GSFC Q3 FY26 Results: Net Profit Surges 32% on Record Production

Introduction to GSFC's Q3 Performance

Gujarat State Fertilizers & Chemicals Limited (GSFC) announced strong financial results for the third quarter and nine months ended December 31, 2025. In a board meeting held on February 9, 2026, the company approved its unaudited financials, revealing significant growth in profitability despite facing rising input costs. The company's Profit After Tax (PAT) for the quarter increased by 32% year-on-year, supported by a 5% growth in sales and record operational output. This performance highlights the company's resilience and operational efficiency in a challenging market environment.

Detailed Financial Highlights for Q3 FY26

GSFC's financial statements for Q3 FY26 show robust growth across key metrics. On a standalone basis, total income for the quarter rose to ₹2,949.68 crore from ₹2,810.67 crore in the same quarter of the previous year. The consolidated figures reflect a similar positive trend, with total income reaching ₹2,997.25 crore. Profitability saw a substantial boost, with standalone Profit Before Tax (PBT) growing by 18% to ₹180.79 crore. The consolidated net profit attributable to owners stood at ₹158.06 crore for the quarter.

Note: Q3 FY25 PAT is inferred from the 32% YoY growth figure provided in the source data.

For the nine-month period ending December 31, 2025, the company's consolidated total income was ₹8,553.75 crore, with a net profit of ₹620.86 crore. The Earnings Per Share (EPS) for the nine months improved to ₹15.49 from ₹12.92 in the previous year, indicating enhanced shareholder value.

Operational Milestones and Efficiency

The company's strong financial performance was underpinned by significant operational achievements. GSFC reported its highest-ever fertilizer production in a third quarter, reaching 5.07 Lakh Metric Tonnes (LMT). The nine-month production figure also set a five-year record at 13.30 LMT. Similarly, the production and sale of Ammonium Sulphate (APS) were the highest in the last five years for both the quarter and nine-month periods. A key factor contributing to cost management was a reduction in the price of Natural Gas, which was 2% lower year-on-year in Q3 and 6% lower for the nine-month period.

Segment-Wise Performance Analysis

A closer look at the segmental performance reveals a mixed but overall positive picture.

Fertilizer Segment: This segment remains the primary revenue driver, with sales growing from ₹2,172 crore to ₹2,298 crore in Q3 FY26. However, profitability was under pressure. The segment's EBIT moderated to ₹119 crore due to a sharp increase in the cost of key raw materials. Prices for Phosphoric Acid rose by 34%, Sulphur by 130%, and Sulphuric Acid by 91% year-on-year, impacting margins.

Industrial Products Segment: This segment demonstrated a strong turnaround. Sales increased steadily from ₹583 crore to ₹596 crore in the quarter. More importantly, the segment's EBIT improved to a profit of ₹9 crore. This positive shift was largely driven by better price realizations from Melamine exports, showcasing the company's ability to leverage international markets.

Strategic Expansion and Future Outlook

GSFC is actively pursuing strategic expansion to bolster its production capacity and market position. A significant milestone was the successful commissioning of a new 198 KTPA Sulphuric Acid plant on January 7, 2026. Looking ahead, the company has a clear pipeline of projects, including:

• APS Production Modification: A project at the Sikka Unit to increase APS production to 1200 MTPD, targeted for completion in Q2 of FY 26-27.
• New Acid Project: A major plan for a 198 KTPA Phosphoric Acid (PA) and 594 KTPA Sulphuric Acid (SA) project at the Sikka Unit, slated for FY 27-28.

The market outlook remains cautiously optimistic. Favorable seasonal conditions are expected to support a strong harvest, although fertilizer demand for summer crops may be limited. The company will continue to focus on disciplined margin management to counter input cost volatility. For industrial products, stable demand for Melamine and improved Caprolactam-Benzene spreads are expected to support turnover in the final quarter of the fiscal year.

Shareholding Pattern Update

As of December 31, 2025, the promoter group, Gujarat State Investments Ltd (GSIL), maintained its holding at 37.84%. The largest portion of the shareholding remains with Indian Public & Non-Institutional Investors, whose stake increased slightly to 42.97%. Holdings by FII/FPI saw a marginal decrease to 11.91%.

Conclusion

Gujarat State Fertilizers & Chemicals Ltd delivered a commendable performance in Q3 FY26, marked by strong profit growth and record production volumes. Despite challenges from rising raw material costs, the company's operational excellence and strategic initiatives in its industrial products segment have paid off. With key expansion projects underway and a clear focus on efficiency, GSFC is well-positioned to navigate market dynamics and continue its growth trajectory.