By: ICN Bureau
Last updated : August 06, 2026 9:29 am
Higher energy norm to add Rs. 61 crore in Q2
Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) reported a sharp rise in first-quarter earnings for FY27, with standalone net profit climbing to Rs. 310 crore, nearly four times the Rs. 78 crore posted in the corresponding quarter last year.
Profit before tax (PBT) rose to Rs. 416 crore from Rs. 105 crore a year ago, while total revenue increased to Rs. 2,339 crore from Rs. 1,751 crore.
On a sequential basis, operating revenue edged up to Rs. 2,238 crore from Rs. 2,208 crore in the previous quarter, although PBT declined from Rs. 526 crore and net profit fell from Rs. 392 crore, reflecting higher input and fixed costs.
Commenting on the results, Rajkumar Beniwal, Managing Director, said: "During Q-o-Q Q 1, Revenue marginally increased mainly due to improved realisation across all of the products, which is partially offset by lower volume in majority of products. Result is decreased mainly due to higher input cost and fixed cost partially offset by better realization."
He added: "Y-o-Y Q 1, Revenue & PBT are not comparable due to Annual turnaround in Bharuch complex during Q 1 FY 25-26. The change in other comprehensive income is attributable to change in the fair market value of both quoted and unquoted investments as well as actuarial assumptions of employee benefit obligations."
GNFC also said the Department of Fertilizers (DoF) has revised the energy norm for Neem Coated Urea (NCU) to 6.37 Gcal PMT for the period from April 1, 2025 to March 31, 2028, compared with the earlier norm of 6.20 Gcal PMT.
Based on a preliminary assessment, the revised norm is expected to have a positive financial impact of around Rs. 61 crore for the period from April 2025 to June 2026. The company said the benefit will be recognised in the second quarter of FY27 after detailed examination.
GNFC added that the revision in fixed cost for NCU is being pursued with the Government at the industry level.