Gujarat State Fertilizers & Chemicals Limited (GSFC) has announced its Q3 and 9-month financial results for FY 2025-26, posting solid growth despite challenging input costs.
For Q3, the company reported a 5% year-on-year sales increase (Rs. 139 crore), 18% growth in PBT (Rs. 28 crore), and a 32% jump in PAT (Rs. 38 crore). For the nine months ending December 31, 2025, operating revenue rose 9% to Rs. 8,206 crore, with earnings per share at Rs. 15.49.
The company reported highest fertilizers production in Q3 (5.07 LMT) and 9M (13.30 LMT) of the last five years, record APS production and sales for Q3 & 9M over the same period and lower natural gas costs, down 2% in Q3 YoY and 6% in 9M YoY.
The fertilizer segment saw revenue rise from Rs. 2,172 crore to Rs. 2,298 crore in Q3, even as sales volumes remained stable at ~6.27 Lakh MT. Segment EBIT moderated to Rs. 119 crore from Rs. 126 crore due to sharp raw material price increases—Phosphoric Acid up 34%, Sulphur up 130%, and Sulphuric Acid up 91%.
Industrial products delivered a steady performance, with sales edging up from Rs. 583 crore to Rs. 596 crore and EBIT climbing to Rs. 9 crore, aided by “a strategic focus on higher Melamine exports, where realizations were stronger than in domestic market, along with higher traded Ammonia sales,” which offset pressures from declining Caprolactam–Benzene spreads (USD 495/MT from USD 588/MT).
“Overall, the Company has a healthy performance in Q3, demonstrating resilience against raw material volatility and sustaining growth momentum across both business segments,” GSFC said.
Capex-led expansion continues: The 198 KTPA Sulphuric Acid (SA-V) plant was commissioned on January 7, 2026. Upcoming projects include the C-Train Modification for APS production at Sikka Unit (1200 MTPD) and Phosphoric Acid & Sulphuric Acid projects (198 KTPA PA & 594 KTPA SA).
Looking ahead: GSFC expects stable demand for the upcoming Kharif season. The company noted: “With favorable seasonal conditions and healthy Rabi sowing in place, the country is well-positioned for a strong harvest…
"While the industry may experience cost pressures from elevated prices of key inputs such as Phosphoric Acid and Sulphur, the company remains focused on disciplined margin management. Strategic priorities include optimizing market opportunities and ensuring calibrated inventory positioning to effectively service demand for the upcoming Kharif season.”
GSFC also highlighted government trade measures as a tailwind for chemical exports: “Government of India’s ongoing trade facilitation measures, including recently executed FTAs / CEPAs with key economies, are expected to improve market access and competitiveness for Indian chemical exports, subject to product-specific tariff outcomes.”
The company expects Caprolactam–Benzene spreads to improve in Q4, supporting margins, while Melamine demand remains steady domestically, with growth in exports, and HX Crystal volumes are projected to rise across domestic and export markets.
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