GNFC Q1 FY 26-27: Chemicals strength offsets cost pressure as energy inputs rise

Standalone operating revenue was INR 2,238 crores, total revenue INR 2,339 crores, PBT INR 416 crores and PAT INR 310 crores.

Segment revenue was Fertilizers INR 649 crores, Chemicals INR 1,569 crores and Others INR 20 crores. Segment result was Fertilizers loss of INR 85 crores, Chemicals profit of INR 425 crores and Others profit of INR 9 crores.

The Department of Fertilizers revised the NCU energy norm to 6.37 Gcal/MT from 6.20 for 1-Apr-2025 to 31-Mar-2028. GNFC’s preliminary assessment indicated a positive impact of about INR 61 crores for Apr-25 to Jun-26, to be accounted in Q2 FY26-27 after detailed examination.

Management said the steam portion has started and is already replacing gas for steam in TDI-II. Power is expected to start in about 1 month to 45 days from the Aug 06, 2026 call date.

Management said acetic acid, ethyl acetate and to some extent TDI were not run during parts of the quarter due to cost economics/viability issues and weaker offtake, which also contributed to inventory build-up.

Capex incurred in Q1 FY26-27 was about INR 300 crores in CWIP. Management indicated full-year capex targeted at another INR 1,200 to INR 1,500 crores, with most projects expected to be commercially operational around mid-2027 (except CCPP referenced as INR 613 crores project).

Management disclosed cash on hand of around INR 4,000 crores, invested as a mix across government securities, GSFS and banks.