Gujarat State Fertilizers & Chemicals (GSFC) Ltd. delivered a steady performance in FY 24-25, registering a top-line growth of Rs 497 crore (6%), largely driven by the fertilizer segment. From a profitability standpoint, EBITDA (excluding other income) improved to 6.67%, compared to 5.40% in FY 23-24, reflecting improved operating efficiency and better cost absorption.

During Q4 FY25, GSFC has reported Operating Revenue of Rs. 1,217 crore as compared to Rs. 1,216 crore in Q4 FY24. PAT in Q4 FY25 stood at Rs. 58 crore as compared to Rs. 21 crore in Q4 FY24.

For FY24-25, GSFC has reported Operating Revenue of Rs. 5,690 crore as compared to Rs. 5,399 crore in FY23-24. PAT in FY24-25 stood at Rs. 573 crore as compared to Rs. 524 crore in FY23-24.

The Fertilizer segment reported a 9% increase in sales revenue YoY, rising from Rs 6,612 crore in FY 23-24 to Rs 7,227 crore in FY 24-25, supported by a 4% volume uplift (+0.79 Lakh MT). Volume growth was driven by higher APS and AS sales. EBIT from fertilizer segment improved from Rs 352 crore to Rs 430 crore. Industrial products revenue moderated by Rs 118 crore (–5%) due to lower sales of all major products.

With a high net worth-to-total assets ratio and a long-term debt-free position, the Company maintains a strong financial foundation, providing ample capacity to fund its capex plans and withstand external volatilities.

Outlook:

GSFC Ltd enters Q1 FY 2025–26 with a cautiously optimistic outlook for its fertilizer segment, supported by a favourable monsoon forecast and timely policy interventions by the Department of Fertilizers (DoF). The early announcement of revised Nutrient-Based Subsidy (NBS) rates, with about 25 % increase in support for DAP and NPK fertilizers, reflects the government’s commitment to ensure adequate availability and stable pricing ahead of the Kharif season.

While the industry continues to face headwinds from elevated raw material costs and constrained global supply of DAP and phosphoric acid, GSFC is actively aligning its production and import strategies to maintain market continuity. With coordinated efforts to augment availability, the company is targeting sales of approximately 4.5 lakh MT in Q1 of FY 25-26. GSFC remains fully aligned with national objectives and is working closely with the DoF to meet the distribution targets set for the upcoming season.

The Caprolactam–Benzene spread is expected to remain under pressure in Q1 FY25-26, with international Caprolactam prices falling below USD 1200/MT and Benzene prices remaining volatile. Escalating US–China tariff tensions heighten the risk of increased dumping of Caprolactam and downstream products into India, impacting domestic realizations. Introduction of Nylon-66 is expected to support diversification and customer reach. Melamine demand from key sectors—laminates, MDF, and plywood—remains stable in both domestic and export markets. While pricing headwinds from Chinese imports persist, overall demand and turnover for the Industrial Products segment are expected to remain stable in Q1 FY25-26.