Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) has reported a 40.3% year-on-year decline in standalone net profit (PAT) to Rs 185 crore for the second quarter of FY27, compared with Rs 310 crore in the corresponding quarter last year.
The company's operating revenue, however, surged 40.9% year-on-year to Rs 2,773 crore in Q2 FY27, against Rs 1,968 crore in Q2 FY26. Total revenue rose to Rs 2,901 crore from Rs 2,095 crore.
Profit before tax (PBT) stood at Rs 241 crore, marginally higher than Rs 230 crore reported in the year-ago quarter.
On a sequential basis, performance weakened. Operating revenue increased 23.9% from Rs 2,238 crore in Q1 FY27, while total revenue rose from Rs 2,339 crore to Rs 2,901 crore. However, PAT dropped 40.3% from Rs 310 crore in the previous quarter, while PBT declined 42.1% from Rs 416 crore.
Commenting on the performance, Managing Director Sanjeev Kumar, said revenue growth during Q2 was primarily driven by higher sales volumes across most products, partly offset by lower realisations.
He said the sequential decline in profitability was mainly due to lower realisations and higher fixed costs, which partially offset the benefits of increased volumes.
On a year-on-year basis, the company attributed the improvement in PBT to higher realisations and sales volumes, partly offset by increased input and fixed costs.
For the first half of FY27, GNFC reported operating revenue of Rs 5,011 crore and total revenue of Rs 5,240 crore. PBT stood at Rs 657 crore, while PAT came in at Rs 495 crore.
The company cautioned that the first-half year-on-year numbers are not comparable due to the annual turnaround at its Bharuch complex during the first half of FY26.
In a key operational development, GNFC said its captive coal-based power plant at Dahej has commenced operations, helping reduce operating costs. The remaining project activities are also nearing completion.
The company also highlighted a favourable revision in Neem Urea energy norms. The energy consumption norm has been increased from 6.20 Gcal per MT to 6.37 Gcal per MT, effective April 1, 2025, a development that GNFC said augurs well for the company.
Meanwhile, the revision of fixed costs for the NCU is being pursued with the government at the industry level, with the task assigned to NITI Aayog.
GNFC said changes in other comprehensive income were attributable to movements in the fair market value of quoted and unquoted investments, along with changes in actuarial assumptions relating to employee benefit obligations.
