenue growth came from both principal segments, but chemicals generated the larger increase. Chemicals revenue rose by Rs 1,033 crore to Rs 3,200 crore in the six months ended September 2026 from Rs 2,167 crore a year earlier. Fertilizers revenue increased by Rs 408 crore to Rs 1,766 crore from Rs 1,358 crore over the same comparison.

Total revenue from operations was Rs 5,011 crore, compared with Rs 3,569 crore in the six months ended September 2025. Chemicals supplied Rs 3,200 crore of the current-period total, versus Rs 1,766 crore from fertilizers and Rs 45 crore from others. The segment table reported no inter-segment revenue in either of the six-month periods.

The disclosed revenue and result figures show a different outcome in the two large segments. Fertilizers increased revenue to Rs 1,766 crore but still posted a Rs 123 crore segment loss. Chemicals combined Rs 3,200 crore of revenue with a Rs 602 crore segment profit, compared with Rs 2,167 crore in revenue and Rs 294 crore in profit in the comparable prior-year period.

What changed for GNFC in the September 2026 quarter?

GNFC’s chemicals segment profit declined sequentially to Rs 177 crore in the quarter ended September 30, 2026 from Rs 425 crore in the quarter ended June 30, 2026. It remained above the Rs 158 crore reported in the quarter ended September 30, 2025. The September and June quarterly figures add to the Rs 602 crore chemicals profit reported for the six-month period.

Fertilizers posted a Rs 38 crore loss in the September 2026 quarter, compared with a Rs 85 crore loss in the June 2026 quarter and a Rs 35 crore loss in the September 2025 quarter. Fertilizers revenue increased to Rs 1,117 crore in the September quarter from Rs 649 crore in June. Chemicals revenue rose to Rs 1,631 crore from Rs 1,569 crore sequentially.

GNFC’s profit before tax was Rs 241 crore in the September 2026 quarter, below Rs 416 crore in the preceding June quarter but above Rs 230 crore in the September 2025 quarter. The sequential movement coincided with the chemicals segment profit declining by Rs 248 crore from June. Profit after tax was Rs 185 crore in September 2026, compared with Rs 310 crore in June 2026 and Rs 177 crore a year earlier.

What do GNFC’s assets, liabilities and cash flow show?

GNFC reported chemicals segment assets of Rs 3,168 crore as at September 30, 2026, compared with Rs 2,785 crore a year earlier and Rs 2,791 crore at March 31, 2026. Fertilizers segment assets were Rs 2,650 crore, up from Rs 1,862 crore a year earlier and Rs 2,147 crore at the preceding year-end. Chemicals segment liabilities were Rs 830 crore, compared with Rs 566 crore a year earlier.

Fertilizers segment liabilities stood at Rs 1,101 crore as at September 30, 2026, against Rs 1,078 crore a year earlier and Rs 1,119 crore at March 31, 2026. GNFC’s standalone total assets were Rs 11,937 crore and total liabilities were Rs 2,754 crore at the six-month date. Unallocated assets were Rs 5,824 crore, while unallocated liabilities were Rs 557 crore.

GNFC’s net operating cash flow declined to Rs 141 crore in the six months ended September 2026 from Rs 314 crore in the prior-year period, despite profit before tax rising to Rs 657 crore from Rs 335 crore. The cash-flow statement recorded a Rs 328 crore increase in trade receivables, including subsidy receivables, and a Rs 249 crore increase in inventories. Cash generated from operations was Rs 288 crore, compared with Rs 420 crore in the corresponding six months.

Conclusion

GNFC’s six-month segment disclosure shows that chemicals drove the improvement in operating segment earnings. Chemicals profit increased by Rs 308 crore to Rs 602 crore, while fertilizers remained in a Rs 123 crore loss despite a Rs 408 crore increase in revenue. Total segment results rose to Rs 500 crore from Rs 176 crore, and profit before tax increased to Rs 657 crore from Rs 335 crore.

The unresolved issues in the disclosed data are whether the fertilizers segment can move beyond its September-quarter Rs 38 crore loss and whether chemicals can sustain earnings after its profit fell from Rs 425 crore in June to Rs 177 crore in September. Working-capital movements also remain relevant because trade receivables, including subsidy receivables, increased by Rs 328 crore and inventories by Rs 249 crore as operating cash flow declined to Rs 141 crore.